Rooming House

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I am looking at what appears to be a very profitable Rooming House that has an established live in Prop. Manager.



Can anyone provide any tips to look at or negoatiate on a deal like this.



Robert

Comments(20)

  • lavonc17th October, 2006

    Robert,
    I would make sure and ask for the rent roll and a Schedule E. What are they getting for each room, what are the expenses, etc. I would also check to see where the thermostat is. The last thing you want is a tenant in control of your gas bill -- also, what kind of furnace.

    Rooming houses make me nervous because:
    1) High turnover -- they tend to be temporary tenants
    2) High cost of utilities -- landlord typically pays all utilities
    3) Can everyone get along? -- one bad apple can cause everyone to move out
    4) Very short-term leases
    5) Property Management nightmares -- the managers are compensated at a higher level than other rentals
    6) You would have to keep an eye out for space heaters. Tenants will sneak them in and drive up your electric bill not to mention the fire hazard. However, you still have to give 24 hour notice to enter a room so it can be treaky to catch them.
    7) Depending on the # of rooms, you have that number the times of headache. With multi-units, you have twice or three times the tenant issues, but with a rooming house you have to keep 10 tenants or 15 tenants happy.

    My 2 pennies

  • Bobe7317th October, 2006

    Thanks for your reply.

    I agree with a lot of your concerns, my wife and I were thinking along the same lines. Here are some of the details.

    - 13 rooms at $90/week
    - Manager has a 2 room unit and has been there for 10 years.
    - Manager gets $147/week and pays all bills and even handles the evictions
    - Asking price is 350k but it is a failed partnership and has been on the market for a good 6-9 months so might be ripe for better price.
    - Been told that the heating unit is old and is a steam/oil furnace.

    Thanks,
    Robert

  • joel19th September, 2006

    Get a judgment in her name first. THEN evict her. Section 8 has been known to place people back on the list unless they have judgments from previous tenants.

    But having a judgment in her name will prevent her from finding another place, at least with Section 8.

    Remember follow the guidelines that Section 8 and the local law has set up. It does work, even if it is slow.

  • sharonmp19th September, 2006

    To Post Joel, how do I get a judgment againt her.

  • JamesStreet19th September, 2006

    Take her to small claims court. That is how to get a judgement. Next become a real pain in the butt to her Section 8 case worker. Call them daily, send pics of the place. In your lease you should have the right to inspect, follow your lease and inspect take pics that day. Have section 8 go with you. Notify them of non-payment and evict.

    When you rent to section 8 you must do the same checks you would do with any tenant. I would never have taken this one. If they have been evicted all ready from section 8 housing it is not a head ache you want or need. Good luck.

  • lavonc25th September, 2006

    i agree with JamesStreet. Get on her case workers door step. File for a judgment and cc: her case worker. In some states, you can file the eviction and judgment at the same time. Contact a good eviction attorney.

  • webuyhousesmi25th September, 2006

    She is playing you man. You have a PROFESSIONAL renter on your hands. You may be able to retrain her... but you need to show her your boundaries NOW! If she is yelling let her yell.. and then tell her what reality is... you are the landlord, if she is in arrears give her the deadline to catch up.. do not take a penny less or go a day later. Let her know the consequences, you will evict her -- without any further warnings. I have had to learn the hard way to take the "Lord" in landlord serious. Lord means you are in control not the tenant.. and right now the tenant is lording you. Once she is shown the boundaries she may come around... but most likely you will have to toss her. The upside to sect. 8 tenants is that most or all of the rent is covered by the voucher... the downside is that if you need to seek damages there will be no money in their bank accounts and no salaries to garnish. But... do file a judgement against her for arrears and any damage to the property. I would also look into potential fraud for using a false SS#.

  • bgrossnickle25th September, 2006

    You are making this much more complicated. Section 8 does not play into the equation. It is like saying "Red Head not paying rent and hostile." You have a dead beat tenant and you must start eviction.

  • acucu17th October, 2006

    after you have done everything legally -
    turn off all the utilities, and call the police a few times when she is smoking her crack in the dark!!!!!

  • finniganps17th October, 2006

    Quote:
    On 2006-10-17 05:22, acucu wrote:
    after you have done everything legally -
    turn off all the utilities, and call the police a few times when she is smoking her crack in the dark!!!!!


    Landlords turning off the utilities is generally illegal. This is another reason why you have the tenants pay the utilities and put them in their name whenever possible.

  • vguess9918th October, 2006

    I a "similar" situation with a section 8 tenant who is way behind in paying her rent. No violent behavior or profanity from her but bottom line is she is not paying her portion of the rent. Strongly considering eveiction right now

  • finniganps18th October, 2006

    Keep in mind the responsiveness of Sec. 8 caseworkers varies from one location to another. In our area they have a terrible reputation and wait days before returning calls from the police, let alone landlords.

  • d_random19th October, 2006

    Not a silly question. I would like to get better organized too and would like suggestions. I use the colored tags for each unit myself.

  • Ebellis19th October, 2006

    I do the same as Suekostalas--I have a master key that opens everything we own, that is always on my key ring. The "key" for the unit is for the tenant and a spare in a key system at home in case the tenant loses theirs and I have to have a new one made. When the unit is empty and I get the key from the tenant, if any repairs need to be done then the contractor gets the "tenant" key.

  • smithj219th October, 2006

    I love the idea of a master system. However, if one tenant walks away without returning your key, does this mean you have to re-key all properties? How do you prevent one tenant at one property from having access to another one of your properties?

    Thanks,
    JS.

  • rmdane200019th October, 2006

    you basically have it...just make sure you never lose the master key

  • Ebellis20th October, 2006

    You can make as many keys as you want for the individual locks, it is only the "master key" that is marked "do not duplicate". If I want a new master key made (like for a partner or property manager) I have to go to my locksmith and get this in person so he knows it is actually the owner requesting a extra master key.

  • rmdane200021st October, 2006

    that is pretty neat. Do you have to go through their website or do they have retailers?

  • d_random21st October, 2006

    Thanks for the tip joefm26!

  • joefm2622nd October, 2006

    No Problem I have used them for the last few years and they work great!

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