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Old 08-08-2014, 15:07   #46
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Re: Rental Income While Cruising

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PLEASE tell me you won that...?
tbc
It cost $14,000 in legal fees, bribery, damages, utilities and lost rent for an eviction lawyer to get them out.
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Old 08-08-2014, 15:09   #47
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Re: Rental Income While Cruising

Just reading all these posts makes me doubly thankful I've never invested in rental properties. I can check my stocks/bonds/funds online in a few minutes and make any changes in a few more minutes. And I don't have to do it every day or even every week.
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Old 08-08-2014, 15:11   #48
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Re: Rental Income While Cruising

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You don't have any idea of what you are talking about. Therapy dogs?? The drug addict squatters were living in my commercial office building which isn't zoned as an apartment. You need to work on you reading comprehension.

But your probably right.... I should get someone more experienced to run the place... I've only been doing it for 18 years.

Only 18 years? Just barely a beginner.

Doesn't matter how careful you are and what kind of research databases you check, you can get burned. My mother-in-law managed rental properties for a living. She once rented a house to a family that looked perfect. Husband worked at the bank, wife was a teacher, one kid, no pets. When they moved out after a year the house was filled with garbage, rotted food all over the kitchen, dog feces all over the floor, holes in the walls where the husband had punched it. Damage was over $10,000 there as well.

House next door is a rental, nice middle-class neighborhood. The landlords are two brothers that have about 25 houses they rent around the city so they are not neophytes. They intentionally price their rentals a little below market, for two reasons. One it keeps them filled but mainly so they get a lot of applicants and they can screen carefully to pick and choose the tenants.

Last year they had a woman move in next door who presented written references from previous landlords and a letter from a lawyer documenting her employment. The landlords called the references and everything checked out. She moved in, paid first, last and deposit and never another dime. Turned out her name was an alias, all the references were forgeries and she had people set up to answer the phones to lie about her. Took them six months to evict her. Police showed up a few days after she left looking for her. Seems like she was a professional con artist and this is how she lives.

A friend rents a couple of houses outside town. Couple of years ago she rented to a nice couple who turned her house into an indoor pot farm. She had to gut half the house to repair the water damage, mold and rot.

You might get lucky but I would not rent property unless I was there to check on it or I had someone really good to do so.
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Old 08-08-2014, 15:29   #49
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Re: Rental Income While Cruising

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Originally Posted by onestepcsy37 View Post
Just reading all these posts makes me doubly thankful I've never invested in rental properties. I can check my stocks/bonds/funds online in a few minutes and make any changes in a few more minutes. And I don't have to do it every day or even every week.
On a more positive note, a guy I used to work for has been buying rental houses for years. He has about 20 now, most are paid off and all by the rental income. He focused on cheaper, mostly student housing (big college town) and I think the average value of his houses is around $100,000. So he how has about $2,000,000 in equity in his properties for no capital investment beyond the first couple he bought.

Sure he has occasional headaches but that's just the nature of the business. Kind of wish I had done this about 20 years ago.
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Old 08-08-2014, 16:12   #50
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Re: Rental Income While Cruising

The landlord

The Landlord from Will Ferrell, Adam "Ghost Panther" McKay, Funny Or Die, and Drew Antzis
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Old 08-08-2014, 18:59   #51
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Re: Rental Income While Cruising

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You don't have any idea of what you are talking about. Therapy dogs?? The drug addict squatters were living in my commercial office building which isn't zoned as an apartment. You need to work on you reading comprehension.

But your probably right.... I should get someone more experienced to run the place... I've only been doing it for 18 years.

This summers problem is an office tenant who likes to smoke pot. All the other tenants are demanding I do something about the way he smells like pot. But thanks to the nutty dumbass voters in Massachusetts who voted two years ago to legalize pot for medical use... there's not much I can do about it without violating his new right to smell like weed.
Kenomac I manage around 250 units of mixed commercial and residential. I have a pretty good idea of how the process works.

I am not trying to get in an argument with you about whether you are a competent landlord. One of my questions that I am hoping you can answer is why she was still living there after six months of not paying rent. That really sounds surprising to me. Or where you using six month to denote a long time and its was just a hyperbole?
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Old 08-08-2014, 19:05   #52
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Re: Rental Income While Cruising

Rental Income Baby....it paid for our monthly cruising nut and it is a great way to build wealth. Sure you have headaches here and there...but I don't remember turning on CNBC to see the value of my rental portfolio in freefall. Rent comes in...cash the check...and evey once in a while fix a water heater, garage door or kick a deadbeat out on their ass. The ROI on my rental property over the last 10yrs has made the stock market return look like peanuts.
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Old 08-08-2014, 20:26   #53
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Re: Rental Income While Cruising

My daughter & family use AIR B&B to rent their Denver home any time they are gone.
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Old 13-08-2014, 16:54   #54
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Re: Rental Income While Cruising

We have 4 units in our CC town house. Real nice neighborhood and we have had minimal trouble with renters.

But we have noticed a marked change in HOW things are rented in the last 20 years. Back then if I advertised in the community paper I would get hundreds of responses, too many. So I would simply put a notice on the front door with some copies of the notice. I would still get many interested parties.

Then we went for a long time where we either had stable renters (up to 17 years) or the places were rented by the outgoing renters through word of mouth.

In the past few years we had some relatively short term turn overs (2 years) and now notice that...
1. The paper gets NO response
2. The notice on the door gets meager response
3. Craigs List is lame, we have to repost every three days
4. Zillow is lame, almost no responses
5. Trulia was moderately effective, but still had few responses
6. Many apt. seekers have let their old lease run out before even starting to look. Either they can't rent our place because they need something sooner, or they have to beg a crash site for a week or two.

That said I raised the rent this time, pushing the local going rate and I got both units rented out OK. We have one unit where we have let the rent get too low and we need to correct that. Even at that those three carry the building expenses and mortgage. Mortgage will be gone in three years.

But when we go cruising our first floor owners unit will become a rental income source, as will our parking spot. That will be nearly found money and with SS should give us a nice budget.
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Old 23-08-2014, 20:00   #55
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Re: Rental Income While Cruising

Good luck with depending on something holding up for the duration. Liquidate, invest and then go. Invest in what you say? Try ford or intel, up 38 % in the last 8 months, then again, they might fold too.


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Old 05-12-2014, 09:01   #56
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Re: Rental Income While Cruising

This is how it should work, and the people I contract to do just this.
Rental arrangements are on a state by state basis, as its a state law control

In SA, agencies will charge a management fee (typically 8-10%) and 'manage' the rental of the property from there. They advertise and select clients, they collect references from potential candidates and if successful they visit the property every 6 weeks to check how its going. They have a prepared photograph file to compare with the existing, and they will negotiate with the clients if things appear to be going amiss.

If it all goes south, properties are on a bond system managed by a Trust, if monies need to be exacted from the client, the bond is accessible to the owners or property managers to cover damages etc. Property managers themselves usually keep a list of tradespersons to take care of plumbing, painting issues etc., there really isnt a need for the owners of a property to be present at all.

I have no doubt they extract more money from you for special services, but considering they manage virtually everything, and that the expenses are in any event deductible, I figure they earn their money.

They themselves are aware that this kind of business can generate a lot of money for them, and some agencies have quite large rent rolls they take great care of. All you need to provide is the property, and yes they can find you one if you dont have one!

the caveat I can think of is, it may come about that the property needs to be appropriate for their niche of clientele> It isn't about what you find acceptable, its what 'they' need for the kind of clients they deal with.
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Old 05-12-2014, 10:39   #57
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Re: Rental Income While Cruising

Zulu-
It is pretty much the same in the US, except both state and local (municipal or county) laws apply. And there is no "trsut" or bond, a security deposit is taken and that's usually restricted by law to a nominal amount, i.e. one or two month's rent.


Finding a "good" property manager is still a potluck, some don't perform well, and while others do perform well, you'll still find the occasional problem like a luxury home, rented out to "good" tenants, being used as a meth lab or grow farm. Ooops, the entire property can be confiscated if it doesn't burn down first.


So for some being an absentee landlord works out well. For others, especially newcomers who have not been in the business and have not been able to closely observe how well a manager performs, it can be a financial disaster.
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Old 05-12-2014, 11:24   #58
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Re: Rental Income While Cruising

Here's an example of the latest crap I've had to put up with as a commercial office landlord. Bitcoin mining. I rented a small office ($250 per month, utilities included) to a seemingly nice guy who tells me he'd like to move his home office to a professional building to create some quiet workspace for himself. Asks me if it's OK to have his PC on the buildings wifi account, I say yes and head over to the Med to enjoy the summer.


Two months later I get word that there are loud fans running in the office and the A/C is running 24/7, then I get an electric bill that's $500 per month more than before the ahole moved in. So by the time I discover the source of the radical increase, four months have gone by, I get him to move out in 30 days, but... I'm stuck with a $1000 electric bill over and above what he paid me in rent.


The guy had set up a Bitcoin mining operation running 3-4 servers, computers, A/C units etc. His intent from the beginning was to steal electricity. Yes, I employ a property manager while I'm gone, but it's the first time for him also to discover this sort of operation. Of course there's a clause in the lease agreement to hopefully prevent this sort of thing, but it's nearly impossible to protect yourself against every possible scam. I'd never even heard of this sort of Bitcoin thing before it cost me $1000.


Because it involved commercial property, I was able to get him out in 30 days. If it had been an apartment or a house I was renting out, the guy could have easily (in the state of Massachusetts) put the electricity back in my name or intentionally not put it in his name, and continued to run up the bill for months following the discovery.... possibly more than a year if he had kids.
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Old 05-12-2014, 11:33   #59
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Re: Rental Income While Cruising

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Here's an example of the latest crap I've had to put up with as a commercial office landlord. Bitcoin mining. I rented a small office ($250 per month, utilities included) to a seemingly nice guy who tells me he'd like to move his home office to a professional building to create some quiet workspace for himself. Asks me if it's OK to have his PC on the buildings wifi account, I say yes and head over to the Med to enjoy the summer.


Two months later I get word that there are loud fans running in the office and the A/C is running 24/7, then I get an electric bill that's $500 per month more than before the ahole moved in. So by the time I discover the source of the radical increase, four months have gone by, I get him to move out in 30 days, but... I'm stuck with a $1000 electric bill over and above what he paid me in rent.


The guy had set up a Bitcoin mining operation running 3-4 servers, computers, A/C units etc. His intent from the beginning was to steal electricity. Yes, I employ a property manager while I'm gone, but it's the first time for him also to discover this sort of operation. Of course there's a clause in the lease agreement to hopefully prevent this sort of thing, but it's nearly impossible to protect yourself against every possible scam. I'd never even heard of this sort of Bitcoin thing before it cost me $1000.
Amazing. Just when you think you've heard it all some new scam pops up.

I know two people that were burned by pot growing operations. One just across the street. In both cases the tenants paid the power bills but the indoor hydroponics operation, leaking and high humidity rotted out half the walls and flooring and all the sheetrock was black with mold.

Thousands and thousands in repairs.
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Old 05-12-2014, 12:40   #60
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Re: Rental Income While Cruising

Ken, a thousand bucks of electricity is nothing compared to what a growhouse could have pulled. This is one reason many landlords operate "net net net" with no utilities, or put some kind of cap on the utilities to be supplied. Perils for the unwary who watch infomercials and sail off before they've had these pleasures.
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