I got started on my latest rental project today, which is a doublewide. I previously poured the footer and had the house set, blocked, and leveled. Today, we hooked up the sewage and drain lines under the house. When I purchased the house, the mobile home mover cut the sewage and drains off. The trick today was to put them back together. While this sounds easy, it was like putting together a jigsaw puzzle. It took a solid hour trying to determine which section of pipe went in each location. After a lot of trial and error, I finally figured it out and got it all put back together.
In addition to working on this project, I also mowed the grass at one of my apartment buildings and one of my houses.
Thursday, August 30, 2007
Wednesday, August 29, 2007
Busy Little Day
Today was a busy little day. I started out this morning meeting the new tenant for my duplex. We filled out all the forms: the lease, pet addendum, emergency notification form, lead paint disclosure, and move-in/move-out form. She has already paid the deposit and the rent, so I gave her the keys and she is ready to move in!
Then, I went to finish the room I have been rehabbing. For a 100+ year old room where absolutely nothing is straight or level, it turned out alright. The biggest improvement is the floor. Before the rehab, it ran downhill at such a slope that you could literally see everything leaning. Now, the floor is perfectly level and the room looks a lot better. Today, I put on the final trim pieces and painted the room. In addition, I repaired the bathtub spout that was broken off a couple of days ago by the tenant's young son (when he fell on it). I am happy to report that this job is finally done. Tomorrow, I'll be moving on to doing the initial plumbing work for our latest doublewide rental.
In addition to everything else, I also picked up the first two September rents. Rent collections for September are just around the corner!
Then, I went to finish the room I have been rehabbing. For a 100+ year old room where absolutely nothing is straight or level, it turned out alright. The biggest improvement is the floor. Before the rehab, it ran downhill at such a slope that you could literally see everything leaning. Now, the floor is perfectly level and the room looks a lot better. Today, I put on the final trim pieces and painted the room. In addition, I repaired the bathtub spout that was broken off a couple of days ago by the tenant's young son (when he fell on it). I am happy to report that this job is finally done. Tomorrow, I'll be moving on to doing the initial plumbing work for our latest doublewide rental.
In addition to everything else, I also picked up the first two September rents. Rent collections for September are just around the corner!
Tuesday, August 28, 2007
A Little Excitement
Things have been a little boring lately - just the way I like it! We really haven't had any significant tenant problems for quite some time. This evening, I received a call from one of my tenants who said that she thought one of her troubled relatives had broken into 1/2 of a duplex that we are preparing to rehab and that he was still there, probably on a drug binge. I jumped in the truck and headed to town to investigate. Just as she said, his bike was parked outside. I checked the doors, which were still locked, but did find a broken window which had been pushed in.
I carefully searched the property, but no-one was there. After checking with the tenant in the other half of the duplex, I found out that the sheriff had been there earlier in the day looking for the criminal. They apparently found him in the area and arrested him, which was why his bike was still there. No harm done, except a short interruption to my evening.
Earlier in the day, I completed almost all the work on the room I was rehabbing. Today, I built a new closet and installed new paneling on a couple of the walls. I still have a little painting and a couple of pieces of trim to install tomorrow and then I'll be done. My next project is to do all the work on a doublewide that will be my latest rental. The doublewide is already set on the footer and I've got to install the electric, water, septic system, and lay the blocks around the perimeter. I've already got a deposit to rent the doublewide for October, so I'll have to work fast!
I carefully searched the property, but no-one was there. After checking with the tenant in the other half of the duplex, I found out that the sheriff had been there earlier in the day looking for the criminal. They apparently found him in the area and arrested him, which was why his bike was still there. No harm done, except a short interruption to my evening.
Earlier in the day, I completed almost all the work on the room I was rehabbing. Today, I built a new closet and installed new paneling on a couple of the walls. I still have a little painting and a couple of pieces of trim to install tomorrow and then I'll be done. My next project is to do all the work on a doublewide that will be my latest rental. The doublewide is already set on the footer and I've got to install the electric, water, septic system, and lay the blocks around the perimeter. I've already got a deposit to rent the doublewide for October, so I'll have to work fast!
Monday, August 27, 2007
New Door Installed!
I got the pre-hung steel door installed into the room we're rehabbing. This door exits to the deck in the back yard. I thought it would be an easy job, but it turned out being a little more complicated than first thought. The challenge was that very little extra space existed between the deck floor and the suspended ceiling. The door required an 82 inch vertical opening and the maximum vertical space was only about 82 1/2 inches. There was only about 1/2 inch to spare and that required everything to be cut just right. Fortunately, I got everything cut correctly the first time and the door fit like a glove (a very tight glove).
This evening, I've got to finish the last three months of taxes for one of my rental property companies. I use Quickbooks Pro for inputting all the accounting data. That should only take an hour or two.
This evening, I've got to finish the last three months of taxes for one of my rental property companies. I use Quickbooks Pro for inputting all the accounting data. That should only take an hour or two.
Saturday, August 25, 2007
New Floor
Despite a 100+ year old floor that was in terrible shape and a room that didn't have a single straight wall or square corner, the new floor in my 5 bedroom house is done! Yesterday, I spent about 4 hours installing the remaining few floor joists and installing the floor. Today, I spent about 2 hours laying the new carpet and it looks great!
Monday, I'll be adding a new door to the room and then hopefully finishing everything up no later than Tuesday.
Monday, I'll be adding a new door to the room and then hopefully finishing everything up no later than Tuesday.
Thursday, August 23, 2007
Nothing Level or Straight!
I continued the rehab on the antique floor today. Unfortunately, after more than 100 years, nothing in the room is level or straight, which makes it difficult to install new floor joists (or anything else for that matter). At any rate, we leveled everything up as much as possible and started installing the new floor joists, which are pressure treated 2 x 8's. I nearly completed the floor joists and am really looking forward to getting the floor installed tomorrow.
At any rate, even though the work has been difficult, it was certainly better than being outside today. We have been having a heat wave and the temperature was 102 deg F today! It was a great day to be working in an air conditioned house! More rehabbing tomorrow.
At any rate, even though the work has been difficult, it was certainly better than being outside today. We have been having a heat wave and the temperature was 102 deg F today! It was a great day to be working in an air conditioned house! More rehabbing tomorrow.
Tuesday, August 21, 2007
Rehabbing an Antique
Today I started the rehab on the downstairs bedroom of one of my OLD houses. In fact, this house is such an antique, the "date built" listed by the county auditor is simply "OLD". This house was certainly built in the 1800s and the downstairs bedroom was showing its age. The problem was that the floor is VERY soft and there were some signs of settling of the walls. This room adjoins a nice deck and while I'm rehabbing this room, I will also install a new door out to the deck.
I started the rehab by removing a small section of the floor to take a look. I was quite honestly shocked that there was virtually nothing below the floor. It was obvious that this bedroom started its existence as a porch. The floor was not connected to the walls in any way. There was also no foundation below the floor - only some old blocks and some old wood planks that had served as makeshift floor joists. These joists were touching the damp ground and were so rotted that you would literally crush them in your hand. I had hoped that much of the floor could be saved, but that was not the case. I therefore removed the entire floor and hauled it all to the dump.
There was a little good news. Although the walls have certainly settled some in the last 150 years, the rough sawn wood in the walls was very good and the rock foundation was in place. As with many old houses, this house was built in stages. The front of the house was the original house from the 1800s. This bedroom started out as a porch and was later enclosed and turned into a bedroom. In the 1900s, a kitchen was added onto the original house with a modern block foundation. Finally, in th 1990s, a second story addition was made above the downstairs bedroom and the kitchen. With our rehab of the downstairs bedroom floor, the house should be good for another 100 years!
I started the rehab by removing a small section of the floor to take a look. I was quite honestly shocked that there was virtually nothing below the floor. It was obvious that this bedroom started its existence as a porch. The floor was not connected to the walls in any way. There was also no foundation below the floor - only some old blocks and some old wood planks that had served as makeshift floor joists. These joists were touching the damp ground and were so rotted that you would literally crush them in your hand. I had hoped that much of the floor could be saved, but that was not the case. I therefore removed the entire floor and hauled it all to the dump.
There was a little good news. Although the walls have certainly settled some in the last 150 years, the rough sawn wood in the walls was very good and the rock foundation was in place. As with many old houses, this house was built in stages. The front of the house was the original house from the 1800s. This bedroom started out as a porch and was later enclosed and turned into a bedroom. In the 1900s, a kitchen was added onto the original house with a modern block foundation. Finally, in th 1990s, a second story addition was made above the downstairs bedroom and the kitchen. With our rehab of the downstairs bedroom floor, the house should be good for another 100 years!
Sunday, August 19, 2007
1 Taco
Well, not really 1 taco, what I mean to say is only 1 TO GO! That's right, I rented my 2 bedroom duplex today and that only leaves me with one 3-bedroom house to rent. If I can get that house rented, ALL OF MY AVAILABLE RENTALS WILL BE RENTED!
As a result, I will once again be actively looking for rentals to buy! I'm looking to expand my rental business some more this year and I feel that the next year or so will be a once in a lifetime opportunity to really buy at a huge discount! With the subprime crisis; the avalanche of foreclosures; and the big demand for rentals, it's the perfect storm for making money with rentals!
As a result, I will once again be actively looking for rentals to buy! I'm looking to expand my rental business some more this year and I feel that the next year or so will be a once in a lifetime opportunity to really buy at a huge discount! With the subprime crisis; the avalanche of foreclosures; and the big demand for rentals, it's the perfect storm for making money with rentals!
Friday, August 17, 2007
Crazy Market!
If you've been paying attention to the stock market, you no doubt notice that it has been absolutely crazy. One day, the world is coming to an end and the next day everything is great. Here is my take on this crazy market.
In 2001, the United States was hit by a double whammy as the dot.com bubble burst and terrorists struck the twin towers. As a result of these two incidents, the stock market took a nose dive. To counteract the financial threat, the FED started aggressively lowering interest rates. The resultant availability of very low cost credit CAUSED the housing bubble. Everyone that could fog a mirror got a loan and bought a house. Many of these people purchased their houses with newly created gimmick loans and no money down. In many cases, these gimmick loans offered extremely low teaser mortgage payments that didn't even cover the interest on the loans. That meant that the principal was going up every month. When the rate adjusted to a normal interest rate, the "homeowner" could no longer afford the payment and they owed more than their house was worth.
Worse yet, during this same time period the manufacturing industry in the United States was shutting down and moving overseas. The United States was rapidly becoming a service economy that was largely dependent on the consumer to keep it afloat. To support their appetite for spending, the consumer would frequently refinance their homes and use the money to buy "stuff".
Today, we are reaching the end of this scenario. In hindsight, it was absolutely crazy to loan money to people who had bad credit. It was also crazy for people to borrow money with these gimmick loans that had interest rates that would reset to levels they couldn't afford. Crazy isn't a strong enough expression for a country that would so punish business with silly laws and taxes that the manufacturing capacity would move overseas. Finally, it is absolutely insane for people to take the equity out of their houses to buy useless junk.
Now, that is all coming to an end. The banks (and their investors) that loaned money so freely the past few years are in real trouble. This has caused a world wide liquidity crunch. Worse yet, the consumer is tapped out and is actually spending more than they earn. It was a great ride, but it is over.
I am expecting a continued decline in the real estate market and a significant recession in the near future. I believe that this could be the worst recession many Americans have ever seen. Millions of people will lose their jobs and the entire world will suffer.
While all of this sounds bad, I also believe that this will be a time when many people will become rich. As new homeowners lose their houses to foreclosure, they will once again become renters. This could be a once in a lifetime opportunity for the those that have vision, to become very wealthy in the rental property business. I know that I am doing everything possible to be properly positioned for the future!
In 2001, the United States was hit by a double whammy as the dot.com bubble burst and terrorists struck the twin towers. As a result of these two incidents, the stock market took a nose dive. To counteract the financial threat, the FED started aggressively lowering interest rates. The resultant availability of very low cost credit CAUSED the housing bubble. Everyone that could fog a mirror got a loan and bought a house. Many of these people purchased their houses with newly created gimmick loans and no money down. In many cases, these gimmick loans offered extremely low teaser mortgage payments that didn't even cover the interest on the loans. That meant that the principal was going up every month. When the rate adjusted to a normal interest rate, the "homeowner" could no longer afford the payment and they owed more than their house was worth.
Worse yet, during this same time period the manufacturing industry in the United States was shutting down and moving overseas. The United States was rapidly becoming a service economy that was largely dependent on the consumer to keep it afloat. To support their appetite for spending, the consumer would frequently refinance their homes and use the money to buy "stuff".
Today, we are reaching the end of this scenario. In hindsight, it was absolutely crazy to loan money to people who had bad credit. It was also crazy for people to borrow money with these gimmick loans that had interest rates that would reset to levels they couldn't afford. Crazy isn't a strong enough expression for a country that would so punish business with silly laws and taxes that the manufacturing capacity would move overseas. Finally, it is absolutely insane for people to take the equity out of their houses to buy useless junk.
Now, that is all coming to an end. The banks (and their investors) that loaned money so freely the past few years are in real trouble. This has caused a world wide liquidity crunch. Worse yet, the consumer is tapped out and is actually spending more than they earn. It was a great ride, but it is over.
I am expecting a continued decline in the real estate market and a significant recession in the near future. I believe that this could be the worst recession many Americans have ever seen. Millions of people will lose their jobs and the entire world will suffer.
While all of this sounds bad, I also believe that this will be a time when many people will become rich. As new homeowners lose their houses to foreclosure, they will once again become renters. This could be a once in a lifetime opportunity for the those that have vision, to become very wealthy in the rental property business. I know that I am doing everything possible to be properly positioned for the future!
Thursday, August 16, 2007
1 Down, 2 to Go!
We rented our very small one bedroom house today to a young couple who look like they will make excellent tenants. With that, I am completely out of one bedroom units. I still have one 2 bedroom duplex and one 3 bedroom house remaining. I have had a tremendous amount of interest in these rentals also and I am hopeful that we'll be fully occupied for September. If that occurs, that will be the first time in two years that we have had every available unit filled!
The rental market is the best I've seen it in my 4-year career. As the real estate bubble deflates and lending practices tighten, a lot of people who never should have been homeowners are once again becoming renters. I believe that we are on the brink of one of the best buying opportunities in decades. This may be a once-in-a-lifetime opportunity to really get rich with real estate!
I'm excited!
The rental market is the best I've seen it in my 4-year career. As the real estate bubble deflates and lending practices tighten, a lot of people who never should have been homeowners are once again becoming renters. I believe that we are on the brink of one of the best buying opportunities in decades. This may be a once-in-a-lifetime opportunity to really get rich with real estate!
I'm excited!
Tuesday, August 14, 2007
Showing Houses
This is the time of the month that people are seriously looking for houses. I usually start getting serious inquiries about the 10 with the peak in interest between the 15th and 20th. Today, I showed rentals to 4 potential tenants. One of the tenants had a kid that was a terror and I probably would not rent to someone with a child that was so out of control. I don't have a problem with children, but I do have a problem with THAT CHILD!
I then had a disabled guy with an electric wheelchair look at my single story, 1 bedroom house. He is a possibility, but I have some doubts whether his criminal background check will be OK (just based on his looks). I don't discriminate against disabled people, and they MUST meet the same screening requirements as anyone else.
Next were two young girls (in their early twenties). They were neat and well dressed. Definitely a possibility.
Finally, a young couple came to look at the property. They also looked good and they filled out an application. They want the property, so as long as their screening comes out good, they'll be moving in later this week.
I'm hoping that we'll be full by September 1st!
I then had a disabled guy with an electric wheelchair look at my single story, 1 bedroom house. He is a possibility, but I have some doubts whether his criminal background check will be OK (just based on his looks). I don't discriminate against disabled people, and they MUST meet the same screening requirements as anyone else.
Next were two young girls (in their early twenties). They were neat and well dressed. Definitely a possibility.
Finally, a young couple came to look at the property. They also looked good and they filled out an application. They want the property, so as long as their screening comes out good, they'll be moving in later this week.
I'm hoping that we'll be full by September 1st!
Monday, August 13, 2007
Avalanche of Foreclosures
There is a pending avalanche of foreclosures coming in the next couple of years. That is because there were many people (that should never have been homeowners) who bought houses with gimmick loans that are starting to reset. In many cases, these gimmick loans didn't even cover the interest on the loan. As time went by, the negative amortization got tacked onto the principal meaning that they are now upside down on their loans. They owe more than their house is worth and many of them are losing (and will lose) these houses when they can't afford the higher payments.
Just this evening, I met a potential tenant at my 3 bedroom house. This tenant has just lost her house to foreclosure and will once again become a renter. I've had several of these lately and they are helping to dramatically improve the rental market in my area.
In my opinion, this avalanche of foreclosures will create a great opportunity for owners of rental property businesses. The next few years may be a once in a lifetime opportunity to acquire properties at ridiculously low prices.
Just this evening, I met a potential tenant at my 3 bedroom house. This tenant has just lost her house to foreclosure and will once again become a renter. I've had several of these lately and they are helping to dramatically improve the rental market in my area.
In my opinion, this avalanche of foreclosures will create a great opportunity for owners of rental property businesses. The next few years may be a once in a lifetime opportunity to acquire properties at ridiculously low prices.
Sunday, August 12, 2007
Finding Deals
People often ask me how I find deals. The answer is that I get almost all my deals through personal contacts. Sellers call me because they know I am a serious investor that will buy their house or apartment building if the deal is right.
Today was a good example. I went into town to show a 3 bedroom house to a potential tenant. After showing the house, as I was headed for my truck, a man yelled across the street: "I bet I've got a bigger mess than you do." I walked over to talk to the guy. It seems that his elderly mother owns two houses near mine and has had a terrible time recently. He manages the properties for her. She had rented the property to some real scumbags and they trashed the place. Holes in the wall; trash throughout the place; magic marker "artwork" throughout the house - yes, they really did a good job of tearing the place up.
The tenant was finally evicted after not paying for a few months. Now the place will have to be rehabbed again. So, I told the man to tell his mother I would be interested in buying the property if she wants to sell. After her recent experience, she might want to sell now, or she might want to sell a year from now after her place is trashed again. Without the proper screening tools, her "luck" probably won't improve. It's just a matter of time before she is forced to sell. That is how I find great deals. I let people know that I will buy when they are ready to sell (at 50 cents on the dollar).
Today was a good example. I went into town to show a 3 bedroom house to a potential tenant. After showing the house, as I was headed for my truck, a man yelled across the street: "I bet I've got a bigger mess than you do." I walked over to talk to the guy. It seems that his elderly mother owns two houses near mine and has had a terrible time recently. He manages the properties for her. She had rented the property to some real scumbags and they trashed the place. Holes in the wall; trash throughout the place; magic marker "artwork" throughout the house - yes, they really did a good job of tearing the place up.
The tenant was finally evicted after not paying for a few months. Now the place will have to be rehabbed again. So, I told the man to tell his mother I would be interested in buying the property if she wants to sell. After her recent experience, she might want to sell now, or she might want to sell a year from now after her place is trashed again. Without the proper screening tools, her "luck" probably won't improve. It's just a matter of time before she is forced to sell. That is how I find great deals. I let people know that I will buy when they are ready to sell (at 50 cents on the dollar).
Friday, August 10, 2007
3-Day Weekend
Except for answering several calls from potential tenants, I took today off. My task for today was to research a satellite dish for our motorhome. I discovered that Radio Shack has a new pre-paid satellite dish for just such an application. It sounds perfect for our needs and I want to get one before next weekend's camping trip, which will be a 4 day weekend.
That is one of the great things about running a rental property business. I can set my own hours and take at least 3 days off most weeks. My typical "work" schedule for my rental business is to work 4 days each week, from about 11 am to 3 pm.
Have a great weekend!
That is one of the great things about running a rental property business. I can set my own hours and take at least 3 days off most weeks. My typical "work" schedule for my rental business is to work 4 days each week, from about 11 am to 3 pm.
Have a great weekend!
Thursday, August 9, 2007
Good Deal?
I had a woman call today wanting to sell her rentals to me because she has "had it" with tenants. She said that she had a 4 unit building and a single family house. She wanted $80,000 for all of them. That got my attention, because that is close to being a very good deal. I asked her to describe the apartment building and it became clear very quickly that this was a house she illegally converted to a 4-unit apartment building (no permits, no variance). In addition, the owner paid all utilities. NO THANKS! I never buy buildings if the owner pays the heat!
Wednesday, August 8, 2007
HEAT WAVE!
The temperature here today was nearly 100 degrees F. Worse, was the fact that the humidity was extremely high. I received a call from one tenant whose electric had gone off. I found that a fuse in the outside disconnect had blown and needed to be replaced. The fuse simply fell apart. I then received a pre-recorded phone call from the electric company saying that they were working on the low voltage problem due to the heat wave. I didn't even know we were experiencing a low voltage problem!
Then, I had another tenant call who reported that her air conditioning was out. She took out her furnace filter which she obviously hadn't changed in many months and reported to me that it was filthy. I'll probably need to have my HVAC guy work on her air conditioner tomorrow. It's only going to be 99 degrees, so maybe going without air conditioning for a few hours will convince her to change the furnace filters once in a while!
I also showed my only remaining 2 bedroom apartment to two potential tenants. One of these potential tenants said that she will take the apartment, but I don't have any money yet. Money talks.
It is going to be very hot tomorrow and I'm planning on taking the day off!
Then, I had another tenant call who reported that her air conditioning was out. She took out her furnace filter which she obviously hadn't changed in many months and reported to me that it was filthy. I'll probably need to have my HVAC guy work on her air conditioner tomorrow. It's only going to be 99 degrees, so maybe going without air conditioning for a few hours will convince her to change the furnace filters once in a while!
I also showed my only remaining 2 bedroom apartment to two potential tenants. One of these potential tenants said that she will take the apartment, but I don't have any money yet. Money talks.
It is going to be very hot tomorrow and I'm planning on taking the day off!
Tuesday, August 7, 2007
Employee of the Month!
I am proud to tell you that I have been named Employee of the Month. Well, to tell the truth, it might not be that big of an honor, since I'm the ONLY employee. In fact, I'm not an employee at all. So, how did all this nonsense about Employee of the Month get started? Well, my wife and my mother were shopping one day when they saw a T-shirt that had "Employee of the Month" emblazoned on the front in large letters. They thought it would be quite the joke to buy the shirt for my birthday.
In the rental business, my typical uniform is blue jeans and a T-shirt. Everytime I would wear the shirt, people would congratulate me on being Employee of the Month, which was absolutely hysterical. I was recently at my bank, which is a small local bank. I know almost all the people there because I'm in there all the time. One day, I was wearing my Employee of the Month shirt and a new teller waited on me. She commented that it was nice I was named employee of the month. Just about that time the vice-president of the bank was entering the room. She loudly responded "Employee of the month - he's never even had a job!" and all the bank employees laughed!
I've had so much fun with that shirt, I think I'll get one that says "Employee of the YEAR!"
In the rental business, my typical uniform is blue jeans and a T-shirt. Everytime I would wear the shirt, people would congratulate me on being Employee of the Month, which was absolutely hysterical. I was recently at my bank, which is a small local bank. I know almost all the people there because I'm in there all the time. One day, I was wearing my Employee of the Month shirt and a new teller waited on me. She commented that it was nice I was named employee of the month. Just about that time the vice-president of the bank was entering the room. She loudly responded "Employee of the month - he's never even had a job!" and all the bank employees laughed!
I've had so much fun with that shirt, I think I'll get one that says "Employee of the YEAR!"
Monday, August 6, 2007
Bills, Bills, and More Bills!
Today was my day to do paperwork. Well, actually my half day to do paperwork. The rents are all in and the bills have piled up. So, my goal for this afternoon was to make that pile of bills disappear. It took about 4 hours, but I finally made that big pile of bills disappear (along with a lot of the rents that I collected over the past four days! When all those rents come in, I feel like I'm rich! When all the bills are paid....oh, well I'll get to collect the rents again next month. That is exactly why I'm always preaching about buying your rental properties right. If you want to have a nice chunk of money left over at the end of the month, after that mountain of bills is paid, you MUST buy right!
Sunday, August 5, 2007
Rents All Collected - For Real This Time
I went through my rent roll again this afternoon and found that the rent I forgot to pick up yesterday was the only one I missed. So, this afternoon I headed into town to pick up the final rent and to show our 3 bedroom house to potential tenants. These tenants were three college age girls who would be sharing the apartment.
This evening, we met with another couple from our church to have pizza and to plan our upcoming vacation. That was it for today!
This evening, we met with another couple from our church to have pizza and to plan our upcoming vacation. That was it for today!
Saturday, August 4, 2007
Rents All Collected - Almost
Today was the final day of our four day monthly rent collection period. I was very happy that every tenant paid on time and there will be no evictions this month. It has been several months since I have been to court for an eviction, which I have to admit is more luck that skill. I did file an eviction last month, but the tenant left voluntarily before the court date.
At any rate, I was taking a break this evening and watching some TV when the telephone rang. One of my tenants was on the telephone wondering why I hadn't come to pick up the rent this afternoon. That was a real surprise considering that I thought I had already collected all the rents! I would have to give myself a failing grade for attention to detail.
Since it was 8pm when the tenant called, I arranged with her to pick up the rent tomorrow. Obviously, I did a poor job of reviewing my rent roll and I'll have to carefully check it again tomorrow morning. Hopefully, that was the only rent that I missed. That is one of the perils of having a larger rental portfolio, it is difficult to keep track of everything. Organization and discipline are essential elements and today my discipline was lacking.
Another challenge with a larger portfolio is keeping up with all the bills and paperwork. I literally get several bills each day for my rentals. I keep them in a file, arranged in the order they need to be paid. I then pay the bills at least once a week. Making a simple mistake by putting a bill in the wrong spot can result in a bill being paid late and incurring a late fee. Once again, organization and attention to detail are the order of the day.
At any rate, I was taking a break this evening and watching some TV when the telephone rang. One of my tenants was on the telephone wondering why I hadn't come to pick up the rent this afternoon. That was a real surprise considering that I thought I had already collected all the rents! I would have to give myself a failing grade for attention to detail.
Since it was 8pm when the tenant called, I arranged with her to pick up the rent tomorrow. Obviously, I did a poor job of reviewing my rent roll and I'll have to carefully check it again tomorrow morning. Hopefully, that was the only rent that I missed. That is one of the perils of having a larger rental portfolio, it is difficult to keep track of everything. Organization and discipline are essential elements and today my discipline was lacking.
Another challenge with a larger portfolio is keeping up with all the bills and paperwork. I literally get several bills each day for my rentals. I keep them in a file, arranged in the order they need to be paid. I then pay the bills at least once a week. Making a simple mistake by putting a bill in the wrong spot can result in a bill being paid late and incurring a late fee. Once again, organization and attention to detail are the order of the day.
Friday, August 3, 2007
Toothless!
I keep thinking I've seen it all, but I'm always wrong. Today was day three of my four day rental collection period for August. I collected another bunch of rents today. I also received an application from a potential tenant who arrived at the property with a big mouthful of bloody gauze. He had just come from the dentist after having NINE teeth pulled! I also showed my three bedroom house to another potential tenant who I found out was a convicted felon that just got out of prison. NO THANKS.
Tomorrow is the final day of rent collecting for this month. I'm sorry it's over, collecting rents is my favority part of the business! Gotta go! One of my tenants just called and she locked herself out of her house.
Tomorrow is the final day of rent collecting for this month. I'm sorry it's over, collecting rents is my favority part of the business! Gotta go! One of my tenants just called and she locked herself out of her house.
Thursday, August 2, 2007
Everything AND the sidewalk!
Day 2 of rent collections and things are progressing well. I picked up several more rents today and picked up the Section 8 checks at my PO Box. I also found a new tenant for one of my apartments that will be vacant at the end of the month. This tenant was referred by another tenant who did so as a result of our referral program. With our referral program, we pay $100 in cash to anyone that refers a new tenant to us. Of course, to get paid, the new tenant must pay their deposit and first month's rent.
After collecting the rents, I met with the head of the local Section 8 office for a post move-out inspection of one of my 3 bedroom houses. The Section 8 tenant trashed the place and I wanted Section 8 to document it. The funny thing was that as we walked out of the house, I realized that the tenant stole the sidewalk! That's right, the sidewalk! The sidewalk was made up of nice 12" paver stones, all of which are gone! You gotta love low income tenants!
After collecting the rents, I met with the head of the local Section 8 office for a post move-out inspection of one of my 3 bedroom houses. The Section 8 tenant trashed the place and I wanted Section 8 to document it. The funny thing was that as we walked out of the house, I realized that the tenant stole the sidewalk! That's right, the sidewalk! The sidewalk was made up of nice 12" paver stones, all of which are gone! You gotta love low income tenants!
Wednesday, August 1, 2007
My favorite time of the month has arrived - the time to collect the rents! I spend the first 4 days of every month collecting rents and picked up several of the rents today. I'll deposit that money tomorrow morning and then check my PO Box at the post office. I expect to find my Section 8 checks in the mailbox tomorrow morning.
This afternoon, I showed a one-bedroom house to a potential tenant. To my dismay, someone had thrown a brick through one of the windows. Fortunately, the damage was limited to the window and no damage or vandalism occurred inside the house.
In addition to picking up more rents tomorrow, I will also be meeting with the head of the local section 8 office. We will be meeting at one of my houses that was just vacated by a section 8 tenant. The house has been significantly damaged and I am trying to ensure that Section 8 cancels her housing assistance. The damage includes the carpeting being destroyed; the front door is damaged; the screen door has been destroyed; a new shower door was destroyed, the garage is full of trash; and much more. We may sue for damages, but we will probably never collect. Unfortunately, that's just part of the business.
This afternoon, I showed a one-bedroom house to a potential tenant. To my dismay, someone had thrown a brick through one of the windows. Fortunately, the damage was limited to the window and no damage or vandalism occurred inside the house.
In addition to picking up more rents tomorrow, I will also be meeting with the head of the local section 8 office. We will be meeting at one of my houses that was just vacated by a section 8 tenant. The house has been significantly damaged and I am trying to ensure that Section 8 cancels her housing assistance. The damage includes the carpeting being destroyed; the front door is damaged; the screen door has been destroyed; a new shower door was destroyed, the garage is full of trash; and much more. We may sue for damages, but we will probably never collect. Unfortunately, that's just part of the business.
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