All Forum Posts by: Bill Riggs

In my experience, the best property management companies are those headed by investors for managing their private portfolios. Teaming with another private investor makes good sense.

If you decide to go the management route, then Phillip's point about verification is crucial, especially after you've hired them. If they send you a report for example listing repairs, call both the company that did the repairs and the tenant to see what was done and how things went. I'd also hire a 3rd party to do monthly inspections of all your properties that will provide reports on the tenants and the management company.

Finally, if you are investing in single family homes, you can sell them on a rent-to-own basis to help ensure your investment returns and make the tenants your "local investors". I'd still have inspections done but one of the biggest property management ripoffs, overcharging for maintenance and repairs, could be avoided.

I wanted to suggest a few proactive approaches for next time: #1 Would be a clause in your lease (subject to state laws of course) that renders a long term lease into a 30-day month-to-month lease of the tenant ever pays late. That way if their financial situation starts going downhill you could change their lease status, give them notice, and a copy of a move-out letter. #2 Would be to proactively discuss their financial situation. Call the employer they listed on their rental application. Provide them with a list of churches or agencies who can help them in an emergency. Talk to references or family members. #3 Finally, ask them specifically when they are going to send you money and what the source of the money will be. Follow up with them on the day they say they will have/mail the money. If all else fails, talk them into moving out so no one has to go through the time and expense of eviction. Many judges here in PA and MD will give a tenant time to get their act together and if they don't you have to file for another hearing, which can add another month to the process. I've found it also helps you in court if you show you've been actively involved in helping a tenant get caught up. It helps burn this judicial "get out of jail free" card and speed up an eviction