"Dear Landlord,
Please don't put a price on my soul
My burden is heavy; My dreams are beyond control"
--Bob Dylan, "Dear Landlord", 1967.
At the end of this month, I have a lease expiring and a young couple is moving out of one of my rental properties. The rent that I am asking is $975 per month.
So here I go again, finding a new tenant. I love this process, because it's always good for some laughs!
Oh, the Times, they are a Changing...
Years ago, it was common to use the Sunday newspaper to advertise one's rental properties. However, due to rising ad costs and a generation that uses the Internet instead of the newspaper, the best way to get large responses to a rental ad has now become Craig's List.
Yes, there are other rental web sites as well, but Craigslist.org is probably the most widely accessed site for tenants. And what makes it extra nice is that advertising properties in most areas of the U.S. is free. They do charge a small fee for brokered apartment listings in New York City, but that's about the only place.
But the problem with Craigslist is that the quantity of responses does not always equal quality.
Take for example, this e-mail (reprinted exactly) that I received a few days ago, as a response to my ad:
"Have you ever thought about taking section 8 i seen your ad on craigslist and was wondering if you would work with section 8 its a easy set up and pretty much just gurantee's your money! give me a email and let me know thank you for your time we would be willing to put the rent to 1100"
That paragraph is enough to give an English teacher hives!
Urticaria, aka hives, a common stress reaction to bad writing ...
Gosh, Ethan why are you so mean?!
Because from 15 years of land lording experience, I know that 75% of the time you either never get the remainder of the money, or else you get it far beyond the original promise date.
In addition, the tenant who is trying to work this arrangement is flat out telling you they are short of reserve funds. So what happens if they get laid off, or have their hours cut back?
To protect yourself, you simply must insist that the first month's rent and security deposit be paid prior to any move in date. Some landlords ask for the final month's rent as well, but I have found it very difficult to find tenants who have that much cash to lay out.
In addition, unless there are two weeks or more between payment and the move in date, I ask that the funds be paid in cash, money order, or bank cashier's check.
The last thing you want is Tommy Tenant moving in, and then his personal check bounces!
The funny thing is that the landlord often incorrectly assumes that the tenant will go elsewhere if you insist on all the money up front. Often the tenant has the funds, but they just don't want to part with all of it at one time.
And if they do go elsewhere, you probably haven't lost a great tenant anyway.
I cover examples like these and much more in my new Master Real Estate Investor course.
So at this point, my search for Mr. and Mrs. Right Tenant continues. And as usual, I can't wait to see my next couple of e-mails!
"Dear Landlord,
Please don't dismiss my case
I'm not about to argue
I'm not about to move to no other place..."
See you next week!
Please don't put a price on my soul
My burden is heavy; My dreams are beyond control"
--Bob Dylan, "Dear Landlord", 1967.
At the end of this month, I have a lease expiring and a young couple is moving out of one of my rental properties. The rent that I am asking is $975 per month.
So here I go again, finding a new tenant. I love this process, because it's always good for some laughs!
Oh, the Times, they are a Changing...
Years ago, it was common to use the Sunday newspaper to advertise one's rental properties. However, due to rising ad costs and a generation that uses the Internet instead of the newspaper, the best way to get large responses to a rental ad has now become Craig's List.
Yes, there are other rental web sites as well, but Craigslist.org is probably the most widely accessed site for tenants. And what makes it extra nice is that advertising properties in most areas of the U.S. is free. They do charge a small fee for brokered apartment listings in New York City, but that's about the only place.
But the problem with Craigslist is that the quantity of responses does not always equal quality.
Take for example, this e-mail (reprinted exactly) that I received a few days ago, as a response to my ad:
"Have you ever thought about taking section 8 i seen your ad on craigslist and was wondering if you would work with section 8 its a easy set up and pretty much just gurantee's your money! give me a email and let me know thank you for your time we would be willing to put the rent to 1100"
That paragraph is enough to give an English teacher hives!
Urticaria, aka hives, a common stress reaction to bad writing ...
But beyond the obvious grammatical and spelling atrocities, the
main problem with the response above is that the prospective
tenant is suggesting that we conspire to commit an illegal
act.
You see, Section 8 guidelines say that it is illegal for a landlord and tenant to enter into a side deal or additional lease, other than the main one, for more money.
Since the Section 8 program is only willing to allot a total of $900 for my property (yes, I checked), if the tenant gives me extra money to "put the rent to 1100", we would both be breaking the law.
That didn't seem to deter another prospective tenant, who after I told her it would be illegal for us to sign a secondary private lease for $75 more than the maximum, said, "Well, I could just give you the $75 times 12 months in cash up front".
As landlords, and particularly for those of us who are licensed real estate agents, we must always be well versed in, and respect both Federal and state law. In many ways, these are desperate times, and tenant applicants seem to be more than willing to ask landlords to circumvent the law so they can both get a good deal.
But no "good deal" can make up for losing one's license, nor is it worth going to jail.
You see, Section 8 guidelines say that it is illegal for a landlord and tenant to enter into a side deal or additional lease, other than the main one, for more money.
Since the Section 8 program is only willing to allot a total of $900 for my property (yes, I checked), if the tenant gives me extra money to "put the rent to 1100", we would both be breaking the law.
That didn't seem to deter another prospective tenant, who after I told her it would be illegal for us to sign a secondary private lease for $75 more than the maximum, said, "Well, I could just give you the $75 times 12 months in cash up front".
As landlords, and particularly for those of us who are licensed real estate agents, we must always be well versed in, and respect both Federal and state law. In many ways, these are desperate times, and tenant applicants seem to be more than willing to ask landlords to circumvent the law so they can both get a good deal.
But no "good deal" can make up for losing one's license, nor is it worth going to jail.
Check the Tenant's Credit-entials
Then there were the inquiries from those who have, shall we say, less than stellar credit. The following day, I received this in my e-mail box:
Then there were the inquiries from those who have, shall we say, less than stellar credit. The following day, I received this in my e-mail box:
"When it comes to credit reports they are not so hot...
My boyfriend is going through a divorce so he has a foreclosure
and a repossession on his credit report. And mine is
just credit cards from when my husband left
me."
Well, these days it seems that many tenants are previous owners who have lost their homes to foreclosure. I genuinely have mixed emotions about renting to these people.
On the one hand, they may have already proven that they are not great at either budgeting or decision making (e.g. buying a car and or home they couldn't afford, not having any savings in reserve).
Why would I then expect them to pay their rent in timely and regular fashion?
However, on the other hand, under current mortgage guidelines, they can not buy another home for at least three years. That means they could be long term tenants in my property.
That means fewer vacancies and less maintenance time and expense for yours truly.
But the "boyfriend" mentioned above, who according to the e-mail makes about $44,000 per year, lost both his house and car. And she has credit card "issues" as well.
Just a little bit too much for me to deal with, especially in an age where consumers are now paying car loans and credit cards before their mortgages or rents!
And speaking of boyfriends, while I have nothing against amore, when it comes to brand new love and rent, too often the love fades rather quickly, one moves out, and the rent doesn't get paid!
Then there will be two people crying- the jilted lover and the landlord!
NO LOVE NO MONEY
So my advice to landlords is to favor married couples (or at least long term living together couples) over the boyfriend-girlfriend deal (although most will tell the landlord they are "engaged"), because while marriages certainly can end, the married couple is most often going to be more stable than the recent boyfriend-girlfriend deal.
The final trap to watch out for are promises to pay you later. It goes something like this:
"I can give you part of the rent (or security deposit) now, and the remainder will be next (Tuesday, week, month, year- fill in the blank). Is that ok?"
Well, these days it seems that many tenants are previous owners who have lost their homes to foreclosure. I genuinely have mixed emotions about renting to these people.
On the one hand, they may have already proven that they are not great at either budgeting or decision making (e.g. buying a car and or home they couldn't afford, not having any savings in reserve).
Why would I then expect them to pay their rent in timely and regular fashion?
However, on the other hand, under current mortgage guidelines, they can not buy another home for at least three years. That means they could be long term tenants in my property.
That means fewer vacancies and less maintenance time and expense for yours truly.
But the "boyfriend" mentioned above, who according to the e-mail makes about $44,000 per year, lost both his house and car. And she has credit card "issues" as well.
Just a little bit too much for me to deal with, especially in an age where consumers are now paying car loans and credit cards before their mortgages or rents!
And speaking of boyfriends, while I have nothing against amore, when it comes to brand new love and rent, too often the love fades rather quickly, one moves out, and the rent doesn't get paid!
Then there will be two people crying- the jilted lover and the landlord!
NO LOVE NO MONEY
So my advice to landlords is to favor married couples (or at least long term living together couples) over the boyfriend-girlfriend deal (although most will tell the landlord they are "engaged"), because while marriages certainly can end, the married couple is most often going to be more stable than the recent boyfriend-girlfriend deal.
The final trap to watch out for are promises to pay you later. It goes something like this:
"I can give you part of the rent (or security deposit) now, and the remainder will be next (Tuesday, week, month, year- fill in the blank). Is that ok?"
Gosh, Ethan why are you so mean?!
Because from 15 years of land lording experience, I know that 75% of the time you either never get the remainder of the money, or else you get it far beyond the original promise date.
In addition, the tenant who is trying to work this arrangement is flat out telling you they are short of reserve funds. So what happens if they get laid off, or have their hours cut back?
To protect yourself, you simply must insist that the first month's rent and security deposit be paid prior to any move in date. Some landlords ask for the final month's rent as well, but I have found it very difficult to find tenants who have that much cash to lay out.
In addition, unless there are two weeks or more between payment and the move in date, I ask that the funds be paid in cash, money order, or bank cashier's check.
The last thing you want is Tommy Tenant moving in, and then his personal check bounces!
The funny thing is that the landlord often incorrectly assumes that the tenant will go elsewhere if you insist on all the money up front. Often the tenant has the funds, but they just don't want to part with all of it at one time.
And if they do go elsewhere, you probably haven't lost a great tenant anyway.
I cover examples like these and much more in my new Master Real Estate Investor course.
So at this point, my search for Mr. and Mrs. Right Tenant continues. And as usual, I can't wait to see my next couple of e-mails!
"Dear Landlord,
Please don't dismiss my case
I'm not about to argue
I'm not about to move to no other place..."
See you next week!
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