Post by incognitotoday on Feb 19, 2013 9:00:50 GMT -5
Sorry for the length...
This May, I will have moved from So. Florida, 3 yrs ago. I own a condo down there, in a great area, and needed to rent it out. I moved without much notice, so I offered a close friend of mine to rent from me, knowing I trusted her, and needed someone in there ASAP. I was going through a divorce, and this property is solely in my name, so in order for me to make the move up to the NorthEast, I needed a renter, b/c I wouldn't have been able to afford my move, my new cost of living quarters, and this condo (with other bills). She agreed. I asked her to pay me $1K/month in rent, no deposit, as one would normally have, and my sister (who is a real estate Attorney) wrote up a legal contract for her lease for one year. I knew this was a steal of a deal, b/c my condo is a 2B/2B in a great area, I had just upgraded my whole place with wood flooring, and California Closets (literally 2 months before I left) in the master walk-in closet. She would not find this deal anywhere, and she knew it, too (as she made a comment once to another close friend of ours, stating she new what a great deal she was getting)! Her apt. that she was residing in beforehand, lease was up anyways, so this worked out perfectly! Her rent at that place was increasing to $1,300/month, so again, she knew it was in her favor to move, (plus, it was closer to her job, by 20 minutes).
With that being said, she lived there the first year, and when I went down to visit (about 7 months in), I was so happy we made this deal, b/c she was taking such good care of my condo, and that alone gave me peace of mind.
Second year comes up, she resigns the lease, for $1K/month. I sent her a new lease, she signs. Everything is fine. About a month into it, she texts me and states, "So I am thinking of taking the leap and having "R" (her BF), move in with me! Can you believe it??!!" At first, I thought, she should've asked me b/c we are in our low to mid 30's and this isn't a college dorm room, this is a piece of property that you signed an agreement with me for, and you are telling me, not asking, me. Then I thought, in the same breathe, yeah, so happy for her b/c she is so afraid of committment, and I know that her and R are great for one another. And then I thought, isn't this convenient for her...she has someone living with her, helping her with the rent, (I assume), and yet, she told me after signing the year lease at $1K. I was annoyed, but not really, b/c again, it gives me peace of mind knowing that someone is "watching" my condo and taking good care of it, as well.
Side note: That $1K a month does not include my HOA fees, which are an additional $1K a year.
So now, my issue, come May 1st, she will be signing a third lease with me, (I know this b/c she messaged me stating some insights about the other condos in my area, neighbors who have moved out, etc. and said I should consider getting the kitchen updated, b/c a lot of people are, and it adds value to the place, that she knows someone who would do it for cost price {she works in a company that does these sorts of things} and that at least she would be there to oversee anything should I consider doing it. In the same message, she lets me know that she will be living there a few more years anyways).
I have been contimplating increasing her rent, for many reasons. 1) I just bought a brand new washing machine, as the one there died finally. 2) I also bought a brand new water heater as the one I had in there died as well, this past year. 3) I haven't raised her rent the first two years. 4) she now has someone living in there with her. 5) My HOA fees increased over the past two years. 6) I now have to pay flood insurance on my condo, as the HOA isn't paying for it anymore in their contracts, each owner has to pay it themselves if they choose to take it.
All these reasons, and just the cost of living increasing, I think it is fair to raise her rent. I would like to raise it to $1,200/month.
I need to email her a new contract, and in that email, I would like to let her know that the rent is going up. I am making this as a "business" decision, and if it were anyone else in there, I would have more than likely raised it the 2nd year, but b/c she's a person I know, I didn't, and just was happy with the peace of mind knowing it was taken care of.
If she tells me she isn't going to re-sign, as there is that chance, I am okay with it. Another factor, my parents help me with the HOA fees b/c I rent up north (where I live now), and I cannot afford my rent, and other bills, along with the HOA for my condo. They, have agreed with me, that it is time for the rent to be raised, based on the reasons above, as well. I explained to them, that there is that chance, that she will not want to resign, and then I will have no one in there, until I find a trustworthy renter (as I will inquire with other people I know, or at the very least, put a listing up for rent with a realtor). Until then, they will help me with the mortgage payments and HOA fees until someone would take over the rent. The base rent she is paying is basically the mortgage monthly fee (just below it), and since I knew her, I thought, if she could at least pay the base mortgage, I am good to go. With someone I don't know, necessarily, I would have increased that base rent to cover the whole mortgage, if not more, to help me with those HOA fees.
I realize this is a "business" decision, but I know for a fact, she will not see it this way.
What is the best way to word the email, letting her know that these changes will take place should she choose to re-sign for a third year? And yes, this will be in a contract that I will have her sign as well.
I think sending her an email within the next few weeks (giving her 2 months notice) that you will be raising the rent is a good idea.
I am not sure how the rental marked is where your condo is but you said that you are giving her a good deal already. I would up the rent. I think that someone here would be able to help you with the wording of this better then me though. (I'm horrible with those things.)
I think you should raise the rent as well. Seems that she has been getting quite the deal for the past few years and believes that it is still enough of a deal to stay there for a few more years. You should at least cover the cost of the mortgage and the HOA fees with her rent, and she should be able to understand that.
Is there something in her lease saying only one adult is allowed to live there? You seem really put off by the fact that she wants her boyfriend to move in, but if there is nothing in the lease about the number of people allowed to live in the condo, then it's really none of your business. I also don't think the addition of an adult or a new water heater is a valid reason to increase the rent.
The additional insurance and HOA costs are valid reasons to increase the rent and when you present her with the new payment amount, you need to stick to those two items. Let her know that rent is increasing to cover the basic costs of the condo, and not because you're butthurt that she wants to live with her boyfriend.
I really appreciate sue sue's comment about having someone you trust in your place. That is pretty valuable. Bad tenants can cost a fortune. I completely understand raising your rent to keep up with increasing expenses, but try not to let your annoyance about her live in BF cloud your judgment.
Post by countthestars on Feb 19, 2013 9:31:19 GMT -5
I think you should raise the rent, but do so soon (next couple of weeks) so she can find something else if she wants. I also agree with PP that the cost of the rental shouldn't matter how many people live there unless it was specifically in your lease (is that common in your area? Here all apartments are $x per month).
I would just say: "Hi Friend, I am writing to let you know that I will be raising the rent for my condo to $1200 per month starting in May due to increased condo fees and insurance. I wanted to give you as much notice as possible so that you can plan and decide if you would like to re-sign for the next year. I hope that you still find this a great deal and decide to continue to rent from me as you and Boyfriend are great tenants, but completely understand if you would like to look elsewhere."
You may also want to say that you are willing to go month to month at $1200 until she finds another place but couldn't figure out how to word that without making it sound like you wanted her out (and I'm not sure if you even want to go month to month). If you do that, I would say that you would love to have at least a month's notice if she is leaving to find a new tenant.
Post by thatgirl2478 on Feb 19, 2013 9:32:39 GMT -5
"I have been contimplating increasing her rent, for many reasons. 1) I just bought a brand new washing machine, as the one there died finally. 2) I also bought a brand new water heater as the one I had in there died as well, this past year. 3) I haven't raised her rent the first two years. 4) she now has someone living in there with her. 5) My HOA fees increased over the past two years. 6) I now have to pay flood insurance on my condo, as the HOA isn't paying for it anymore in their contracts, each owner has to pay it themselves if they choose to take it. "
Ok, I'm a landlord and #1 & 2 are not reasons to raise the rent on her. Presumably the apartment had these appliances when she moved in, so they become regular maintenance items that you would depreciate on your taxes.
4 isn't good reason either because in 99% of situations the rental price of a property doesn't change based on the number of people living there. I would, however request that he go through a similar application process (ie background/credit check) AND sign a new lease including him as a co renter.
3, 5 & 6 are better reasons for raising the rent, but you have to take into consideration market conditions as well. If you feel 1200 is still 'a good deal', then go for it. However, you'll need to be prepared for her to possibly move.
I agree with Kore. I would treat this as any other tenant and explain why there was a increase. (HOA and washing machine, etc) I would not mention her new BF living with her.
Post by incognitotoday on Feb 19, 2013 9:39:16 GMT -5
I not upset that she had her BF move in last year. I was actually really happy for her, and still am, knowing their relationship is thriving. I don't have anything in the lease, stating it is a one or more than one adult lease.
The main reason for the rental increase was to let her know that Yes, the COL has gone up, and so have the HOA fees, alongside the Flood insurance. I do realize as an owner, should appliances break, they are my responsibility. I didn't fault her for them, and I replaced them immediately.
At the time, I gave her the $1K figure, b/c I need out, and fast, now looking back on it, I should have made it more, simply b/c the HOA fees are killing me and it isn't the base mortgage (completely, just below it).
Post by vanillacourage on Feb 19, 2013 9:41:16 GMT -5
You need to take a step back and re-evaluate your approach to this whole thing. You shouldn't be losing money to do her a favor and give her artificially-low rent - but by the same token, you're letting things like her boyfriend and the appliances get you irrationally irritated.
First, I would look at what market averages are for rent in your area - and consider things like the condition of the kitchen, whether appliances are included in other rentals, etc. Then, if you still think your place is renting for too little, I would call her and just let her know that your hard costs (like insurance and HOA fees) have gone up and you'll have to raise the rent accordingly. But before deciding how much to raise it, I would keep in mind (as others have said) that you have a friendly tenant who pays rent on time and has never caused you problems - I'd be fine keeping it a little under market average to keep her from moving out.
Lastly - when she re-signs the lease, I would consider requiring her boyfriend to be on the lease too. Personally, it's written into all my leases that nobody other than those on the lease are able to stay for more than 7 days, so none of my tenants could ever just move someone in (and if I were you, I'd add the same clause). The reason you should add the boyfriend is that if they break up and she moves out, then he can basically squat in your house and you'd have to go through legal channels to evict him. Total nightmare. Look up whether your state has "joint and several" responsibility - what this means is that if either person on the lease moves out, the other is still responsible for 100% of the rent payment to you.
I agree that the appliance replacement and additional person living in the condo aren't reasons to increase the rent. The increased insurance and HOA fees are.
Replacing a broken water heater is part of upkeep. If you're renting now, how would you feel about having your rent increased because appliances or mechanicals in the home needed repair or replacement? It isn't the tenant's responsibility to cover that cost. Part of the perks of being a renter is not being responsible for those things.
I only see the additional resident as an issue if you require background checks on all adult residents or something, and you weren't allowed that opportunity because your friend just let her BF move in. As a landlord, I would want all adult residents named on the lease, but I wouldn't charge additional rent for that.
I think you are justified in increasing rent because of you additional costs for insurance and HOA dues. Concentrate on those when talking to your friend about raising the rent. Also, it wouldn't hurt to do a little research to see how much comparable condos are renting for. If you can show that $1200/mo is still a very fair price for the local rental market, she can't be upset about that.
I don't get why your friend is asking for the kitchen to be updated. She's a renter, that's not her decision. It sounds like you are in a tight financial situation if your parents are having to help you out, so I would advise telling your friend that you don't have the financial resources for a kitchen remodel right now, but it's something you'll consider in the future.
Lastly - when she re-signs the lease, I would consider requiring her boyfriend to be on the lease too. Personally, it's written into all my leases that nobody other than those on the lease are able to stay for more than 7 days, so none of my tenants could ever just move someone in (and if I were you, I'd add the same clause). The reason you should add the boyfriend is that if they break up and she moves out, then he can basically squat in your house and you'd have to go through legal channels to evict him. Total nightmare. Look up whether your state has "joint and several" responsibility - what this means is that if either person on the lease moves out, the other is still responsible for 100% of the rent payment to you.
This was solid advice, thank you. I will definitely consider putting her BF on the lease, as well.
You need to take a step back and re-evaluate your approach to this whole thing. You shouldn't be losing money to do her a favor and give her artificially-low rent - but by the same token, you're letting things like her boyfriend and the appliances get you irrationally irritated.
First, I would look at what market averages are for rent in your area - and consider things like the condition of the kitchen, whether appliances are included in other rentals, etc. Then, if you still think your place is renting for too little, I would call her and just let her know that your hard costs (like insurance and HOA fees) have gone up and you'll have to raise the rent accordingly. But before deciding how much to raise it, I would keep in mind (as others have said) that you have a friendly tenant who pays rent on time and has never caused you problems - I'd be fine keeping it a little under market average to keep her from moving out.
Lastly - when she re-signs the lease, I would consider requiring her boyfriend to be on the lease too. Personally, it's written into all my leases that nobody other than those on the lease are able to stay for more than 7 days, so none of my tenants could ever just move someone in (and if I were you, I'd add the same clause). The reason you should add the boyfriend is that if they break up and she moves out, then he can basically squat in your house and you'd have to go through legal channels to evict him. Total nightmare. Look up whether your state has "joint and several" responsibility - what this means is that if either person on the lease moves out, the other is still responsible for 100% of the rent payment to you.
I only see the additional resident as an issue if you require background checks on all adult residents or something, and you weren't allowed that opportunity because your friend just let her BF move in. As a landlord, I would want all adult residents named on the lease, but I wouldn't charge additional rent for that.
FYI I have this same requirement too (and do full background/credit checks on all adults in the household). When renting it, I also require that all adults in the household (who will all be on the lease) make 2.5x the rent amount. I.e. for my current place that's up for rent for $895, each adult must make ~$2300/mo gross. This goes back to the joint & several liability thing - if a tenant moves out, their roommate/partner is still on the hook for the full rent amount, so I want to be sure they make enough money to handle it. I've had people who wanted to rent from me where one person made plenty but the other only made $100 more/month than the total rent amount. No way. It takes a little longer to rent the place, but I've found it's a good weed-out of people who might cause me problems down the road, so IMO it's worth it.
First, make sure there are no laws about how much you can raise the rent. $200 is 20% of what she was paying. In my previous residence/city, that would have been illegal, unless she left and you increased it to "fair market value" with approval from the municipality.
Second, she doesn't need to ask you if her boyfriend can move in. Some leases for singles or 1 bedroom apartments will state that only 1 person can live there at x amount, and it's an extra $100 or whatever for an additional occupant. Two people living in a 2 bedroom is completely acceptable. Frankly, most leases/landlords would allow up to 3 adults in a 2 bedroom for the base rent. It's kind of ridiculous to think she should pay more because 2 people are living in a 2 bed/2 bath. That's what 2 bedroom apartments are made for.
It seems like $1200/mo would still be a good deal for her. Just tell her you're raising the rent due to increased insurance and HOA costs.
If she decides not to renew the lease, contact a rental management/real estate company and have them find and screen the tenants for you.
I'm curious though, what do you realistically think your place would rent for on the open market?
In looking at Trulia.com, I can see that most condos in my area, rent for $1,400-$1,500/month, but I don't know if that is base or if that includes the person's HOA fees as well.
It seems like $1200/mo would still be a good deal for her. Just tell her you're raising the rent due to increased insurance and HOA costs.
If she decides not to renew the lease, contact a rental management/real estate company and have them find and screen the tenants for you.
I'm curious though, what do you realistically think your place would rent for on the open market?
In looking at Trulia.com, I can see that most condos in my area, rent for $1,400-$1,500/month, but I don't know if that is base or if that includes the person's HOA fees as well.
If the $1400-$1500 number is accurate, then I don't think it's worth potentially losing $6K per year for a good tenant. Raise the rent to $1200 and see what happens.
I would raise the rent because it's normal to increase it to stay in line with other rental properties. Not because you replaced things (your job) or someone else is moving in (her choice).
Keep it as a business decision and let her know in order to cover fees and your mortgage cost, you need to raise it to $xxxx.
You need to take a step back and re-evaluate your approach to this whole thing. You shouldn't be losing money to do her a favor and give her artificially-low rent - but by the same token, you're letting things like her boyfriend and the appliances get you irrationally irritated.
First, I would look at what market averages are for rent in your area - and consider things like the condition of the kitchen, whether appliances are included in other rentals, etc. Then, if you still think your place is renting for too little, I would call her and just let her know that your hard costs (like insurance and HOA fees) have gone up and you'll have to raise the rent accordingly. But before deciding how much to raise it, I would keep in mind (as others have said) that you have a friendly tenant who pays rent on time and has never caused you problems - I'd be fine keeping it a little under market average to keep her from moving out.
Lastly - when she re-signs the lease, I would consider requiring her boyfriend to be on the lease too. Personally, it's written into all my leases that nobody other than those on the lease are able to stay for more than 7 days, so none of my tenants could ever just move someone in (and if I were you, I'd add the same clause). The reason you should add the boyfriend is that if they break up and she moves out, then he can basically squat in your house and you'd have to go through legal channels to evict him. Total nightmare. Look up whether your state has "joint and several" responsibility - what this means is that if either person on the lease moves out, the other is still responsible for 100% of the rent payment to you.
Apparently I should have just quoted this. Agreed 100%.
In looking at Trulia.com, I can see that most condos in my area, rent for $1,400-$1,500/month, but I don't know if that is base or if that includes the person's HOA fees as well.
If the $1400-$1500 number is accurate, then I don't think it's worth potentially losing $6K per year for a good tenant. Raise the rent to $1200 and see what happens.
What? That's 50% of the rent that she's currently charging. It's absolutely worth it, especially if the $1400-$1500/mo figure doesn't include HOA fees.
OP - look up Craigslist in your area. In mine, that's the main destination for privately-owned rentals to publicize their openings.
I only see the additional resident as an issue if you require background checks on all adult residents or something, and you weren't allowed that opportunity because your friend just let her BF move in. As a landlord, I would want all adult residents named on the lease, but I wouldn't charge additional rent for that.
FYI I have this same requirement too (and do full background/credit checks on all adults in the household). When renting it, I also require that all adults in the household (who will all be on the lease) make 2.5x the rent amount. I.e. for my current place that's up for rent for $895, each adult must make ~$2300/mo gross. This goes back to the joint & several liability thing - if a tenant moves out, their roommate/partner is still on the hook for the full rent amount, so I want to be sure they make enough money to handle it. I've had people who wanted to rent from me where one person made plenty but the other only made $100 more/month than the total rent amount. No way. It takes a little longer to rent the place, but I've found it's a good weed-out of people who might cause me problems down the road, so IMO it's worth it.
I've seen this over and over again here on MM and I simply do not understand it.
What do you do for people with a SAHP? Mom makes $5000 a month, dad makes nothing, you don't let them rent?
What about a disabled spouse? What about a single dad with a college-age son?
Isn't there the same exact risk if you rent to a single person making $2300 and they lose their job the very next month? If anything, the risk is less with two tenants as one can pick up the slack.
I relocated from another state for my husband's job and had $0 income. Guess I wouldn't be allowed to live in our apartment together (he was already living here)--is that allowed or do you tell them their new spouse can't move in?
Sorry, this is a hot-button issue for me. I was looking at apartments to rent with my sister. I had the cash upfront to pay for a whole year. Some places STILL would not allow us to rent because my sister's income wasn't high enough. I just feel like it's none of the landlord's business how the bills are split as long as they are paid.
This attitude by landlord's has me purchasing a place now. I got very turned off by the idea that some landlords/management companies have that all renters are scum, we're all trying to trash the place and rip ppl off, we're all trying to let a boyfriend live with us "like a college dorm" (to quote the OP), etc.
The questions I got when trying to rent were intrusive and made me feel like I was dirt for "having" to rent. It's none of your business why my income doesn't line up with the amount of money I'm giving you--maybe family gave it, maybe I'm a student, etc. The million questions why I'm relocating are painful in my situation....
Now I'm buying a house because no one would work with me. I *wanted* genuinely to rent and take excellent care of the places I have lived in before and always pay my rent early.
If the $1400-$1500 number is accurate, then I don't think it's worth potentially losing $6K per year for a good tenant. Raise the rent to $1200 and see what happens.
What? That's 50% of the rent that she's currently charging. It's absolutely worth it, especially if the $1400-$1500/mo figure doesn't include HOA fees.
OP - look up Craigslist in your area. In mine, that's the main destination for privately-owned rentals to publicize their openings.
I think that's what she's saying - that even a good tenant isn't worth losing $6000 a year.
FYI I have this same requirement too (and do full background/credit checks on all adults in the household). When renting it, I also require that all adults in the household (who will all be on the lease) make 2.5x the rent amount. I.e. for my current place that's up for rent for $895, each adult must make ~$2300/mo gross. This goes back to the joint & several liability thing - if a tenant moves out, their roommate/partner is still on the hook for the full rent amount, so I want to be sure they make enough money to handle it. I've had people who wanted to rent from me where one person made plenty but the other only made $100 more/month than the total rent amount. No way. It takes a little longer to rent the place, but I've found it's a good weed-out of people who might cause me problems down the road, so IMO it's worth it.
I've seen this over and over again here on MM and I simply do not understand it.
What do you do for people with a SAHP? Mom makes $5000 a month, dad makes nothing, you don't let them rent?
What about a disabled spouse? What about a single dad with a college-age son?
Isn't there the same exact risk if you rent to a single person making $2300 and they lose their job the very next month? If anything, the risk is less with two tenants as one can pick up the slack.
I relocated from another state for my husband's job and had $0 income. Guess I wouldn't be allowed to live in our apartment together (he was already living here)--is that allowed or do you tell them their new spouse can't move in?
Sorry, this is a hot-button issue for me. I was looking at apartments to rent with my sister. I had the cash upfront to pay for a whole year. Some places STILL would not allow us to rent because my sister's income wasn't high enough. I just feel like it's none of the landlord's business how the bills are split as long as they are paid.
This attitude by landlord's has me purchasing a place now. I got very turned off by the idea that some landlords/management companies have that all renters are scum, we're all trying to trash the place and rip ppl off, we're all trying to let a boyfriend live with us "like a college dorm" (to quote the OP), etc.
The questions I got when trying to rent were intrusive and made me feel like I was dirt for "having" to rent. It's none of your business why my income doesn't line up with the amount of money I'm giving you--maybe family gave it, maybe I'm a student, etc. The million questions why I'm relocating are painful in my situation....
Now I'm buying a house because no one would work with me. I *wanted* genuinely to rent and take excellent care of the places I have lived in before and always pay my rent early.
I agree. Only because why should I have to force myself and my husband to live at my level of income when his is much higher and we can easily afford it?
I do gross over 2.5 times our current rent, but that has not been the case in the past.
This is one of the reasons my husband and I have never set up our finances so our own bills are split 50/50. We would have been living in a studio apartment in LA if I had been required to make 2.5 times the rent and/or required to be able to cover 50% of the bills or whatever.
It's no one else's business how we pay for things.
I've also lived in several 2 or 3 bedroom apartments with roommates. If someone moves out, you find a new roommate. It's not a big deal. I've lived 2 places that are corporately owned that require a guarantor if you don't make 3 times the rent or whatever. That's different.
Post by vanillacourage on Feb 19, 2013 14:07:44 GMT -5
Kwynn - one of my tenants didn't income-qualify, but was able to pre-pay for the year so I went ahead and rented to her. I make exceptions as able, while still staying on the right side of tenant law.
You seem simultaneously grateful and annoyed that you gave her a good enough deal to be a reliable, long-term tenant.
My old landlord kept rents really low and had little to no turnover. That was his choice. Would I have paid more? Yup. But he built an enormous amount of loyalty and almost never had a vacant apartment. I liked my situation so much that I introduced him to a friend to be the next tenant.
They did not raise the rent every year and when they did, they would include a note or info on tax increases and such. It wasn't a shock. I still knew that I was getting a sweetheart deal.
You have some choices - sell, rent on the open market at market rate, rent at current rate or rent with some increase. Do what's best for you. But don't loose sight that what's best for you is a tenant who's making a dent in your monthly expenses on the place without being a headache to you. You could get lucky and rent to someone equally reliable at $1500/month. That would be awesome! But what if - you know, they suck?
Kwynn - one of my tenants didn't income-qualify, but was able to pre-pay for the year so I went ahead and rented to her. I make exceptions as able, while still staying on the right side of tenant law.
I'd be in favor of that...so say a husband and wife move in, wife is a SAHM, husband works and makes 5k a month, rent is 1k.
I'd be okay with having to pre-pay the wife's portion of $500/month (so 6k upfront) and paying the rest monthly.
I still think it's weird because what if you have the wife's money and the husband takes off and you can't get it from him even though he income-qualified.
I get it, it just makes it really hard for anyone that's not part of a DINK situation (where both are EQUAL earners). The whole reason people usually have roommates is because they can't afford to live on their own.
If I and my roommate each were making 2.5x the rent (which is $1000 for what I was looking for), we would be looking for a better place!
I've seen some ppl on MM who require 3x and 4x the monthly rent for each person and it seems silly that 3 professional people renting, say, a three bedroom house for $1000 a month would be bringing home like a minimum of 9k-12k a month total in order to rent from someone. If a person is bringing home 3-4x on their own, they're likely not looking at rent in the $300/range, that's only 10% of what they make.
What? That's 50% of the rent that she's currently charging. It's absolutely worth it, especially if the $1400-$1500/mo figure doesn't include HOA fees.
OP - look up Craigslist in your area. In mine, that's the main destination for privately-owned rentals to publicize their openings.
I think that's what she's saying - that even a good tenant isn't worth losing $6000 a year.
Yes, this is what I meant. I think it's worth it to give a good tenant a bit of a break, but not a $6K break.
FYI I have this same requirement too (and do full background/credit checks on all adults in the household). When renting it, I also require that all adults in the household (who will all be on the lease) make 2.5x the rent amount. I.e. for my current place that's up for rent for $895, each adult must make ~$2300/mo gross. This goes back to the joint & several liability thing - if a tenant moves out, their roommate/partner is still on the hook for the full rent amount, so I want to be sure they make enough money to handle it. I've had people who wanted to rent from me where one person made plenty but the other only made $100 more/month than the total rent amount. No way. It takes a little longer to rent the place, but I've found it's a good weed-out of people who might cause me problems down the road, so IMO it's worth it.
I've seen this over and over again here on MM and I simply do not understand it.
What do you do for people with a SAHP? Mom makes $5000 a month, dad makes nothing, you don't let them rent?
What about a disabled spouse? What about a single dad with a college-age son?
Isn't there the same exact risk if you rent to a single person making $2300 and they lose their job the very next month? If anything, the risk is less with two tenants as one can pick up the slack.
I relocated from another state for my husband's job and had $0 income. Guess I wouldn't be allowed to live in our apartment together (he was already living here)--is that allowed or do you tell them their new spouse can't move in?
I require that all adults over 18 be named on the lease, and I do credit & background checks on all adults that will be living in my rental (actually, that's a requirement of the HOA in my condo).
I require that the tenant(s) income is at least 2.5 x the monthly rent, but that's together, not individually.
I totally see where you're coming from, Kwynn, and that's why I don't require each individual to earn 2.5 x the monthly rent. It seems like there are just too many situations where it would be unfair to rule out a couple/family/set of roommates just because each adult didn't earn enough to afford the place on their own.
Personally, I am in a situation where I'm renting temporarily after we relocated to a new state for my H's job. I don't have a job in our new city yet, so I have zero income. Does that mean we're bad renters? No way! H's income is almost 10x our monthly rent. We're very financially responsible and have plenty of money in the bank. I don't think we're a risk. I can't imagine a landlord turning us down as renters because only one spouse has a job.
But ... back to the initial issue ... I hadn't thought about government rules regarding rent increases, and even though it sounds like $1200/mo is still a fair price for the condo, it is a 20% increase, which is fairly significant. Definitely a good idea to check with your city/county/state to see if there are any rent control laws.