All Forum Posts by: Alan Y.

Try @Kevin M. with Otter Property Management.

https://ottermanagement.com/

 Agree with @Rich O'Neill regarding TruMark.  I closed a refinance in January with good terms.  It took about 45 days but they were easy to work with.

@Jack Perfett Welcome to Philly. I currently own 1 duplex and use 1 account. It's easy enough with 1 property to collect rent and track reserves and, most importantly security deposits. However, I can see how 2 accounts would be also very helpful and I might look at making that change. I was tracking all cashflow and expenses in Excel but moved it all to Stessa. For a free system, it's fantastic and saves a lot of time and data entry errors. It connects to both my bank and PM account. It has features to upload and track all your documents like licenses, PM agreements, executed leases, receipts, and work orders. It also generates a tax package at the end of the year which is a big time saver for my accountant. I highly recommend it to anyone getting started. It's awesome that you are starting in REI so young. Good luck!

@Mark Thomas I used ValueGuard for my home inspection and was pretty pleased. The inspector was Joe Topper and I thought he did a really good job. He was very thorough and knew the Phila market.  He uncovered issues that I would not have found myself.  I was able to go back to the contractor and get the issues remediated.

Hi @Victoria Pham. This is always a hotly debated topic and you will not get a definitive answer on it, especially if you are investing alone without partners. I chose a single member LLC for my property but many others don't believe LLCs are necessary and use an umbrella policy on the investments for asset protection. Depending on which you use there are differences in how to manage the assets. With an LLC, I keep separate bank accounts for the property so funds are not intermingled with personal assets. It also requires commercial financing under the LLC which can be more difficult. It's a very personal decision and best made consulting with a trusted an attorney or accountant familiar with real estate investing. Good luck!

@Drew Sygit I'd say the PM is giving me options but not really guiding me. They are communicating with the tenant and leaving it up to me to decide what I am comfortable doing. 

@Mike McCarthy great suggestion. I did ask the PM to waive the placement fee if I needed to find another tenant. Waiting for them to get back to me. 

Thanks for all the responses. I am not legally obligated to return any funds paid.  I can charge a termination fee, equivalent to the security deposit (one months rent), but I am trying not to go that path. I am not sure it's worth the risk that he damages the apartment on his way out. Most of the above recommendations seem to be in-line with what I was thinking.  Keep the first month and last month rent and the pet deposit. I already gave up 1 months rent in tenant placement fee to the property management company which I will likely not get back but asked them to consider it. I won't have lost any income necessarily but that depends on how long the vacancy lasts before finding another tenant. @Kevin M., I am trying to get input from the tenant on why he is considering leaving after 1 week to see if there is a real reason that will help me improve the property or he's just being difficult and has renters remorse. Not the way I was hoping to start off. I haven't heard a thing from the tenant in the other unit after 2 months, which is good news!  Thanks for the input.

Hi BP,

I just completed rehab on a duplex which is my first investment property.  I successfully placed 1 tenant in a unit.  I have a 2nd tenant that signed a lease and moved in on 11/1.  After 1 week he asked that he be allowed out of the lease and get his security deposit back. He started nit picking on little things that he didn't like about the apartment like no blinds provided, doesn't like the floors, etc. The unit is a brand new rehab with everything new so there is not much that can be picked on and he looked at the apartment twice before signing the lease so he knew exactly what it looked like.  I offered to install blinds if that would keep him in the unit and he still wants to terminate the lease if I will let him out of it. Upon signing the lease he paid up front with first months rent, last months rent, security deposit, and $500 non-refundable pet deposit. The property management company already took 1 months rent as a fee, so if I give him back the security deposit, I am left keeping the pet deposit and big headache starting a tenant search over again and dealing with transferring utilities, etc.  I am not obligated to let him out of the lease but I certainly don't want an angry tenant in my unit for a year.  Seeking advice from the community on the best way to handle it.. Thanks in advance.

Alan

@Alex Uman I’d be interested in a Philly event as well.