All Forum Posts by: David Cook

Hey @Erich Beyer I think it's unlikely that a pest controller is going to be able to fully address your bed bug problem unless the tenant makes a significant effort to remove clutter from the unit.   Perhaps you could get the church involved?  Bed bug services are frequently expensive, especially if you want a guarantee.  However, there is an increase in bed bug litigation so it may be cheaper to try and address the issue now.  It's also likely that if you do ask the tenant to leave he will take bed bugs with him to his next rental unit.

As an aside/disclosure in addition to being a real estate investor I work for a company that distributes bed bug and other pest control products to pest controllers.  I don't claim to be an expert but if you have any questions I'm happy to try and help.

Hey, @Andrew S. I'm coming at this a bit late so I certainly hope your situation has been resolved by now.  In addition to being a real estate investor I work for a company that distributes a dry ice cold bed bug treatment product and in general I am big fan of treatments that employ heat, steam, and/or cold.  As long as the technicians are properly trained and they properly prep the home heat should be an effective solution.  The only things I might be concerned about in your situation is the wax ring around the base of the toilet.  If the home isn't properly prepped I understand that these can be damaged by heat.  On the subject of bed bug dogs that service is going to be as good or bad as the team doing the inspection.  Bed bug dogs can be extremely, even shockingly accurate.  They are also subject to handler error, fatigue, and poor training in some instances.  I hope by the time you are reading this your bed bugs are a distant memory.  Unfortunately your part of the country experiences more than its fair share of infestations.  

Welcome @Julian Jackson and congratulations on starting so young.  I know several successful investors who have a real estate license and depending on your approach this may be a good idea.  However, in my own career I frequently wish I had a greater knowledge of finance and construction.  A real estate license may be a huge asset to you but in the hypothetical world where I had a time machine and could roll the clock back to age 18 I would get a job working in the trades rather than in retail and I would study finance rather than sociology.  That being said the beautiful thing about real estate is there is no one way to succeed or to make a deal in this industry.  You can find successful people who deal in high rise buildings as well as raw land so your instincts may serve you quite well.

@Elizabeth Colegrove That might should be the course I pursue.  I manage 11 properties for my parents and I'm not uncomfortable with the idea.  I was thinking of passing this one off because it has a greater potential headache factor since it's a lower income multi-family property.  There is also always the possibility that I will not be able to manage for them in the future and it would be nice to know I could hand the job over to someone trustworthy.  

Be aware what it is likely these tenants will take bed bugs with them to their next property.  I'm not sure what your legal or moral obligations are in this instance but it may be worth considering given that you know how it feels to be blindsided by this issue.

@Elizabeth Colegrove thanks for the thoughts.  I suppose it can't hurt to ask to have it changed.  I've heard great things about your podcast, by the way, I will have to check it out the next few days.

I was looking through a local property manager's contract and I found the following clause that seemed a bit suspect to me:

"Owner shall pay all expenses incurred by Agent, including, but not limited to, reasonable attorneys’ fees and Agent’s costs and time, and any liability fines, penalties or the like, in connection with any claim, proceeding, or suit involving an alleged violation by Agent of Owner, or both, or any law pertaining to fair employment, environment protection, rent control, taxes or fair housing; including but not limited to, any law prohibiting or making illegal discrimination on the basis of race, sex, creed, color, religion, nation origin, or mental or physical handicap. Owner shall pay reasonable expenses incurred by Agent in obtaining legal advice regarding compliance with any law affecting the premises or activities of such."

According to my reading of that passage I would be agreeing to pay any legal costs the agent incurred as a result of violating fair housing laws.  Is this normal or am I misreading something.  All thoughts appreaciated

@Albert Hoffman In addition to being a RE investor I'm also a Product Representative for a company that sells pest control products including some that treat bed bugs so I have a bit of a foot in both worlds.  Bed bug sniffing dogs are useful, especially in early detection, but if three of the units are at a level that could be labeled "infestation" I would say it's likely that you need to get every unit treated even if the tenants aren't complaining.  In addition to being an all around good idea this will be necessary for any reputable pest control company to guarantee their treatment.  Bed bugs are an extremely hearty pest and a big part of a successful treatment involves proper preparation of the units.  Tenants need to prepare the area by cleaning and removing clutter.  I also recommend you have them wash and dry anything cloth on a high heat setting.  Feel free to reach out if I can help you in any way.  I don't claim to be an entomologist but I probably have a leg up on the average lay person.  Also tread carefully, bed bug litigation is on the rise.  Here is a relatively unfortunate example:  http://www.desmoinesregister.com/story/news/local/des-moines/2014/04/24/bedbug-lawsuit-settlement-elsie-mason-manor/8083961/  

@Clint Dorris I've heard that a lot of the owners over there are out of state/town.  Has that been your experience or was that just rumor?

@Justin H. it is a bit of strange set up. But then again, I suppose we are all in a state of competition/cooperation at any point. We all hope to attract the best tenants but we all rely on one another when we vet our tenant's rental history. The property came with two tenants in place who have been at the property for over a year. According to the calculations I've run I will be cash flow neutral or better as long as the property stays 75% full which seems doable. Then again you may see the property on the market next year if I can't seem to manage that. Another odd thing about those quads is that they are all part of an HOA. I didn't expect that personally.