3/28/23 Recap of our Meeting: Lincoln's RE Market Update, How much Rent to Charge? Buying guide DSR & State Building Codes.


There's a fine line between what you'd Like to Charge for Rent and When a Tenant will move. So we began with a SF in Swampscott, then a SF in Marblehead and Finally with a 3 Family in Salem. Using software that relies on GPS and MLS Comparables:
We found that Swampscott had plenty of room to get to Market rate, especially since the same Tenants had been been there 20 years:-0

The Marblehead SF was closer to Market since there had been changes in Tenants every couple of years but still had room for $100/month increase.
However there had been overuse of water, paid by the Landlord, about $250/quarter overuse and when asked they had said "Of we heard the Toilet running but didn't want to bother you. And yes the kitchen sink is leaking:-(" How to handle this after a Plumber had been called and scheduled ASAP to rectify the problem. So One time charge or include it in the Rent from now on. Folks had different ideas but I'd just as soon have the Tenants decide!

Salem MF had room for Rent increases, Tenants had been there over 6 years and rents could almost double. You picking up a common theme here? Good, Long Term, Tenants tend to have smaller Rent increases.

Rules of Thumb:
DSR - Debt Service Ratio anyone? This is what I use to quickly evaluate a Property to see whether I'm interested or not.
How about you? Cap Rate?
Whatever you use be consistent, otherwise you'll manipulate your numbers so the Rules of Thumb come up favorably, ok so you want it and lean towards it However what happens when you uncover something else like Ground Water, environmental issues, Tough Tenants, hidden water damage. Then you may wish you stu,k to your guidelines Including Reserves and Repairs.

Lincoln's Market Update - On another Blog go  65752348621486

I brought my copy of the State Building Code, (didn't include the International Codes now included) which I'm required to keep with me at all times when I pull a permit with my Builders License. My point was there's a lot to it! I'll have all the Codes (and up to date versions at the next meeting.

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