If interested, I wrote a response to 6x6's thread about how we don't do repairs.

And surprise! A new res texted in

"My shower pipe broke. Do you fix it or do I?" (can you tell he was oriented!)

We responded "Your Rent Discount Program says you make the repairs. If you need help send a photo and my guy can walk you thru it."

An hour later "Thanks, I got it done!"

It's true, people CAN do repairs.

We ALL had to learn somehow. YouTube is our friend!

So what happens when this fixed shower pipe leaks at the joint behind the wall?

I go tenant by tenant on this. Yesterday I let a tenant unstop his own drain, using my sodium hydroxide crystals.

I had the exact same question as Dodge!

Double post of original caught me again. Here is the reply from the other one to keep the largest post running:

I am curious how the shower pipe broke.

Was it the arm? If so, those typically don't break unless there is a lot of weight put on them, and then it can mess with the part that they thread into. I hope the tenant bought some thread tape for the connection as well.

Will be interesting to know how this turns out when (if) the tenant finally leaves.

NOPE NOPE NOPE. I had a tenant that replaced the shower head with their own and never used the tape and water went EVERYWHERE.

I've had tenants claim they replaced all of the electrical outlets in their apartment (I was just coming on as the PM) and when we had an electrician come to figure out why their electric wasn't working in a few rooms - low and behold it was because the one plug that was GFI was installed incorrectly.

They then said "oh and the kitchen light hasn't worked since we moved in 2 years ago". Yeah... that was a blown lightbulb.

I was thinking the same thing zero... and Dodge.

No electrical work or plumbing work for sure.

Copied from the duplicate of this thread... I really am interested in the answer to this.

*****

I get the whole "have the tenants do the repair part." The part that still eludes me is how this means their rent doesn't go up over a 12 month period in exchange.

By definition, leases lock in the rent rate for the duration of the lease... unless you build in stepped increases and everyone agrees to them up front. I have multi-year commercial leases that state:

Lease is for 3 years.

Year 1: Rent $X

Year 2: Rent $X + $100

Year 3: Rent $X + $200

And so forth.

What I'm asking is how does offering the "Rent Discount Program" change things specifically in terms of rent not going up during the lease. It should ALREADY not be going up.

In my hood the tenants skills consist of cutting locks off electric and gas meters. Running wire from your neighbors panel to back feed yours. Piping around a gas meter. Changing locks ....

Just keep the insurance payment current.

Thank you, Brad.

Sid has a good point.

I can see this only in very limited circumstances (cracked toilet seat maybe?). But NEVER for anything related to plumbing.

To me, the rare cases where I would even consider letting a tenant repair something are well outweighted by the other issues that come with this sort of situation (again, such as tenants not telling you about minor issues because they don't want to have to fix them themselves -- which leads to much bigger issues/leaks down the road).

We've talked about how this is a bad idea for years. So weird to see it being pushed by Brad and presented at a MrLL event...

Good conversation! I LOVE talking about this stuff!

Start with facts, not fear - this works. And has worked successfully over 20 years for 1000+ leases/turnovers AND added 7 figures to my income.

My best advice: find a way.

If you want to be or pay a handyman that's OK. I did ALL maint for 55 houses for 20 years and learned I'm not that special. Other people can do the same thing.

When I stopped (took all tools outta the truck) my income mushroomed.

Think about it...they are already doing things to your property without you or permission! They paint even tho the lease said no, they install TV mounts or racks, remove cabinet doors to look like HGTV, change faucets, change locks, add locks, install security systems and speakers, water filters, ceiling fans, dog runs, gardens...

Stop worrying about the odd ducks who use black elec tape to stop leaks.

Here's what changed my mind years ago...

1. Mike Butler teaches to let them paint. I was shocked! He taught me to let them make the house their home so they stay longer. Yes some make a mess - you were going to have to repaint at turnover anyway - but most do a good job.

2. Then I had a few renters who actually IMPROVED my property, saving me tons of money AND increased the value of my home.

We now leave a quart of touch up paint at each home. Saves us time and money when they touch up.

I, like most LLs, thought *I* was the ONLY person IN THE WORLD who could swap a toilet float valve. 99% of house repairs are basic amateur Level 1.

Leaks: Have YOU ever made a repair that did not stick? (most LLs will never admit this ;) Have you ever paid a "handyman" who did it wrong?

One renter is the Maint Super for a large local apt complex. Another is a BMW mechanic. One makes hand carved wood canoes. Another installs solar panels. One restores Corvettes.

Do I dare trust these guys to fix a cabinet door hinge?

No price increase: MANY LLs here are MTM only, refusing to commit to a 12 month lease. Same locally so *I* offer a benefit those MTM LLs don't - price security.

You don't have to believe me or do this. Just offering it as a way to improve your income and reduce your stress.

BRAD

Brad... thanks for all the details... however.

I still don't see how you have a LEASE with rent changes. Please explain that part. I don't need to know anything else about failed repairs from DIY landlords and handymen. I need to know how a YEAR LEASE can have RENT RAISED during the TERM.

Unless you're doing a MTM agreement but agreeing not to boot them for a year. If that's what you're doing, just say so. It will end the confusion. There are at least a half dozen of us scratching our heads out here. If it's "nun'ya business" okay... just say so and I'll stop asking.

It's doubly confusing since you only do RTOs now... so we have RTOs where the rent "might" go up, unless they sign up for the Rental Discount Program?

This is such an unusual system it warrants full explanation. I don't mind unusual but I at least like to understand it.

Thank you.

P.S. I remember Mike Butler. He spoke at Mr. LL Convention once when I was there any probably many other times when I wasn't. While he did have some good ideas, I remember one strategy of his where audience member called him out in front of the group for "offering a deal he'd tell his grandmother not to take." As I recall, he laughed it off and didn't answer, leaving an air of shade in the room that he created for himself. So while he is a creative individual, he also had several of us wondering... "hmmm.... does he SAY one thing but DO another?" I can't say I'd feel 100% comfy doing what he does just because he's the Great Mike Butler.

This all rings the bell of One - Upmanship.

"Let them paint" is a completely different thing than "let them do repairs."

When he said "let them paint", it was about ALLOWING them to paint to KEEP them longer so that they consider their home.

That has very little to do with making them do repairs. (Or, more accurately, them hiding repairs from you because they don't want to do them and know you aren't going to.)

6x6, ouch man, that stings a little.

Zero, I don't mean it like that. How did Brad put it at the convention?

Answering some questions posed:

There is no deposit. The amount they planned to spend on a deposit is now their Non-Refundable Rent Discount Program Fee.

It's a one time FEE and cannot be applied to rent or damages.

Deposits can be a liability for the LL. Some states require it be kept in a separate interest bearing account. Some judges in Indiana will order the LL to return TREBLE (triple) the deposit amount to the evictee. Deposit Settlement documents must be send by certified mail by a certain deadline which can be missed if it hits on a weekend or holiday.

Rent increases: Many here use the clause from my lease about automatic renewal and automatic rent Cost of Living increase. This still applies.

The program guarantees a year lease, not MTM which can be increased every 30 days if the LL wants. People are concerned about rising prices and respond positively to knowing their rent will not go up for at lease 12 months.

TECHNICIALLY, Indiana LL/T law says the term of the lease is the term of the payment. Rent paid every 30 days means the LL can make changes with a 30 day notice on a yearly lease.

Mike Butler is a close friend. I would NEVER write off an entire person over a comment rom an audience member. Who knows who said it and what they meant, and do we know if the speaker actually heard and understood the comment.

I make lots of presentations and often 2 people will say something at the same. I answered one comment but never heard the other person.

For ANY trainer, especially someone as giving and helpful as Mike I will suggest an ounce of grace.

Back to the Rent Discount Program, give it a try. It has worked successfully for us for 20 years, reduced our workload, and added at least 7 figures of CASH straight into my pocket.

BRAD

BRAD

PS Wifey wanted me to add...

How many repairs have your residents already been doing without bothering you. You'd never know unless they told you.