Opinions please.

badmomma · #1 09-11-2008, 02:00 AM

I want some opinions about becoming a landlord. I want to buy
some homes to rent out. I am worried however about the risks
involved and how I can protect myself.

There are so many different ways that a person can hang themselves
when they decide to become landlords. Like not getting leases. Not
getting reciepts for repairs they have had done ectera.

I just want to know if anyone has suggestions or if you have had
some experience renting. Let me know what you think. I want to
get this right the first time around. I hate going to court. LOL

flip_it_fast · #2 09-11-2008, 03:02 AM

I am not going to pretend to know a whole lot about this as I have never been a landlord myself but one important thing I know is to be sure that you have insurance of the proper kind. Make sure that if something would happen to the home/apartment etc. such as fire, that you are not financially liable for any of the renters items or medical bills.

homealone · #3 09-11-2008, 04:30 AM

This is a post I did a short time ago about rental agreements, this may help you a little.

http://www.newhouseflip.com/forum/showthread.php?t=1467

At least I hope it will help you out. Planning on becomming a landlord is a big decision and the more research you do the better off you will be in the end.

JaredfromIndiana · #4 09-11-2008, 12:29 PM

Quote:

Originally Posted by badmomma

I want some opinions about becoming a landlord. I want to buy
some homes to rent out. I am worried however about the risks
involved and how I can protect myself.

There are so many different ways that a person can hang themselves
when they decide to become landlords. Like not getting leases. Not
getting reciepts for repairs they have had done ectera.

I just want to know if anyone has suggestions or if you have had
some experience renting. Let me know what you think. I want to
get this right the first time around. I hate going to court. LOL

My step dad has owned apartments comlexes his whole life and currently owns 4. His #1 rule (AND I MEAN #1) is that rent is due on the 1st and on the 3rd the eviction starts if it's not paid. His thinking is that if one of his tenant doesn't have the money to pay all of their bills, they will pay him first because they know they will get evicted.

Also, I know plenty of landlords that are pushovers and let their clients slide on rent, do them favors, blah blah blah. Don't do it. This is a business and should be treated like one. As soon as you start giving tenants leniancy and whatnot they will walk all over you. Not saying don't be respectful and all those things, just realize that these tenants are not your friends. My opinion...

badmomma · #5 09-11-2008, 08:07 PM

Thanks so much I do worry about loosing money. I won't rent
to friends. Family can live with me. LOL

I just don't want to get caught in a great big mess. I think I
will be ok.

What do you think about having someone manage your buildings?

homealone · #6 09-13-2008, 11:34 AM

Having someone else manage your buildings, takes a whole lot of trust. I say this because many people who I have seen that were managers, dont always do their jobs properly. I mean I have heard about tenants complaining about something needing to be fixed and nothing gets done, or other issues that should have been addressed right away and the so called manager did nothing. I have to say that if you plan on having someone manage your buildings make sure it is someone you think you can really trust to get the job done, and make sure that you personally check up on them as well as ask the tenants how the manager is performing.
Of course this is just my opinion.

JaredfromIndiana · #7 09-13-2008, 03:11 PM

I agree with homealone. If you decide to have a company or individual manage your rentals I would ask around to make sure you find the best one. Talk to title companies, realtors, other landlords and figure out who is good out there and can help you.

I look to start acquiring rentals myself and will manage them until I get 10 or more. I figure if I have less than 10 I can handle it and use my conractor for general maintenance.

One thing to look at too is that a management company will probably charge up to 10% of your monthly rents too. You get $500 for a unit then $50 automatically goes to the management company and that can cut in to your monthly cash flow.

homealone · #8 09-14-2008, 07:38 AM

Well I would have to say that paying 10% to a management company is a decent deal though, especially if they are a good company and are taking care of the property. Granted it can cut into the cash flow, but 10% can be worth the piece of mind.
I have lived in a few places where the landlord or the so called manager of the property did not keep up with issues which needed to be dealt with so this is why I am passionate about finding someone who is willing to deal with issues that come about.

missmanors · #9 09-14-2008, 07:37 PM

Jared, what do you think about hiring an on-site manager? I mean someone that lives in the apartment complex to collect rents, manage the building, make small repairs, or hire someone to do larger ones, etc? Is this more expensive (say giving free rent and a small paycheck) than hiring a large company to manage a building? Or is this adding to the headache? I'm just wondering if you or your stepfather has had any kind of experience in this area.

JaredfromIndiana · #10 09-14-2008, 08:03 PM

My step dad has his leasing agent and maintenance men live on site as much as possible. He gives them 50% off their rent, but they are on call and get paged at all hours of the night sometimes. I actually lived on site for 4 years while I worked for him and helped "keep an eye" on things. I think if you have employees that would be the best way to go. You have to remember though, we're talking about a 206 unit apartment complex.