Rent Collection Tricks(8)
Here are a couple quick tips when you are “dialing for dollars” to make it easier to collect rent:
We own investment properties not because we have nothing better to do, but to make a profit (either short or long term). Rent collection is the key to being a successful landlord. You need this rent/income to keep your business solvent. |
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Renting to Roommates(3) Roommates add a special twist in that each one is typically contributing toward the rent. This is good and bad. You have multiple sources of income, but you also have competing priorities and motivations. Roommates are frequently my most frustrating rental units. Often this is what I experience (let’s assume the rent is $999 per month).
What do you do? You can’t evict just roommate 3 as all of them are typically on the lease. Do you want to spend the money to file an eviction? Can you force the other 2 to make up the difference? Here are some idea on how to handle this situation (preferrably before it happens):
Managing this multi-dimensional situation can be challenging. You just need to get out in front of the problem and stay there! Let our experience get you started! Our next Investment Property 101 Seminar is being held on December 16 at 6:30 pm in Burnsville. I look forward to seeing you there. Register for the seminar by filling out this quick registration form or call 612-281-5419 for more information. |
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Pre Eviction Mediation in Hennepin County(0) Evictions are a necessary part of being a landlord. Depending where your investment property is located, you may do them once every 5 years or once every 5 months. Ultimately, though, I see an eviction as the last resort. At the same time, I can’t allow my tenants to push me around and simply never pay me. But unfortunately, 95% of my evictions result in me collecting ZERO dollars from the tenants. I am left with a big bad debt right off. Two weeks ago while I was down at Hennepin County, filing another eviction (5th one for 2008-not a good year), I read about doing Pre-Filing Mediation. This is a procedure in which a neutral third party, at the request of the parties to a dispute, assists them in reaching a mutually satisfactory settlement. In mediation, both parties need to agree to meet with each other and the mediator. The mediator is not a judge and will not decide the solution, he is more like a facilitator to help the parties find a agreeable solution. 3 possible outcomes to pre eviction mediation:
Benefits to Mediation for the Landlord:
Benefits to the Tenants:
In my case, I decided that the tenants just needed an authority to wake them up to the fact that they are not living in Mom & Dad’s house any longer. They have signed a lease and they have obligations to pay. Although we did not go to mediation, the letter from the mediator quickly motivated them to work out a payment plan with me. As of now, they are on their way to paying off their back rent! Although I may not use this in every situation, I think mediation can be a softer approach that may get you your past due rent paid, instead of just clearing out your apartment. Have you always wanted to own investment properties, but never knew where to start? |
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Investment Property Maintenance Tricks(3) I have not been posting much lately as I have been buried with multiple apartment turnovers. As I mentioned previously, several years ago, I moved many of my lease end dates to May 31. Subsequently this can be a busy time of year for me.
Most of these items are inexpensive, but they can save you taking a maintenance call later. Find your small repair items and do them at the turnover. |
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Don’t Just Let Yourself In To Your Investment Property(2) Amy Dickinson is a great read over at the Star Tribune. She writes a column called Rent in the Homes section and takes email questions from readers and answers them. I suppose you could say she is kind of like a Dear Abby for renters and landlords! A recent one article I found funny and tragic at the same time. It seems the landlord is actually a little too quick and helpful to fix things. He barely knocks before he uses his key to enter the apartment (one time catching the renter in a towel, just out of the shower). See the question and Amy’s response here.
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Paying Interest on your Investment Property Security Deposits(8) I hope I am “preaching to the choir” when I remind everyone that in Minnesota, you must pay your tenant interest on the security deposit they have on file with you, when they move out. As a landlord, you must return a tenant’s security deposit plus interest or give a written explanation why the deposit (or any portion of it) is not being returned, within 21 days after the tenant moves out and gives the landlord a forwarding address. Below are the interest rates that apply depending upon when the tenant moved in:
If a tenant’s residency spans more than one interest rate change, you will need to figure the interest for that period until the change (round to the month) and then calculate the total. For example, if your tenant has lived in your investment property since August 2002 and moved out on July 31, 2007, they are entitled to 3% interest for 12 months and 1% for 48 months. Using the above table will help you easily comply with state law when calculating the interest on your Minnesota investment property security deposits. |
Contacts and information
Copyright, Scott Ficek-2011 Re/Max Advantage Plus MN Real Estate Team 17850 Kenwood Trail Lakeville, Mn 55044 952-898-5800
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