Management Tips From MRLANDLORD.COM

(Shared by landlords nationwide)

SUPREME COURT SAYS RENT IS NOW DUE!

Just recently, the Supreme Court struck down the CDC eviction moratorium on the grounds that it “strains credulity” to believe the CDC had the power to regulate rentals nationwide. The CDC’s claim of expansive authority is unprecedented. Could the CDC, for example, mandate free grocery delivery to the homes of the sick?

Six of the Supreme Court Justices ruled that the CDC did not have the power to ban rental evictions. Instead, the court argued, such a policy would have to come from lawmakers.

The Supreme Court moratorium decision came too late for countless landlords who were forced to sell. If you are still surviving, whatever you do, moving forward always screen every rental applicant. Check with your local association for a recommended tenant screening service. There are several nationwide screening services including TenantCreditChecks.com. For only ten bucks to run a tenant credit report, it may save you thousands.

NOTE:  Please note, even though the Supreme Court lifted the nationwide CDC order, a couple of states and localities may still have statewide and/or local eviction moratoriums. These states with some form of eviction moratoriums include, but are not limited to, California, Illinois, and District of Columbia. All this continues to be subject to change, so do your best to stay updated on eviction laws in your state. Another good reason to be part of a local real estate association which can help keep you aware and updated of state laws and restrictions.

Make the Leap!

A landlord asked other landlords for any tips on how to go from having a full-time job to being a full-time landlord. This is a question often asked by rental property owners and discussed recently on our Q&A forum. The following were two practical suggestions that was shared:

• “You don’t have to quit cold turkey. You can use your rental income to reduce risk and find a job that allows you to work from home and only have to spend 10 hours of 40 hours of work a week.”

• “It may be easier to get loans (and health insurance) while you have a salary on top of rental income. That being the case, if you are married and both working, perhaps have a transition period. One person initially stops working and the other spouse continue to work a w2 job where the health insurance still covers but both persons (plus kids if applicable).” 

Rent Washers & Dryers to Your Residents

Offering to rent a washer and dryer to your residents can generate some extra rental income. The following are four examples of what a few landlords are doing in different parts of the country to increase their rental income by renting washers and dryers.

1. I only rent new equipment. At $45/month, the pair will pay for itself in 18 months. Our insurance requires braided metal hoses for washer hookup, so hopefully, no busted lines. If they last 8 to10 years, I will see a decent profit.
2. I once owned an appliance repair shop. I started supplying washers/dryers for an extra $30/month. I would buy them used from Facebook Marketplace or Craigslist. I also supplied the braided steel supply hoses. I rented eight sets. My last breakdown was at least two years ago, and I just replaced it with another used one. It’s been a good source of additional income.
3. I have been renting my appliances to tenants for about 20 years now. I have been charging $25 per set washer/dryer, stove/frig. I buy used appliances that equal the amount of that money. Tenants are required to keep them for one year, then at any time after that, they can have them removed. The $25 came from a decision, from Section 8, where a tenant challenged my rent fee. Section 8 stated I could charge $25 per set and they must keep it for one year. That was about 15 years ago and I never tried to raise it. It has worked out great. Most of the time, I have no problems.
4. I have a community coin-op washer/dryer on my properties (multi-units). The price is set at $2 for the washer and $2 for the dryer. Tenants and their guests gladly pay it for the convenience of not having to go off site to do laundry.