All Forum Posts by: Chanté Owens

@Dick Rosen Good stuff! I think people should be looking to hire you or someone who handles the PM like this:

"I then do another safety inspection after 30 days, undocumented to confirm that I have a good, clean, responsible tenant. If it's questionable I may continue with quarterly inspections again undocumented but frankly if it gets to this I will be writing lease violations that will result in them playing by my rules or they may be evicted. Generally I never need to go this far because I've already done a good job of screening the bad ones out. Next I will do a thorough Move-Out inspection with pictures and documented on the same Move-In checklist for comparison. Aside from these physical inspections I drive by and possibly snoop around the outside of every property at least monthly, my apartment properties I visit and walk the grounds weekly."

All fantastic! Thanks for the input.

@Daria B. Sounds like if they are doing what they say, then it's a good process and should be enough to catch anything. However, with you saying that they document everything, but haven't produced that documentation, I'd be pressing for that information, just for peace of mind.

@Raven Dorminey I'm sure that every state is different regarding having a RE license. I definitely don't know which states require PM's to have it or not, but it sounds like just having a RE license doesn't necessarily make them a good PM. If they are doing it to fill in for commissions, there is nothing wrong with that, in my opinion. BUT, they should be treating it at a high level of importance, because people are paying and depending on them to be the eyes on their properties. 

Thanks for both of your responses! I don't know why, but this PM business just intrigues me, because from most posts on this site and just speaking to people on the street, there is a HUGE area of opportunity in this space, if it were done right.

I was talking to one of my RE friends in California and we were discussing the San Bernadino area...Anyway, during that conversation we began talking about Property Managers, and I told him about BP and how so many posters from around the U.S. pretty much have a large consensus that the vast majority of PM companies are sub par.

He said that he has had numerous clients who've indicated they are ready to sell their properties and will tell him that the property is managed by a PM company. He said he'll go to the properties and the properties (by and large) look neglected and are in ill repair with $1,000's of dollars in deferred maintenance items that are obvious. He'll contact the owner and tell them that he doesn't know what they are paying that PM, but they clearly are not/weren't maintaining the properties.

My questions are: What is the protocol around checking on properties? Are there any industry "best practices" that PM's follow, or is it simply at the PM's discretion?

I know in my last apartment, they checked your apartment six months in, to check fire/smoke detectors and at renewal. I'm assuming that an apartment complex with an onsite property manager is held to a different standard than one where it's a company that manages multiple SFR. That's just my assumption, but I'd like other investors who have PM's to chime in and advise how often they require or would LIKE their PM's to check on their properties.

I appreciated all of your points, and words of wisdom, but I specifically wanted to call this piece out (in bold). As a Commercial Insurance Broker, so often, people think you are trying to "pad" their insurance policy for more money by throwing in"unnecessary" items. While I will say there may be some brokers/agents who do this; in the vast majority of cases, if something is recommended for a policy, it's because: a. it is something that is optional for the policy, but is continually seen as a claims exposure, or b. the amount to add to your policy is minimal, but should you experience a loss, your personal payout could be significant if you didn't have that coverage.

As a brief example, a of commercial policies will have a nominal amount for building ordinance losses (link to a good definition of this coverage:

http://www.irmi.com/online/insurance-glossary/term...)

The reality is, if you own an apartment complex, and there is a loss that requires some updates to your property regarding ordinance; oftentimes they may require your ENTIRE property to have those updates. One loss that recently occurred was an insured who had a fire loss on their property, and their stairwell doors were required to be of a higher fire grade than they currently were, as well as some additional sprinklers, etc. This requirement required of ALL the buildings, not just the building that incurred the loss. Since the insured had only the minimal coverage limits on his policy for building ordinance he was out-of-pocket quite a bit of money to bring the other apartment buildings up to code.

This is just an example, but what I let my clients know is, if I recommend something it's not to pad the premium, but because it's a real exposure they may face, and given my past, extensive claims background, I am more sensitive to what losses ACTUALLY costs than a lot of others in my field. My general line is, "What is the maximum amount that you would want to pay out-of-pocket." If you have a cheap property that you got for 30k, and don't care if it burns to the ground, and don't want to pay that $500, $1000, etc premium, then that's up to you, as that's the cost you are willing to lose. Just my .02.

Thanks for this post, and sorry for your fire loss, but glad it was (relatively) a smooth process for you.

 I second this one, "Afford Anything." She owns quite a few properties, and lays out everything. She did an awesome breakdown on an Airbnb experiment that she did too. 

What I also appreciate about Paula's blog is that she calls out a lot of stuff that people make excuses about in respect to pushing themselves and making tough decisions to save money and make certain sacrifices. She rents out where she lives (I believe she lives in a duplex or triplex), BUT, she also has a roommate in her actual unit too. She really lives for zero dollars!

Welcome @Scott Scharl. Arcadia is a great place; one of my most favorite little relaxing wine bars is tucked away in the neighborhood over there, Postino's Wine Bar.

I lived in AZ for over a long time. If you have any questions about areas, etc, let me know, as I do still have friends there, and some are in RE too. 

Best of luck to you!

@Brett Blough I'm not a RE agent; however, I have a close friend who is a RE agent in AZ who works with a lot of investors from TX, and other states who wanted to buy in AZ (especially during the crash a few years ago). I also know of some RE agents here in Seattle, who are agents, but also RE investors too, and are investor friendly agents. While Seattle isn't going to be the cheapest place to purchase, there are still some deals to be found in Washington State, if you know where to look.

You can PM me if you want additional information on any of the agents I know. 

Good luck and happy investing!

OY! I used to live in AZ, so I was telling a colleague about Barrett Jackson car shows that I attended. I pulled up their website, and let me tell you. One of the first cars I see is a 1965 Shelby Cobra 40th Anniversary 4000 series...too beautiful for words. Cobalt blue...drooling here. One of these days...one of these days.

Enjoy your life no matter how frugal; extravagant, or everything in between. Tomorrow is not promised to any of us. Heck, a breathe away isn't promised. Live and let live!
 

@Mark Ferguson And at the end of the day, this IS what it's all about:

"I also live life and enjoy the hell out of it. I have a lambo that has increased in value 20 percent in a year, I have a nice house and I spend money on things that make me truly happy. The happier I am the longer I live and the more money I make, save and invest."

Or, as my father would aptly say it, "Different strokes for different folks."

As someone else already alluded too, I'm sure your boss already knows (especially since you told a colleague).  And  currently, as long as it's not interfering with your work productivity, you're probably ok...probably.

No one can tell you what to do, but a word to the wise - try to keep as much of your private life (which includes your outside business dealings) to yourself and out of work. I know it's hard because we spend a lot of time at work, but self preservation sometimes is very important to protect your livelihood.

Unfortunately, the nicest seeming employers can grow fangs and bite you at some point. I've seen it happen to many people who were blindsided by such things, from bosses/managers whom they thought were their "friends."