All Forum Posts by: Daniel Bogart

Hi BP,

A few weeks ago a few partners and I closed on a 10 unit apartment complex. It wasn't until our property manager collected the first month of rent that he had tenants in two units tell him that they had prepaid the next three months of rent to the previous owner (about $6K total). The tenants have documented these transactions, but the seller never disclosed it to us during the closing process. The seller was difficult through the transaction, and refused an estoppel on the grounds that she cared too much about her tenants and didn't want to disturb them. Clearly this was BS and I have zero expectation of the seller politely giving us the prepaid rent.

What's the best way, if any, to recover the funds?

Thanks @Jeff Schneider, just reached out

Hey All,

I'm looking for an insurance broker can provide quotes for rental properties in Phoenix. My team has 6 multifamily buildings for which we're considering new insurance policies. Thanks for your recommendations.

Nice work, thanks for sharing! @Account Closed - how did you finance these properties? What was the purchase price and how much did you invest in rehab costs? Did you have a W2 income while working on these?

EDIT: I see some of these were already answered

Tenant didn't show up to court and has now been evicted @Account Closed. We're still waiting to hear from the attorney on giving the PM rights to show in court on our behalf for future cases.

@Dick Rosen - tenants currently pay cable and electricity, we pay water and trash. Thanks for your feedback, sounds like we would need to calculate cost of implementation and time to recover. 

@Denny Robert - I like the idea of just raising the rent proportionate to the water bill divided by 16, but have heard that owner paid water can lead to excessive water use and a disregard for fixing things like leaky faucets, because the tenants aren't paying. Have you experienced this at all? Does a ~$1,000/month water bill for 16 units + laundry seem reasonable?

@Account Closed - thanks for your input, will do if we make the switch.

Hey all,

We have a recently acquired 16 unit complex in Phoenix, Arizona that has historically had owner paid utilities. This is the standard for properties like ours in the area, and our PM said he hasn't seen anyone set up RUBS. Is it worth attempting to switch to tenant paid utilities? If so, what is the best strategy to make the switch in an area where it's uncommon? Thanks!

Will do @Cheryl Bunch @Nathan Fesnak

Thanks Nathan and Deanna. As mentioned, the court wasn't helpful, but we're in the process of consulting an attorney to confirm the Limited Power of Attorney form will do the trick.

Thanks guys, I called the eviction court and they said we'd need to speak with an attorney to determine what documentation is necessary. Is anyone familiar with the process necessary to draft a document that provides limited power of attorney to our property manager?