All Forum Posts by: Account Closed

For me, that's an expense that is passed on to the tenant in almost every situation. I manage a couple of properties that have a utility like water and/or trash included as an amenity, otherwise tenants need to set up their own accounts with the utility in question. 

My only red flag to anything in this thread is the "realtor losing patience" part. Running down investment properties is a completely different, and often mind-numbing process. Depending on what you're looking for and the market it can have you throwing out offers left and right. Your realtor should know this. If they're getting impatient with you, that's a red flag to me. Perhaps, there's someone more suited to your needs out there.

I too remember my first offer. My wife and I studied, researched, debated and slept on it for over a week. When we finally emailed our agent to submit an offer, he replied back that the property was gone that first day. That took the training wheels off for us for sure, lol.

An upvote for everyone's advice on due diligence, and just remember that no one is ever ready the first time they do this. Jump in with both feet, hang on, try to mitigate what you can, and pay attention/learn lessons. 

Best of luck!

I just started 3D printing, and I have two printers already. Mostly I'm a huge Star Wars fan, so making armor from the movies is what I'm starting. The Atlanta Chapter of the 501st (Dress up an authentic Storm Troopers and visit children's hospitals and stuff) is really active, so I'm getting involved there.

Plus 3D printing is really quite crazy the things I can make that I had no idea I couldn't live without.

Trying to get back into Keto too.....

Here is what I'd tell you if you were in Atlanta.

My job as your PM is to make your asset grow, profitable, and equitable. I'm not emotionally invested and can see the bigger picture that self-managed owners cannot.

Most importantly, there are lot of expenses, a PM should help you mitigate them with their knowledge and practices.

Personally, I attack the big three:

1. Legal Action
2. Eviction
3. Turnover

If you do what we say I can keep you from unnecessary legal expenses, like lawsuits. Stringent application criteria, and really deep diving the applicants reduces the chance of putting the wrong person in the wrong property. Proper tenant responsiveness and overall good and respectful treatment leads to longer leases and more renewals.

I have the vendors, the experience, and the resources, plus I send you nice monthly and EOY documents your accountant will love.

Peace of mind.

@Grant R. I think you said it perfectly, respectfully. There's no reason that this pushback should turn the tone of the conversation. Ask for explanations for the fees that seem out of place for you. Their answer should make or break the decision to work with them.

Answers like "Everyone does this" or "We've always charged for this" are the way wrong answer.

Detailed explanations for the reasons of a given charge should serve to educate and build trust.

"I can see how $120 annually for an inspection can seem like a lot, here's why we do it. We have a trusted vendor who goes in, takes photos, reports on all the key systems, general condition, and state of the home. It's really quite detailed. We can't leave this $X00K asset alone for the life of the lease without making sure everyone is living up to their end of the agreement. The formal report complete with pictures, explanations and current status's will be placed in the owner portal for you to view once completed. This serves as a great benchmark and gives peace of mind. The cost is what we've negotiated with this professional company to help protect you. Between my office, my vendors who report back their findings during service calls (if any), and the inspection I'm comfortable with the visibility without interrupting the tenants rights either. Non-leased occupants, pets, smoking, etc. this is how we find these things."

I mean it's still early, but that's mostly it.

Hi Bob, welcome to Atlanta. I live in Dallas, just up the road. We manage properties out of Alpharetta to Cumming. Let me know if you'd like to meet for a coffee in Hiram when it's not 300°outside.

1. Yes, standard. The rent price is what really drives this. Placing the right tenant is a big deal, and can be a lot of work. I can't comment on the percentage, but I don't exceed one months rent for this cost. I just don't take on properties below a threshold.
2. Yes, standard. There is work involved in getting the existing tenants under a new lease. We charge a small percentage of that months rent. It's really not a profit center, or paid to anyone as a commission, because it's all admin work. DocuSign, filing, updating software to new rents etc. PITA some months.
3. Yes, we offer it. The company we use charges us, we pass it on. There's a report, pictures, data, etc. Also, not a profit center.
4. No! Provisionally. There are company's out there marking up their stuff 40 some odd percent, they drive me nuts. We don't charge any fees currently, but I could see as staffing increases. Vendors take manpower to manage, keep honest, vette new, follow up, invoice, record, document, etc. All this software out there to make it easier to manage, and it still comes down a bunch of admin work. It's all in how it's presented to investors.
5. No way! The fees should scale down as the price increases, not up. If an owner needs me to project manage a renovation or flip, that's something worthy of a bigger fee. A $2K turn/make ready, those require very little, one trip to scope, and one to check off when completed.

Great questions! 

I wouldn't want to start the wonderful adventure that you're on with negativity and a battle. I'm sure you were probably counting on a nice long term tenant getting the cash-flow coming in quick. I'm sorry that's not the case now. Charge for what you can in your state that's reasonable, actual damage beyond NWT, charge for a clean or trashing out any junk and then move on and focus forward.

Congrats on the purchase!

Mine too, two months notice, AND two months rent. Kathy's point is really quite good, COVID is impacting the LL's/Owner's too...it's helpful to remember that. Diplomacy and respectful negotiation is your best bet.

All of the above advice is excellent. Diplomacy and compromise are always the best first attempt, but also going in with very real expectations. Are you going to be let out of your lease without cost or penalty, probably not. The amount of possible considerations and/or lenience really depend on your willingness to see from the owner/landlord perspective too. 

Good luck.