All Forum Posts by: Brian Berry

 I like that for just a one or two properties, but it doesn't scale for managing 10+ doors. 

I thought about Wi-Fi locks, but that requires internet access at each residence. I suppose supplying internet (and charging for it in the rent) at each residence would be an option. But then would the tenants be concerned about the risk of people entering without their knowledge? 

I am seriously considering self managing from several states away. I have nearly every element in place, but I have yet to wrap my head around managing keys to the properties. Specifically, how do I get keys to the various people who will be assisting with managing the properties? I'm not big enough (yet!) to warrant an office where they could be stored. 

There has to be a simple solution...I just haven't yet figured out what it is. 

Thanks!

 So here is the latest update. I GREATLY appreciate everyone's input. 

The tenant has health issues that (she claims) necessitate her relocating to a different part of the country.  So she will be moving out at some undetermined date. The current PM *thinks* it will be 2-3 months from now. Since she is Section 8 she needs to have her new residence approved, etc, etc. 

This makes things difficult. My current PM requires 60 day notice to not renew the contract. Our current contract expires in October. 

I will NOT renew with the current PM due to many, many issues. But this puts me into the difficult position of having a vacant house in late fall in an area where nobody wants to move once the weather turns. 
 

Per the original lease, it does fall to MTM. I'm disappointed that they dropped the ball on the rent increase. That is definitely money out of my pocket. 

I have many issues with the PM. I'm to the point where it would be cheaper and more effective to self manage from 1700 miles away. The PM doesn't respond to me or to my tenant. I essentially had to plead with the PM to do an inspection (so the property went 10 months with no inspection, although it was supposed to be quarterly). They have not responded to multiple requests for bids on known issues. I don't know how they stay in business. 

The lease with my tenant expired on 4/30/2023. This is a Section 8 tenant. I alerted the PM that I was upset that they missed the window for a rental increase. I also alerted them that the lease was up for renewal. Now we are over a month overdue for a lease renewal. 

I'm not sure what to do. I replaced one bad PM with apparently a worse one. The contract with the current PM renews in October. I'm debating whether it is worth engaging an attorney to end the contract early. Or is there a Cash for Keys option for PMs? 

Suggestions? 

Thanks!

 It's easy. They provide a 1099-DIV. 

So in reviewing my contract with the new PM company, I am supposed to have a monthly teleconference with them. This has NEVER happened. What is a reasonable compensation for them failing to meet their contractual obligation? 

Update: 

At long last, I received full payment on April 21. So it was over 6 1/2 months between payments. This was very frustrating and annoying, but the good news is that I survived it. 

For me, this entire experience has reinforced the importance of buying less than you can afford, and having greater reserves than you expect to need. 

If this helps, here is a snapshot of this property. 

10/6/2021 - Closed on home. The property was a near-turn key. I spent about 3 days fixing things myself (this is an out of state property, but I decided to go out for closing, and fix some stuff myself). New property manager walked through on 10/7. Made a list of what work needed to be completed (replace front door at my request - I loved the original door, but many hours of attempting to make it work made me realize it just needed to be replaced...sad to see it go, refinish floor in 1 bedroom, move stove, paint). 

10/29/2021 - The guy in charge of my home left the company. 

10/29/2021 - 1/11/2022 - Many emails exchanged regarding progress. Poor response

1/11/2022 - Email from Property Management company stating that the home is ready for marketing. They recommended renting it at $1500/month. Their photos if the home were crap. They had really ugly watermarks on the photos. Yuck. I pushed back on the rent (nothing less than $1800/month, looking for $1850). 

2/23/2022 - Identified Section 8 tenant, which was my hope with this property. So begins a new journey. 

March 2022 - Inspections, fixes, and reinspection. All good (whew!)

4/19/2022 - Rental amount ($1850 vs recommended $1500 from PM) approved by Chicago Housing Authority. Note: The tenant is renewing their lease, so if I went with the original suggestion, I would be out $8,400!)

4/19/2022 - Tenant takes possession. So just over 6 months from closing until tenant moves in. (note: 6 months of holding costs: mortgage, utilities, etc). Received first rental payment

5/3/2022 - Discovered work that the property management company had charged for, and that I had paid for was NOT completed. 

5/26/2022 - HUGE water bill. Over $1,000 for 2 months. Turned out toilets in both bathrooms were essentially running non-stop, plus a couple of other minor issues. The usage was 101,000 gallons for the 2 month billing cycle, of which the home was only occupied for 10 days. 

May - August 2022 - Many issues with the PM. Notified (per contract requirements) of intent to sever relationship. 

9/23/2022 - Signed agreement with new PM

10/01/2022 - Final direct payment from CHA to me

10/23/2022 - New roof on garage by new PM. Super happy!

10/31/2022 - New PM splits off. All hell breaks loose.

11/1/2022 - 4/16/2023 - Lots of frustration, many emails, no solutions. 

4/17/2023 - Payment confirmation from CHA

4/21/2023 - Received payment for all missed months. 

TLDR: From date of purchase until first payment - 6 months (no income). Received 6 months payment. No payments for another 6 months (all of the missing 6 months were caught up in the end).