All Forum Posts by: Alex Dutton

Thanks all for the thoughtful replies. Sounds like there may be no universal rule. I'm definitely going to have the work done it's just a matter of potential 1/3 reimbursement. The property is in southern Louisiana and when an oak tree even brushes against a building you would be amazed at the amount of insects, mainly roaches, it leads to. 

To address some of your questions on the HoA documents, the property was owned a small group of individuals since the late 70s. My father owned a unit (I spent time in as a child). He passed leaving me two units but almost no documentation. I bought two more from another other owner and there was no transfer of HoA documentation. We have known each other for years and had a good relationship. When I purchased the 4th I unwillingly became HoA "president." 

The HoA is kind of a joke and is used in the loosest sense possible. But we still have a good relationship. When the new owners purchased their units the bank approached me for only the annual dues amount.

I need to email one of the former owners. I've asked for the agreement in the past but you know how an investor can be when he cashes out.

I own 4 of 6 units in a three building multifamily (two units per building). The HoA agreement has been lost to time and I'm not excited to renegotiate. There is an oak tree whose limbs are encroaching on the rook of one of the three buildings. It also has some dead limbs hanging over the parking lot. 

Since I own both units of the building who is under siege from the tree is this an HoA issue or something I need to deal with myself? Does the fact that tenants cars are also in jeopardy change the answer?

Thank you in advance for any feedback!

Marcel, really good stuff and similar to what I did with my property manager. It amazes me when property managers don't recognize how cost prohibitive some of their services can be, however, I don't know what margins their businesses are running on.

May I ask you a follow up- You said you included these performance metrics in your RFPs, what % of management companies responded And were actually willing to take your ideas seriously (of course allowing for a little negotiation). 

I have a property management fee structure question for the forum.

I have several properties in Louisiana and I live in Georgia. I am under a typical property management agreement with an individual who has been fantastic. Pretty standard 10% rents collected though I do not have to pay if he finds a tenant for a vacant unit. Furthermore it’s written in the contract that I have to approve any expenses over $X therefore he does not make a dime over what I’m being charged and I can see and make the final decisions on the major repair work.

Reasons for this are simple- I want his interest as manager as closely aligned as possible to my interest as owner.

I’ve talked with a couple other owners who use the larger incorporated property management companies. Some common pricing themes I’ve been hearing 1) aprox 10% of rents, 2) a % of first month rent for finding a tenant, 3) charging a premium on contracted out major repairs and 4)nickel and diming on small repairs.

This seems like a massive conflict of interest. As a property management company you would better profit if there is a high turnover of tenants and there is constantly work being performed on the property. The exact opposite of what an investor would want.

So the question becomes has anyone out there come across a pricing/fee structure that better reconciles the interest of the management company and investor?