3 New Tenants

Today was a good day in the rental property business. I got 3 new tenants today and have a couple of other prospects. I am now out of 1 bedroom apartments and houses; out of two bedroom houses; and out of three bedroom apartments and houses. All I have left is two 2-bedroom apartments and a 6 bedroom house! I'm still hopeful that I will fill at least one of the apartments. All in all, not bad.

I also had a very good day collecting rents. I got an unusual number of payments today and am happy to have made good progress. While picking up the rents, I was also passing out a letter discussing the extremely high heating costs that will occur this winter. Here is a copy of the letter I sent:

Dear Valued Tenant,

If you’ve been following the news lately, you know that our country is in a dire situation. Many large banks have failed; the insurance industry is in trouble; the airline industry is failing; the auto industry is failing; and the economy may be on the verge of a depression. Unfortunately, that grim news may not be the worst to affect us this winter. Fuel, food, and energy prices are at record levels and this winter promises to be the most expensive in history. Natural gas prices are up 60% since just last February! Electric rates are also up and AEP has requested a 45% increase. It is imperative that each of us prepare for extreme prices this winter before the cold weather arrives. Here is a list of things YOU CAN DO to keep your costs down and ensure a safe and happy winter:

Insulate your windows with plastic. The most effective, least costly method is to purchase the type of plastic that you seal with a hair dryer. This is available at Lowes, K-mart, Walmart, and many other local stores.

If your house or apartment has a furnace, be sure to change the filter monthly. Filters cost
less than a cup of coffee and can save you a BUNCH of money if changed monthly.

Turn your thermostat down. Simply turning the thermostat down a few degrees will save
you a significant amount of money this winter. I am setting the thermostat at my house at
65 degrees this winter.

Adjust your thermostat for periods when you will be out of the house and at night. You will
save money if you set your thermostat at 60 degrees while at work and while sleeping. It’s
much cheaper to add a blanket than to pay for unnecessary heat.

When it gets really cold (less than 10 degrees), let each sink drip. This will help prevent
your pipes from freezing.

Plan for MUCH higher than normal heating bills. You can save money by cutting down on non-essentials such as eating out, un-necessary trips in the car, overspending on Christmas presents, etc.

Many people are eligible for assistance on their heating bills. You can apply for many of these assistance programs by calling one number 1-800-282-0880. This is the number for HEAP (Home Energy Assistance Program), EHEAP (Emergency Home Energy Assistance Program), PIPP (Percentage of Income Payment Plan), and HWAP (Home Weatherization Assistance Program). You can also apply for these programs online at:
www.odod.state.oh.us/cdd/ocs/heap.htm
Even if you have been turned down for assistance in the past, you should apply again.
CALL TODAY WHILE FUNDS ARE STILL AVAILABLE! You may also want to call
the local agencies if you are having problems. The Salvation Army, Job and Family Services, Community Action, and various church groups often provide help for people in
need.

Please remember that the company requires the rent to be paid on time. Unfortunately, the company is not able to accept high fuel prices, a cold winter, or buying Christmas presents as excuses for failing to pay the rent. Also, please remember that it will cost more in late fees if the rent is not paid on time. Obviously, there is no better use of your money that having a place to live and heat to keep you warm. IT IS ABSOLUTELY CRITICAL THAT YOU PAY THE RENT FIRST.

That was the letter I handed out to the tenants. My hope is that they will keep the thermostat down and keep paying the rent. I am concerned that there could be a high number of evictions this winter.

I'll be collecting more rents tomorrow.