[Coronita]

[quote=plm]Yes, totally agree with you Flu. I’m way too trusting and have too much compassion to treat the rental as a business. If it gets to be a problem, I will hire a property manager.

I’m not that trusting though. I will get the cash before I give them the keys.[/quote]

Cash is nothing. If they really are a “pro” they’ll get the cash for the deposit and the first month rent as simple as getting a cash advance on a credit card (maybe not even theirs)….You don’t know.

In fact, cash ior the first month+deposit is often a ploy. It’s easy to come up with cash for deposit+first month, and it gives many people a false sense of security the person has money, when in reality they dont.

It’s not sufficient to even go the cash route on the deposit+first month rent…ESPECIALLY IF YOU HAVENT EVEN SEEN THEIR CREDIT FILE…..
If you’re going to go down the “cash” route, you’ll want to see bank statements showing they can afford the rent for the next N months at minimum.
Also, paystubs are sufficient… Are there judgements/liens attached to their paychecks? You don’t know, because you haven’t seen their credit file!

No bank statements, no credit file, no lease.

[Coronita]

[quote=no_such_reality]Danger! Danger! Danger! Goes my instinct on ‘credit check couldn’t be done’ JIMHO

Before I figured it’s just a standard not financially together situation, probably 95% that, 5% chance pro grifter

That last piece though sets my sleaseball meter off. I now feel like a 50/50 you’re dealing with a pro squatter

Did they had some really good story about why they needed the keys right away and you just got lucky on not giving them the keys?[/quote]

There is no fvcking way a check CANT be done. Even IF the person has a credit freeze on his account. The Experian Rental Check does NOT require an unlocked credit file. It is initiated BY THE PERSON, and you never see his/her SSN, only the credit report content. It’s completely hosted by Experian. That makes it a safe playground for a tenant prospect to share his/her credit file with landlords in a safe way. And it give landlords the assurance of authenticity (no doctored copy by the tenant, as again, it’s hosted by Experian)…

Plus, as an added bonus, the fee for this report is directly paid by the tenant prospect. If for whatever reason, the two of you don’t agree to a lease, he can reuse the same credit file he already paid for and share it securely with the next landord… so he doesn’t need to keep paying that $19-30 application fee for pulling a credit file….That’s what I tell all tenant prospects. That way I don’t need to deal with collecting an application fee, and they don’t feel like I’m trying to rip them off with an application fee. IT’s their electronic file they buy and hold onto themselves.

[Coronita]

[quote=plm]Yes, totally agree with you Flu. I’m way too trusting and have too much compassion to treat the rental as a business. If it gets to be a problem, I will hire a property manager.

I’m not that trusting though. I will get the cash before I give them the keys.[/quote]

Sending you a PM.

[Coronita]

[quote=plm]No credit check, there was some issue where it couldn’t be done. But did verify employment.

Will provide cash when they move in so security deposit will not be an issue.

Not sure rental market is hot or maybe its the time of the year now. After initial surge of around 20 people, it slowed down quite a bit.

I know I should treat this as a business but I think its good to give nice people a second chance.[/quote]

Being nice versus possibly getting screwed are completely different issues.

What you should do is require a credit check now. There’s absolutely no reason why you can’t do a credit check it’s easy with Experian tenant check. They pay for it, they keep the record, and they can’t complain about giving you their SSN because the way it works, they won’t… AND since it’s all through experian, they can’t fudge the actual credit report, unlike a paper copy (which some people do.)….

https://connect.experian.com/credit-check/tenant-credit-check.html

Also, you keep saying they will pay cash when they move in… Ugh… I hope you meant…They will pay cash BEFORE they move in.. There’s no reason why you can’t demand for all the payment upfront before they actually move in. And given their track record already, i think it’s perfectly reasonable to.

No money, no credit check, no lease. And the last you should be worrying about is being able to rent out the place. Even if rental is softening, it’s much better you have it vacant, versus letting someone live there for free and going through eviction if it gets to that.

Hopefully we’re all wrong about this, but imho you are way too trusting. Im not even that trusting, and people tell me I get suckered in all the time.

I have a colleague that rented a place to a professional in CarmelV. There couldn’t get payment on the deposit from a check, to the guy brings cash for the deposit and first month rent…Now it’s the 3rd month, and the person stopped paying after the initial cash deposit+1st month rent.

Sorry, this sounds like a case in which it would make sense if you turn this property over to a property manager. If you are having trouble saying “no” before the move in, I can’t imagine what predicament they are going to put you in the moment they pay you late, or don’t pay you at all. And then you’re going to be posting here asking advice for “how do I deal with a difficult tenant that stopped paying”….If you can’t firmly tell your tenant “you are late paying, you owe me a late fee” or “pay be cash before moving in plus I’m going to pull your credit now”, you owe it to yourself to find a property manager that has no problem doing that. Plus, a tenant is much more likely to abide if they know they are dealing with a property manager with experience versus a mom/pop operation that is sort of “nice” and wishy-washy in enforcing basic payment/rent terms. It’s just how it works.

I have one tenant that use to send it rent late all the time. And every single time I gave him a warning about a late fee. Finally I got fed up with it and started enforcing the late fee. Guy hasn’t been late since.

And how the hell do you bounce a check? Are people really living by a shoestring that they can’t cut a rent check if they miss one payroll week? That too should be a red flag.

[Coronita]

I’m going to talk to vanguard to see if I can roll them into Vanguard accounts.
If not, my vanguard accounts have access to the Admiral Shares version of the index funds, regardless of how much i’m invested in those funds.
I think i meet the minimum account requirement to qualify for Admiral shares for any of the major indexes.

So for small cap, it would be VSMAX with a 0.06% expense ratio
versus 0.05% for the institutional…. I’m going to check if I can roll into my old 401k/roth401k. but I doubt they will allow that…

Smaller companies, I just don’t trust the plan administration, so I don’t mind pay a little extra expenses to keep them in my own accounts. It does makes backdoor roth iras nearly impossible.

Also, some states have reduced creditor protection for IRA versus ERISA style plans (like the 401k)…In CA, rollover IRAs have the same protection as ERISA plans, at least as ruled by an appellate court in McMullen v. Haycock. I don’t know if that’s one other reason to keep rolled over funds separate…..you know, planning for the worst case scenarios ….

http://www.latimes.com/la-ira-story3-story.html
https://www.irahelp.com/slottreport/how-safe-creditors-your-401k-money-if-you-roll-it-ira
https://sdirahandbook.com/california-rollover-iras-can-receive-erisa-style-creditor-protection/

[Coronita]

[quote=ucodegen][quote=flu]Agreed, but in my case, the fund choices are all vanguard index and select fidelity funds, the same I put my own money into elsewhere.

Also since my average job expectancy is 2-3 years per employer, they’ll get rolled over anyway.[/quote]
Your employer’s choices were much better than average. Do you mind telling me who was the managing firm for the 401k (curiousity).[/quote]

Sure. The managing firm I don’t think really matters. I think it has to do with what the employer and managing firm’s agreement.

The plan I’m specifically talking about was Broadcom Ltd’s 401k. It was actually Avago’s 401k plan, but since Avago bought Broadcom Corporation, and then changed their name to Broadcom Limited, the 401k was converted to Avago’s old 401k.

Broadcom Limited’s 401k is managed by Fidelity. There are a total of 28 different investment options, and there’s an option to do a self directed brokerage account (which I would never do, since I don’t want to screw up what’s suppose to be a “safer” retirement account.

Within the plan, there are the typical Fidelity funds (such as Contrafund, etc)… And there are also Vanguard funds. There’s a vanguard index fund for S&P500, small cap, mid cap, international, reit, and world index. And there’s the N different “target blend funds”…

FID CONTRAFUND POOL
FID GROWTH CO POOL
VANG INST 500 IDX TR
JH DSCPL VAL MDCP R6 (JVMRX)
MM SEL MID CAP GR I (MEFZX)
VANG MD CP IDX IS PL (VMCPX)
VANG SM CAP IDX INST (VSCIX)
AF EUROPAC GROWTH R6 (RERGX)
VANG TOT INTL STK IS (VTSNX)
VANG REIT IDX INST (VGSNX)
VANG TOT WLD STK INV (VTWSX)
VANGUARD TARGET 2065
VANGUARD TARGET 2015
VANGUARD TARGET 2020
VANGUARD TARGET 2025
VANGUARD TARGET 2030
VANGUARD TARGET 2035
VANGUARD TARGET 2040
VANGUARD TARGET 2045
VANGUARD TARGET 2050
VANGUARD TARGET 2055
VANGUARD TARGET 2060
VANGUARD TARGET RET
METWEST TOT RTN BD P (MWTSX)
PIM HIGH YIELD INST (PHIYX)
VANG ST BD IDX IS PL (VBIPX)
VANG TOT BD MKT INST (VBTIX)
FIMM TREAS ONLY INST (FRSXX)

My current employer’s 401k is through Schwab, and a small administrator. Fund selection is roughly the same. I kinda want to roll that out because I don’t trust that plan administrator, for some reason. YTD on that account so far is 9.84%.. Slightly lower, because I left a bigger portion in money market… The former 401k, so far is 11.2%, with about 1/3 left in cash.

[Coronita]

[quote=ucodegen][quote=flu]Why would a Roth 401k be odd? Aside from a matching contribution, some of us are disqualified from contributing to a a Roth IRA and have preconditions that prevent us from doing a backdoor Roth IRA. Also With a Roth 401k, one can contribute up to 18k/year if one choices not to contribute to a traditional 401k. I think that’s a lot more than most people can can contribute to a Roth IRA.[/quote]
Ok, understand it is an income limit and contribution limit issue wrt selection.

Roth 401ks would tend to limit your selection of investments/mutual funds to the ones that your plan provid(es/ed).

And yes, 18k is a lot more than upper limit on Roth IRA.[/quote]

Agreed, but in my case, the fund choices are all vanguard index and select fidelity funds, the same I put my own money into elsewhere.

Also since my average job expectancy is 2-3 years per employer, they’ll get rolled over anyway.

[Coronita]

[quote=SK in CV]Oy. Don’t follow advice from people on the internet that don’t know what the F they’re talking about.

It does not matter whether you roll the 401K into an existing or a brand new IRA account. The computation for recovering non-deductible contributions is exactly the same. Having a separate IRA for the rollover won’t change anything.

There could be difference with the Roth 401k, but only having to do with the 5 year rule, and the order in which non-qualifying distributions are treated. (Non-qualifying distributions are those made before age 59 1/2 and/or less than 5 years after the Roth was created.) If all accounts were begun (Roth 401K and regular contributory Roth) more than 5 years before distributions and all distributions are after age 59 1/2, then it won’t make any difference.[/quote]

Thank you that’s what I thought about the Roth to Roth rollover. Just wanted confirmation.

The only reason why I wanted I keep money rolled from a traditional 401k into a separate rollover IRA account different from an IRA account that I contributed to with after tax dollars is because for me i thought it would be easier when I start taking distributions for it. I can assume account X is entirely pretax contributions while account B is with after tax contributions…in case I get more senile in my old age.

[Coronita]

Why would a Roth 401k be odd? Aside from a matching contribution, some of us are disqualified from contributing to a a Roth IRA and have preconditions that prevent us from doing a backdoor Roth IRA. Also With a Roth 401k, one can contribute up to 18k/year if one choices not to contribute to a traditional 401k. I think that’s a lot more than most people can can contribute to a Roth IRA.

[Coronita]

“Also is it safe to give out your bank account number for renter’s to direct deposit?”

Hell no.

Most bill pay services do not require this these days. Chase is part of this new thing called Zelle Quick Pay. US Bank is also part of this.

No account numbers need to be given to people.

[Coronita]

definite red flag imho. I always request a cashier check and or at least a bank check for the security deposit plus the first month rent. But since you went the personal check route, I wouldn’t continue with the lease. I wouldn’t care if it’s an honest mistake.

BTW: you aren’t alone. Apparently this happens a lot.

https://www.thelpa.com/lpa/forum-thread/297410/first-month’s-rent-and-security-deposit-bounced.html

[Coronita]

I’d like to see our Congress get into a physical brawl. Let out some of the hidden animosity that is already there.

[Coronita]

[quote=FlyerInHi]Why not consider a vinyl fence? Less maintenance.[/quote]

I’m only replacing one side, and it would look funny if once side is wood and the other is vinyl

[Coronita]

[quote=plm][quote=gzz]A fence is about the simplist thing to do yourself.

I enjoyed picking through the pickets at home depot to find the reddest redwood.

I put two side stacked rows of standard bricks partly underground below the wood to make it harder for weeds and animals to burrow under the fence, and also so the bottom of the pickets had less soil contact.[/quote]

My rental property I need to fix up so I need to repair some pieces of the wood fence and also replace the rusted out wrought iron fence. Are the wood pieces all standard size so I just buy new ones and replace. Or do I need a saw to cut to length? Don’t know if I should do it myself or just have whatever company I find to do the wrought iron fix, fix the wood fence as well.

Thanks[/quote]

It depends. If it’s just a panel that is broken, that’s easy to fix. If posts are broken, then you pretty much need a complete fence, since the labor it takes to disassemble the original fence just to remove and replace the post is much more than the cost of material itself.

[Coronita]

I am at a point in life where my free time is significantly more valuable than money, especially something I don’t enjoy doing. My primary house doesn’t make me any money, so spending my time on it myself is very expensive.

Not to mention, the fence is shared with my neighbor, so the cost will be half. If I were to do it myself, my neighbor would be getting the fence labor for free.

So far the worse case price appears to be around $2200. So my part is $1100. There are cheaper alternatives, but considering the previous fence held up for almost 20 years, that’s pretty good.

[Author]

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