Posted by JohnBoy on March 27, 2001 at 01:19:18:
I wouldn’t say it’s silly…just that you would need to make it worth it to them to go along with it.
More importantly though, you need to be careful on liabilty issues. Your insurance may not cover them if someone was to get hurt. That wouldn’t be worth it!
Everyone who wants to, pitch in. - Posted by Brett
Posted by Brett on March 26, 2001 at 22:52:27:
Hi, I am new to RE investing and I had an idea I want to run by you and see if anyone has tried this and or if I am a wishful thinker. I want to purchase some multi unit rental properties that are a little run down. I am going off of “Pride where you live” on this one. When I purchase, that is the best time to raise rents if they are low, correct? Well what if I had a day that I plan on showing up with refreshments and goodies, plus all of the materials to fix up the place, IE yard work, paint etc, and invite those who want to chip in to make their place of residence (my new apartment building) look better by helping fix up the place. In turn they get refreshments, a better-looking place to live and I would knock off the difference of the raised rent for the first month to those that help. Do you think this might work? I would rather pay someone that might have pride in making their place of residence look better than having some contractor who just wants to get paid, do it. What do you think? Also, would I run into any kind of labor laws with this?
Brett
Rename the property… - Posted by SueC
Posted by SueC on March 27, 2001 at 12:43:07:
…after the tenant who will own it after they get hurt putting some “pride” into their RENTAL
Re: Everyone who wants to, pitch in. - Posted by AnnNC
Posted by AnnNC on March 27, 2001 at 10:44:04:
I agree, ask the YMCA about their liability issues.
They are getting paid, so they are covered under work comp,so it’ not the same thing.
When I painted as a volunteer for Habitat for Humanity, I never signed anything. Don’t know liability there.
And I agree, not everyone knows how to paint. Plus it can turn into too MUCH of a social event, not always a bad thing, but 8 teenagers painting a 12’ x 11’ room for 2 hours…well. Or a second team re-painting a wall…Of course, I was not in charge, or this wouldn’t have happened…apparently no one was. There was no list of order in which to do things.
Molding could have all been painted before being installed and having to be cut around.
I like your idea if it’s modified to remove liability.
You didn’t say how large or if you only are referring to outside work.
Perhaps provide the material, have someone supervise,
give list of instructions; give some perks like coice of color, and extras (as per "Mr. “Landlord”) No ladders should be involved. Have them put deposit on paint rollers so they won’t wash them in YOUR sinks–OK, maybe we don’t want to have them paint! They can probably do a better job of preping for painting than at painting. Hire a contractor, let the contractor hire the tenant as
as helper if that is what the building would provide,
Outside work, like clean up trash, broken glass, to make mowing easier, plant flowers that you supply–low risk stuff.
Your idea is not silly at all. Just need to check it out, and you’ll learn. You can check out Habitat’s website. they do rehabs, too. You could ask someone on a project near you. I don’t know how they determine which jobs to have inexperienced volunteers do.
habitat has the concept you are thinking of. The recipient of the new house is required to put in about 600 hours on the house, or other volunteer work for Habitat.
It think Steve Cook does something similar, or used to, with having his SFH tenants do some fix up for downpayment. Yours is different, I know, these are not homeowners, but some elements of pride might kick in.
It’s always a little tricky to put a value on these things, vs the time factor, but it can be done.
After all, the third place winner of the 1999 CREONLINE Creative Ideas contest was a awoman who got her softball team to rehab her houses.
Following the general theme of give before you get,
find out what the tenants would like, maybe an appliance upgrade, or choice of some.
You’re going to raise the rents anyway, and they sould probably know that. Maybe one month free is not enough.
Social aspects of this idea would probably be a good thing-meet the neighbors, work together etc.
People less likely to trash something they, or their neighbor worked on…sometimes.
The dark side would be to identfy too many problems that the tenant would feel no they shouldn’t pay rent unless it’s fixed. So of course cosmetic things.
Your concept is good,butI don’t know about apartments, It as been done; you just need to fine tune it.
Some LL’s give a gift for early payment, or party by the pool if enough people pay early…many variations.
You didn’t say how multi the building is.
you’d need to check your local laws on how much you can raise rent at any given time.
Plenty of notice on a schedule of raises would be easier to take, then also a choice of trade offs and perks.
Ann
Re: Everyone who wants to, pitch in. - Posted by Tiffany (MA)
Posted by Tiffany (MA) on March 27, 2001 at 08:39:32:
Here is Boston, the local YMCA has a youth at work program. They are teenagers 14-18 and work for 5.50/hr here. You may not want them to paint, or maybe you would if you do a good prep first. They would be good for cleaning/yard work though. Check out your local YMCA and see if they have such a program and any liability issues. Don’t think your tenants would make good candidates unless you up the incentive. Hope that helps.
–Tiff
Re: Everyone who wants to, pitch in. - Posted by J.P. Vaughan
Posted by J.P. Vaughan on March 27, 2001 at 07:26:16:
Hi Brett,
Although your idea pretty much got panned, I think it
shows that you are looking for creative solutions to
problems. That is a good thing.
JP
Depends On The Refreshments - Posted by phil fernandez
Posted by phil fernandez on March 27, 2001 at 05:40:41:
I agree with Piper. Don’t expect a very good paint job and remember you have to prep the painting surface properly or you’ll get a lousy result. Will your people have the patience and expertise to do this.
Another factor to consider is that painters use ladders to reach the higher areas. What happens when one of them falls off gets hurt and sues you. Do you have workers compensation insurance if one of the guys falls off the ladder and breaks his back and can’t work for the next ten years.
Just One Thing… - Posted by JPiper
Posted by JPiper on March 26, 2001 at 23:12:07:
You may think anyone can paint…but they can’t. You won’t know what I mean until you have some of your tenants “help” you out.
Hire a pro. Painters aren’t that expensive.
JPiper
Re: Everyone who wants to, pitch in. - Posted by JohnBoy
Posted by JohnBoy on March 26, 2001 at 23:04:56:
I think as the tenant I would feel cheated!
Let’s see…I help you with the labor to fix up the place and in exchange you will provide me with refreshments. You end up with a nicer building just so you can turn around and justify raising my rent…but you will let me slide for ONE month on the rent increase for going along with this! Man, your all heart! LOL
How much would I be getting paid by saving one months rent increase??? $25? $50?..for all my labor just to give you the privilage of raising up my rent! LOL
Now, MAYBE, JUST MAYBE…if you were to say I won’t raise the rents for one or two years…THEN, I might be willing to go along with something…but for ONE month’s rent increase??? LOL
What would it cost to pay a professional to come out and do all the work???
Re: Everyone who wants to, pitch in. - Posted by Brett
Posted by Brett on March 27, 2001 at 24:32:20:
Ok, so it sounds silly. I guess your right. Real world scenario, tennants would probably rather not do any work if they are paying to live there anyway.