Deploying and leaving 4 properties rented out

Deploying and leaving 4 properties rented out

Real Estate Investor · Tallahassee, FL · Member since 2012 · 105 posts · 19 votes

Hello, Ladies and Gents

I am about to go on the military deployment for 1 year. However, I am leaving my 4 properties rented out on the leases to different tenants in same city.

I was thinking about the system that I need to setup long and hard. Now I want your sanity check.

Here is what I came out with:

Tenants will utilize Amazon Payment System to pay me using their credit cards.

My entrusted maintenance man will do a monthly round of in-person attendance with all the tenants to ensure that my homes are kept in good upkeep and tenants do follow the conditions of lease.

Couple of questions:

1. Given this system should I leave my maintenance guy with a limited power of attorney in order to conduct any evictions? I have decent tenants, but you never know.

2. What other things I should watch for?

Thank you for your thoughts!

0Reply
14 views

Most Popular Reply

Investor · Kansas City, MO · Member since 2013 · 465 posts · 170 votes
12y

Get a PM. Get a PM. Get a PM.

You can instruct your PM to only use your handy man for repairs, but seriously a PM will save you grief. Stuff you do not want to deal with while deployed.

See this reply in the discussion

12 Replies

Jump to latestLatest
  • Real Estate Investor · Fort Wayne, IN · Member since 2013 · 168 posts · 78 votes
    12y

    What's holding you back from hiring a property manager? They could coordinate with your maintenance man if there are any problems and would know all of the proper channels in a worst case scenario (eviction, finding and screening new tenants, large insurance claim, etc). Those are some of the things you could worry about and a PM would give you that peace of mind.

  • Investor · Peachtree Corners, GA · Member since 2014 · 1k+ posts · 1k+ votes
    12y

    @Yuriy Tymoshenko Funnily enough I deployed from Tally also, but over a couple of decades ago. I also have a trusted maint man and would much prefer to pay him than to pay a PM. However, I don't trust his family. Therefore I wouldn't give him even a limited power of attorney.

    Your situation may be different, but you are not going to have a lot of recourse to resolve a situation and it may be an unholy mess by the time you return.

    BTW and most importantly, thank you for your service!

  • Investor · Kansas City, MO · Member since 2013 · 465 posts · 170 votes
    12y

    Get a PM. Get a PM. Get a PM.

    You can instruct your PM to only use your handy man for repairs, but seriously a PM will save you grief. Stuff you do not want to deal with while deployed.

  • Residential Real Estate Broker · Palo Alto, CA · Member since 2011 · 49 posts · 21 votes
    12y

    Check to make sure your handyman can legally do the tasks you might ask of him. In most states they can do repairs & maintenance, but not property management tasks that normally require a license, such as signing leases with tenants.

  • Kenneth HynesPro Member
    Rental Property Investor · Easton, PA · Member since 2013 · 357 posts · 92 votes
    12y

    @Yuriy Tymoshenko

    Start now and interview some local PM firms to find one you are comfortable. From personal experience , the last thing you want to deal with while depolyed is tenant / property headaches. What if one becomes vacant while you are gone ? who is going to handle the new tenaant adverstising / screening and placement.

    if cost is preventing you from hiring a PM, imagine the costs if one or two propertiesbecome extended headaches

    ken

  • Real Estate Investor · Tallahassee, FL · Member since 2012 · 105 posts · 19 votes
    12y

    Great! Thank you for the kind words and advice, guys!

  • Investor · Milpitas, CA · Member since 2013 · 95 posts · 12 votes
    12y

    I would recommend www.sparkrent.com it's main stream, costs you only a dollar, and it doesn't involve any interaction by you. Further, amazon payments has a monthly limit of 1k send and receive free per month, so unless you rent each unit for 250 it won't work as planned.

    I'm not sold on hiring a PM unless you need one. If you have leases coming up and expect churn over the year, yeah you need someone, however if these are all locked in for a while and stable your handyman might be enough. But it really depends on the situation.

    Good luck and thank you for your service!

  • Involved In Real Estate · West Palm Beach, FL · Member since 2008 · 104 posts · 17 votes
    12y

    You asked about things you need to consider. In this

    light several Issues Without a PM how are repairs to be

    considered and then funded?

    Without a PM who is going to make

    Notices,,filings,,and Prompt payment of Bills?

    Without a PM Who will keep abreast of

    current affairs,New Laws,Municipal stuff

    changed procedures?

    No matter how you "slice it" even if you

    are willing to stay involved you are not

    properly positioned while " deployed" .

    Good PM's will pay for themselves

    in avoiding losses from" slippage" on

    a number of fronts. Just make sure the

    management contract covers your needs!

    Go" do your thing," Keep Safe, return to

    stable circumstances! Consider a PM!

  • Real Estate Investor · Tallahassee, FL · Member since 2012 · 105 posts · 19 votes
    12y

    All great points! Thank you!

    Also another "mechanism" question.

    Once PM will pick up a rent check written to my LLC or to myself, how can I receive this money? I will be in another area of the world.

  • Investor · San Diego, CA · Member since 2013 · 64 posts · 25 votes
    12y
    Good afternoon, I myself use a property manager when I deploy. They take care of everything and being only the year you should be able to cancel after. I get the rent disbursement directly deposited to my bank accounts. Additionally the mortgages, if you have them, can be put on auto pay through the bank account. Hope that helps. Stay safe.
  • Real Estate Investor · Tallahassee, FL · Member since 2012 · 105 posts · 19 votes
    12y

    @Darnell

    How is direct deposit into your bank accounts work? I tried to google it and I get a wide variety of hits.

  • Investor · Dallas, TX · Member since 2013 · 619 posts · 128 votes
    12y

    @Yuriy Tymoshenko

    typically when you choose to use a PM company you will sign a contract with them and fill out W9 form for tax purposes and ACH form for direct deposit of rent monies into your bank account. The ACH form will identify your bank details so that the PM company can direct deposit to you.

Join the conversationCreate a free account to reply, vote on answers and follow this thread.