All Forum Posts by: Chanté Owens

There is a C.L.U.E report (for personal property, so if this is for a business entity, this may not be applicable - just FYI): 

https://personalreports.lexisnexis.com/fact_act_di...

Your loss amount of 60k is a great deal of money, so there are multiple variables. The first being, were the damages caused by a "Covered Loss" as defined by your policy terms? Second, as Fred indicated in his post, whenever you make a claim it is noted and you will be paying for it overtime. You ultimately need to weigh the pros and cons.

All I can say is that I have numerous clients who were insured by preferred carriers like Travelers, etc, and when they had claims for "x" amount, their annual premiums increased several thousand dollars; which they weren't happy about, but in the end, they had to stay where they were, because I couldn't find them anything cheaper with the claims on their loss runs (these are records of your claims filed are asked for by any carriers you want to be insured with in the future).  Some of my clients had claims in excess of 20k (several different clients with claims from 20k-40k). In polite ways, I let them know they probably should be glad their polices weren't cancelled as a result of the loss, and I couldn't find anything less expensive. 

In my opinion, if paying an additional $2-4k annually for a few years will get your roof paid for, and you are still insured; it's a small price to pay. With that being said, you never know if they will not drop you at either mid-term or when your policy renews; which means you would STILL be looking for a carrier to insure you at that time. The good thing I can say is that you likely would be able to get another insurance company to take you on; however, the bad news is, it would likely be more expensive.

*Disclaimer - I am a prior Claims Specialist and am a Commercial Insurance Broker

Good for you! Nothing like a sense of pride and accomplishment for a job well done :)

@Anthony Gayden You may want to read this piece: 

http://www.insurancequotes.org/home/how-pests-affe...

What a lot of people may not realize is that typically in insurance policies, pest/vermin infestation is NOT a covered peril under their policy; due to a myriad of reasons. This article speaks pretty well to that point, as well as this definition on the "Vermin Exclusion":

http://www.investopedia.com/terms/v/vermin-exclusi...

While each insurance carriers' policies can vary slightly from their competitors, in general (without getting into to much boring insurance detail) most policies are based off of an industry standard known as "ISO" (ISO - Insurance Services Office). They create standard insurance policy language, and in most policies I've seen, there is a "Pest/Vermin" exclusion. 

What that means in short, if there was a termite issue, the likelihood of your insurance carrier paying out on that claim could be slim to none; however, stranger things have happened, and all policies can (and do) tend to vary - carrier to carrier.

Good luck with the property, Anthony. I think that there was a good idea to do the pavers. I think that would be an olive branch type of offering, because you would be maintaining your property in the way you would like to see it maintained, yet, you wouldn't be taking anything from them, you'd actually be adding some value to them. It's all about the way you sell it to the tenants. 

@Katie Douglas You may want to read Paula's blog Afford Anything. She is a 30 year old, who began her real estate investing about 4 years ago with her boyfriend. Their initial property was a duplex (or triplex, I can't remember). They lived on one side and even rented rooms on their side as well. They didn't have to pay any mortgage payments out of their own pockets, because their tenants portions paid for everything. 

As she points out, everything isn't for everyone, but if someone really wants something, they will make the necessary sacrifices to get it. She owns over 5 rental properties; one of which she's been using as an AirBandB experiment (I believe she may be at #6 or more properties by now).

She did not come from money. All her properties were bought and paid for by her and her boyfriend; no wealthy family members or lotteries.

I've learned quite a bit reading her blog posts. She's said (paraphrasing) that when people say they "can't" do something, what they are really saying is, "they don't want to do what it will take to get...XYZ." Which, she says, is fine, as long as they realize they do have choices and sometimes sacrifices will need to be made short term, in order to obtain long term wealth, etc.

@Nicholas Cotroneo I think this was a good question to ask on this forum, and just from the brief responses you've received thus far; if I were in your position, I would do two main things:

1. Add value by providing services that are not customary for PM's and/or do a few things that most PM's charge additionally for, but you would NOT charge for, and;

2. I would likely NOT look to try and persuade those who currently are DIY owners to all of a sudden see value in hiring me to perform that job. I liken it to trying to get someone to change their political affiliation (I know, different situation, but still something people are passionate about). Can it be done? Sure, but how long would it take? And, I don't think it would be anything I said that could convince them, it would be them coming to that decision on their own.

Look for those people who see value in hiring a PM and are too busy and/or have no time/desire/nor inclination to go and fix things at their property, and the other little minutiae that transpires from renting out a property. While some properties may be self-sufficient and have great tenants that don't cause a ruckus and pay rent on time; all you need is one that is time consuming and calls weekly/monthly for random reasons, and I assure you, there will be someone who would hire you to take those calls and duties off their hands.

There are always going to be those who prefer to keep a hands-on/DIY approach, and there is nothing wrong with that; however, you going after their business will take some time, when you could be using your efforts/energy in finding those who would happily pay for your services; especially if you set yourself apart from the masses and deliver top-notch service. Just my opinion.

Best of luck to you and your new venture!

@Mike FloraIf the owner owned the house free and clear (meaning, no mortgage), and they had insurance; they wouldn't have to make the repairs if they didn't want too, because there would be no one else who has an interest in the property.

However, if there was a mortgage on the property, any proceeds from an insurance settlement would be made out in the homeowners AND the bank/financial institutions name. Anytime there is a claim presented for insurance payment they would send an adjuster out there to get an estimate of damages and then they'd (most likely) be working with whatever contractor(s) were hired out to complete the various repairs, as those people would want to get paid. 

I'm simplifying the claims process considerably; however, if there is a mortgagee, it would be difficult for that homeowner not to make the necessary repairs on the house. I'm not saying impossible, but difficult. 

@Kelly B. That sounds like an excellent idea of marketing to Realtors, because (as we know) there are numerous times you'll hear someone has sold their house and tried to match the closing date and signing date to be in sync with one another so they can move from their old house to their new house. But, as we know, the best laid plans don't always come to fruition.

I've seen here in Seattle that quite a few people are relocating (primarily for tech jobs), and have a decent amount that their companies will pay for their scouting trips to check out the areas, but sometimes it's not enough time before they have to start their job, but they don't want to commit to a particular area and/or buy a house until they arrive and get a lay of the land. Yes, they can stay in hotels, but some people have larger families and/or animals (if you allow animals), and it can be more convenient to stay someplace that has a "feel" of being more homey. 

As a side bar, I've read on this site that most of the landlords prefer NOT to allow animals, but for those who do, they can open up their renter pool significantly. People are traveling with their animals more and more, and from my experience, they are willing to pay more to stay at places that allow animals. Not ridiculous prices, but definitely at a premium rate.

@Jason Bott - Hi Keishee, I mentioned Jason, as he is in your area, and should be able to assist you! 

I appreciated this post ... immensely! It's something that we all (likely) deal with on a day-to-day basis - relationships. But an important point you made was being, "the easiest guy to work with."

I get it. I know some may think you need to haggle someone to death, or get things on your terms, and hey, if you have the $$$ then as they say, "Cash is King." But the reality is, people really do want to work with those who are easy to work with. Plus, you were thinking long term. It wasn't just about this one deal; it was about all the rest that would (hopefully) follow - as they have. Good stuff.

@Mitch VanDeveer Hi! I left Phoenix area a few years ago, but didn't move directly here to Seattle until last year. And while there are definitely areas of Phoenix that are expensive, Seattle is definitely more expensive than Phoenix in many ways. I like Seattle a lot, and am feeling at home. I especially enjoy it here during this time of year. I will admit that I do love Phoenix in the winter though =)

Yes, I write Commercial Insurance; actually, that's all I do, as I don't write any personal lines insurance. With my General Contractors, it depends if they are are doing new builds vs. remodels/rehab. Recently I've written quite a bit of my GC's through Western World Insurance Company; their rates have been killing it over some of my other carrier offerings. In some cases by being 30-48% less! Since I am a broker, I can go to various markets, so while price is important, I definitely have conversations with the GC's to see what they are doing to see the best carrier placement. Some need wrap-up (course of construction) policies, and some don't. Also, some do a lot of work themselves; others higher out to subs; which obviously affects the price considerably. Most of my flipper clients are GC's and do the work themselves, and don't hire out a lot of subs; while full blown (larger) projects tend to have more subs.

Sorry for the long winded response. Feel free to PM anytime, and I'll answer questions and help you as much as I can.