The Landlord Thread

[snapdragon]

Mar 16, 2021 11:25:43 GMT -5 snapdragon said:

Mar 14, 2021 10:33:51 GMT -5 buystoys said:

We still have our good tenants.  I've been thinking about increasing the rent by $25 per month, but haven't made a decision on that yet.  We still make a nice profit, I'd just like to keep up with the rents in the area a little better.  Housing is difficult to find right now.  Our new neighbors took their house even though it wasn't what they wanted.  They had lost four houses already and needed to have somewhere to live.  Rents have gone up the past two years, but we've kept ours the same.  I don't think they'd move out over $25 per month, but I also don't want to risk it. 

Just rambling here.....  I'll eventually make up my mind.

Remember you also have increasing property taxes that never seem to go down. So a extra $20 or $25 is very reasonable. The money can be added to your maintance accounts in case something goes out or there is damage. 

Heck the HOA at my condo is $387/mo. and I expect the amount to go up here really soon. 

We had our annual HOA meeting earlier this week and I am surprised to say that dues are staying the same and not increasing. But that still does not mean that it won't increase this year. Just not now. I know that our utilities have increased by a min of 7% and any construction costs are up over 170% that they were before the pandemic. I got these directly from people in the industries so it's not just a rumor.

[buystoys]

We decided to increase the rent by $25 per month.  Housing is getting harder to find here and we have a nice 3/2 mobile home on almost an acre.  It's nice and clean and we keep the yard mowed.  Taxes and insurance went up quite a bit last year.  We would make a profit without the increase, but I just don't want to get too far behind the market on rent.  DH looks at them on Facebook all the time and we see a lot of places that aren't as nice as ours going for more.  Sometimes it's a lot more.  We're familiar with the areas and some of the rents surprise me.  But people must be getting it because they go off the market.

[nidena]

When you're deciding on a property to buy for a rental, what sort of formula do you use to determine if it's worth it?

I was talking to someone last night who said they take the annual expected rent x 8 years and if that is less than what it costs to buy/mortgage the place, it's worth it.

I did do online searching for this info but I still didn't understand what I was reading.

In any case, the guy was floored when I stated I'm not looking to get into the rental arena to make buckets of money.  I just want to provide affordable rentals (and not get myself in a hole that can't be gotten out of i.e. I don't want to be a position like so many landlords were last year where they couldn't pay the rental mortgage because they were relying on the tenants rent to cover that cost).

[CCL]

What do you mean by buy/mortgage the place? Are you talking about the sales price + any needed repairs? Or do you mean the minimum amount of cash you have to actually come up with to get into it?

[nidena]

Aug 20, 2021 17:20:10 GMT -5 CCL said:

What do you mean by buy/mortgage the place? Are you talking about the sales price + any needed repairs? Or do you mean the minimum amount of cash you have to actually come up with to get into it?

Just go with the original question:

When you're deciding on a property to buy for a rental, what sort of formula do you use to determine if it's worth it?

[resolution]

After 11 years occupancy, my long term tenants have moved out. In January they requested to go month to month, as they had bought land and were building a home, and they moved out at the end of September. They were good tenants and I hadn't wanted to push them out of the home, so I had just left the rent the same and it had fallen quite a bit under market. I had been charging them $1000 per month and over the years it had gotten a few hundred under market, but the last two years the rental rates have jumped up at an accelerated pace.

The house was vacant for a month, and now I have new tenants that are paying slightly over $1800 per month.  I am not sure how this is sustainable. This is a modest starter home in a decent phoenix suburb, but it is like a 45 minute commute to downtown where the better jobs are. I would never consider paying that much to live there.

[Miss Tequila]

Nov 16, 2021 9:27:40 GMT -5 resolution said:

After 11 years occupancy, my long term tenants have moved out. In January they requested to go month to month, as they had bought land and were building a home, and they moved out at the end of September. They were good tenants and I hadn't wanted to push them out of the home, so I had just left the rent the same and it had fallen quite a bit under market. I had been charging them $1000 per month and over the years it had gotten a few hundred under market, but the last two years the rental rates have jumped up at an accelerated pace.

The house was vacant for a month, and now I have new tenants that are paying slightly over $1800 per month.  I am not sure how this is sustainable. This is a modest starter home in a decent phoenix suburb, but it is like a 45 minute commute to downtown where the better jobs are. I would never consider paying that much to live there.

I’m seeing the same thing here. We just re-rented a 3 bedroom half-double. Last year the rent was $875 and this year it is $1,075. The rent on every vacancy has gone up a minimum of 20% over last year. My units were not under market last year.

This is good for me but it is really pushing out a lot of people

[buystoys]

We decided we'd rather have good tenants than change to more rent.  We did give them a $25 per month increase this year, but we could have gone much higher.  Housing in our area has just exploded.  Again.  It did this right after we moved here, then slowed down for a few years, and now is going gangbusters again.  People who work in Dallas are moving here and dealing with the commute, at least two manufacturies in town have increased their staff significantly, and there are a lot of businesses within a thirty minute drive that have open jobs posted.  This all began before the pandemic and it seems as though WFH has helped a lot of people move away from the rat race a bit.

I think we won't increase the rent next year.  I'd still rather have the good tenants than a few extra bucks every month. 

[Bonny]

Nov 16, 2021 9:27:40 GMT -5 resolution said:

After 11 years occupancy, my long term tenants have moved out. In January they requested to go month to month, as they had bought land and were building a home, and they moved out at the end of September. They were good tenants and I hadn't wanted to push them out of the home, so I had just left the rent the same and it had fallen quite a bit under market. I had been charging them $1000 per month and over the years it had gotten a few hundred under market, but the last two years the rental rates have jumped up at an accelerated pace.

The house was vacant for a month, and now I have new tenants that are paying slightly over $1800 per month.  I am not sure how this is sustainable. This is a modest starter home in a decent phoenix suburb, but it is like a 45 minute commute to downtown where the better jobs are. I would never consider paying that much to live there.

It's those d*mn Californians!   At least that's what my friends tell me.

We were shocked that the lot across the street from our AZ house sold last Tuesday for about $630k.
This is zoned SFR and is 1.7ac in a nice area but still...We're in AZ for the month and met the buyers. Thankfully they are planning to build a 4,000' single level home. I bet it will be $2M when it's done.

[Sunnyday]

Just asking a general question to landlords, I'm currently in an apartment. 

I want a dog, and I knew that going in that we couldn't have pets. I live in a quadplex (4 apartments), and everyone has pets (grandfathered in from the previous owner).

I waited about 1 year to prove that I was clean and responsible before asking whether they would reconsider a dog. I anticipated that the answer would be no, but I suggested that I pay them 500 as pet deposit.

BTW, security deposit and pet deposit are not allowed where I live. 

They still said no, but there was a moment's hesitation. She said that there was a lot going on in her personal life, and we can talk about it later.  She said that a cat would be acceptable but not a dog. So obviously, "no pets" was negotiable. 

I totally get why she would say no, but having good tenants is a dream.  I just want to present it to her that way, I'm a good tenant (the others are not, and I know that they are not.) How long I stay in this apartment depends on how much I can ignore the desire to have a dog.  

Am I wasting my breathe if I ask her again in about 4 months?  If you are hard-core against pets in your rental units, could your mind be changed?

Thanks!

[raeoflyte]

Jan 14, 2024 22:52:27 GMT -5 Sunnyday said:

Just asking a general question to landlords, I'm currently in an apartment. 

I want a dog, and I knew that going in that we couldn't have pets. I live in a quadplex (4 apartments), and everyone has pets (grandfathered in from the previous owner).

I waited about 1 year to prove that I was clean and responsible before asking whether they would reconsider a dog. I anticipated that the answer would be no, but I suggested that I pay them 500 as pet deposit.

BTW, security deposit and pet deposit are not allowed where I live. 

They still said no, but there was a moment's hesitation. She said that there was a lot going on in her personal life, and we can talk about it later.  She said that a cat would be acceptable but not a dog. So obviously, "no pets" was negotiable. 

I totally get why she would say no, but having good tenants is a dream.  I just want to present it to her that way, I'm a good tenant (the others are not, and I know that they are not.) How long I stay in this apartment depends on how much I can ignore the desire to have a dog.  

Am I wasting my breathe if I ask her again in about 4 months?  If you are hard-core against pets in your rental units, could your mind be changed?

Thanks!

We've always allowed pets - with your same line of thinking. Many Long term good tenants have pets and we want them to treat the place like their home. So I'm not the right one to answer your question.

I would look at when you can get out of your lease, window shop other units, and bring it up to her when you're in the notice period. If you're already on a month to month where you can leave at any time. 4 months seems more than reasonable. I'd run it on your time table.

[Bonny]

Jan 15, 2024 8:15:22 GMT -5 raeoflyte said:

Jan 14, 2024 22:52:27 GMT -5 Sunnyday said:

Just asking a general question to landlords, I'm currently in an apartment. 

I want a dog, and I knew that going in that we couldn't have pets. I live in a quadplex (4 apartments), and everyone has pets (grandfathered in from the previous owner).

I waited about 1 year to prove that I was clean and responsible before asking whether they would reconsider a dog. I anticipated that the answer would be no, but I suggested that I pay them 500 as pet deposit.

BTW, security deposit and pet deposit are not allowed where I live. 

They still said no, but there was a moment's hesitation. She said that there was a lot going on in her personal life, and we can talk about it later.  She said that a cat would be acceptable but not a dog. So obviously, "no pets" was negotiable. 

I totally get why she would say no, but having good tenants is a dream.  I just want to present it to her that way, I'm a good tenant (the others are not, and I know that they are not.) How long I stay in this apartment depends on how much I can ignore the desire to have a dog.  

Am I wasting my breathe if I ask her again in about 4 months?  If you are hard-core against pets in your rental units, could your mind be changed?

Thanks!

We've always allowed pets - with your same line of thinking. Many Long term good tenants have pets and we want them to treat the place like their home. So I'm not the right one to answer your question.

I would look at when you can get out of your lease, window shop other units, and bring it up to her when you're in the notice period. If you're already on a month to month where you can leave at any time. 4 months seems more than reasonable. I'd run it on your time table.

I just want to support Raeo's logic as a former LL, especially if your rental market is kind of soft. I only had minor problems with the pets. It was the people that were the problems! 

[Sunnyday]

Yes, I really don't get the resistance to animals.

They can do damage, but it's usually because of the their humans. 

And that human, with or without a pet, would do damage to a property.

I ran the numbers, and I don't think it makes sense to buy soon.  I can't get a dog unless my living arrangements are stable. 

My (future) dog deserves a forever home. 

[Tiny]

I think the real issue isn't if you are a renter and your current landlord allows pets... it's will your NEXT landlord allow pets.   As in how easy will it be to find a rental that allows pets.  

That's the biggest problem where I live - you rent a pet friendly property.  you get your pet. then 2 or 3 years later you need to move.  And you can't find a rental that allows pets in your price range.  What do you do?   Go homeless? Give up the pet?  Settle for an expensive less desirable (to you) rental that allows pets?

[Sunnyday]

Jan 19, 2024 16:26:17 GMT -5 Tiny said:

I think the real issue isn't if you are a renter and your current landlord allows pets... it's will your NEXT landlord allow pets.   As in how easy will it be to find a rental that allows pets.  

That's the biggest problem where I live - you rent a pet friendly property.  you get your pet. then 2 or 3 years later you need to move.  And you can't find a rental that allows pets in your price range.  What do you do?   Go homeless? Give up the pet?  Settle for an expensive less desirable (to you) rental that allows pets?

Yes, that is why I won't get a dog now. I'm hoping to stick it out in this apartment for as long as I can, and then get a condo.  But I'm 98% sure that my next place will not be another rental. 

I can't wait for the day that I see a fluffy dog greet me when I get home. 

[resolution]

I never felt strongly about it, but I have just followed the guidance of my property manager. Initially they had recommended no pets due to the damage that pets can do, and it was never an issue because none of my tenants requested a pet. However a few years ago the property management company was bought by another company that recommended allowing pets. They charge my tenants $100 a month pet rent, which they keep, and then the property management company is responsible to repair any pet damage when the tenants move out.

If you are confident that you will be buying your next residence when you move out, it might be worth revisiting it with the landlord in a few months. It doesn't seem realistic for her to ban you from having pets when the other tenants can have them.

[Sunnyday]

Jan 19, 2024 19:54:48 GMT -5 resolution said:

I never felt strongly about it, but I have just followed the guidance of my property manager. Initially they had recommended no pets due to the damage that pets can do, and it was never an issue because none of my tenants requested a pet. However a few years ago the property management company was bought by another company that recommended allowing pets. They charge my tenants $100 a month pet rent, which they keep, and then the property management company is responsible to repair any pet damage when the tenants move out.

If you are confident that you will be buying your next residence when you move out, it might be worth revisiting it with the landlord in a few months. It doesn't seem realistic for her to ban you from having pets when the other tenants can have them.

That's high! per month? And it's not like a deposit? So if the pet does no damage, the tenants are never getting the money back?

[resolution]

Jan 20, 2024 19:57:52 GMT -5 Sunnyday said:

Jan 19, 2024 19:54:48 GMT -5 resolution said:

I never felt strongly about it, but I have just followed the guidance of my property manager. Initially they had recommended no pets due to the damage that pets can do, and it was never an issue because none of my tenants requested a pet. However a few years ago the property management company was bought by another company that recommended allowing pets. They charge my tenants $100 a month pet rent, which they keep, and then the property management company is responsible to repair any pet damage when the tenants move out.

If you are confident that you will be buying your next residence when you move out, it might be worth revisiting it with the landlord in a few months. It doesn't seem realistic for her to ban you from having pets when the other tenants can have them.

That's high! per month? And it's not like a deposit? So if the pet does no damage, the tenants are never getting the money back?

Yes, it's a fee the tenants pay every month and don't get back. It goes to the property management company and isn't paid to me. If the pet pees all over and the carpet needs to be replaced, the property management company eats the cost; but if the pet causes no damage, it is pure profit to the management company. I'm not a fan of it, but it doesn't bother me enough to find a new company.

I brought it up mostly so you would know that type of arrangement is out there, as you may run into it in the future. 

[Opti]

Jan 20, 2024 19:57:52 GMT -5 Sunnyday said:

Jan 19, 2024 19:54:48 GMT -5 resolution said:

I never felt strongly about it, but I have just followed the guidance of my property manager. Initially they had recommended no pets due to the damage that pets can do, and it was never an issue because none of my tenants requested a pet. However a few years ago the property management company was bought by another company that recommended allowing pets. They charge my tenants $100 a month pet rent, which they keep, and then the property management company is responsible to repair any pet damage when the tenants move out.

If you are confident that you will be buying your next residence when you move out, it might be worth revisiting it with the landlord in a few months. It doesn't seem realistic for her to ban you from having pets when the other tenants can have them.

That's high! per month? And it's not like a deposit? So if the pet does no damage, the tenants are never getting the money back?

In complexes near me it is generally at least $50/mo and can be as high as $100 to $150 mo. for one small dog. Yes, it is considered rent as cats and dogs can have an impact on noise and apartment property like walls, floors, carpets. I do hear my downstairs neighbor's dog from time to time. 

Less expensive states may have lower charges. The complex I am in decided to allow pets during the pandemic as a way to generate more income for the landlord. And it may have kept net income up during the huge job loss phase of the pandemic.

[Knee Deep in Water Chloe]

Jan 20, 2024 19:57:52 GMT -5 Sunnyday said:

Jan 19, 2024 19:54:48 GMT -5 resolution said:

I never felt strongly about it, but I have just followed the guidance of my property manager. Initially they had recommended no pets due to the damage that pets can do, and it was never an issue because none of my tenants requested a pet. However a few years ago the property management company was bought by another company that recommended allowing pets. They charge my tenants $100 a month pet rent, which they keep, and then the property management company is responsible to repair any pet damage when the tenants move out.

If you are confident that you will be buying your next residence when you move out, it might be worth revisiting it with the landlord in a few months. It doesn't seem realistic for her to ban you from having pets when the other tenants can have them.

That's high! per month? And it's not like a deposit? So if the pet does no damage, the tenants are never getting the money back?

I've not been a landlord since 2017, but I charged $25/month per pet limit of three pets. And my charge was way below average. 

[Bonny]

I never got into the nickel and diming of pet "rent" and pet deposits. I haven't checked in a while but I don't think CA will allow for a pet deposit. It's one deposit which I think is now limited to 1mos rent which sucks because all you need is one tenant who skips out on a rent plus leaves a mess.

[TheOtherMe]

The last two complexes I lived in had nonrefundable pet deposits plus pet fees.  I had 2 cats.  That adds up.  

They also each charged a nonrefundable cleaning fee at move in plus a damage deposit.  

I got all of my deposit money back, but those non refundable fees really bite.