All Forum Posts by: CJ Ashton

One of my favorite sayings from my dad (who got it from his dad), of course modified for current prices.

"$50 worth of junk in the garage and a $50,000 car in the driveway/street."

I only manage 4 doors.  With technology today, I don't think being a landlord is near as difficult as it used to be.  Ad is posted online with a long, thorough description.  I never post a "For Rent" sign in front of the unit that leads to endless calls with dumb questions.  My "application" is a google form that I email or text to the prospective tenant.  Background check is done online by the tenant (smartmove) so I'm not collecting birthdates and and SSNs.  Rent is paid electronically.  I drop by once every 6 months to do a walkthrough inspection to make sure they aren't destroying the place, otherwise I never see or talk to my tenants.  I choose which maintenance/repairs I do myself or which I farm out to good tradespeople which saves me a ton of money over what the PM would charge for their selected contractors.

If the property is geographically close, I would recommend giving it a shot yourself before hiring a PM.

I only manage four doors.  We used to accept all forms.  Became a huge hastle.  Stopped accepting cash a few years ago, but some unbanked tenants paid by cashier's check, which often wouldn't be accepted by ATM (or phone deposit).

Now, I ask whether or not they have a bank account on my application (I won't rent to them if they're unbanked - because if you can't manage a bank account, the rest of your financial life and your ability to pay rent on time are likely compromised).  I also charge a fee for accepting checks.  In other words, electronic payment is king.  I've used cozy in the past.  Also Venmo.  But Zelle is easiest and all my tenants currently pay that way.

I like to do things digitally, but wasn't ever satisfied with online applications offered by the various websites as they weren't customizable to my liking and/or they charged a prospective tenant a hefty fee to fill and submit.  Consequently, I was stuck with paper applications (or sending a fillable PDF).  Somebody turned me on to Google Forms.  I felt like I had been living in a cave.  I don't know why I hadn't found it earlier.  Completely customizable.  Prospective tenants can fill it out on their phone.  All "results" are pulled together to make it easy to make a final decision on the tenant.

PMs are expensive.  If you are only managing a few properties, I would do it myself.

PMs are in the business to make money.  Nothing wrong with that at all, just have to know what their incentives are.

I worked for a PM and we charged the owners and tenants whatever we could get away with in the market (LEGALLY).  One of the cash-cows was a mark-up on repairs.  Although, this markup for a diagnosis seems downright crazy.

I'd definitely raise a stink with my PM about the cost.  Let him know you'll be shopping for another PM as soon as possible and I'll bet you'll get a "let me see what I can do".

If you're going to keep it, refinance NOW, while you are in the home.  Owner occupied rates are much lower than investment rates.

Wish I had an answer.  I searched all over the internet a few years ago but couldn't find a good solution.  I need to look again.  This can't be an uncommon problem.  Somebody has to have come up with a decent solution.

Home warranties are just like gambling...  The "House" ALWAYS wins.  Keep that in mind and decide accordingly.

As someone mentions above, a lot depends on the demographics of your tenants.  Another consideration is the number of doors you are managing.  I manage 4.  I used cozy for a while, but while I see the value in the platform, the hassle in set-up and the delay in received payments wasn't worth it for my tiny portfolio.  Those that pay electronically use Zelle.

I manage a few rentals in Mesa, Tempe, and Gilbert - suburbs of the Phoenix Metro area.  I honestly haven't had to evict, so I can't comment on the landlord or tenant friendliness of that process, but overall, I would say these cities lean landlord friendly.