All Forum Posts by: Claire Fenton

@Deborah McCarthy, great information, thank you!

Welcome @Tyler D..  Happy to share rental vacancy stats and other property management wisdom.

Hello @Adam Buchholz, smart tenants think about heating costs.  When we advertise properties for rent, we list what type of heating the unit has.  Electric ceiling heat is expensive, which makes it a less desirable place to rent.  Also, for the health minded there have been health concerns about ceiling heat.  I have no idea if those concerns are founded on solid science though.

Hello @Tyler D., you didn't mention property manager as a part of your team.  Will your investment business not include holding rentals or selling properties that will become rentals? A solid PM company is usually a valuable and integral part of a successful real estate investors team. 

I have lists of escrow officers, inspectors and loan officers.  Happy to make referrals.

@Account Closed You have received a lot of good advice from  BP members.  Our company has dealt with many investment property sales over the years and one of the first things we do is see if the tenant has an interest in buying.  Often they do.  If these tenants don't want to buy your house, or aren't in a position to, then your only option is to give them an incentive to move.  Obviously at the moment, with the weather we are having, no one who doesn't have to wants to move.  But this weather won't last forever, (I hope!) and you can agree to a "not before" date.  I would suggest you sit down and negotiate with your tenants. Approach them in a friendly way, appeal to their compassionate side.  If you are in a financial bind, put it on the table. If you are aggressive or confrontational they will dig their heels in and make things as difficult as possible for you.  A good place to start would be one month free rent, moving costs and the security deposit on their new home.  And work with their schedule in showing times.  Everybody hates to live in a home that is being shown.  Check fair housing rules.  I don't know if it covers this type of event, but if you are not careful you may have a fair housing suit on your hands.  Good luck, and next time have a professional property manager draw up your lease for you so you have better options.

@Keith Brown, some people absolutely love property management, but most hate it!  That's why it's a great service to offer.  However, as @Jonna Weber suggests, do your due diligence before jumping into the deep end.  It's not an easy business and it is a low margin business which is why many PMs pair their management service with real estate sales or some other form of industry related revenue generation.  This may work well for the you, the PM, but is it in the best interest of your client?  You mention all the benefits to the owners, but what about the tenants?  Investment property doesn't pay without good tenants.  You may or may not have licensing requirements in your state, but you will be governed by Federal and State regulations that you should be aware of.  Good luck with your decision making!  If there is a NARPM chapter in your area, you may want to attend the next meeting to feel out the competition.  It will give you an idea of the scale and level of professionalism of the PMs and perhaps you will find a niche that is going under serviced or not serviced at all.

@Jonna Weber, thanks for posting!  We do live in a pretty special place.

3% vacancy would be accurate for recent market conditions during high volume months.  However, I would suggest an 8% vacancy rate, to allow for turnover between September - January, when it's quite possible to be vacant for close to a month, even in a good market.  Also, calculating a management fee of 7% is good practice, because one day you will want management and you will want your numbers to work.  As to maintenance, you know better than I.  A lot depends on the age and condition of the property you are purchasing.

@MarieChele Porter and @Matt W., Boise has had a lot of interest from out of state investors in the past several years.  Some of the investors from California in particular are investing in Boise because they plan to move here themselves eventually.  They believe in the growth and sustainability of the area.  A significant number of our clients at our residential property management company are out of state investors.  I'm happy to help with rental stats if you like, also two good connections for you would be @StacyA McBain who specializes in MF investments and @Jonna Weber for SF investment properties.

@Mike Morehouse, what are you allowing for vacancy, and what % are you including for management?