Property management fees

[Philip Gibbs]

hello BP team and investors. I have a question about property management. I have recently purchased a property and went through them for the rehab piece. The rehab was 20K for a duplex. I have yet to receive my first EVER rent check. But i somehow receiving bills from them this bill is for 1600 ish dollars. For example They want me to pay the rent placement fee and i haven’t yet received first months rent. Why won’t they just take t out when the rent is paid. I will try and post the bill up to see if you guys can break it down. They’ve collected half the months rent from the tenant and awaiting the rest from section 8. No tenant has been placed in the other side as of yet. I have a hard time trusting them. I think I’m getting nickeled and dimed. The place should be ready after paying 20K for rehab. However they fixed a leak on a washer dryer connection. The washer and dryer was placed by the tenant. And im being charged 80 dollars for that. Shouldn’t the tenant be charged? Idk sorry for my rant / rambling. I just find it odd first month 1 tenant i have received no rent and i owe them 1600 bucks 

Thoughts?

[Fred Heller]

There's a lot of moving parts to your question so hopefully I understand it fully.

If you finished the rehab three weeks ago, and they subsequently placed one tenant, then you shouldn't expect a rent check now. PM companies typically collect the leasing fee from the first month's rent. So it's usually the second month and going forward when you'll receive your proceeds.

You also mentioned that the tenant is a housing voucher recipient. Between the inspections and the paperwork and the bureaucracy it can take up to three months to receive your first check from the housing authority. To me, that's the fatal flaw in the system. Once you get into the system, they do pay you retroactively back to the move-in date. But in the meantime, you have someone living there with no revenue being generated. And we have bills to pay just like everyone else.