said on November 12th, 2009 categorized under: Tenants
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With national vacancy rates at their highest levels in 23 years, Minneapolis duplex owners are having to resort to innovative strategies to attract and keep tenants.
While a fresh coat of paint, new carpet and a move-in incentive like one month free can help attract new tenants, what about keeping the ones you already have?
According to a recent article in the Wall Street Journal, more landlords are finding themselves in a position of having to negotiate. The Journal reports that in a recent survey conducted by the National Association of Independent Landlords, more than two thirds of independent landlords will reduce rent in order to keep a tenant, while almost one-third of them already have in the last 18 months.
At first glance, this study is frightening. If all tenants want to renegotiate the terms of their lease, won’t we be unable to pay our bills?
Consider this. A vacancy caused by an unwillingness to either establish a payment plan for a delinquent tenant or offer, say, a five percent discount to one who is struggling economically can cost you far more than the initial concession.
Turning a unit for a new tenant not only often costs you paint, cleaning, and repairs caused by normal wear and tear on a unit, but the lost revenue during the vacancy as well. In other words, potentially thousands of dollars vs. say, a discount of 5 percent as an incentive for a tenant to say.
Of course, you can’t be a doormat either. Some people in life will mistake your kindness for weakness, and exploit it accordingly.
But offering understanding to the tenants who’ve proven themselves, can be a a great way for you both to survive.
said on October 22nd, 2008 categorized under: Tenants
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A relatively new landlord contacted me earlier in the week and asked some terrific questions.
In an effort to have the other side of her unit occupied before the first mortgage payment came due, she rented to someone with less than perfect credit. Just five months into the lease, the tenant was already late on one month’s rent. While the gas, phone and electric are in her tenants names, she’s certain they are also behind in some of these bills.
While the tenant has stable employment and worked with her to make amends on the late rent, he’s uncertain how he should approach the potential utility delinquencies. A friend suggested he contact the utility companies to check whether the bills have been paid on time.
What, if anything, can she do?
The answer is, not a lot. Maybe.
According to
Xcel Energy, provided it’s delineated in the lease that the tenant is responsible for the utilities, the landlord is absolved from any obligation to pay these bills. Of all the utilities involved in living in a property, it is only the water bill that follows the property. The rest follow the person whose name they were in.
What’s more, sharing the current status of payments with an unrelated third party is a violation of most utility companies privacy policies.
There is, of course, an exception. If the lease contains a clause stating falling behind in utility payments is a violation, the tenant and property owner may mutually sign a third party notification letter. This letter is then sent to the respective utility companies. In the event the tenant falls behind, it is mailed to the landlord at his service address. If the letter is not pre-signed by both parties, it cannot be sent.
It is important to note that the standard lease available through the
Minnesota Multi-Housing Association does not contain a third party notification clause. It may be worth a short appointment with an attorney to have it and a notification letter drafted.
So what if there’s no letter, it’s the middle of January, and the tenant is so far behind the heat is shut off? Won’t the pipes freeze and burst, causing thousands of dollars in damage?
Not to worry. In Minnesota, which is a cold weather state, if the tenant has filed for the cold weather rule, Xcel will not disconnect any electricity involved in a heating system between October 15 and April 15.
The same holds true for
Centerpoint; again, provided the tenant has applied for the cold weather rule exception. If they have not, Centerpoint will disconnect the gas, but during the winter months will notify the landlord of such with or without a third party notification letter. In the summer months, however, it’s important to note that Centerpoint does require a third party notification letter.
Excellent question!
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One of the questions I am most frequently asked by people considering purchasing their first multi-family property has to do with plumbing. More specifically, the toilet.
It seems the biggest fear about becoming a landlord is there will be a phone call in the middle of the night that a tenant’s toilet has backed up. And it will be up to the landlord to fix it.
First, I have been a landlord for over a decade. And in all those years, the only time I ever had a middle-of-the-night plumbing call was when a water heater actually burst and was spewing water everywhere. My inconvenience? Calling the plumber and signing the check! (It was the least I could do — my tenants were buying me my property after all.)
When it comes to toilets, however, a plumber charges too much. And, here’s a tip: they’re really, really easy and inexpensive to repair.
I had zero experience with fixing them prior to becoming a landlord. But I’d had the good fortune of stumbling across Home Depot’s book, Home Improvement 1-2-3. It had pictures, well, more accurately, how-to cartoons of almost every conceivable home repair or improvement. I took that book with me everywhere: propped it up on the back of toilet tanks, crawled under sinks with it…you get the idea.
The good news is, Home Depot still publishes it. The bad? No more cartoons. Just pictures.
And, if Home Depot’s actually closed, there’s always www.fixatoilet.com. No kidding.
