What's your reaction to this Unpaid Charges report from your property manager.

[Abad Marroquin]

My manager sends me this monthly Tenant Unpaid Charges Summary. As you the owner reviewing this report, what strength or weaknesses you notice? Is there anything they could do better when it comes to collecting rents, tenants getting behind, and when to start filing evictions. Thank you for your input. 

[Cameron Tope]

Abad,

I'm not sure why they send this report - to show you how poorly they are at collecting rents? 

We have found it best to follow a strict eviction process with rare exceptions. 

We have less than 1% eviction rate and 99% of rents collected (on tenants we've placed). 

If they're not paying, then get them out!

[Abad Marroquin]

Thank you for your comment. I need to start looking for a more efficient property manager. Also, they are no longer replying to my emails, and I have to call to remind them to send me documents I had already requested by email. 

[Adam Bartomeo]

At least they are collecting some rent...LOL. Some folks don't belong in property management.

[Theresa Harris]

The fact that 6 of your 7 tenants are paying their rent late is not a good sign.  What type of rentals do you have?  Do they attract the type of tenant who is likely to pay their rent late?  The PM doesn't seem to be doing a good job of screening tenants and with multi unit buildings if one tenant gets away with not paying the rent, you can bet they talk to the others who then do the same.

[Abad Marroquin]

Theresa, most of my units are duplexes, brick siding, one level buildings. I have to admit that some of the units are not in the best side of town. Most of them are C class with 8 of the 38 units probably D class being in the least desirable area of town, but the pattern is the same. I have told my manager that they don’t have to wait until tenants owe $3000.00  (almost 4 months of no payments) to evict them. I can’t afford to keep losing 3 or 4 months of rent. 

[Julie Huffman]

Hi Abad! I'm definitely seeing weaknesses in the rent collection on your PM side. No matter what areas your properties are in, your PM should be screening tenants and trying to ensure that these things don't happen. 

Screening is not always a guarantee that tenants will pay unfortunately, but your PM should be sending out notice as soon as the tenants are outside of their late grace period (if you have one) and haven't paid. They should also be able to effectively tell you why the tenant has not paid or when the tenant is claiming they will pay. 

I'm not super familiar with Georgia landlord/tenant laws, but here we typically file eviction as soon as the tenant is one month behind on rent unless they have justification to be late. Your PM should be looking out for your best interests and your cash flow. 

[Michael Smythe]

@Abad Marroquin appears you have found a Class C/D PMC to manage your Class C/D properties.

Highly unlikely you will find a Class A PMC to manage these, but you may be able find a Class B PMC.

You'll want to set expectations upfront and hold them to those expectations.

[Abad Marroquin]

Quote from @Michael Smythe:

@Abad Marroquin appears you have found a Class C/D PMC to manage your Class C/D properties.

Highly unlikely you will find a Class A PMC to manage these, but you may be able find a Class B PMC.

You'll want to set expectations upfront and hold them to those expectations.

Thank you for your input. 

[Abad Marroquin]

Quote from @Julie Huffman:

Hi Abad! I'm definitely seeing weaknesses in the rent collection on your PM side. No matter what areas your properties are in, your PM should be screening tenants and trying to ensure that these things don't happen. 

Screening is not always a guarantee that tenants will pay unfortunately, but your PM should be sending out notice as soon as the tenants are outside of their late grace period (if you have one) and haven't paid. They should also be able to effectively tell you why the tenant has not paid or when the tenant is claiming they will pay. 

I'm not super familiar with Georgia landlord/tenant laws, but here we typically file eviction as soon as the tenant is one month behind on rent unless they have justification to be late. Your PM should be looking out for your best interests and your cash flow. 

I agree. Thank you for your input. 

[Abad Marroquin]

Julie, 

• Rent Demand Notice: Unspecified notice to pay or quit. According to Georgia laws on eviction, if a tenant fails to pay rent, the landlord may serve a pay-or-quit notice and file for eviction the day immediately following the day rent was due. Written notice is required, but there is no specified amount required (OCGA § 44-7-50).