All Forum Posts by: Aaron Sizemore

So here's a little background on my situation. Just wanted to get some input from you guys on how one should handle this particular situation. I purchased my first rental property, a bank owned townhouse approx. 1 year ago. I spent a little time cleaning it up and had it rented within 60 days or so. My property manager said he had tons of potential tenants but finally settled on a single woman in her 40's, who also held a respectful paying government job. However, she mentioned going through a rough divorce and foreclosure in 2009/2010 which left her with a terrible credit score (I know, first red flag). Property manager supposedly performed all other screenings and spoke highly of her regardless of the credit score. So, fast forward 10 months. She has paid perfect rent, sometimes even a couple days early. This month was different (assuming she spent her rent on Christmas?). I contacted the property manager on the 4th asking if he had heard anything because the contract clearly states that rent is due on the 1st and will be charged a daily $40 late fee after the 5th. I received a response stating that her check has not been deposited yet and that she could only come up with $975 (rent is $1000) until she gets her check. That's right, she apparently couldn't scrounge up $25? My property manager collected the $975 on the 5th and told her that there would be a $40 daily late fee until the rent is paid in full. I finally received a text from the property manager (as I am typing this) stating that she now only has $100. A little math $25+40+40=$105. I know its only $5 but come on! I feel like she is toying with me? If a 40+ year old woman that makes $75k a year cant pay $5 to keep a roof over her head, she has way bigger problems. I also feel as if my property manager is a little inexperienced and soft. So what would you guys do in this situation? Should I set a date stating that if the rent is not paid in full by xx/xx/xx I will do XX? Sorry for the long post. I may be overreacting but this is my first experience with this. Thanks for the future advice!  

 Awesome! I still haven't met up with anyone in the area. Unfortunately I was unable to attend the last meet up that @Russ Scheider put on.

Great, thanks Russ! Sent you a message.

Awesome John, thanks! I hear him on the radio quite a bit these days.

Does anyone meet up in the Charleston or surrounding areas? I know they have the usual REIA meetings but any members from Biggerpockets? It would be nice to chat with like minded people over coffee or whatever. Just trying to get more motivated and active in the community! None of my friends or coworkers invest in Real Estate or anything for that matter. Thanks guys!

 X2 on that one. I know property taxes are crazy here (Dorchester County). They tax at a 6% ratio as opposed to a 4% Owner/occupant..which usually figures up to three times the 4% and then a couple hundred on top of that. Taxes on my personal residence run around $1200 at the 4% rate, they skyrocket to approx $3600 at the 6% rate...crazy.

Dang man, 5 houses at one time!? I'm closing on ONE (also my first rental) Townhouse in North Charleston and its been a pain! But its an REO property that was on HUBZU so maybe that's why lol. Congrats and best of luck though!

@Thomas Morris

like i said above, i am starting to second guess my decision to buy a rental in sc. I picked Columbia SC because there were so many SFR's for $50-$60k. I thought "how could one go wrong"? But its all starting to make sense now lol.

@Tim C.

Thats a very good obsvervation and i didnt think of it like that. Im beginning to wonder if SC is the place i want to invest in real estate. I also talked to my CPA, and due to me not managing the property myself, it will be all passive income and i will not get many tax benefits.

Thanks Dmitriy, good info!