To buy an older home or a newer home...
I really don't think is a right or wrong answer here. Both types of homes have their pros and cons, so I'll talk about each separately.
Buying a new home guarantees you have the builder's warranty for at least one year. AND if anything goes wrong after that for the first two or three years that is related to construction, they will more than likely fix it for free even though the warranty has run out. This has been my experience. You just have to know how to bat your eyes and sweet talk them...sexist, I know, but predictable. You also know that the appliances will be new, so you won't have to worry about a water heating going out or replacing a fridge for a number of years. The paint will be new, the plumbing will work properly, etc. etc. Essentially, your repair costs will be minimal. Finally, your rent home will be in a more desirable area that is more likely to attract better tenants.
However, you are likely to have a larger mortgage payment than if you went with an older home. This means you will have to charge more for rent, your taxes will be higher (depending on location of course), and the insurance might be higher. If you do this right, there is a balance and you can actually make some money buying a new home. A newer home is more attractive to renters who can afford to live in the nicer areas, and I have found they are more likely to take care of your property as they care about the conditions they live in.
Buying an older home can be a crapshoot at times. The inspector will likely find more things wrong with the home, and it may be in a less desirable neighborhood. The latter of course depends on whether you are buying in the tony, charming yuppie part of town in which people buy these older homes, pay a fortune for them, and remodel them thereby maintaining the integrity of the older neighborhood. If you are doing this, be prepared to spend a pretty penny just keeping the home in accordance with the neighborhood HOA. With an older home you can expect to find previous repairs completed in a half-ass manner, which means you will most likely need to go in at some point and have those repairs "repaired" at a much higher cost. You also run the risk of having to replace water heaters and appliances, which can be costly. You may also need to go in and have a number of repairs completed just to get the house in rentable condition.
If you are considering this with the attitude that you're in it to make money and don't care about the overall condition of the house, then an older home may be the way to go. But be warned, as in all areas of life, if you do this half-ass your returns when you try to get rid of the property will be half-ass. AND half-ass repairs will cost you more in the long run.
I rented a 1930s duplex in a charming, well-kept neighborhood in OKC during my internship year. It had wood floors, a lot of space, a washer and dryer and the tile in the bathtub was new. It was also painted in really great neutral colors. However, I soon discovered the decades old heating system was in poor repair and a fire hazard, the window A/C units were not kept up properly, it was infested with roaches, and the vines climbing on the outside of the house were growing inside the windows (the gaps in the windows were that bad.) I also came home one day to find a busted pipe in the bathroom that was flooding my poor little dog out of her home. The landlord essentially didn't care to have repairs done in such a manner that the integrity of the house was maintained, but instead from the standpoint of how cheap could she get the repairs completed. She also didn't care that roaches were eating my sweaters. I imagine if she tried to dump the duplex, she would have a hard time it was in such bad shape.
A friend of mine bought a house in 1973 for about $26,000 and has been renting it over the years. Again, there has been a half-ass approach to having repairs completed. Now, the value of the house rose to about $130,000. Yet, when it came time to dump the property, it sat on the market for a year and a half because the foundation was in such ill repair no one wanted to touch it. It also needed some major repairs. It has taken almost $75,000 to get the house in good enough shape to sell it, which she finally did. However, when you compare the value of the house to how much she made in the sell, she didn't really make that much money. Of course, she was just glad to get rid of it.
Overall, you really have to look at the cost of buying and maintaining the home versus how much you can actually get in monthly rent. Take a long hard look at this...Also consider whether the mortgage payment is so much that you can't afford to make that payment along with your own home payments when it is sitting empty for a month or two waiting for the next renters to move in. There have been times when we have had two houses empty at the same time...it's not easy making three mortgage payments at once.
Of course, if you have the cash to buy a property outright, then by all means go for it. You'll be way ahead of the game!
Showing posts with label landlords. Show all posts
Showing posts with label landlords. Show all posts
Wednesday, October 3, 2007
Monday, September 10, 2007
Ya, I'm calling about the house you have for rent...
{ring} ME: Hello?
CALLER: Um, ya....I was calling about the house you have for rent?
ME: Yes...How can I help you?
CALLER: Well, um...let's see...is it still available?
ME: Yes, it is. What kind of questions do you have?
CALLER: Well, how big is it?
ME: As the ad says, it is 4 bedroom/2 bath/2 car garage...about 2000 square feet.
CALLER: Um....Ummmmmm.....It's 4 bedroom?
ME: Yes, indeedeee....
CALLER: How much is the rent?
ME: As the ad says, the rent is $1600.
CALLER: Ummmm.....
ME: Like I said, it's 4/2/2, fenced in backyard with deck, hardwood and ceramic tiled floors, all new appliances, new countertops in kitchen, the owner maintains the yard, you have access to a community pool/playground/tennis courts, the elementary school is 1 mile away, grocery store is 1.5 miles away, the deposit is one month's rent and can be paid out over two months, the pet deposit is $500 - 1/2 of which is nonrefundable. There is an HOA so you will be required to abide by all HOA rules and regulations. The interior is painted in warm, neutral colors. There is a large kitchen with an island and separate breakfast area. It also comes with a washer and dryer. What else do you need to know?
CALLER: Ummm.....
ME: Let me know if you can think of anything else. Thanks for calling. {click}
and so it goes....
CALLER: Um, ya....I was calling about the house you have for rent?
ME: Yes...How can I help you?
CALLER: Well, um...let's see...is it still available?
ME: Yes, it is. What kind of questions do you have?
CALLER: Well, how big is it?
ME: As the ad says, it is 4 bedroom/2 bath/2 car garage...about 2000 square feet.
CALLER: Um....Ummmmmm.....It's 4 bedroom?
ME: Yes, indeedeee....
CALLER: How much is the rent?
ME: As the ad says, the rent is $1600.
CALLER: Ummmm.....
ME: Like I said, it's 4/2/2, fenced in backyard with deck, hardwood and ceramic tiled floors, all new appliances, new countertops in kitchen, the owner maintains the yard, you have access to a community pool/playground/tennis courts, the elementary school is 1 mile away, grocery store is 1.5 miles away, the deposit is one month's rent and can be paid out over two months, the pet deposit is $500 - 1/2 of which is nonrefundable. There is an HOA so you will be required to abide by all HOA rules and regulations. The interior is painted in warm, neutral colors. There is a large kitchen with an island and separate breakfast area. It also comes with a washer and dryer. What else do you need to know?
CALLER: Ummm.....
ME: Let me know if you can think of anything else. Thanks for calling. {click}
and so it goes....
Thursday, September 6, 2007
Help for tenants...
Following are some guidelines for tenants, to ensure that they 1) will enjoy a positive relationship with their landlord, 2) get repairs performed in a timely manner and 3) get their deposit back.
1. Read the lease...in detail. Understand it. It is a legal, binding contract.
2. Abide by the lease...to the "t".
3. Report repairs in a timely manner...the longer you wait, the more damage is done. This will be legally interpreted as your neglect, not the landlords and therefore you will be responsible for the repair bill.
4. Don't attempt repairs on your own. If the repair is of poor quality, you will be responsible for the entire repair to fix what you have done and what the original problem was.
5. Clean up after your pets. Just one pee spot in the carpet can cost you your entire deposit and more.
6. If you have the carpets cleaned, they will look great initially after the cleaning. However, stains don't go away. They "wick" back up into the carpet from the pad, and the stain reappears. Just FYI...
7. The landlord has the legal right to access the property at any time...ANY TIME. It is the landlords property.
8. ANY violation of a lease can result in eviction...ANY.
9. The landlord has to abide by the property codes written and enforced by the state. The property codes protect you, so know them. (They also protect the landlord.)
10. There is typically a Tenants Council in your city or state. Call the Tenants Council, which is a government agency which provides information regarding property codes, etc. if you have questions about what is happening. They can provide you resources.
11. Landords have the ability to provide a negative report for your credit report. This will seriously hurt your chances of renting a nice place later as well as buying your own place.
12. If the property looks unkempt, it means the landlord doesn't invest time or money in the property. Don't rent it.
13. Legally in some states, landlords only have to repair items that pose a serious health risk to you. READ: Be respectful of the landlord and the property, and your more likely to get your repairs completed.
14. If you rent a property that is in HOA territory, abide by the HOA rules. HOAs will impose fines for rule violations, which you will have to pay. If you violate the rules and don't pay the fines, you will be evicted. Also, too many HOA violations can result in eviction.
15. At the beginning of the lease, ask for an inventory checklist. This checklist lets you list, item by item, room by room anything...ANYTHING...that is wrong with the property. You and your landlord will then sign off on it once it is complete. If you get a checklist and are given a timeline to return it, abide by the timeline. If you don't return the checklist in time, then you can legally be held liable for anything that is wrong with the property when you move out - even if the damage was there before you moved in. Be sure to keep a copy of the SIGNED checklist.
16. When you move out, clean the property and then schedule a walk through with the landlord. Have your inventory checklist on hand to prove what damage you caused and what damage was there when you moved in. Don't return the key until this is completed and you and your landlord agree on the final walk through.
17. If you are evicted, you are still financially responsible for the remainder of the lease term...even if the landlord immediately re-rents the property after your belongings have been removed.
18. If you break the lease, you are still financially responsible for the remainder of the lease....
19. If you do not give proper move out notice, you forfeit your deposit.
20. If you get a pet and don't tell the landlord, the landlord can remove the pet from the premises within 24 hours of discovering the pet. The cost of removing and housing the pet, defleaing the premises, cleaning the premises of all pet related damage, etc. will be your responsibility. You can also be evicted for this if there is a no pets clause in your lease.
Just some info to help folks understand their responsibility when they lease a place to live. Know the lease and know your rights...you'll have a better experience.
1. Read the lease...in detail. Understand it. It is a legal, binding contract.
2. Abide by the lease...to the "t".
3. Report repairs in a timely manner...the longer you wait, the more damage is done. This will be legally interpreted as your neglect, not the landlords and therefore you will be responsible for the repair bill.
4. Don't attempt repairs on your own. If the repair is of poor quality, you will be responsible for the entire repair to fix what you have done and what the original problem was.
5. Clean up after your pets. Just one pee spot in the carpet can cost you your entire deposit and more.
6. If you have the carpets cleaned, they will look great initially after the cleaning. However, stains don't go away. They "wick" back up into the carpet from the pad, and the stain reappears. Just FYI...
7. The landlord has the legal right to access the property at any time...ANY TIME. It is the landlords property.
8. ANY violation of a lease can result in eviction...ANY.
9. The landlord has to abide by the property codes written and enforced by the state. The property codes protect you, so know them. (They also protect the landlord.)
10. There is typically a Tenants Council in your city or state. Call the Tenants Council, which is a government agency which provides information regarding property codes, etc. if you have questions about what is happening. They can provide you resources.
11. Landords have the ability to provide a negative report for your credit report. This will seriously hurt your chances of renting a nice place later as well as buying your own place.
12. If the property looks unkempt, it means the landlord doesn't invest time or money in the property. Don't rent it.
13. Legally in some states, landlords only have to repair items that pose a serious health risk to you. READ: Be respectful of the landlord and the property, and your more likely to get your repairs completed.
14. If you rent a property that is in HOA territory, abide by the HOA rules. HOAs will impose fines for rule violations, which you will have to pay. If you violate the rules and don't pay the fines, you will be evicted. Also, too many HOA violations can result in eviction.
15. At the beginning of the lease, ask for an inventory checklist. This checklist lets you list, item by item, room by room anything...ANYTHING...that is wrong with the property. You and your landlord will then sign off on it once it is complete. If you get a checklist and are given a timeline to return it, abide by the timeline. If you don't return the checklist in time, then you can legally be held liable for anything that is wrong with the property when you move out - even if the damage was there before you moved in. Be sure to keep a copy of the SIGNED checklist.
16. When you move out, clean the property and then schedule a walk through with the landlord. Have your inventory checklist on hand to prove what damage you caused and what damage was there when you moved in. Don't return the key until this is completed and you and your landlord agree on the final walk through.
17. If you are evicted, you are still financially responsible for the remainder of the lease term...even if the landlord immediately re-rents the property after your belongings have been removed.
18. If you break the lease, you are still financially responsible for the remainder of the lease....
19. If you do not give proper move out notice, you forfeit your deposit.
20. If you get a pet and don't tell the landlord, the landlord can remove the pet from the premises within 24 hours of discovering the pet. The cost of removing and housing the pet, defleaing the premises, cleaning the premises of all pet related damage, etc. will be your responsibility. You can also be evicted for this if there is a no pets clause in your lease.
Just some info to help folks understand their responsibility when they lease a place to live. Know the lease and know your rights...you'll have a better experience.
Wednesday, September 5, 2007
In defense of landlords
I was checking out YouTube to see what types of videos folks had made about their landlords. Landlords are getting a really bad rap. People are upset that their landlords came into their apartment/home while they weren't home, they aren't getting all of their deposit back for a variety of reasons, on and on. So, here's a video made by a landlord while he is touring one of his properties...this video is the reason landlords are so damn adamant that their property is protected. And to the girl who left the key on the counter with a note saying "send my deposit to this address," next time do a walk through with your landlord after you have cleaned the place. You'll likely get your deposit back.
http://www.youtube.com/watch?v=Ape9oF8uQAM
http://www.youtube.com/watch?v=Ape9oF8uQAM
Monday, August 20, 2007
Please don't evict me!!!
So, the tenants in house #3 get the letter from the attorney indicating their 6 lease violations and how to remedy them or else get evicted. Ms. Tenant calls the attorney crying and pleading for more time. Hmmmm....let's see. She's already 20 days past due on the deposit, owes a returned check fee, and owes additional monies. She has until the end of the month to pay up, which I think is pretty damn generous. This is all really irritating. You see, Mr. Landlord and I provide really nice places to live, AND we ensure that any and all repairs are completed by the best workman we have. This not only protects the tenant, but it protects our investment. And this is key...it is an investment for us. Not a half-way house, not a stop-and-squat house, not a onceIgetinIllneverhavetopayanotherdime house. We hold up our end of the lease and we expect our tenants to do the same. Not my problem that you can't manage your life well enough to ensure you and your family have a roof over your head. You should have never signed the lease if you couldn't afford it!
House #1 is up for lease. This is absolutely our nicest house. In fact, we lived there before we moved into our current house. It is in a really nice neighborhood, has all new flooring throughout, new appliances, a washer and dryer, access to the community pool/tennis courts/playground, and new paint on the exterior and interior. The previous tenants did a fantastic job of keeping up the house. So much so, they received their ENTIRE deposit back. Mr. Landlord showed the house this past weekend to a family who seemed very interested. They took the application and said they would fax it in today. Well, I received a voice mail from the husband saying he and his wife had a few questions, and could we please email them. He also said that his wife wanted to know if we were going to repaint the inside of the house, and that if we didn't use email (hello? this statement baffles me....) that he would call back and we could "have a good conversation about the house." Oh fuck me...kiss my ass. The interior has paint that is 10 months old and looks, literally, brand new. It is in very nice, warm colors and we spent a few thousand for the paint job. Fuck off, asshole...it's a rent house...if your wife can't live with the paint then she probably can't live there period...You will likely piss me off some time during your lease and then I'll be the relentless landlord who becomes your biggest, most painful hemorrhoid.
House #1 is up for lease. This is absolutely our nicest house. In fact, we lived there before we moved into our current house. It is in a really nice neighborhood, has all new flooring throughout, new appliances, a washer and dryer, access to the community pool/tennis courts/playground, and new paint on the exterior and interior. The previous tenants did a fantastic job of keeping up the house. So much so, they received their ENTIRE deposit back. Mr. Landlord showed the house this past weekend to a family who seemed very interested. They took the application and said they would fax it in today. Well, I received a voice mail from the husband saying he and his wife had a few questions, and could we please email them. He also said that his wife wanted to know if we were going to repaint the inside of the house, and that if we didn't use email (hello? this statement baffles me....) that he would call back and we could "have a good conversation about the house." Oh fuck me...kiss my ass. The interior has paint that is 10 months old and looks, literally, brand new. It is in very nice, warm colors and we spent a few thousand for the paint job. Fuck off, asshole...it's a rent house...if your wife can't live with the paint then she probably can't live there period...You will likely piss me off some time during your lease and then I'll be the relentless landlord who becomes your biggest, most painful hemorrhoid.
Monday, August 13, 2007
What? You can't pay your rent????
Well, the tenants in house #3 wrote a hot check for their third deposit payment. Because coming up with the first month's rent and a deposit at the same time can be a bit daunting, Mr. Landlord and I let folks pay out their deposit. When I phoned the tenants to say their check bounced, they let me know the fridge was out and that their two twenty-something daughters had moved into the house to "stay for just a few months because their landlord sold the house they were living in right from under them without telling them...they have no where to go, so we said they could stay here until they get back on their feet." Hmmmm.....page 7, section F, subsection 2...no visitors longer than 7 days without written permission from the landlord.
AND, they could not cover their hot check until the 22nd of the month. Hmmmm....page 2, section A....nonpayment can result in eviction.
So, this house is about 1500 sq. ft. and now has four adults and one 6-year-old boy living in it. Let me start by saying that it is illegal where we live to sell a house without giving the current tenants at least 30 days notice, so they are...what is it called???? Ummm....hmmmm....LYING??? Goodness gracious folks...come up with something more original than that. Essentially, these girls were given proper notice by their landlord that the house was up for sale. I am sure the landlord showed the house to potential buyers. So, Mr. Landlord and I are being asked to accomodate someone's ineptness at taking care of their own business and themselves. Folks, had I wanted to be accomodating to these issues, I would have entered a contractual agreement to be someone's PARENT not their landlord. However, given that I did not give birth to these girls, I don't feel a need to accomodate their stupidity.
Now the issue of the money...or lack thereof. Ms. Tenant pleaded and begged to be allowed to stay in the house, saying if we could just give them one more month to get their lives straight, we would not be sorry. As Sue Do says, Holy Crap-dee-doodle. Ms. Tenant also said that she made one of the girls get rid of her precious dog, because Ms. Tenant respected me as the owner and the contracted lease we all signed. Yep...that's right...went over to the house and knocked on the door. Oh my goodness, what on earth did I hear when I knocked on the door??? Yip, yip, yap, yap....what? Could that be the bark of a dog??? So, now we are on violation three of the lease contract.
You guessed it...emailed Mr. Attorney who agreed to send Mr. and Ms. Tenant a letter advising them to get the girls out, pay their debts, get rid of the dog, or risk eviction. Mr. Landlord does not agree with this approach and says to evict them. However, given there is a 6-year-old boy involved, I am willing to stick out for another 30 days...knowing full well that we will be evicting them in September.
Can someone please tell me why people get themselves in such a state of affairs? I mean really...I told Mr. Landlord two weeks ago that these folks could not afford to live in the house and sure enough...they can't. Why oh why do people think they can just pull money out of their asses to pay their bills? Why do they underestimate the legality of the lease contract that they signed??? Please inform me and educate me...
AND, they could not cover their hot check until the 22nd of the month. Hmmmm....page 2, section A....nonpayment can result in eviction.
So, this house is about 1500 sq. ft. and now has four adults and one 6-year-old boy living in it. Let me start by saying that it is illegal where we live to sell a house without giving the current tenants at least 30 days notice, so they are...what is it called???? Ummm....hmmmm....LYING??? Goodness gracious folks...come up with something more original than that. Essentially, these girls were given proper notice by their landlord that the house was up for sale. I am sure the landlord showed the house to potential buyers. So, Mr. Landlord and I are being asked to accomodate someone's ineptness at taking care of their own business and themselves. Folks, had I wanted to be accomodating to these issues, I would have entered a contractual agreement to be someone's PARENT not their landlord. However, given that I did not give birth to these girls, I don't feel a need to accomodate their stupidity.
Now the issue of the money...or lack thereof. Ms. Tenant pleaded and begged to be allowed to stay in the house, saying if we could just give them one more month to get their lives straight, we would not be sorry. As Sue Do says, Holy Crap-dee-doodle. Ms. Tenant also said that she made one of the girls get rid of her precious dog, because Ms. Tenant respected me as the owner and the contracted lease we all signed. Yep...that's right...went over to the house and knocked on the door. Oh my goodness, what on earth did I hear when I knocked on the door??? Yip, yip, yap, yap....what? Could that be the bark of a dog??? So, now we are on violation three of the lease contract.
You guessed it...emailed Mr. Attorney who agreed to send Mr. and Ms. Tenant a letter advising them to get the girls out, pay their debts, get rid of the dog, or risk eviction. Mr. Landlord does not agree with this approach and says to evict them. However, given there is a 6-year-old boy involved, I am willing to stick out for another 30 days...knowing full well that we will be evicting them in September.
Can someone please tell me why people get themselves in such a state of affairs? I mean really...I told Mr. Landlord two weeks ago that these folks could not afford to live in the house and sure enough...they can't. Why oh why do people think they can just pull money out of their asses to pay their bills? Why do they underestimate the legality of the lease contract that they signed??? Please inform me and educate me...
Thursday, August 9, 2007
The first official post
Well, here it is. With the encouragement of others I am opening a blog to relieve the tension and stress associated with being a landlord, psychologist, and full-time mom. Hopefully some of you will find these postings amusing and sometimes even thought provoking. However, I must warn all of you tenants out there....I will, without a shadow of a doubt, piss you off at some time or another. Tenants have given me much fodder for a blog and I am sure you will continue to do this.
I welcome the comments...I am sure I will find some of you amusing and insightful. If you are a tenant, comment away! But remember, I've heard it all before. I am beginning to become quite the ass of landlords....I am forever indebted to my real estate attorney for helping me develop this asshole characteristic, and I think some of you have paid his bills!
I welcome the comments...I am sure I will find some of you amusing and insightful. If you are a tenant, comment away! But remember, I've heard it all before. I am beginning to become quite the ass of landlords....I am forever indebted to my real estate attorney for helping me develop this asshole characteristic, and I think some of you have paid his bills!
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