25 responses

  1. Mike
    September 24, 2009

    Great summary.

    I wouldn’t mention to the tenant that they got a deal and the rent will be raised later on. There just isn’t any reason to do that.

    Reply

  2. Mr. Cheap
    September 24, 2009

    Mike: The only reason I’d do that is so they aren’t surprised by the increase. A lot of times people get upset by something unexpected, but if they’re told about it well in advance they’re ok with it. That was my only thinking with that, but you could be right.

    Reply

  3. Alexandra
    September 24, 2009

    I always put in my ads “non-smoking”, I verbally tell the potential tenant the same thing when showing the place, and I put it right in their lease agreement.

    I rent my basement unit in our house, as well as another home with 3 units. One common ventilation system in the house ensures that if one person smokes, everyone in the house smells it.

    It is hard to always tell who will be a great tenant and who will not. We have had one crazy tenant who drove us nuts, but we would never have guessed it when we first met her. Other tenants leave after only a few months – again, that kind of thing is hard to guess. But at the same time we have a few great tenants who are there long-term and we never hear a peep from, and one outstanding one who even helps out around the place, does small maintenance jobs, and keeps up the garden.

    I think it’s a matter of luck of the draw.

    Reply

  4. Mike
    September 24, 2009

    Good point. But don’t tenants expect annual increases unless the vacancy rates are high? I always did.

    Reply

  5. Mr. Cheap
    September 24, 2009

    Alexandra: I agree there’s an ELEMENT of luck whether a tenant works out or not, but I also think there are ways that you can increase the chance of a good tenant…

    Reply

  6. Jess
    September 24, 2009

    Wow, I’m not alone! This post is good.

    I post some Real Estate investment too at my blog at http://www.TheAutoMatedMoneyMachine.com

    Reply

  7. nobleea
    September 24, 2009

    When I was renting out my condo, I had a lot of applicants, from all walks. It came down to a choice of a very young ‘trades’ couple who were just starting out and were from out of town, or an early 30’s crown prosecutor and his wife who had just moved in from out of province.

    I picked the young trades couple instead. They were so grateful for being considered (vacancy rates were quite low at the time) and were willing to sign any term of lease (I got them for 14 months). The lawyer only wanted 6 months, and was upfront that they’d be looking for a place to buy then and his wife didn’t like the hill the condo was on. While they’d be very responsible and money wouldn’t be a problem, it just seemed like there could be a lot of hassles, unfortunately with someone who knows the laws (or could figure them out).

    Reply

  8. Mr. Cheap
    September 24, 2009

    nobleea: I’ve read some people who refuse to rent to lawyers (which isn’t illegal, its ok to discriminate based on profession).

    I don’t think this is totally insane (with respect to Thicken My Wallet and Money Hungry Lawyer, I think there are some people who are drawn to the law because they’re bullies who like to get in fights).

    Reply

  9. Juan
    September 25, 2009

    Yes,this is correct.
    You can also advertise on many holiday rentals websites. Ex: http://www.holidaysbyowner.com ,here you can also advertise for free for a limited period only.
    Hope I was helpful!

    Reply

  10. Joyce
    September 26, 2009

    Can I ask the question on an application for our rental if the people smoke or not? Is that legal or not?

    Reply

  11. Mr. Cheap
    September 26, 2009

    Joyce: It probably depends on where you live. My understanding in the US and Canada is that smokers are *NOT* protected by any anti-discrimination laws, and landlords can ask on their application, ask the person directly, and choose not to rent to them if they’re a smoker.

    Reply

  12. Stephanie
    September 28, 2009

    @ Mr.Cheap in regards to mikes comments, do you think that by telling the tennant about the rent increase that the tennant might plan to leave before the rent increases, or even decides not to rent the place at all? If you tell everyone this could it be harder to rent it out?

    Reply

  13. Mr. Cheap
    September 30, 2009

    Stephanie: Well, Mike certainly makes a good point (Mike’s the boss, so I think *ALL* his points are good), but I guess it’s just two different approaches. Mike doesn’t think there’s any benefit from telling them (and as you list, there are a number of potential drawbacks). My feeling is if you told them this on day 1, probably they aren’t going to care much (a year looks like a long time away), they’re probably aware the apartment is renting cheap, and it avoids any problems when you raise their rent the next year (you gave them a years notice).

    I don’t think one approach is absolutely better than the other, whichever people are more comfortable with.

    Reply

  14. Four Pillars
    September 30, 2009

    FYI – This post was mentioned by WiseBread in their “Top 5 articles of the week”. Congrats.

    http://www.wisebread.com/best-of-personal-finance-whats-more-dangerous

    Reply

  15. Mr. Cheap
    September 30, 2009

    Woot! (as the kids say)

    Reply

  16. embxewtiywopeht
    October 1, 2009

    I think landlords need to approach credit reports in this economy carefully. I have NEVER been late on my rent and NEVER not paid my rent in many many years. I’ve also never broken a lease. My credit report is a truly ugly thing at the moment, however. I pay my rent FIRST. Always. It has nothing to do with anything else as far as I am concerned. So don’t make the blanket assumption that if folks are delinquent on this thing they’ll be delinquent on the other thing (ie rent).

    Reply

  17. Mr. Cheap
    October 1, 2009

    embxewtiywopeht: I can understand that you wouldn’t like to not be able to rent a place based on your credit history. Surely you understand that if a landlord had to choose between two otherwise identical applicants, one with a spotless credit report and one with a “truly ugly” credit report, it makes sense that they’d rent to the tenant with the spotless credit.

    It’s wonderful that you’ve made paying the rent a high priority in your life. As a landlord you’re taking a big risk whenever you hand the keys over to a tenant. They might trash the place, pay late, or not pay at all (while the landlord has to keep paying all the ongoing expenses and repair bills). Doing everything you can to avoid potential problems is important (sadly, even if it means making blanket assumptions).

    Reply

  18. ASDF
    October 12, 2009

    I’ve been a landlord for 5 years now, and here’s my strategy: my rents are usually higher than comparables around the neighbourhood. I do have to do more viewings, but I book them 10 minutes apart and keep people moving during 2 timeslots a week. Usually takes 3 weeks to get a few applications and then I decide to take the best one (its never first come, first served). Usually my tenants are from out of town.

    Compared to my neighbour, I get tenants who are young professionals, pay more in rent, but do leave after a year or two. For my neighbour, renting the units quickly is more important so his rents are lower but his tenants usually stay for 2-3 years.

    I’ve basically decided there is no “right” way of renting out a place 😉
    Each landlord will have their preference or strategy that fits their personality. Now there are wrong ways to be a landlord… but those ppl aren’t landlords for very long.

    Reply

  19. Mr. Cheap
    October 12, 2009

    ASDF: I agree there isn’t a “right” way to rent out. Good for you for coming up with a way to get top dollar (and it sounds like you don’t have to accept sub-par tenants to get it either).

    I 100% agree with NOT making it “first come, first served” (that’s a ridiculous strategy for finding a good tenant).

    Reply

  20. rose gonzales
    October 26, 2012

    appreciate your info.

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top
mobile desktop