Real Estate Agent · Virginia Beach, VA · Member since 2012 · 2k+ posts · 1k+ votes
13y
The only property I manage without a management company is one I have had with the same tenant for a decade. I visit the home about 3 times a year, and she calls if she needs anything. I have great connections in that town, so not a problem with emergencies as plumber, HVAC, electrician, handyman all know me well, will go out with very short notice and just bill me, and I have family in the area if I really had to bother them, like for a fire or something. Once it changes tenants, though, I may switch to a management company.
San Francisco, CA · Member since 2008 · 65 posts · 9 votes
13y
I spoke to an investor from California who manages all of his own properties in Dallas. I am interested in this strategy since it will cut down on PM cost. The gentlemen buys a home owners insurance and has the tenant pay for any minor problems that may arise via the deductible, then tells the tenant that if there is a major issue then he will take care of it. As long as the tenant maintains the problem, then he makes an agreement with the tenant that he will not raise rents.
Rental Property Investor · Northern, CA · Member since 2012 · 5k+ posts · 5k+ votes
13y
Originally posted by Wai Fung:
I spoke to an investor from California who manages all of his own properties in Dallas. I am interested in this strategy since it will cut down on PM cost. The gentlemen buys a home owners insurance and has the tenant pay for any minor problems that may arise via the deductible, then tells the tenant that if there is a major issue then he will take care of it. As long as the tenant maintains the problem, then he makes an agreement with the tenant that he will not raise rents.
How does he show the properties when a vacancy comes up?
San Francisco, CA · Member since 2008 · 65 posts · 9 votes
13y
He actually hires a PM to find potential tenants who are qualified, then does his own second tier screening of the final list of tenants and the PM gets half of first months rent.
Foreclosure Specialist · Miami, FL · Member since 2011 · 153 posts · 24 votes
13y
You will want to be very careful about screening your tenants. You definitely will want to call the landlords of the past places they rented to make sure they have taken care of the property well.
I would also have a trustworthy maintenance person that will occasionally check on the properties (drive-by sort of thing) and that is available for the tenant to call if there is a problem.
Direct rent deposit is a good way to almost guarantee on-time rent payments.