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smslavin
01-27-2014, 02:13 PM
Anyone ever rent their own properties? We're kicking around the idea of renting our place in Broomfield when we move downtown. We may already have a family interested but I wanted to get some input from the collective. What's the good, bad and ugly on handling this yourself versus hiring a property manager?

Ray 2014
01-27-2014, 02:53 PM
You can do this your self.
1. Do a back ground check
2. Take pictures of the house inside and out
3. Return two weeks later to do pictures again, with there " stuff ' in the house.
4. Have a rock solid contract, if you do not have one, you will need to get one, I do not recommended writing your own
5. Know all the in and outs of how to evict your tenant if needed

I personally believe hiring a property management firm is well worth it, let them handle all the headaches.

I DO NOT have rentals, I've been a professional handyman for 15 years, I see and heard it all...

CardinalFJ60
01-27-2014, 03:09 PM
We're doing that. I completely agree with everything stated. Especially the fact that it's worth the cost for a PM company at least at first. Being new to the "landlord" thing and having small kids, the last thing we wanted was to be a victim of our own naivety or to get the 2am calls about a furnace issue. we're happy with our PM company - pretty transparent. we just get a check in the mail every month. :thumb:

and...absolutely learn all the ins and outs of evictions. If it does come to that, some advice I was given was to make the move out as easy as possible for them. like...pay for the packing of the house or 50% or moving costs or something like that. if written properly into the contract and delivered the right way, you may avoid the risk of a pissed off tenant wrecking your place. the cost of the move is waaay less than repairing your house.

smslavin
01-27-2014, 03:11 PM
thanks for the feedback.

we're happy with our PM company - pretty transparent. we just get a check in the mail every month. :thumb:

would you mind sharing some contact info?

baja1d
01-27-2014, 04:00 PM
After a tenant leaves, & you hold some (or all) of their security deposit, you have to provide/state "in writing" the reasons why within 30 days of them vacating. A good way to prove that you attempted to do this is to mail two certified letters that require a signature upon delivery. One gets sent to your vacant house & one gets sent to the tenants forwarding address. If the post office is unable to deliver it they will return it to you. DO NOT OPEN THE ONE THAT COMES BACK TO YOU. Instead, file it away & have the judge open it/break the letter's seal. It proves a few things... You made an attempt, it has the post offices date of mailing, and it has the "stated" reasons inside. Failure to do so could result in the former tenant suing you for 3x's the security deposit. Most tenants know this & they WILL win every time!

calphi27
01-27-2014, 04:01 PM
Solid contract is a MUST. Take pictures & document everything. I have been a landlord, & actually sold my rental last year. I have several clients that self manage & hire PMs. It just depends on whether you want to drive to Broomfield to address any issues.

I keep a below market rent, but ask for first, last & security deposit at move in. The deposit can be spread over the 1st three months, but I like tenants who have that kind of cash & not the ones living paycheck to paycheck. The lower rent brings in a larger pool of potential tenants.

Do a background & credit report check too. I have another PM guy if you want his number.

calphi27
01-27-2014, 04:02 PM
After a tenant leaves, & you hold some (or all) of their security deposit, you have to provide/state "in writing" the reasons why within 30 days of them vacating.

30 days unless the contract says more (max is 60 days)

CardinalFJ60
01-27-2014, 05:23 PM
I'll PM you the info...definitely do your due diligence. I'm happy with what ours offered, but please be sure to check out a few.

FJCDan
01-27-2014, 05:59 PM
This is all very good info, since I am a carpet cleaner I deal with PM's all the time I have seen and heard it all. Background checks are good to do but don't allways tell the truth. I have heard good things about a tenant when they move in and 8 months later they are being evicted for growing pot or they have 12 people living in the house. I have some PM's if you would like to talk to them. Maybe Carlton [CBone] will chime in.

Inukshuk
01-27-2014, 06:18 PM
30 days unless the contract says more (max is 60 days)

Correct. As is the 3x damages comment (plus atty fees). That is the most critical legal issue for a landlord. The other 90% are the great practical comments others have provided.

Best to take first month rent, last months rent and security deposit equal to another months rent. There are great tenants who can't pay that, but few bad tenants who can. Just first and security is ok, but not the gold standard.

The Bradford Publishing (Google it) form lease is decent. Boulder County has local leasing laws that others do not. They offer a form lease online. It is "tenant friendly". You are the Landlord so you want "Landlord friendly."

1) Pick a great tenant
2) Pick a great tenant
3) Pick a great tenant
4) Do everything everyone else said, except that property management companies are a personal preference. They vary greatly so do your research and is you use one, still be sure to see your property inside and out on a regular basis.

baja1d
01-27-2014, 06:46 PM
I have heard good things about a tenant when they move in and 8 months later they are being evicted for growing pot or they have 12 people living in the house. I have some PM's if you would like to talk to them. Maybe Carlton [CBone] will chime in.


Aside from my Dad, are best tenants have been "growers". They were legit with all the proper certs rather then the typical backyard stoner.

smslavin
01-27-2014, 07:20 PM
Thanks for all the input. I just talked to the bank and this isn't going to work for us as we don't have 2 years of previous rental income on our taxes. To get the new loan, my income would have to be enough to cover both mortgages. The rental income is not counted. It would've been nice to have something to build a little nest egg but it was a long shot anyway. On to the next idea...

baja1d
01-27-2014, 08:16 PM
Thanks for all the input. I just talked to the bank and this isn't going to work for us as we don't have 2 years of previous rental income on our taxes. To get the new loan, my income would have to be enough to cover both mortgages. The rental income is not counted. It would've been nice to have something to build a little nest egg but it was a long shot anyway. On to the next idea...


TBH, might of been a blessing in disguise. Sometimes being a Landlord is a lot like having a second job

Ray 2014
01-27-2014, 11:17 PM
Renters have the law on there side, Land Lords HAVE to play by the law.

I had one customer go take the front door off the rental house until either they moved out or got currant on there rent...Boy he got in trouble...
---------------------------------
Can't turn the water off
Can't shut off the heat
Can't take there stuff out of the house.
A renter can stay in a rental house for a long time until all legal papers are filed and eviction notices are put into action.
---------------------------------
Had one Landlord ( Customer ) loose a battle in court, before the renter moved out, pulled all kitchen cabinet doors off, holes in the drywall and other STUFF.

In court, the landlord could NOT prove the house was not like this when the renter moved in, landlord lost,.. $10.000 in damage, Landlord now takes pictures before and after any tenant moves in and has a solid contract.

Inukshuk
01-28-2014, 12:49 AM
Renters have the law on there side, Land Lords HAVE to play by the law.

Colorado is considered a Landlord friendly state. I can have someone out in 2-3 weeks if they violate their lease. In NY or CA, forget it.

However, Landlords need to play by the rules, document everything, and not be lenient with tenants or it becomes more difficult. You do get punished for being the "nice guy."

Moral: get a good tenant, big deposit, and run it by the book.

bigcity25
01-28-2014, 11:51 AM
I've been a landlord for 4 years now. It's great with good renters, the trick is to weed out the bad applicants. Remember it's your investment you can not rent out to people you don't think will be a good fit. X2 on credit and criminal background checks. It's only $40-50 online and will cover your backside. I've just used craigslist to advertise and will get all kinds of responses. The biggest thing is to change your mindset. Your rental is no longer your house. People generally won't treat it as nice as you did. If you make this shift your stress level won't be as high. My first renters I had, I nit picked everything. And all's it did was stress me out.

PabloCruise
01-28-2014, 02:12 PM
TBH, might of been a blessing in disguise. Sometimes being a Landlord is a lot like having a second job

Absolutely. There is some good stuff in this thread.

jps8460
01-28-2014, 05:24 PM
Start an llc and place your rental under it for financial protection.....didn't see it mentioned anywhere else.

farnhamstj
01-28-2014, 09:41 PM
Find another bank. Someone will loan you $$ with a signed lease and/or slightly larger downpayment. Banks typically see rent at 70% value. Someone wants to lend you money. My wife and I have had tenants for 12years. It's worth the effort. It can feel like a second job sometimes, but it's a well paying second job that can fit your schedule.

Be prepared to deal with 5-10 hours per month of BS

Some of my 'tricks'
Look how clean the car is they arrive in to see the house.
Call previous landlords & employers
Stop by to collect the rent on or before the 1st of the month for the first few months.
List late fee of $30 per day day on the lease. Paying rent on the 5th cost an extra $150. (I have never actually charged my tenants, but it sets the expectations that rent is due on time)
Always do 12 month lease.
Always Utilities transferred to tenant.
"Upgrade" a few items while they are living there and let them know before they move in you plan to do so. Replacing a p-trap on a sink, washing maching hose, change light fixture. I few inexpensive maintenance items gives you an excuse to go in the house and see how they are treating the place.
Know your HOA rules and share them with your tenant.
Contact them and discuss their intentions to move out or resign a lease 6 weeks before they plan to move out.

You might think woman are cleaner than men, they are not. Do not discriminate.

baja1d
01-28-2014, 10:01 PM
Make sure that you have the water company send you a duplicate copy of the water bill so that you know it's being paid. If it's not paid they'll put a lien on the house which ultimate falls on the owners shoulders

PabloCruise
01-29-2014, 05:12 PM
Find another bank. Someone will loan you $$ with a signed lease and/or slightly larger downpayment. Banks typically see rent at 70% value. Someone wants to lend you money. My wife and I have had tenants for 12years. It's worth the effort. It can feel like a second job sometimes, but it's a well paying second job that can fit your schedule.

Be prepared to deal with 5-10 hours per month of BS

Some of my 'tricks'
Look how clean the car is they arrive in to see the house.
Call previous landlords & employers
Stop by to collect the rent on or before the 1st of the month for the first few months.
List late fee of $30 per day day on the lease. Paying rent on the 5th cost an extra $150. (I have never actually charged my tenants, but it sets the expectations that rent is due on time)
Always do 12 month lease.
Always Utilities transferred to tenant.
"Upgrade" a few items while they are living there and let them know before they move in you plan to do so. Replacing a p-trap on a sink, washing maching hose, change light fixture. I few inexpensive maintenance items gives you an excuse to go in the house and see how they are treating the place.
Know your HOA rules and share them with your tenant.
Contact them and discuss their intentions to move out or resign a lease 6 weeks before they plan to move out.

You might think woman are cleaner than men, they are not. Do not discriminate.

The stopping by for rent thing makes me think. You may want to set that up ahead of time w/ tenant. I say that b/c our tenant wanted to stop by our house to pay rent. At the time it seemed like no porblem, now I wish I had set that up differently. I thought it would be silly to set up a PO Box for one property, but I think I will when I get new tenants.
I put 60 day notice to not renew on the lease. My understanding is that You need to be specific in the lease if the lease renews for a full 12 month term, or if it goes month-to-month if neither party communicates non-renewal.

wesintl
01-29-2014, 07:17 PM
You might think woman are cleaner than men, they are not. Do not discriminate.

wait, what. so sign up the dirty ass ho's?

I watched my parents rent 3-4 places as a kid. I don't want anything to do with it unless it's my full time job. doesn't matter how much they make there is always an excuse. It's hard to find good renters. gotta go to court over the sec dep once in a while. dealin with crazy ass people make you feel normal :D It's a show

I'd rather put my time and $ into market investments. you know, fj40 land cruisers, lol compound interest, etc.

PabloCruise
02-11-2014, 02:25 PM
Correct. As is the 3x damages comment (plus atty fees). That is the most critical legal issue for a landlord. The other 90% are the great practical comments others have provided.

Best to take first month rent, last months rent and security deposit equal to another months rent. There are great tenants who can't pay that, but few bad tenants who can. Just first and security is ok, but not the gold standard.

The Bradford Publishing (Google it) form lease is decent. Boulder County has local leasing laws that others do not. They offer a form lease online. It is "tenant friendly". You are the Landlord so you want "Landlord friendly."

1) Pick a great tenant
2) Pick a great tenant
3) Pick a great tenant
4) Do everything everyone else said, except that property management companies are a personal preference. They vary greatly so do your research and is you use one, still be sure to see your property inside and out on a regular basis.

Does anyone use Bradford leases: http://www.bradfordpublishing.com/Legal-Forms/Leases-and-Rental-Agreements
?

LARGEONE
02-11-2014, 10:05 PM
Great thread...finally took the time to catch up on it!

I've done both short term rentals with my property in Breck and long term with several homes in Colorado Springs and Denver. All of the comments above are spot on. It's a crapshoot with renters!

I had one renter that all finances checked out great, background check perfect, good job, etc etc. seemed like the perfect renter! Then, he quickly became an alcoholic, drove his car through the back of the garage into my laundry room, lost his job, stopped paying rent, and then somehow got a Rottweiler dog (not allowed in lease) that went into heat inside the house after chewing all the wood trim off the house!

As mentioned above, the best way to get someone like this out of your house is to help them move! It nearly killed me to do it, but I drove down to C-springs, rented the moving truck myself, and helped the guy move out! He was out in a week, and it cost me a day of work and a truck rental. But I was able to get in quickly to fix everything and get it rented the next month which was way cheaper than going another month without rent and another month of an alcoholic living in the house. Plus, I was able to use the moving truck to get all my construction supplies to fix the house!

I fixed it all back to perfect and had incredible renters for 7 years afterward! You just never know...even when you do your homework!

The best thing to have is close friends who still lives next door and is nosy enough to let you know when something doesn't seem right next door!

Some property managers literally just collect the rent for you and charge you for it, nothing more, so it really pays to do your research on them as well!

LARGEONE
02-11-2014, 10:11 PM
Oh, I forgot that the same renter tried to kill himself in the house and stole his girlfriend's mom's checkbook and wrote bad checks! My old neighbors were calling me week after week the last month he was there! And this guy's employer spoke very highly of him...he paid first three months up front, and cleared all checks! Nightmare renter.

All of this happened in two months!

I got a court judgement against him, but it's hard to collect from someone in jail...where he ultimately ended up!

MTSN
02-12-2014, 09:32 AM
Oh, I forgot that the same renter tried to kill himself in the house and stole his girlfriend's mom's checkbook and wrote bad checks! My old neighbors were calling me week after week the last month he was there! And this guy's employer spoke very highly of him...he paid first three months up front, and cleared all checks! Nightmare renter.

All of this happened in two months!

I got a court judgement against him, but it's hard to collect from someone in jail...where he ultimately ended up!

These stories are terrifying because you can't predict what will happen in the future. I rented a couple of upscale houses when I was in Las Vegas, and each time I was ready to move out the owners BEGGED me to stay. They each said the house looked the same or better when I moved out and they were scared to try to find new tenants in that city. Crazy stories of renters destroying houses out there and the NV laws now lean far more towards protecting the tenant than the landlord.