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The weekly newsletter that ups your landlord game!
October 21, 2022 |
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To DSCR or not to DSCR… that is the question - assuming, of course, that you’re familiar with the acronym! For the uninitiated, DSCR stands for Debt-Service Coverage Ratio, and it translates into a no-income financing option you could use to scale your rental property portfolio.
We’ll explore DSCR loans, how to deal with noise complaints in a multi-family property, and the impact of bill SB 891 in this week’s edition of TheKey.
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Timing is everything when it comes to real estate investing, which is why it’s important to know about all your financing options. If you’re looking to scale your real estate portfolio this year, consider a debt-service coverage ratio (DSCR) loan.
This hard money loan bases the required down payment and subsequent interest rate on the rental property’s cash flow rather than your income, which can lead to:
- Accessibility to increased financing
- Closing deals more quickly
- Better protection for your investments
Learn more about DSCR loans, from the qualification requirements to what constitutes a good debt-to-service coverage ratio, in our article.
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"I have a triple decker as a first-time landlord. One of the units (bottom floor) is having [a] problem with another unit (upper floor) due [to] noise issues. Sometimes it [lasts] all day and can be disruptive.
I don’t have any noise clause in my lease with the unit (though I will definitely change this for sure). I looked up local ordinance, [and] it says it’s okay to have noise until 10:00 pm.
Other than talking to the upper unit, which at this point won’t really solve the issue, what are my options? Can I put up a noise notice three times and start an eviction? "
- From time_keeper_1 on Reddit
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Sounds like a rough situation, Time Keeper!
- Though it may not solve the problem outright, always start by talking to your tenants. Chat with the bottom-floor tenants first, collect any relevant evidence (such as recordings of the noise), and determine if there’s a pattern to these disturbances. Let your bottom-floor tenants know that they should contact you the next time they hear excessive noise AND document it via video or audio recording.
- Talk with your upper-floor tenants. Be kind, and remember to hear their side of the disagreement. They may not even realize they’re causing so many issues!
If there is a pattern, address it with them, keeping empathy at the forefront. For example, let’s say that the upper-floor tenants play smooth jazz all night long. You could say something like, “While your jazz is phenomenal, playing your trumpet late at night makes it harder for your neighbors to sleep. According to our city ordinance, you must refrain from producing excessive noise after 10 pm.”
- Should the upper floor tenants deny that they’ve made noise, touch base with your middle-floor tenants and ask if they’ve heard any disturbances recently.
Do not stoke ill will toward either party, and certainly do not tell the upper-floor tenants who complained. If only the bottom-floor tenants are complaining, let them know that you’ve conducted a thorough investigation, asked the upper-floor renters to be more careful, and politely remind them that they may need to consider what amount of noise should be expected from living in close quarters.
- You should also add a lease addendum to combat the noise issue, though you’ll need the tenants to sign off on it too. Check your local landlord-tenant laws to determine if you can assess a fee for every documented noise violation.
If all else fails and the ruckus is as loud as ever, serve the upper-floor tenants a cure or quit notice. |
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How do you deal with noise complaints? |
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Reply to this email with your story, and you might be featured in next week’s newsletter! |
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Marketing Your Rental in 2022 and Beyond
October 26, 7-8 pm CT |
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Join us on 10/26 to learn how to nail the marketing basics with easy-to-use tools that will help your rental business thrive now and into the future. |
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How could we make the newsletter better? We’d love to hear it—tell us. |
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