What a crappy crappy week… From the highs of moving in to our new home, straight to the lows of less income and realizing how stressful rental properties can be :( This post was literally supposed to be a “YAY!!! We’ve got renters!!!” one, but at the last minute it fell through and the family decided the place wasn’t for them. On the same day they were supposed to sign the lease and move in too (!!!).
I don’t know how common or not that is, but it’s obvious we’ve got a much longer journey ahead of us than we expected. I literally thought we’d have renters locked in and moved within a week or two, especially after all the awesome upgrades we’ve done to it and it showing so well (could you tell how naive we are? ;)). We’ve had two other interested parties apply for the place too, but unfortunately we had to nix those off the bat:
Applicants #1: 3 young men in their early 20’s, one of which had a pretty bad credit score, and the other a pretty long rap sheet. Including destruction of personal property, so…. That mixed with the fact our neighbors are 3 single young ladies who like to party, well, it just didn’t seem like the smartest move on our part (man I feel old saying that!). On the plus side, we did feel good getting the application within 48 hours of having it on the market which is cool. Until I ran into their realtor the next day whose first words out of her mouth was, “So YOU’RE the one who denied my client?” Awkward!
Applicants #2: An older lady who was a right match all around, with the only exception that she wanted to move in two months from now. Which obviously we couldn’t do since that would be a *major* loss of income coming in… We’re already losing one month to pay for the property management of the place, so we def. couldn’t lose out in another two.
Typing all this out actually makes me feel a little better. People are DEF interested so that’s a good sign, right?? Maybe it is just a matter of time until we find the best match?? And better now that they’re falling through than later?
The whole thing just sucks to be honest with you. Each new day that goes by we get more and more anxious to hurry up and get someone in there. The only thing keeping me somewhat sane is remembering how some of y’all told us that it’s much more important to find the *right* renters over filling it quickly since the latter can do much more damage – both physically and financially. So I’m holding onto that right now and just praying that happens sooner than later. I’m also starting to wonder if we’re as cut out for this sorta thing as we initially thought? Not that we can do anything about it now.
So we’ll see. It’s technically only been on the market for 3 weeks, but man it just feels like F-O-R-E-V-E-R. I have no idea what the average time is for this sorta stuff really. We found our rental here in Virginia the same day it went on the market, and then we signed the lease the next. I guess I was just secretly hoping we’d have similar luck?
In other news, my online businesses aren’t doing that hot either. I mentioned what a perfect storm of finances it’s been in our net worth update last week, and it only seems to be continuing into this month too. Some of our projects aren’t taking off as well as we had hoped, and most of my advertisers across the board seem to have taken a nice long nap as well. The trick now is to just figure out if it’s a lower than usual dip in the self-employment game, or if it’s a longer – more permanent – situation. In which case I’ll need to formulate a new plan STAT.
Just lots and lots of unknowns here lately. And why they hit all at the same time is beyond me. I guess that’s the biggest problem I have right now with everything – not knowing what the future holds for once :( I’ve been on solid ground for so many years now that I’ve forgotten what it’s like to go through some $hittier ones. Time to eat some of that “humble pie” now, eh?
Oh well. That’s self-employment for ya. Gotta take the lows as you do the highs… If you can keep us in your thoughts and prayers, though, I’d really appreciate it. Feels weird being such a Debbie downer here when I’m so used to being up in the clouds! But hopefully I’m just freaking out for nothing. Guess only time will tell…
Hope your month’s starting out a lot better!
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(Sad face monkey by emrank / Thoughts by J$)
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Sorry to hear you are not having too good a time. I have a very wise Finish colleague and friend whos tells me that ‘life has a way of working out’. However, I’ll be doing my bit and keeping you in my thoughts so that life works out your way :).
Thanks, friend – you’re always good to me :)
Chin up big guy!
Who ever said taking risks was easy and stress-free? Thrive on it. The right tenants will come around any day now. Maybe it will be a couple more weeks when the first of the month comes around, maybe it will be tomorrow.
Don’t let that realtor make you feel guilty. If she knew anything about her clients she would be the one feeling awkward around you!
Take a mental break and soak up some good old fashioned vitamin D and fresh air.
Yes, I will most definitely be doing that here shortly. A nice long walk to clear the mind with perhaps some ice cream at the end?
I believe we have to experience lows so we can truly appreciate when times are good. Good for you for not just accepting the first renters that came along. An excellent tenant is worth the wait! Oh, and I bet their realtor wouldn’t have rented to them either!
I know, right? Must be hard to represent people in those situations though, especially if you KNOW their credit it bad and/or they have a rap sheet. I have no idea if this realtor knew or not, but I guess either way they need someone to help them… Hopefully they knew their odds though and didn’t get their hopes too high when applying.
Welcome to my world!!! First let me say that this is the worst economic enviroment I have witnessed for the rental biz. AND this September I’ll have been doing this 35 years. All this crap about the economy improving etc……not feeling it. Folks are very challenged and are reluctant to take chances. In addition this Great Recession did a number on peoples’ credit scores, confidence and morals. People tend to …”stretch the truth” or “omit” things that one might want to know…like a felony arrest or a domestic violence charge. Sooo it’s up to LL’s (landlords) to be vigilant. Remember it’s easy to get them in …tough to get them out. Be patient…and remember the “three legged stool of renting”…credit history…work history…criminal history. If any of these is “off” the “stool” will “wobble”. Soooo what to do? 1st know your customer, then your market and what makes your place special and emphasize it. Special may mean a big yard for kids…good school district…off street parking…large rooms…a garage…easy commute. Above all be patient..and firm but fair….this game is not for everyone….in 35 years …I’ve seen a lot come and go…lack of patience and a plan seemed to be the common denominator. Good Luck…and hang in there!
“Remember it’s easy to get them in …tough to get them out.” — Never thought of it that way, I like it :) What was the longest time you’ve gone w/out a renter in one of your units? How do you stay so calm in situations like these? Like the 3-legged stool advice too.
I’ve had them vacant as long as a year….and finally rented it the week of Xmas..a historically awful time to rent something….December 22nd to be exact. Good tenant with a dog…who stayed 6 years…worth the wait. I still miss that dog!!!
Woahhhh you’ve got balls! I couldn’t wait that long, haha… good for you.
Bummer… hope everything turns around soon. Our rental property had a lot of interest but it was a lot of tire kickers. Is it priced competitively or what you need to cover expenses? It might make sense to lower your rent a little bit because think about how much rent you’ll lose over a year vs how much rent you’ll lose by leaving it unoccupied. Just somethin to think about :(
From what I hear it’s priced at the top of the competition, but the quality of the inside as well as location also beats the others on the market right now (and that’s not just my own opinion but our property manager’s too). I asked when we should start thinking about dropping it a little, and the answer was “in another week.” So we’ll see if we end up having to do that… I’m totally open to dropping it if it gets a renter in there faster. $50/mo only comes out to $600 a year which is far less than one month being on the market w/ no one in it (though then you’re starting base to increase it over the years is down too, but that would still be worth it to us).
Not sure how long yours has been on the market for now, but good luck getting it filled soon! Hopefully much sooner than ours is going! :)
I got it filled pretty quick. We had it up for a couple weeks but being 3 blocks from the beach is a pretty big draw.
Nice! Congrats man!
What I’ve done in the past is offered the first month free. Yes, it’s a hit, but getting someone in there (and thus paying the next 11 months) is better than getting no rent that first month *and* second (etc.).
You could do a variation – $100 off first month, first month free electricity, etc. to get the interest up faster.
Oh yeah! I actually remember apartment complexes doing that kinda stuff – it was awesome when looking for a new place! I’ll keep that in our back pockets, thanks :)
Ah, the ups and downs of self-employment…I’m right there with you. Stick with the rental house. You have to find the right renters. Also, don’t be afraid to rent to people with bad credit, depending on what it is. In our area, housing is much less expensive, so most people with good credit buy. Typically, we will rent to those with bad credit as long as they haven’t lied to us about it. You’ll find somebody, and it will all turn out OK!
Something good to keep in mind for sure – makes sense. Gonna stick with it and pray it all works out okay in the end! Just scary!
Any way you can keep their deposit for bailing that day?
When I accept a deposit, the explicit assumption is that there is no turning back for both parties. I tell the renter that the deposit will be kept if they bail after because I’m taking the property off the market because of them.
June/July is seasonally slow online. Things will pick up after Labor Day. Take a look at a post I wrote on Yakezie.com about the seasonal slowdown if interested.
Sam
We totally would have had they signed the lease/given a deposit! They were going to do everything (sign, deposit, move in) all on the same day. The one which they bailed on at the last minute, ugh…
That’s true about the seasonally slow online stuff too – I tend to forget that every year :) Does make me feel a touch better, thx!
Sorry to hear that sir. You gotta love the ups and downs of self-employment. We dealt with that big time last summer and just thought we had made the world’s worst decision, but thankfully we’ve learned that is just the normal cycle in our industry. That has made it a bit easier for us to try and plan for. Keep your head up J, it’ll turn around. :)
thanks man :)
Well you are not alone with the perfect storm of finances but you are doing all you can and have been vigilant with researching becoming a landlord so patience will pay off.
When I became a landlord i thought I did everything right ( used agent and property management firm) but was still burned so all you can do is prepare for challenges ahead and be ready to celebrate when the house is occupied. I was flexible with applicants with long work history or who offered 6 months rent in advance.
Now that I may become a renter and self-employed, the anxiety has been in high gear. But I usually read your blog and get back to work on my next move.
Well hopefully I don’t have too many days like this then so I don’t bring you down along with me! ;) Excited to hear you’re about to be self-employed – the ups are truly amazing as they happen!
Totally feel your pain here. We went through 3 years of tough rentals – no fun. Key is finding good people who want to stay put. It is def a good market for rentals though and I don’t believe you will have any issues in getting folks in. Certainly can be frustrating though!
Jeez, sorry to hear man. yeah that’s what “they” keep telling us but I’ll be a lot more comfortable once it’s rented and on the books ;)
Hugs it will be okay you are in our thoughts and prayers! We have been there done that and it is stressful but just know God will provide just trust and believe!
I’m trusting and believing!:)
This is an interesting read as we are just ending our first rental agreement of two years that was nothing but headaches. So much headache that we are considering just scrapping the whole rental test and selling “This was my wife’s home before we were married and instead of selling we thought we would try and rent it.”
Oh man, I don’t know if I could stomach 2 years of nonsense – that sucks :( Even if selling isn’t the smartest move financially, at least it would make you FEEL much better and cut off some stress in your lives. If that’s what you end up doing… I’ve certainly thought about it more than once lately and might even ping our realtor to see what he now values it at. It’s been a couple of years since the last time we’ve looked into it.
Good luck w/ your plaec!
It’s important to screen the renters thoroughly before they move in. It’s quite frustrating but if you’re careful, it can be very satisfying with the “right” people moving in.
I’d take one month of rent and divide that number by 12. If you can get someone in there by lowering the price by that amount, do it. We price our units a little lower than others on our block in order to get good tenants, and so far that’s treated us well.
Already on it! That’s the plan for next week if we’re still person-less :)
I’m sorry. I plan on making the switch to self-employment soon, and months that are low are what scares me.
The trick is banking away lots of money during the good times to help make up for it all :) And then just praying it doesn’t happen in the middle of other big financial decisions you’re doing like we are, jeez..
I’m here for you, buddy! We’ll just put Nate & Jay 3.0 into effect, and get the ship righted again. ;)
Amen to that!
Sorry to hear about the struggles J. This is one reason why I don’t want to get into the rental property game, among others. I wish you luck on figuring out the issues with the self-employment game. When I was doing it, I would always get the crap all at the same time. I hated that part of self-employment, but it is part of the game. Keep your head up and I know you will push through.
yep… just been a while since I had to go through it :( or rather, *ever*! A good problem to have all things considered.
About rentals and being a landlord : I have always said…. The “money” is in the book I’m gonna write.
Sorry, J.
I guess the good news is that you found out what type of tenants they were BEFORE they signed the lease.
If you’re within 30 minutes of a military base you might attract a better set of tenants by listing your place on AHRN dot com. (You can sign up as a landlord and list your place any time, but if you want to browse the listings then you need a military ID.) July is the peak of the military’s transfer season, and many servicemembers are in a rush to find a place before they have to report for duty at their new base.
Oh wow, GREAT tip! I wish I still had my military ID too, but sadly had to give it up once I became “on my own” from the ‘rents ;) Miss that lifestyle!
I hope it gets better. I know things slow down during the summer. I know even I slow down. I want to sit back and enjoy the weather. The summer makes me happy :) This slows down my online activity!
Indeed :) Just took a walk for an hour to help clear the mind, really helped.
In the wise words of Aerosmith, “Life’s a journey, not a destination.” Part of what makes it so exciting is not knowing what the future holds, because things would be pretty boring if you knew the whole roadmap ahead. You’ll be looking back on this as a stressful but exciting time in your life, and you’ll be grateful for it. Just remember to enjoy the ride :)
PS – Hit me up if you want to chat about it sometime. You know I’ve been through pretty much the same situations (house and work-wise), and I can totally relate to what you’re going through.
Thanks man, really appreciate that – especially coming from you. I’m like 8 years behind you in the process or something like that :) You’re a wise one in the game!
Are you handling the rental yourself or utilizing the service of a rental company?
If it’s the former might I suggest the latter? I know the idea of losing 10% of the the rent monthly might not be the greatest feeling however in my experience the benefits outweigh the cost.
I bought a condo in Denver about 5 years back intending to live in it for a considerable amount of time. Life happened and I moved several states away and while I’ve been a Realtor for over a decade and had the knowledge and experience I still decided to employ the services of a company.
What have I gained in doing so?
– Property has been rented for over 4 years without any vacancy
– All repairs are handled and all I have to do is approve them
– I never have to spend my time doing background checks
– The property is inspected routinely to ensure the renters aren’t abusing it
– Late payments are handled and tracked down by them
– My rental income is applied to my bank account monthly without a second thought
– Mortgage and HOA are automatically paid from said account
In short, over 4 years I’ve spent less that 40 hours dealing with my property while watching the equity grow, mortgage get paid down and freeing my time to higher income generating tasks.
YES! LOVE THAT!! All reasons why we’re using a property manager ourselves :) I’d be a LOT more stressed if we were doing it all our selves from another state, believe me. That was the one decision we made before we started even thinking of moving away. Money well spent indeed.
I’m sorry to hear about your troubles, but I’m sure you’ll make it through just fine. I don’t have a rental property, but it seems like you’re making the smart move by waiting for the right renters. Hopefully you find renters soon and your income comes popping back up!
yeah dog, that’s the plan at least!
* Man hug with a punch to the kidney for extra manliness! *
Rough times man, sorry to hear it. I have not ventured into self-employment, but it sounds like (for others who have) this is just part of the adventure. With your hustle, you’ve definitely got this, but I bet you’re feeling the extra weight now that you have baby $ at home, ya know. My wife left the workforce when we had a little one, and going down to one income with a big mortgage was scary. But we prayed through it, and everything has worked out so far, and amazing opportunities have come up as a result of the extra motivation for me to take care of bidness!
You’ve got this man, and I know it’ll work out. Just throw on “Can’t knock the hustle” by Jay-Z and get on the grind :)
http://www.youtube.com/watch?v=96sFW-3vGv4
Turning up the speakers right now :) Thanks for the encouragement, appreciate it.
PS: I like how Jay pushes that chick away and then makes a run for it when he starts getting shot at, haha… way to protect your girl!
LoL, didn’t even see that. nice!
Hey J. Yeah, thats tough on both parts. I was supposed to be renting a house (my dream!! IT was gorgeous, big yard, reasonably priced, well kept, etc). My sister and I were supposed to be going for it. She said she was on board, etc. And then the day I was to go sign the papers, my sister dropped the ball. Ugh!! I felt so bad for the land lord, and I felt like it was my fault that it didn’t go. I told her as soon as it happened, but also that there was no way I could shoulder the bill all by myself. I felt burned by my sis, and i’m sure the land lord was not too happy either. i still feel bad about the whole thing. Such is life though. At least now I know it wouldn’t have probably worked out if I lived with my sis anyways.
Bummer J. I swear moving brings in all the bad luck. Just 3 weeks after we moved in (draining our savings in the process) the HVAC went out in our rental property. That was $2600 we were not prepared for!
Ack!! That’s horrible!
Sorry to hear about the renters, but at least they did it before signing a lease and not up and leave a month or so after! Hopefully you’ll get a good applicant soon. As for slow times with business, I think it’s everyone. I work for a small business and it has been painfully slow lately. Hopefully it’s just summer and things pick up again in the fall. You know people get lazy in the warmer months, with work that is. :)
Hope things get better for you soon and that you find some good renters. It’s a scary feeling not knowing what the future holds, but hopefully you’ll get some good news soon.
You’ll get through this! The first applicants sounded way iffy. That realtor obviously didn’t look into her clients or chose to gloss over it. Things will pick up for sure!
I don’t know the first thing about rental properties but just wanted to chime in with my good thoughts and well wishes. When shit gets dumped on you, the only thing you can do is climb up on top of it, so good luck climbing!
Ahahahah… that’s a first for hearing it put that way ;) I like it.
Keep at it bud! I had similar luck as you when I first put my house up for rent. No one was biting and then someone came along with a decent credit score. The day he was supposed to sign, he decided not to. What a dagger to the heart! But luckily for me, another one came around and he and his family are more than I could have asked for! He is willing to fix up everything himself since he is a handyman. Now two months later, I’ve gotten two rent checks with no problems from the tenant. Your luck will turn around soon enough.
Perfect!! The husband of the one who bailed on us was a handyman too – which was the main thing I was excited about :( But hopefully there’s a better one around the corner – at least I really hope so!
I have been renting my current place for five years and my landlords love me (and vice versa). It’s worth the wait to find good, stable renters you can have a good relationship with–much less hassle/loss of income trying to find good renters when the bad ones don’t work out later. Best of luck with everything going on!!!
Wow 5 years – that’s great!! I hope your good luck and smarts rubs off our way too!!
J$$$$$, dude! I’ve been reading but not responding-summer’s gotten way outta hand at work so I have to carefully parcel out my blog-reading time. You’re still #1 with a bullet!
I will add you to my never-ending rosary list. And I will ask the Supreme Being to bless you, Momma $$, and Baby $$ while you all ride the crazy wave. I’m a tenant, and I’ve always been the best one I could possibly be. No late rent, no abuse, no nonsense. I don’t have the greatest credit score (yet); I stay at my jobs for at least 10 years and I have good rental history. At 1st glance I’ve got that stool wobbling but I have found if I talk to prospective landlords, they will work with me. All they ask is that I be honest. And I’m grateful because there was a time when I desperately needed a place to call home and didn’t have a whole lot to offer!
I don’t know anything about property management; I do know one thing about you. I’ve never seen you wave the white flag and call “enough”. This is a great learning experience! I hope you’re keeping some kind of journal so you can write all about it later. If you end up cutting the price a bit, I’d like to know what finally drove you to it. And how you choose your renter(s). It would make an interesting read to see it from your point-of-view. I think your ability to wait it out (just as you did with your Pimped-out-Caddy) and weigh your options will serve you well. Asking the Karma Goddess to shower you with positive energy and optimism!!!
THANK YOU FRIEND!!! That really warmed my heart :) And I’m SO GLAD someone gave you the chance you deserve too. Unfortunately (fortunately?) I’m out of the loop with talking to potential renters directly, but I can tell you if someone write us a letter to review I would REALLY appreciate that one. Kinda like people do when they want to buy a house (or at least we did). It really goes far.
As for a journal – you’re reading it! Haha… That’s exactly what I use this blog for :) To contain all my thoughts and have a record I can always go back and check out. Only here we get the added benefit of meeting lovely people like you and continuing on the dialogue rather than me just talking to myself, haha…
So thanks for stopping by and chiming in today – hope the rest of your Summer is nice and fun!
I think your patience in finding the right tenant will pay off in the long run. A little extra stress now, could save you a ton in the future.
Hey J$, sending you lots of positive thoughts that the wind turns in the right direction for you. A friend of mine just let her placed last week, after trying to a couple of months. She was so close to losing it, but I tell you this story because I believe that these situations generally do turn out fine in the end. That last couple of weeks before she knew she HAD to get a tenant she put her everything into marketing the property and spreading the word and now has a solid tenant in there – an opera singer who has signed a long lease.
And the same will be true for you . . .
Hoorray!!! I hope so! Thanks for shooting over positive vibes – we can use them all! :)
Sorry to hear that things aren’t supurb right now but I know it’ll get better. You have too much of a positive spirit for it to be any other way. The downs are inevitable, but you’ll get through them. Thinking and praying for a turnaround soon! Keep those positive thoughts going J. Money!
Sorry to hear about your tenants, it really sucks. I hope you don’t regret not taking the lady in and waiting 2 months. The most I have had was 1 week between tenants so I have been very fortunate but now with summer around it could be difficult until September. Fingers crossed!
Nice! I doubt we’ll regret waiting the 2 months, esp since there’s nothing stopping her from dipping out early either (i guess unless we sign the lease early too). That’s really my fear there – besides losing money. I figure if we can’t get a renter in two months then we have a bigger problem on our hands. And we’d drop the price way before then anyways which would more than make up for waiting longer. But we’ll see… I haven’t lost hope yet!
Personally, if it were me, I’d take Applicant #2. A fantastic renter is worth the wait. You’ll lose way more than 2 months rent (in the form of unpaid rent, destroyed property, etc.) if you take in a bad renter.
I recently held a spot for someone for a month because he put down a deposit and he completely checked out in every way as an ideal renter. And a bird in the hand is worth two in the bush.
You don’t think an equally qualified renter could come along within two months? If this one did in 3 weeks? :) It would be one thing if they all suck from this point forward (knock on wood), but I HAVE to imagine we’d find other decent ones before 2 months hit. At least that’s what we’re banking on.
Sorry about your luck with your rental. I don’t know if you’ve looked into advertising it on Zillow.com but we had about 45 interested parties contact us within a week or so of putting it up for rent. I’ve been managing our small 3br, 2.5bth townhouse in Oregon for about 6yrs now and I’ve been able to do it all myself and not pay a property manager. It hasn’t been without it’s ups and downs but now that I have gone thru most everything myself I have learned a tremendous amount in the process. Good luck with yours, I would recommend giving zillow a try for free advertising I stopped using Craigslist about 2 yrs ago for advertising our rental, just way too many flakey people.
Oh, nice! Didn’t even know you *could* advertise on Zillow, that’s pretty smooth. I’ll look into it, thanks :) And congrats on your success so far!
Sorry man, sounds like you got dumped on. I finally took a piece of that crap wagon and looked at my budget to see how bad my new life looks. With only a $5 surplus at the end of my first month, it doesn’t look too peachy. I don’t feel bad about it, because I know life eventually works out and things always get better in some form or another :)
Amen, sister. We’ll both be in the shit wagon together at least, eh? :)
Sorry to hear about the tough times. I’ve always been reading about how great everything is going in your world and how things always turn out for the better. This time everything will work out also! So hoping that the right renters see your place sooner rather than later and things pick up for you!
Thanks :) It’s def. a weird thing to be writing about as I’m not used to super bad times! Makes my stomach all ache and stuff, uck. Though being at the beach right now clearing my mind sure helps :) Thanks for stopping by!
Sorry about the rental troubles. That’s one of the reasons I talked myself out of trying to be a landlord. Seems like a lot of stress that I don’t need. Hopefully your online income picks back up soon too!
That would be preferable! :)
I don’t know if anyone has mentioned it but have you tried Section 8. It is not necessarily what people think. My sister has a 4-bedroom house that she has been renting out 10 years with great success because she found the right renters. Everybody on Section 8 is NOT trifling. In my sister’s case, it covers her mortgage and then some. The good thing is Section 8 will always pay even if the renter doesn’t. So you are guaranteed something while you have a renter.
YES! Was actually reading a little about that the other day – def. something to consider. It’s nice that it’s always backed like that :) Right now we have an “open” door to all kinds of tenants out there (though not sure if something needs to be different/changed to allow for Section 8?) but if we continue going down this path I’ll be bringing it up for sure.
Thx friend! Hope all your voice work is still bringing home some nice money ;)