Landlords

Oregon’s Newest Rental Laws

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On June 29, the Oregon legislature, in a non-public meeting, approved HB 4213. The most well-known item: no evictions for non-payment of rent through September 30.
But, this law, like so many anti-real estate investor laws passed in the last four years, has many nuances that can trap any landlord. And the penalties to investors are quite severe.
MOST IMPORTANT: If you have any tenants not paying, consult a good landlord-tenant attorney. Do NOT try to do it yourself.
If you have lost rent since March 1, you are probably eligible for some relief:
I looked this over and it appears it applies to landlords who have lost rent due to the Coronavirus and shutdown.

Don’t Pat Yourself on the Back Just Yet

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You’ve got $500,000 in liquid assets for your retirement and you’re still 15 years away. All your bills are paid; you have a small mortgage on your home; cars are paid

for and great credit. Don’t break your arm patting yourself on the back yet.31001231_s.jpg

People think more about what they’re going to do when they retire than whether they’ll have the funds to do them. Ask anyone who has retired, it takes more money than you thought it did. Let’s look at a hypothetical situation.

To retire with $125,000 income in today’s dollars with a life expectancy of 25 years after retirement, you’ll need to have a net worth of $1.5 million at retirement including what Social Security may provide. Your $500,000 will grow to $1,045,420 in 15 years which will leave you about a half million short. You’ll need to save $24,149 each year for the next 15 years to reach your goal.

 

Retirement Projection3.png

Is this surprising? Did you imagine that this example would be that far from its goal? It might seem staggering to save $24,000 each year but there is another way…investing in rentals.

Real estate over the long term has proven to be a solid, predictable investment.  Cash flows, appreciation, equity buildup and tax advantages are the components that contribute to the rate of return. Increasing rents, available financing and solid appreciation make rentals particularly attractive in today’s environment.

Call me at (972) 407-1337 to find out more about how rental homes can help you reach your retirement goals.

 

Landlords: Renters That Smoke, by Troy Rappold, Rappold Property Management, LLC

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The ability to smoke in public and at apartment communities has been under attack for years. But what about rental homes? Often times an owner plans to rent their home for only a year or two. Certainly the owner does not want to receive the house back with the smell of cigarette smoke still lingering in the house. Even if the renter was a model tenant in all other respects, cigarette smoke can be very destructive. Smoking turns walls yellow (new paint job $1,200), it destroys carpets ($1,500), and it requires a deeper cleaning, perhaps with a deionizer ($500). The cost of all this stress…priceless.

The best approach? In all of our homes we have a no smoking policy. However, we do allow the renter to smoke outside, perhaps on the porch or deck. However, this issue can be a hard one to enforce. What if it’s cold outside? Who wants to stand outside when it’s only 35 degrees? The renter is easily tempted to stand inside the house or close to an open window and light up. Inevitably, smoke gets in the house and the home owner smells the evidence. A good suggestion is to do an inspection within the first month or two of a new lease if you know the renter smokes. Catch the problem early. Then do another inspection a few months later to make sure. If you detect smoke after the tenant moves out, a landlord can charge the tenant for the remediation of the smell. But this can be a tricky proposition. It is always best to be pro-active and keep this issue from becoming a possible expense.  It is less ideal to react and pursue a vacating tenant for money.

You can always call Rappold Property Management with questions about your single family home investment.

Troy Rappold
Rappold Property Management, LLC
1125 SE Madison Street, suite #201
Portland, OR  97214

Phone: 503-232-5990
Fax: 503-232-1462