All Forum Posts by: Brandon Vanderford

 Hi Agustin, this property is currently under contract. If something falls through, I will let you know. 

Hey Matthew, I offer room-by-room management services, but the management fee is significantly higher than my management fee for a standard long-term rental. However, the numbers may still make sense. I would be happy to chat. Send me a DM if you are interested in discussing. 

@Matthew Murray, my personal recommendation is to hold the property. You have about 125k in equity in the property. But you also have value in your current, presumably low, interest rate. You cannot replace that. Having a positive cashflow of 1.2k/month is outstanding, and I think it is unlikely that you could replace that with anything on the market now. My take? 

Keep the equity. Keep the cashflow. Keep the low-interest rate. 

If you sell, you are likely to give up on all of these advantages. Like @Avery Heilbron suggests, hiring a PM who offers room-by-room rental management could be an option. 

Alternatively, you could convert it to a standard long-term rental. You will still keep the equity and the interest rate. While you would be losing some income, it would still be cashflow positive, and it would free up your time. You could always convert it back to a room-by-room if you decide to in the future. 

Hi Venkat, sorry for missing this. I'll send you a DM. 

Sounds great, and makes sense to me. I'll send you a connect request and a private message with my contact info. Feel free to save my contact, and if I could ever be a resource for you or your dad, don't hesitate to reach out. Wishing you the best in your search for a local PM!

Hi Pradip, I would be happy to assist if you have any management needs in the Triangle. I'll send you a connect request.

I have had one showing, but the property is not under contract yet. If anyone has any questions, let me know. 

I can confirm that you must be licensed in North Carolina, and as Greg suggests, that is probably the case nationwide. 

Perhaps you can tell your family member that you would love to manage their property, but need to get your license first? You could get the license in under ninety days, and then affiliate with a firm that allows property management. 

I am not arguing for an insufficient contract. Any PM contract should clearly state who pays what, termination procedure, etc. Mine does, and is still just over ten pages. Nobody said "the shorter the better." But a 60+ page management agreement? Come on. 

It is possible to be comprehensive without bureaucratic bloat, in my experience. But as you say, by all means, be sure to cover all bases. Just last week, I brought on a new client because he was upset that his previous management company was not upfront about their management charges.  

I think that your comment brings appropriate balance to the conversation, but I think some caveats are fair. 

@Wilson Lau makes good points about the lighter wear-and-tear with short-term tenants, as does @David S. about arbitrage being a safeguard from the California laws which are less favorable to landlords.

My suggestion is that you find out how much cash your would-be tenant (the one doing the arbitrage) has in reserves (because it might take a little time to get the first booking). You might ask for the first few months of rent upfront. 

Also, ask your would-be tenant about other properties they are subletting. Are they relatively experienced, or is this a first time for them? You are likely going to have a better experience when someone with more experience leases your property for arbitrage.