Any Residential Landlords?

[ultrarunner]

I've been managing residential housing over 40 years and have many long-term tenants with the longest going back to 1987.

Being a housing provider isn't what it once was... ever more restrictions and at the same responsibilities.

A simple one page rental agreement with a second page documenting condition is now over 40 pages including all the mandated disclosures.

National Rent Control is the latest proposal and cash for keys is well established

Local and National one can't escape hearing we have a Housing Crisis yet housing providers are the ones vilified with the trend here pushing out the small time providers.

I'm wondering if other providers are seeing similar elsewhere?

 

[groundcover]

Time to cash out !

 

[ultrarunner]

Uncle Sam would like that...

Tax imitations are definitely a factor.

I put a lot of myself into the properties, pull my own permits, remodeled kitchen's and baths, new roofs, electrical upgrades, etc...

Maybe just getting old... either me or the process.

Only one rental property is with a management company due to distance and that has been just short of a disaster getting the problem tenant out through the legal system meanwhile 6 months to wreck the place...

Property I manage is never more than 2 weeks without a drive-by... better to head off small problems while they are small.

 

[EddieWalker]

I grew up with Rental Properties, and think that's where I learned the basics of what I do for a living. Fixing houses. I work on rental properties for clients every now and then, and it's a good reminder whey I don't have any rental properties. It's shocking what people do to a house that they don't own!!!

Seems to me that it's just a matter of time until Government makes it impossible to make a profit off of renting a home. I'm not sure what their long term goal is, but it doesn't seem like they care if people have a place to live or not.

 

[ultrarunner]

It does seem to be more of an organized effort.

The game changer for many was 3 year eviction moratorium for non payment yet landlord required to provide all services.

At the height of COVID I'm in ankle deep sewage because of what tenant's child flushed and a plumber was not available for love or money...

6 week evictions now being told lucky if court evicts in 6 months and then add legal fees and by statute reduced security deposits...

It no longer is sound business when a $1500 deposit covers a 600k property and insurance cancels because tenants service dog is on prohibitive list of breeds or tenant can run a business such as daycare no permission needed or required.

Bottom line is renters hold nearly all the cards and owners hold nearly all responsibility...

The new tenant protection statutes are actually decreasing number of rentals available when it comes to single family rentals.

The good news is commercial leasing not nearly as impacted.

Maybe the solution is no I vestments that have a bed?

 

[tradosaurus]

Uncle Sam would like that...

Tax imitations are definitely a factor.

I put a lot of myself into the properties, pull my own permits, remodeled kitchen's and baths, new roofs, electrical upgrades, etc...

Maybe just getting old... either me or the process.

Only one rental property is with a management company due to distance and that has been just short of a disaster getting the problem tenant out through the legal system meanwhile 6 months to wreck the place...

Property I manage is never more than 2 weeks without a drive-by... better to head off small problems while they are small.

How often can you see the insides of the house?
Engineer at work has about 10 rental properties, I believe all Section 8 housing. He said the gov't is steady with the rent. And the houses he buys to rent are $20-30k fixer uppers.

 

[EddieWalker]

I'm not sure what the best answer is, but eventually there is going to be a time when you will have to sell and move on. Retirement, or just too expensive to keep the properties. I can't think of a better decision that I've ever made then selling my house in CA, and moving away.

 

[tradosaurus]

It does seem to be more of an organized effort.
The game changer for many was 3 year eviction moratorium for non payment yet landlord required to provide all services.
At the height of COVID I'm in ankle deep sewage because of what tenant's child flushed and a plumber was not available for love or money...
6 week evictions now being told lucky if court evicts in 6 months and then add legal fees and by statute reduced security deposits...
It no longer is sound business when a $1500 deposit covers a 600k property and insurance cancels because tenants service dog is on prohibitive list of breeds or tenant can run a business such as daycare no permission needed or required.
Bottom line is renters hold nearly all the cards and owners hold nearly all responsibility...
The new tenant protection statutes are actually decreasing number of rentals available when it comes to single family rentals.
The good news is commercial leasing not nearly as impacted.
Maybe the solution is no I vestments that have a bed?

How good is the background checks on tenants? How picky can you be?

 

[kenmbz]

For our rental apartment the condo has about 40 pages in the contract and costs about $1000 every time we need a new renter.
Costs for insurance, maintenance and energy also take a bite out of the rent we get.
Forms needed for insurance and city every year.
Luckily we have never needed to evict someone and only had the place vacant for 3 months after covid.
In the area with out apartment the eviction laws are very much against the landlords.
Even selling is frought with paperwork and high costs.

The background checks the building does are pretty basic so we do some of our own, as allowed by law.

 

[ultrarunner]

How often can you see the insides of the house?
Engineer at work has about 10 rental properties, I believe all Section 8 housing. He said the gov't is steady with the rent. And the houses he buys to rent are $20-30k fixer uppers.

The 14 properties I personally manage on site every 14 days… inside every 6 months max but often as frequent as monthly… except COVID protocol derailed as shelter in place orders city wide lasted a longtime.

A fixer here is in the 600k to 900k typically.

These fixers are 99% flipped as rent can’t justify holding.

Some of my best tenants had been moving every 12 to 18 months because where they lived was always being sold owner occupant.

 

[ultrarunner]

How good is the background checks on tenants? How picky can you be?

Background check very good but the law greatly limits screening…

I have few turnovers on property I manage…

When tenants leave it’s divorce or getting out of the Bay Area…

 

[ultrarunner]

How good is the background checks on tenants? How picky can you be?

It’s actually against the law now to consider or do a criminal background check…

Also very limited if tenant moved someone in.

Oakland rent eviction control guide -

Rent & Eviction Control Guide / Oakland Highlights It has been said that the oak tree and the cypress do not grow in each other's shadow. So as proud East Bay residents, Bornstein Law is thrilled to see the phenomenal growth of Oakland and earn the same respect as San Francisco. Yet with the...

bornstein.law

 

[bigtiller]

I owned and rented out an old trailer house with a 4 season porch, setting on 3 acres with 21 big ol shade trees. The first renter was great, but lost his job and went back home to mom&dad. The last renter was a problem from the beginning.

I'll never rent a home to someone ever again.

 

[paulsharvey]

I used to build apartments, primarily low income, but also student housing. We didn't have anything to do with the tenants except warranty work (which was really limited), and normally was phased, so first few buildings would have renters, while we finished up the last half of the buildings.

So, honestly, the low income weren't That bad, although normally a bit trashy, messy, but not destructive.

I have a few friends that have rental homes; one guy had about 12 homes, but I think 4 are rented to his employees (he's primarily a construction outfit). He had to have a 'talk' with the general tenants during covid, that if he didn't get his money, they would face problems, no matter what the law said. Another has one like quad plex and then a cabin. The cabin has been rented by the same couple for like 13 years. The wife has SS disability, and husband has a rather erratic work history, but he keeps rent cheaper than he could, because it's stable.

Had an old co-worker that had 3 or 4 real Dumps; really nasty stuff up in Jacksonville, and frankly, he said those were the best. The tenants were all cash, and all involved in illegal stuff, drug's/gang stuff, and they would pay, and he looked the other way on what they did.

Edit: the guy who owns the quad plex, has had some issues with the city; wanting him to retrofit handicap parking, dumpster enclosure, ect, and last I talked to him about it, he was considering getting rid of it.

 

[paulsharvey]

So, I should have mentioned, when we built the apartments. I worked with a Old man superintendent who told me, very seriously, "Never, under any circumstance, no matter what, enter an occupied unit alone. They can accuse you of anything, and it's on you to prove you didn't do it"

 

[ultrarunner]

Yep… just about all the city and state rules didn’t exist when I started in 1982…

There was no rent control, just cause eviction or fair chance… plus all of the laws and disabled, daycare, deck and stair inspection, window egress, etc.


The rental with the problem tenants is in WA State with professional management and disaster wouldn’t be too far off…

6 months through the legal system for the Sheriff to evict… I thought California was over the top on Landlord Tenant but have come to realize Washington and California try to outdo each other such as no evictions during the school year if minors reside, etc.

The local apartment association publishes alerts all the time but not much comes of it… too few providers?

The city Attorney will represent tenants pro bono in some cases…

My best estimate on the WA property is 50k loss including legal…

It was rented to a contractor who turned around and sublet rooms to workers and the dogs used the inside of the home as a litter box…

5 vehicles left behind and estimated 40-50 yards of trash… a lot of construction debris from home remodels is what it looks like.

My gripe is the legal system prevents swift eviction when justified and judges that continue to give hardship 30 day delays.

Paying taxes going to cash wouldn't be my first choice...

 

[paulsharvey]

Not 100% the same business; but right around Dec 1 there was a post locally from some small apartments that put flyers on doors say something along the lines of
"we have more evictions in December and January than any other month, please remember rent is still due over the holidays, and don't let overspending leave you homeless"
You wouldn't believe the Hate they faced about that, when I really believe the owners were trying to help people.

 

[ultrarunner]

I believe the idea of housing has morphed into a right...

A few years back a city council person said the cities lack the resources to deal with the magnitude so anything we can do to keep people housed is for the public benefit.

OK... but why shift the burden to providers...?

 

[5030]

I've been managing residential housing over 40 years and have many long-term tenants with the longest going back to 1987.

Being a housing provider isn't what it once was... ever more restrictions and at the same responsibilities.

A simple one page rental agreement with a second page documenting condition is now over 40 pages including all the mandated disclosures.

National Rent Control is the latest proposal and cash for keys is well established

Local and National one can't escape hearing we have a Housing Crisis yet housing providers are the ones vilified with the trend here pushing out the small time providers.

I'm wondering if other providers are seeing similar elsewhere?

We own 3 rentals and have for quite a while now. I finally have good tenants but in the past, the bad ones cost me big money repairing their damages.

My attorney did my rental agreement and so far it's worked just fine. I read about the Biden rent deal. It's not Constitutional so it will never fly even with an EO from him. It would be overturned in court immediately. Don't wants to get into politics except to say, he needs to go and I'll leave it at that.

Gonna raise the rents on all 3 this fall when the current rental agreements expire. I have to as my built in costs have skyrocketed. I still make money on all 3, it is a business after all but I need that padding just in case.

Average rents here for a single family dwelling bare is 3500 a month. Mine come all furnished with appliances and they all have central air and HF furnaces and I don't allow any solid fuel heating appliances in any of them. All brick ranches with attached 2 car garages and they all sit on acreage. 2 are paid off and the 3rd one is close to paid off.