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I have a condo that I have rented out since last year.
My first tenant last year was a real bad experience. She lost her job and refused to move out. I had to go to court. After winning in court, she still owe me 3 months rent that I will never get back. She leaves my place in a huge mess. I had to hire a crew to paint entire unit and do professional cleaning, which cost me $2,500. No apology from her; she viewed herself as a victim. I just want to move on.
My condo looks nice now and is back on the market. I am very wary of my next tenant. Will do a real hard scrub before I accept them. I rec'd an application for rental from a nonprofit. I look them up and they help homeless people get back on their feet. They have offered a 2 yr lease but lowballed my asking price, which is market value.
1) I am wary of renting to someone with no income / job
2) I am wary of renting to someone who I can't do a direct background search on (criminal past, drug use, credit report, reference check, etc)
3) I didn't like getting lowball for my asking price
I still have a mortgage on the property and this is a business investment for me. I feel bad for not helping the homeless person or family out.
I have a condo that I have rented out since last year.
My first tenant last year was a real bad experience. I just want to move on.
My condo looks nice now and is back on the market.
Good. Sell it now.
Quote:
I still have a mortgage on the property and this is a business investment for me.
If you insist on keeping the property... learn how to be a landlord.
Join a good owners group, retain a good lawyer, get a good lease,
get a good application form, devise a good verification protocol and a good set of standards.
Don't feel bad- this is business. The purpose of business is to make a profit and not put yourself into a financial hole. No one is looking out for you but yourself.
I wouldn't rent to the not for profit. Sounds like they may be using it for transitional housing. That means people may be moving in and out, they may even have any number of unrelated people living there. Even if they were using it for a two year lease for a family I still wouldn't do it. Like you, I want to know specifically who is living there and their background.
If the tenants wreck the place, you'd have a heck of a time going after a not for profit for any damages, evictions,etc. In court you're the bad guy, they're the good guy helping the homeless.
Price your condo correctly and wait for another tenant. Keep your emotions out of the transaction. It's OK to say " no".
Just like Nancy Reagan Just say NO. I've said no to plenty of people if I don't like something. I had one guy who was telling me what he is gonna pay when he moves in. Yeah doesn't work like that. Negotiating is one thing Lowballing me would be a BIG No thank you
Last edited by Electrician4you; 10-31-2013 at 02:12 PM..
Don't feel bad. You're not the only one they are talking with, not the only condo they are looking at. And, if it helps, your neighbors may not be so kind about your tenants. If you want to help the homeless, help at a soup kitchen or one of the many many holiday opportunities offered by local social services or houses of worship. As far as ministry or kindness to others, unless you feel called to do that while in poverty yourself, you can better do that from a more sound financial vantage point.
OK, you got burned once and learned a few lessons the hard way. Sounds like you're getting smart, so that's a good thing.
As far as feeling guilty about the homeless group, send 'em a check for a donation if you feel guilty enough, but that doesn't call for you putting your investment at risk. You want a good, solid, reliable and responsible tenant who will be there for a minimum of one year -- ONE tenant, not a parade.
You can't blame them for trying -- but you don't have to go along with it. They lowballed as a negotiating tactic -- you said no. No reason to get insulted. You can <i>laugh</i> if you want. :-) The ONLY way I'd do it is with a very hefty security deposit -- say, $5,000. That will probably make them look elsewhere.
If you insist on keeping the property... learn how to be a landlord.
Join a good owners group, retain a good lawyer, get a good lease,
get a good application form, devise a good verification protocol and a good set of standards.
^ THIS.
Remember, you're running a business, not a charity. If you want to help a charity, donate money that you can afford to live without, NOT your investment.
I have a condo that I have rented out since last year.
My first tenant last year was a real bad experience. She lost her job and refused to move out. I had to go to court. After winning in court, she still owe me 3 months rent that I will never get back. She leaves my place in a huge mess. I had to hire a crew to paint entire unit and do professional cleaning, which cost me $2,500. No apology from her; she viewed herself as a victim. I just want to move on.
My condo looks nice now and is back on the market. I am very wary of my next tenant. Will do a real hard scrub before I accept them. I rec'd an application for rental from a nonprofit. I look them up and they help homeless people get back on their feet. They have offered a 2 yr lease but lowballed my asking price, which is market value.
1) I am wary of renting to someone with no income / job
2) I am wary of renting to someone who I can't do a direct background search on (criminal past, drug use, credit report, reference check, etc)
3) I didn't like getting lowball for my asking price
I still have a mortgage on the property and this is a business investment for me. I feel bad for not helping the homeless person or family out.
Thoughts?
NO! Help the homeless in other ways. Protect your investment.
I've worked with the homeless for years and have a lot of empathy there ... but, if I had a valuable piece of investment property, I would not consider using it for transitional housing.
A couple of thoughts: If the organization is already low-balling you, what do you suppose they will do when you try to collect for damages caused by unknown temporary tenants, which exceed your security deposit? Also, take a look at the condition of existing transitional and section 8 housing in your area. As a general rule, folks with no 'skin in the game' and nothing to lose, generally have little appreciation or respect for the housing cost investment of others. You also have no leverage in getting your 'tenants' to follow the by-laws of your HOA and respect your neighbors rights. Further, your Condo HOA bylaws probably have restrictions against short-term, month-to-month tenants.
There are folks out there who specialize in investment properties suitable for transient housing -- They know what they are doing and how to protect their investment. That doesn't sound like you!
Check your condo docs. Most in my area wouldn't allow an owner renting to an organization with revolving residents.
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