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All Forum Posts by: Richard F.

Richard F. has started 30 posts and replied 2235 times.

Post: Best way to make the repair

Richard F.#1 Tenant Screening ContributorPosted
  • Property Manager
  • Honolulu, HI
  • Posts 2,323
  • Votes 1,578

Aloha,

There are few examples of asbestos containing material that you can state unequivocally that they are, simply by appearance. If there are any loose or broken tiles, take a sample and have it tested. If it IS ACM, leave tiles that are secure alone, fill areas that are missing tile pieces with floor leveler, install a quality LVP over all. If a LOT of the tile is loose, and IS ACM, it needs to be properly remediated and disposed of. If it does NOT contain asbestos, remove all of it and prep for whatever flooring you choose, although a good LVP would still be my first choice.

Post: Problem with new tenant (Yonkers)

Richard F.#1 Tenant Screening ContributorPosted
  • Property Manager
  • Honolulu, HI
  • Posts 2,323
  • Votes 1,578

Aloha,

You are on the right track, getting the attorney on it immediately. Do not relent. Do not accept ANY partial payment. If she contacts you, refer her to the Attorney, do not discuss anything regarding the rent. If she has maintenance issues (other than an actual emergency), tell her to submit them in writing per local LL/Tenant laws, then handle as necessary.

Most importantly, tighten up your screening process. This should never have happened so quickly.

Post: Tenant Signed Lease, Wants to Annul lease

Richard F.#1 Tenant Screening ContributorPosted
  • Property Manager
  • Honolulu, HI
  • Posts 2,323
  • Votes 1,578

Aloha,

Hopefully in addition to the SD, you collected the first month rent. Why such a long time period from apparently signing them until actual possession which is still weeks away? We require SD within two business days of approval, and rent must start the earlier of possession, or 15 days from approval, with first month rent paid prior to handing over keys.

Whenever prospective Tenants can "tie up" the rental, but have a long period of time before actually signing or paying, they usually are just continuing to look for something they like better. If they do, you get the sob story...if they don't, they probably will be a PITA for the duration.

Post: The tenant is demanding to know who the owner is. I own my rental in an LLC

Richard F.#1 Tenant Screening ContributorPosted
  • Property Manager
  • Honolulu, HI
  • Posts 2,323
  • Votes 1,578
Aloha,

Depending on the specific wording of your Management Agreement, typically for rentals, the PM is acting as your lawful Agent, and is the only required point of contact. Whenever I have an obnoxious Tenant demanding to speak to "the owner", I tell them to put their question/complaint into a letter or email which I will forward to the Owner, who may or may not respond.

Post: Criteria To Choose For A Property Management Company

Richard F.#1 Tenant Screening ContributorPosted
  • Property Manager
  • Honolulu, HI
  • Posts 2,323
  • Votes 1,578
Aloha,

There is a huge difference in actual experience between a "one man band" that is managing a dozen rentals for 5 - 10 years, while earning his main income from RE Sales; vs. someone that is full time PM, with separate accounting and admin staff, managing 100 or more units for many years. Some will have in-house maintenance staff, others will use third party vendors. You need to know which; what that "cost" is to you; and typical current average costs for routine items such as changing a water heater, toilet, or faucet; basic drain stoppage clearing; replacing a ceiling fixture or ceiling fan; repairing typical windows/screens; appliance service call charge (just to show up, this would be plus actual repair cost), etc. You should also get an expected cost range and timeline for evictions, just to be aware.

Bear in mind, depending on local contractor licensing laws, your PM will in most cases be required to utilize licensed and insured vendors for most work. Licensed PM's are expected to follow ALL applicable Federal, State, and Local laws, including reporting vendor payments to IRS. They will not risk their license to save you a buck.

Drive around and LOOK at some of their managed properties. A full time PM will often have signage on MF Rental Properties, and watch for "For Rent" signs in yards that have a Company Name on them.

You should get a good understanding of their Tenant screening process and minimum criteria, however you should not be involved in the actual approval process. This is the single most critical element of PM. Done properly, life is generally good. NOT done properly, life definitely NOT good.

You also need to understand their inspection processes, which should include photos and written comments automatically sent to you. They should inspect a property as soon as they acquire management of it, whether vacant or occupied; routine vacancy inspection (including handling of SD charges and deductions); long term strategy for significant upgrades/major renos; and at least an annual walk through, specifically looking for signs of leaks, pests, extra people/animals, and unreported routine maintenance items.


Post: Trying to find a service that will list my property for rent everywhere

Richard F.#1 Tenant Screening ContributorPosted
  • Property Manager
  • Honolulu, HI
  • Posts 2,323
  • Votes 1,578
Aloha,

There is no site that will repost "everywhere", but if you use a licensed PM that has access to the local MLS, most of them have agreements with other major sites that get you a wider audience with one upload.

Post: Do I need to install a handrail?

Richard F.#1 Tenant Screening ContributorPosted
  • Property Manager
  • Honolulu, HI
  • Posts 2,323
  • Votes 1,578
Aloha,

If I recall correctly, more than 19 inchs rise requires a handrail. This could also vary by local codes. The main thing is, whatever you install, be sure it is rock solid! Not just slapped together with drywall screws...
WOW. Just fire the PM. Check your Management Agreement with regards to early termination penalty, but for that egregious of an oversight, I would fight him in court if he assesses the ANY penalty.

Post: Best Home Insurance for inside one unit when HOA covers everything external

Richard F.#1 Tenant Screening ContributorPosted
  • Property Manager
  • Honolulu, HI
  • Posts 2,323
  • Votes 1,578
Aloha,

Actually, for condos, what you need is an HO6 policy, which is different from a typical Homeowner/LL Policy. You need to be sure the deductibles on your HO6 are properly coordinated with the condo Master policy, otherwise you will be out of pocket on most claims. Deductibles for HOA Master policies have been jumping up to $25,000 - $50,000 due to heavy claims. You should review coverage with your Insurance Agent every year, AFTER obtaining a current Insurance Summary from your condo Management team that shows the types and limits of coverage for the HOA. Your Tenant still needs Renter's Insurance to cover their personal property, no matter if SFH or condo.

You should also consider the individual coverages offered as options with your policy, such as sewer back-up, ordnance of law, loss of rent, and equipment breakdown (usually just for heating/cooling equipment).

Post: Out of State STR Investing -- HOA Proxy?

Richard F.#1 Tenant Screening ContributorPosted
  • Property Manager
  • Honolulu, HI
  • Posts 2,323
  • Votes 1,578

Aloha,

@Katie Miller, first of all, you should have a copy of your By-laws, Declaration, and House Rules. Read the section in the By-laws that details Membership meeting processes and requirements. The Membership meeting is completely different from the more frequent Board of Directors meeting, and also different from a Special Meeting that could be called. You need to be sure the BOD is following proper procedure for holding each type of meeting, providing proper notice of the meeting, and for tallying and recording the votes. Generally Members cannot participate in votes except at the annual Membership meeting, or at a Special Meeting called for a specific issue, such as amending the By-laws or other Governing Documents, or to authorize the Board to seek a loan or levy a Special Assessment against all of the Membership. Members CAN attend regular BOD meetings and participate to an extent, but are not able to vote and cannot be present for any "Executive Session", which is primarily limited to personnel matters, active vendor contract proposal or contract discussions, and Homeowner delinquencies. These regular BOD meetings is where the bulk of the actual "work" that affects the Membership of the HOA is done.

I am not intimately familiar with Florida HOA laws, but in most states you do receive a Proxy form that you can complete and return to the Managing Agent or Secretary of the BOD. This form will have options for naming the Board as a group; Board as a percentage; Quorum only; or you can Name any specific person to vote on your behalf at a specific meeting. Membership meetings are usually only once a year, and you should plan on attending if you do not have a trusted family member or friend that can attend for you, and do NOT want to support any of the current Board.

If you feel your Board is against investors, you need to make contact with other investors in the HOA and any other "friendlies" to develop a voting block to make an effort to change directions. Or, maybe, just get all of those investors to properly manage their HOA properties and Tenants. Many ARE absent slumlords that do not care about the rules and restrictions that they agreed to when they purchased. One bad apple....

Also, a prior poster was ranting about an HOA that was "fired". The HOA is a legal entity, made up of all of the unit Owners in the project. The BOD is made up entirely of Owners in the project. The BOD, based on the authority granted them in their HOA By-Laws, hires a Managing Agent to be the lawful point of contact and legal service for the Association. The Managing Agent works at the direction of the Board. The Board is responsible to see that the Managing Agent, and all vendors, staff, and other Board members follow all applicable laws, and follow proper practices and procedures. The Board can "fire" the Managing Agent, and, if the HOA has employees, they can fire them as well, but the HOA lives in perpetuity or until dissolved in a Court of Law. Board Members can only be removed by a vote of the Membership. Your Board of Directors is where the Buck Stops, and they should, and CAN, be held personally responsible if they are failing the Membership as a fiduciary.

Every HOA's Board is different, there are good ones, and there are terrible ones. Every Board Member has their own agenda, background, and ideas. By attending regular BOD meetings you can easily figure out who is pushing for an issue, and who is just blindly following the alpha dog. What they DO have in common, is the responsibility to maintain, protect, and preserve ALL of the common and limited common elements. If they are failing at that, they need to be voted out. As a fiduciary, they are also responsible for properly managing the finances of the HOA. The BOD sets the annual Budget, and approves the Reserve Funding Plan. If you do not understand these documents that should be sent to you annually, you NEED to, unless an "unexpected" Special Assessment or large increase in monthly fees would not impact your cash flow.

The problem with many HOA's is that the Board does not care enough to learn about their own Governing Docs or local laws. They erroneously believe since it is "their" HOA, they can do whatever they want. They are often motivated only to keep the monthly fees low, which they accomplish in the relatively short term by deferring maintenance on items they feel are less important, and by "saving money" using unlicensed and often poor quality vendors to make improper or inadequate repairs. This can go on for years, until that "unexpected" Special Assessment has to be made. Money for repairs and maintenance only comes from one place...the Owners pockets.

As to changing rules, sure, States and Cities can make changes to zoning and other aspects that can hinder a short term rental investor, but you need to start with your own HOA documents. They will also limit your use for the benefit of the entire project. The difference is, depending on your specific docs, in some HOA's the Board ALONE can make those changes. In others, they require a significant percentage of the entire membership to approve such a change. There is not much you can do about the State or City changing rules, but at least with the HOA, you can easily determine how difficult it would be for the existing HOA rules to be changed. A small HOA, of less than two dozen units, are more likely to be easy to change, vs. a 1000 unit HOA that requires 2/3 of the membership to approve a change.

https://www.caionline.org/pages/default.aspx is a great resource for HOA Owners and Boards, and they have chapters all across the country. Check to see if there is one near you/your HOA to learn how the HOA should be operating.