I both rent & l/o. However since I am also the mhp owner, there are things that crop up affecting everyone; e.g., when we had to turn off everyone’s water all afternoon to repair the water pipe destroyed by the Rent-A-Center truck. Also, twice GDS has goofed & skipped trash p/up, leaving an overfull stinky dumpster. Stuff happeneds, so I like to bank a modicum of good will. It benefits me in other ways, too. I used to have a hard time collecting one rent every month because the guy didn’t get paid until the following week & couldn’t budget. I pro-rated his rent to the 1st, collecting an extra $105, & now no longer get elaborate stories from his wife & don’t have to make multipe collection trips (I collect most rent in person on due dates).
after several years of never being asked, in the last week I have had 5 - count 'em - 5 buyers ask me to shift their payment date . . . of course, only 1 of them wants to pay sooner, all the rest wish to shift forward 2 weeks.
Had a couple notemakers do the same thing about 2-3 months ago, but not like this recent flood.
I charge them the interest to shift dates, so no skin off my nose, but it just seems odd . . .
One possible reason people may want to shift their pmt dates, skip a pmt, or reduce their pmts more often than before is because credit card companies are starting to increase their minimum pmts. When people have their min pmts doubled they are going to feel the pinch and many will be scrambling to make the bigger payments on time.
Ok, maybe it’s because I only do mh’s part time or perhaps its because I’m within 6 years of getting a pension for life, but, my PERSONAL goal is to make my life EASIER when I retire, not harder. Therefore, unless it’s discussed/agreed upon when the papers are signed, there are not going to be “special favors” being done. I see the day when I will be traveling, etc and the thought of the note makers changing this and changing that while I travel is not my idea of being a bank. My theory goes along the lines of once they begin to be late, its only a matter of time until they stop paying so the hammer comes down hard and comes down fast. I’m very upfront about this when papers are signed and everyone knows what is expected. Now, I know there are exceptions (FEW legit ones in my opinion) but one main reason I got into this business was for it to be as “hands off” as possible after the work is done. I’ve already had one begin to be late. They are being hit hard with late charges and are usually about 2 days late (paying on the 7th of the month) costing them an extra $35 each month. If it ever goes 4 days or so, I’m prepared to nicely say it’s time to go. Again, I know there are exceptions and I may not hold as many notes as others but this is just MY way of doing things. Oh yeah, and since they can walk into any local branch of my bank and deposit their payment anytime during the month, I see little reason to start changing my notes once they are made. I just think its a bad sign of thing to come. I could be way off on this, and, perhaps its better “customer service” to do these things but my opinion is that we provide affordable housing to folks who could never buy without us, and, the terms are agreed upon and firmly discussed ahead of time. We’ve done our part and are taking all the risk, now it’s time for them to do theirs by either putting up or shutting up (i.e.move). Too harsh? Todd(AZ)
I think this is one of several very good indicators of rough economic times ahead, especially for those near the bottom of the food chain. We’ve all gotten hit, but those families surviving on $8-10 an hour just have no flexibility. It doesn’t help that they are the least educated consumers, so the few $$$ they have don’t go as far as they could. My tenants are still smoking & drinking beer, but I don’t think anyone is eating pizza these days. One of my best friends is an economist–maybe I should have a chat w/him soon.
Three payors this month had requests to either 1) skip one month’s payment (I agreed if they would add TWO months payments to the end of the note, which they did), 2) move payment back two weeks to the middle of the month, and 3) wanted her payoff statement so she could borrow the money from a family member to pay me off and pay them at a lower monthly rate or get me to accept smaller payments- I’m still thinking on this one. In each case I do NOT want to get the home back, so am willing to accomodate.
I am totally of your persuasion, i.e., I am selling, not renting, these things because I want to be able to take time off, not landlord.
However, I’m also a student of John Behle’s, and he teaches that sometimes all it takes to get a note performing is to sit down with the payor and find out what their issues are. Moving the payment date to the 15th so they don’t owe both lot rent and their MH payment the same day is small trouble to keep a note performing.
I try to be flexible with notes that have a good record of payments. Not flexible at all with people who have been problem payors. I try to get them out without damaging their self-esteem (directly correlated to their damaging my MH), but out they go.
I dunno, Todd. Are you sure the work is ever really done? I’m extremely diligent about on-time rent collection, but I still think there are times when flexibility pays off. It costs me nothing to pro-rate the rent to fit a tenant’s payday, & in return I don’t get hassled if it takes a coupla days to get a repairman out when the A/C quits in July. Anne is getting an extra payment for accomodating a tenant, & that’s a pretty good rate of return. It takes a while to learn when to bend & when to stand firm. This biz can be a $$$ machine, but you’ve still got to keep it oiled–
I have agreed to disagree with bigger minds than mine on my flexibility. I figure that if i make one simple adjustment (and it is simple), then that buyer is closer to being truly hassle-free. Out of dozens of notes I manage, only about 10% need my attention - and it’s always the same fifty guys (just kidding - going for effect here).
so, i will keep flexing for them, because it is something that they appreciate, and truly, it gets me more dollarflies than vinegar.
Anne, I like your solution to request #1! Told you last week about my escrow falling out. Just found out we were able to rescue the deal, but only by coming down another 20k from the 20k by which we’d already reduced the price. Did get them to double the deposit aready made, but I never expected to go down 40k. My agent has been tellling me horror stories about other deals fallling out, & advised me to take this one. I do feel good in knowing my agent gives good advice. Had mostly awful ones in Calif., but have been doing biz w/this one (& his wife) in NC over 15 years. A really good agent makes life a whole lot easier. A bad one (i.e. lacking in knowledge) can really mess up everything.
Thank goodness I stumbled onto MHs–I wouldn’t want to be facing the next coupla years w/out 'em!
Just re-read your post and yes, it seems you are renting these. My mistake. I was referring to those we sell, not rent. Totally different animal as we both know. Now, I’ve followed Anne’s and other’s posts here over the months and I can tell they seem to offer superb service. Sometimes I feel guilty, in fact, when I read how accomodating some are here. And, there is something to be said for that. I just know that I’m building my business, from the start, the way that works/suits best for me (Isn’t that, afterall, one of the biggest benefits to being the owner?). I HAVE a full-time job, I have money in the bank, I have a pretty secure financial future. I don’t need to buy or sell another mobile home in my life. I CHOOSE to do this and, in doing so, am choosing what level of stress, work, etc. I wish to tolerate. It may cost me a few sales by being extra firm (doubtful), but I try my best to be viewed as the BANK only after the sale. Some of these folks I’ve sold to I really liked. But, I purposely “stay away” and don’t contact them after the sale. I want them to know that if I ever call/visit them, its a MAJOR event, and a serious issue, and I’m not really a “friend”. This is just my way, that’s all. Todd(AZ) P.S…I don’t mean to come across as mean or uncaring towards those I sell to. Far from it. I’m actually quite likeable and work towards a win-win for everyone involved up to the point of the sale. After that, if they don’t honor their word, signature, and contract, well, then, that just doesn’t sit well with me and I’m of the opinion I’ll find someone who WILL. Darn, you got me all fired up now and I won’t be able to sleep! lol Todd
Ok, now I’m REALLY confused. You’re sending repairmen out to fix your homes if necessary? I assume you are RENTING, not selling these homes you send a repairman to? Todd(AZ)