Landlords - rule of thumb for increasing rent?

[Bongleur]

Yea, other thing to do is look at my PM contract. Maybe have a lawyer tell me how much it might cost if there are clauses about keeping a %age of the rent etc if I drop them. Seems like dropping them when its empty would be cheapest. But offset by loss of income when empty.

Need to know Days On Market data.

Mom's 92 so median lifespan is 4. So maybe 10?

Putting $ into upgrades like windows won't gain me anything at all when I get a step up in basis. I doubt that it would even reach breakeven.

 

[brucethebroker]

Allow me to give you a renter's perspective.....

I signed a lease on this home last year after it had been on the market for three months in a very desirable area. The flooring and fixtures are dated and it has virtually no back yard. Strict no pets policy in an area populated by dog lovers. The owner wanted $2950 a month, I offered $2550, we settled at $2700.

Upon move in it was discovered that both A/C systems (two story home) needed to be replaced. I helped the owner obtain bids. A toilet leak was discovered before it caused major damage and revealed the water pressure to the home was extremely high and required a pressure regulator at the street.

There have been several smaller items that needed attention that I offered my own labor to repair or install (microwave, a couple of ceiling fans, weatherstripping, etc). The owner would order from Home Depot with delivery and I would take care of it. This home was filthy when I moved in and is in much cleaner and better kept shape now that I've been in it for almost 10 months.

My lease payments have always been made at least one week before due date.

My lease comes up for renewal in a couple of months. I still feel like I'm paying a bit of a premium for more house than I need. I feel like the owner should provide some sort of incentive for me to renew the lease for another year at the same or maybe even lower rate AND offer one month free for signing since that would be his minimal cost for finding a new tenant.

I will move if he proposes otherwise.

Not wishing to be snarky, but be prepared to move if you voice those thoughts to your landlord.

 

[brucethebroker]

I charge what the neighbor charges but a little more since mine is nicer and his is not available.
If you are a good tenant, I don't raise your rent unless my property taxes go up. If the property taxes go up, your rent goes up. Simple. When the unit flips, I charge market rate again...whether that was more or less than prior tenant...but for me it's always been more.


IN my mind, if you want to live in that property, and the owners property taxes went up over the year, well its fair to ask you to pay the difference since you received the benefits of living and breathing in that community at that property. Kinda like when the price of grain rises, so does the persons cost for that box of Rice Crispies...pass it on to the consumer.

Yeah, that is kinda what we do also.-waiting for renters to move on has always been a good policy for increases.

 

[imoldernu]

I finally got around to reading this thread. To put it mildly, I am stunned.

We must be living back in the 1970's here in Peru. To understand, in City-Data, put in your zip code to see the location where you live, then compare the details with zip 61354... average household income, home prices, rentals etc.

To give just a broad look at what the prices are, this link is to a local realtor, showing a sampling of home prices.

https://www.coldwellbanker.com/for-sale-homes/Peru-IL-17842c

.. and the details for the most expensive home, currently in the listing

https://www.coldwellbanker.com/for-sale-homes/Peru-IL-17842c

or this one @ $150K
https://www.coldwellbanker.com/property/625-Peoria-St-Peru-IL-61354/96170815/detail?src=list (Look at the 35 pics)

Three years of the rentals mentioned in this thread would buy a small home here. The thought of paying $30,000/yr just for rent, is incredulous to me.

I feel I must have been reading this wrong.

 

[Winemaker]

I finally got around to reading this thread. To put it mildly, I am stunned.

We must be living back in the 1970's here in Peru. To understand, in City-Data, put in your zip code to see the location where you live, then compare the details with zip 61354... average household income, home prices, rentals etc.


Three years of the rentals mentioned in this thread would buy a small home here. The thought of paying $30,000/yr just for rent, is incredulous to me.

I feel I must have been reading this wrong.

Yes, housing costs in fly over country are much cheaper than the big city/big city suburbs. My son's house at the other end if the state is, well, super expensive as to homes here near Pittsburgh. But market demand, labor costs, and land development costs are higher. There are so many people!

 

[Another Reader]

OP has precision mixed up with accuracy.

How many bedrooms, how many baths, does it have a garage, is it on a busy street, and how updated is it. That's how your potential renters analyze the property. Smart landlords do the same.

ETA : Schools count as well, if the property appeals to higher income renters with school age kids.

 

[wolf]

I'm guessing the OP does not have a lot of units and hasn't been a landlord for a long time. Before you decide to raise your tenants to full market rent for a pristine unit, ask yourself how much is the cost of a tenant turnover. If you will have to paint, carpet, upgrade your fixtures, etc. to get "market" rent when your tenant moves, you may lose money on the turnover. Plus there is the vacancy loss during the turnover to consider.

I like to keep good tenants, so I don't squeeze every last dollar out of the rent. My experience has been that this approach costs me less over the long run. I bought the units either a long time ago or during the 2009-2012 meltdown, so I'm not struggling to pay mortgages.

Also, what the CPI is doing or what properties sell for is largely irrelevant. What your current renters and their potential replacements can afford to pay and what your competition charges are the relevant metrics. Median rent per bedroom is only marginally useful. In my market, four bedroom houses do not command much of a premium over three bedroom houses and are more likely to attract roommate situations than families. My little two bedroom in a desirable area is one of the easiest properties to rent and has the highest rent per square foot and bedroom because it is affordable to a young couple or a divorced mom with a kid or two that want to live in the neighborhood and school district.

Property management companies like to do what is easiest for them. Turnover is a hassle and costs them revenue. There may be a bias toward lower increases, but they do have a point. Turnovers cost you revenue as well.

+1. OP. Don't over think the situation. Get rid of the PM, and do it yourself. This will increase your return and give you needed hands on experience.
A PM will not screen future tenants as well as the owner. My experience.

Worst to best tenants. (when taking applications). of course there are exemptions.


1. Single girls. ie. Can't fix anything, One get's married, then vacancy.

2. Single guys. Similar issues.

3. Family. Good, usually stay much longer. But heavy wear and tear.

4. Married couple no kids. Best. Stay longer. Minimal wear and tear.

 

[Looking4Ward]

Not wishing to be snarky, but be prepared to move if you voice those thoughts to your landlord.

I am. Furnished this property very lightly and can move in just a couple of days.

 

[Peter]

Not wishing to be snarky, but be prepared to move if you voice those thoughts to your landlord.

Indeed!

 

[Bongleur]

calmloki -- re cost increases -- my mother has outlived her LTC insurance, so her costs have gone up by $60,000 a year. So it is my fiduciary duty to figure out how much I can extract from a tenant, to maximize her income. Having to put it on the market is a real big loss, but I also need to know if the square footage was understated from the start.

Re tenant point of view - bedrooms, location, etc. I cannot do anything about that, it is where it is and they will be screening for 4 beds 2 baths cul de sac, crime rate, etc. My PM is the subject matter expert in finding comps and if it is a sellers' market.

I cannot manage it myself, it is several hours away from where I live.

Yes, I am flapping my wings, because I need to learn what I need to know. Unknown unknowns etc. Most of what I am asking about will turn out to be not relevent, but I need to identify the most relevent factors. Operations research...

Real Estate is supposed to be that part of your asset allocation that keeps up with inflation. So shouldn't that be the baseline for a rent increase, only reduced if it causes tenant to leave?

 

[Bongleur]

What is the PM agent's self interest in this?
1) PM agency makes 9% of rent.
2) Don't know if the agent makes a cut of the % or a salary.
3) if house goes on market, agent makes commission on finding new tenant.


So if the house goes on the market & is rented "quickly" the agent might make MORE money than merely "managing" it for that amount of time.

 

[Bongleur]

Can I do some upgrades?
Suppose I offer to raise the rent by 10% but spend it on something like upgrading the kitchen or probably better, installing new windows -- they would save on heat.


Need to know their utility spend... Wonder if i can get that from the utility since I'm the owner.



Dunno how much these things cost.
There are 10 ordinary double sash windows, and two where you have a sash on either side of a large pane of glass. Call that 16 window equivalents... How much is one Anderson window when they do the whole house?
Of course I should think cheaper than Anderson...



What about basement type windows - are they typically done as well?


If 2 years rent covers the cost then I lose nothing but hopefully make 10% thereafter so that's a rate of return of... what figure is right to use? Have to discount for the risk that in 2 years the market won't pay that full amount for the upgraded status.

 

[Sunset]

OP - you just stated your mother's LTC was the reason for a rent increase. Why would you spend $20K on windows ?

Raise the rent by 2% , and find a cheaper PM.
Actually, how often is your PM doing anything ? Why could you not manage this from a few hours away ?
You can phone for a plumber, electrician, and get a HVAC monthly insurance plan so no worries about those things. No need to drive there.

 

[calmloki]

Regarding windows: from a tenant point of view, in my experience, if the hole has glass in it, it's good. I saw no big increase in happiness or rentability between old counterweighted double hung, aluminum single pane, or double pane vinyl. Other than air intrusion, not a huge difference in energy savings either. What was apparent was a great improvement in noise intrusion from outside by going to double pane. We swapped windows out in all the apartments because of noise, cost sharing for the change by state energy agency, getting rid of old lead-based painted sashes scraping up and down making lead dust, and just to perk the places up a bit. I did the labor on two houses in a couple days and the vinyl windows I inserted into the existing frames cost ~$200 each. Contracted out the apartment buildings as the state energy assistance program made it cheap - cost me $15-20k. Drop in to Home Depot or go online and find out what wood windows cost - or vinyl inserts which don't disturb interior or exterior paint and mouldings. This will be very helpful when you talk with contractors. MEASURE the windows so you can get a decent answer - so far your questions are sort of like "what does a car cost?"

Some utility companies will give you a high and low or an average for the prior year.

People like money that comes easy. Your PM would be overjoyed to take his cut for years if he didn't have to do anything but open the rent envelopes. That is way easier than showing and renting your place.

 

[Another Reader]

There is zero rent premium for new windows, unless you are in Alaska and the heating bill is $800 a month. Tenants won't notice new windows or care.

The OP has a lot of experienced landlords here (decades in several cases) telling him how to price the property and he is not paying attention. He is not looking at the forest or the trees, he is busy examining the leaves.

OP is clearly not suited to be a landlord. My question would be how many years of long term and nursing care would the net proceeds from selling the property pay? If it is a lot longer than mom is likely to live, that might be the way to go.

 

[Bongleur]

IS my PM actually really qualified to declare that 2% is all I can get? I dunno, she's not giving me much hard data. TWO comps? That's not enough, at least back when I had a real estate sales license. Not enough for the tax assessor. She COULD go back into the records instead of just looking at recent closed leases. What about what's still on the market? What about last year's leases? Shes not DOING THE WORK !!!

As I said above, much more money after taxes by selling after she passes.

I need a PM to qualify tenants, show the property (I can't keep going back & forth to unlock the door!) and check the property more often than I could go down -- its an overnight stay ($) or an exhausting round trip. I don't have a list of all the different kinds of contractors I may have to call & who can get there "now." A PM company has that on call AND shows up to check their work before they get paid.

WRT window improvements -- a company selling interior storms (plexi pane with silicone rubber gasket, laser fitted & pressed in) tested 20% energy reduction. But at $24/sq ft, still very expensive, as much as good grade exterior storms.

This Old House says single pane + good exterior storms are as good as double pane. And last longer.

Best website ever -- shows SCIENTIFIC TEST DATA for all window types, given type of exposure, and cost savings state by state, for heating & cooling:
**********
https://www.efficientwindows.org/ex...ngType=overhangs&houseType=2story&prodType=WN
***********
Going from a single pane, non-metal window to a 2-pane, saves $100 a year in Wash DC.
The best type of 3 pane E-glass saves $307.

At $500 a window x16, breakeven period is MANY decades.

Rule of thumb if selling is you only get 75% of your cost back (if its new enough).
BUT counting inflation : 10 years of 2% inflation is 0.98 ^10 = 81%
then x 75% = 61% real dollars recovered.
Versus putting the money into equities that average 4-6% real a year.

OTOH it might help the sale to install them after I inherit -- when its still a rental. Then I can depreciate it from my basis, recapture would be a wash, (I think ?) but I could add it all to the asking price.

That is, if its true that people would rather buy a refurbished house than do the refurb themselves. I don't understand why you would NOT buy a fixer-upper so everything is exactly the way you want. But I presume it has to do with being able to get mortgage money rates vs higher home improvement rates?

I want to know what % of the single family housing stock, of our size, is 60, 40, 20, 10 years old, so I know how much of the competition is significantly newer.

 

[brucethebroker]

Real Estate is supposed to be that part of your asset allocation that keeps up with inflation. So shouldn't that be the baseline for a rent increase, only reduced if it causes tenant to leave?

Real estate is LOCAL. Unless you use local inflation numbers, in particular, rental inflation, they will be worthless.

Use current rents in your area-but you know that already if you have been reading the generous number of posts on this thread-all from people trying to help you.

(Personally, I think you are not getting the answers you want, so you keep digging.)

 

[MrLoco]

Not wishing to be snarky, but be prepared to move if you voice those thoughts to your landlord.

Really Be prepared to move? You must be joking!!


Let's see. "Looking4 Ward" sounds like the "ideal" tenant. Upon moving into the house the AC wasn't working; the place was filthy, and the toilet leaked. Would you want to move into a house like that?


Also, Looking4Ward agrees to fix some minor problems himself. All the owner did was order from Home Depot and Looking4Ward did the repairs himself! What other tenant would agree to this? I know I wouldn't! When I rented I vacuumed and changed light bulbs. That's it. Anything breaks ( due to normal wear and tear) or leaks or whatever it is ALWAYS the landlord's responsibility to fix and fix in a TIMELY manner! LOL! There must be new rules in place today from when I rented.


So now Looking4Ward wants to negotiate some incentives on the rent. It's called a "negotiation." Why not? Good for him! He seems like an A+ tenant! The landlord can always say "No" but some of you act like you would be insulted! Really? "How dare the tenant try to negotiate incentives pertaining to the rent!"


Go ahead. Get rid of Looking4Ward. Your next tenant might be the tenant from hell. HA!

 

[calmloki]

I don't do rent negotiations. Either the tenant wants to rent the place as it exists for the price advertised or they don't. Long experience has also taught me that tenant repairs or upgrades are a very bad idea. I know what my repairs are like - I've done them for a living for over 30 years. tenant repairs? often not good. Frankly most non-professional repairs look and operate like DIY, and most DIY is in the re-muddling vein.

There are some good tenants who take what i call an owner's attitude to the places they live. If that's the way they are then that's the way they are - it is as tough for them NOT to act like an owner as it is for a LBYM type to act like Robbie and blow that dough. Many or most tenants do not have an owner's attitude to the places they live. They treat places hard. I treat tenants well and good tenants better, and the places I own are mine and are cared for. My expenses go up and so do my rents.

 

[Looking4Ward]

Really Be prepared to move? You must be joking!!


Let's see. "Looking4 Ward" sounds like the "ideal" tenant. Upon moving into the house the AC wasn't working; the place was filthy, and the toilet leaked. Would you want to move into a house like that?


Also, Looking4Ward agrees to fix some minor problems himself. All the owner did was order from Home Depot and Looking4Ward did the repairs himself! What other tenant would agree to this? I know I wouldn't! When I rented I vacuumed and changed light bulbs. That's it. Anything breaks ( due to normal wear and tear) or leaks or whatever it is ALWAYS the landlord's responsibility to fix and fix in a TIMELY manner! LOL! There must be new rules in place today from when I rented.


So now Looking4Ward wants to negotiate some incentives on the rent. It's called a "negotiation." Why not? Good for him! He seems like an A+ tenant! The landlord can always say "No" but some of you act like you would be insulted! Really? "How dare the tenant try to negotiate incentives pertaining to the rent!"


Go ahead. Get rid of Looking4Ward. Your next tenant might be the tenant from hell. HA!

I don't do rent negotiations. Either the tenant wants to rent the place as it exists for the price advertised or they don't. Long experience has also taught me that tenant repairs or upgrades are a very bad idea. I know what my repairs are like - I've done them for a living for over 30 years. tenant repairs? often not good. Frankly most non-professional repairs look and operate like DIY, and most DIY is in the re-muddling vein.

There are some good tenants who take what i call an owner's attitude to the places they live. If that's the way they are then that's the way they are - it is as tough for them NOT to act like an owner as it is for a LBYM type to act like Robbie and blow that dough. Many or most tenants do not have an owner's attitude to the places they live. They treat places hard. I treat tenants well and good tenants better, and the places I own are mine and are cared for. My expenses go up and so do my rents.

Two good opposing views. I must say that I think every situation is unique and I've been on both sides of the fence as both a tenant and a landlord.

I agree that some repairs should never be allowed by an inexperienced tenant. But my qualifications are as good or better than the vendors that the owner has used. When it came to the A/C units, I saved him over $10K against the lowest bid he had from the "name brand" local repair companies by steering him straight to the manufacturer's site (Goodman) and then sourcing a local wholesale contractor for him. He was VERY grateful.

I also troubleshooted the septic system for him recently. I was one of the first homeowners in this county to be certified to maintain my own system so the knowledge proved useful in this situation. Instead of being charged for a complete lift pump ($375) and air compressor ($420), I showed him how only a spin filter ($18) and compressor rebuild valve plates ($90) were required.

So yeah, I'll put myself out there as an A+ tenant that most any landlord/owner would like to keep. Having been on the other side of the fence I'd be appreciative of a tenant who not only keeps the property in better condition than it was in on move in day but also has the knowledge and willingness to effectively save the owner thousands in repairs during the term of the lease.

I also understand I'm not your typical renter. So I'm curious - how do you treat your tenants well and good tenants better? And if you were faced with the potential of losing several months of rent to vacancy and realtor commissions, why would you not offset some of those potential loses to keep a good or great tenant?

For instance, this owner used a real estate agent to list the property for rent. That's one month rent right there. The property sat empty for almost three months before I signed a lease for $250 a month less than what the property was listed for. Does the owner truly believe he will have zero net costs if I don't renew the lease? Why would he not incent me to stay by offering a month free in lieu of a realtor's commission? I told him when I first leased the property that I planned to be in this area for five years and would like to stay at the same property if the terms were favorable. Why would he not want to lock me in for those five years?

 

[alaska55]

IS my PM actually really qualified to declare that 2% is all I can get? I dunno, she's not giving me much hard data. TWO comps? That's not enough, at least back when I had a real estate sales license. Not enough for the tax assessor. She COULD go back into the records instead of just looking at recent closed leases. What about what's still on the market? What about last year's leases? Shes not DOING THE WORK !!!

As I said above, much more money after taxes by selling after she passes.

I need a PM to qualify tenants, show the property (I can't keep going back & forth to unlock the door!) and check the property more often than I could go down -- its an overnight stay ($) or an exhausting round trip. I don't have a list of all the different kinds of contractors I may have to call & who can get there "now." A PM company has that on call AND shows up to check their work before they get paid.

WRT window improvements -- a company selling interior storms (plexi pane with silicone rubber gasket, laser fitted & pressed in) tested 20% energy reduction. But at $24/sq ft, still very expensive, as much as good grade exterior storms.

This Old House says single pane + good exterior storms are as good as double pane. And last longer.

Best website ever -- shows SCIENTIFIC TEST DATA for all window types, given type of exposure, and cost savings state by state, for heating & cooling:
**********
https://www.efficientwindows.org/ex...ngType=overhangs&houseType=2story&prodType=WN
***********
Going from a single pane, non-metal window to a 2-pane, saves $100 a year in Wash DC.
The best type of 3 pane E-glass saves $307.

At $500 a window x16, breakeven period is MANY decades.

Rule of thumb if selling is you only get 75% of your cost back (if its new enough).
BUT counting inflation : 10 years of 2% inflation is 0.98 ^10 = 81%
then x 75% = 61% real dollars recovered.
Versus putting the money into equities that average 4-6% real a year.

OTOH it might help the sale to install them after I inherit -- when its still a rental. Then I can depreciate it from my basis, recapture would be a wash, (I think ?) but I could add it all to the asking price.

That is, if its true that people would rather buy a refurbished house than do the refurb themselves. I don't understand why you would NOT buy a fixer-upper so everything is exactly the way you want. But I presume it has to do with being able to get mortgage money rates vs higher home improvement rates?

I want to know what % of the single family housing stock, of our size, is 60, 40, 20, 10 years old, so I know how much of the competition is significantly newer.

It's not your house or money,(unless i missed something) you should be what's best for your mother not you.

 

[calmloki]

Two good opposing views. I must say that I think every situation is unique and I've been on both sides of the fence as both a tenant and a landlord.

I agree that some repairs should never be allowed by an inexperienced tenant. But my qualifications are as good or better than the vendors that the owner has used. When it came to the A/C units, I saved him over $10K against the lowest bid he had from the "name brand" local repair companies by steering him straight to the manufacturer's site (Goodman) and then sourcing a local wholesale contractor for him. He was VERY grateful.

I also troubleshooted the septic system for him recently. I was one of the first homeowners in this county to be certified to maintain my own system so the knowledge proved useful in this situation. Instead of being charged for a complete lift pump ($375) and air compressor ($420), I showed him how only a spin filter ($18) and compressor rebuild valve plates ($90) were required.

So yeah, I'll put myself out there as an A+ tenant that most any landlord/owner would like to keep. Having been on the other side of the fence I'd be appreciative of a tenant who not only keeps the property in better condition than it was in on move in day but also has the knowledge and willingness to effectively save the owner thousands in repairs during the term of the lease.

I also understand I'm not your typical renter. So I'm curious - how do you treat your tenants well and good tenants better? And if you were faced with the potential of losing several months of rent to vacancy and realtor commissions, why would you not offset some of those potential loses to keep a good or great tenant?

For instance, this owner used a real estate agent to list the property for rent. That's one month rent right there. The property sat empty for almost three months before I signed a lease for $250 a month less than what the property was listed for. Does the owner truly believe he will have zero net costs if I don't renew the lease? Why would he not incent me to stay by offering a month free in lieu of a realtor's commission? I told him when I first leased the property that I planned to be in this area for five years and would like to stay at the same property if the terms were favorable. Why would he not want to lock me in for those five years?

I don't use a PM company, for starters. I have a vested interest in keeping the units full, so they get cleaned fast between each tenant - I don't understand trying to rent a filthy place. I've had a few (typically tenant mothers) complaints that an apartment wasn't clean enough, but only a couple times has the tenant returned an apartment cleaner than they got it - and never from a complainer. Some initial move-in repairs are to be expected - if the burners are all pulled for stove cleaning and the cleaner doesn't get them plugged in all the way and they don't get checked a landlord visit may be needed to re-set them. We mostly rent one bedroom apartments for a fraction of your house rent so maybe that is a horse of a different color. You sound remarkably competent and may well be - you do sound like someone who has skills.

Consider your landlord's position though. He sounds lazy and like he really thinks rentals are a passive investment. Maybe he Bongleured up a price and asked his PM company to get it. Sounds like they did shitty prep and it took months to rent. Somehow the perfect tenant decided that that was the perfect house and rented it, then discovered it was filthy and had a number of problems. The tenant who has been there less than a year brought up those problems - leaky toilet, bad septic system, bad microwave, bad ceiling fans (really? bad ceiling fans? those weren't improvements you wanted?).

Landlord's house is no longer filthy but his tenant has cost him money for those repairs and improvements. His place is now in better shape than it was when the existing tenant moved in. Shouldn't it rent for more? The existing tenant has cost him money that he didn't expect to spend. Maybe he wants to ride that rent pony for a while without alla time taking it to the vet and groomer.

 

[brucethebroker]

Really Be prepared to move? You must be joking!!


Let's see. "Looking4 Ward" sounds like the "ideal" tenant. Upon moving into the house the AC wasn't working; the place was filthy, and the toilet leaked. Would you want to move into a house like that?


Also, Looking4Ward agrees to fix some minor problems himself. All the owner did was order from Home Depot and Looking4Ward did the repairs himself! What other tenant would agree to this? I know I wouldn't! When I rented I vacuumed and changed light bulbs. That's it. Anything breaks ( due to normal wear and tear) or leaks or whatever it is ALWAYS the landlord's responsibility to fix and fix in a TIMELY manner! LOL! There must be new rules in place today from when I rented.


So now Looking4Ward wants to negotiate some incentives on the rent. It's called a "negotiation." Why not? Good for him! He seems like an A+ tenant! The landlord can always say "No" but some of you act like you would be insulted! Really? "How dare the tenant try to negotiate incentives pertaining to the rent!"


Go ahead. Get rid of Looking4Ward. Your next tenant might be the tenant from hell. HA!

I appreciate your comment. I am merely giving the opinion of a 25+ year landlord. If approached with that argument by one of my renters, I would politely inform them that his occupancy is appreciated, but the rent increase is simply business as usual. From the tone of the renters comments, he would not put up with that and he would move on his own. Or maybe I misinterpreted it.

Based purely on experience, not landlording theory, a demanding renter is just going to be continuing trouble.

 

[Peter]

Based purely on experience, not landlording theory, a demanding renter is just going to be continuing trouble.

Agreed.

 

[Looking4Ward]

Based purely on experience, not landlording theory, a demanding renter is just going to be continuing trouble.

While I completely agree with that statement, I would not classify myself or my tenancy thus far as demanding. In fact, I've been extremely reasonable with the owner when faced with issues that popped up. The A/C, for example. It took him several weeks to address the situation even though it was uncomfortably warm and made it difficult to sleep at night. I made absolutely no demands.

In fact, the last email I received from him was simply the statement:

"Thanks for the thanks! You are welcome! I appreciate that we’re able to work together to get these things taken care of."

I know he also appreciates the fact that he receives the monthly rent almost a full two weeks before it's actually due. Not all landlord/tenant dealings have to be adversarial.

Consider your landlord's position though. He sounds lazy and like he really thinks rentals are a passive investment. Maybe he Bongleured up a price and asked his PM company to get it. Sounds like they did shitty prep and it took months to rent. Somehow the perfect tenant decided that that was the perfect house and rented it, then discovered it was filthy and had a number of problems. The tenant who has been there less than a year brought up those problems - leaky toilet, bad septic system, bad microwave, bad ceiling fans (really? bad ceiling fans? those weren't improvements you wanted?).

He's actually a pretty nice guy, I wouldn't say he's lazy he's just new at this. Moved here from California and bought this home for "investment purposes". Established his own LLC and manages the property himself. He's actually leasing the home he's living in which I was surprised to learn.

The ceiling fan in the MBR didn't work. It wasn't that it was some sort of improvement I wanted. Well, other than for it to work, of course.

Apparently my situation could be even more interesting in a month or two and even more relevant to the topic at hand. I do plan on expressing my disappointment if there is no incentive offered for me to renew. As I stated earlier this property sat vacant for several months even though the surrounding market is very hot; the property had issues that I helped the owner work thru but those were not visible reasons that deterred the interest of other possible renters.

I'll post whatever renewal terms he offers as soon as I get them.