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Responses

  1. Agree with everything you've written above except the problematic 4 clause.
    If
    You make a two-year contract without an option to leave with 60 days' notice and in general, but you are flexible if he decides to leave before that, it is actually a unilateral option that you gave to the tenant and what about reciprocity?
    What will happen if you want to sell and sell before the end of the period and the tenant will refuse to vacate in favor of the buyer that the right to eviction is only his?

  2. Two things 🙂
    1. Well done about buying the property
    2. In my opinion, a mistake for "beginners" (I don't know if you are a beginner or not, but it's for everyone). Why buy a property for $210000 for a rent of $1800??? And say it is worth $235000 (your market value - means you have about $6000 capital gain on the property) why are you doing this…… (really I would love to know). This is a yield of 6%!!!! (very low in my opinion). I know a number of people who do this and today they come to me to get them out of such investments (mostly because of tenants who don't pay - yes yes it happens even in the best neighborhoods!!!)
    And now that I've got the steam out that's what you have to do. Download to $ 1700 or less to rent the property (and hope the renters will pay). Also rent at $ 1650 to get the property off the market.
    Sorry if I'm a little "upset" but that's my opinion

  3. Hi Daniel. Thanks for the great post that definitely talks about a problem that bothers us all - a dead time when the property stands empty. I can tell how I try to deal with the issue:
    1.First the contracts I make are two years. I allow a long contract without a price increase after a year so that the tenants promise themselves a lower price if they sign for two years.
    2. I price the contract about 10 percent below the market price, as the cost of the management company, and manage the property directly with the tenant - this of course depends on the nature of the property and the quality of the area - in the area and conference you describe it seems possible to me, but here of course there is the dilemma of whether you prefer to be More passive but pay a premium for it or be more active and handle the problems yourself. From my experience, the quality of the management companies in the US is such that in most cases I take care of the problems myself to find the best contractor prices and therefore I do not have a significant contribution in using management companies in properties located in level A areas
    3. The contract states that if the tenant does not pay, I enter a management company
    4. No exit from the contract - I do not give an option for 60 days notice in advance. For the benefit of the tenant price is charged for two years. Of course I am flexible about this if necessary but in the contract itself there is no possibility.

    What gives you the contract above is finding a renter more likely that you are priced less than the market price, but you do not have a direct impact on the cash flow because you are not using a management company.
    But of course it is only suitable for high-level properties with very high quality rents.
    You can advertise the property in a real estate agency that already has a pool of tenants pending - most management companies do not have such a pool because it is not their main business but worth checking out.
    I would not enter into a contract with the rental company that requires you to work only with them and I would actively use the various mediums to find a renter myself.

    Hope I helped!