All Forum Posts by: David London

My previous management company included in the 1099-Misc as 'Other Income' the tenant deposit they returned to me after I moved my properties to another management. The leases for my two houses are until May 2023 and assuming all go well (good tenants so far) tenants are supposed to get all their deposits back.

The IRS publication (topic no. 414) is very clear that security deposit should not be counted as rent unless it is not being returned in full at which point the part which is being withheld is treated as income (and at the same time is offset against damages expenses or covering unpaid rent).

The management insists that since they send me a check for the deposit then it should be counted as rent...doesn't make sense to me since this is technically tenant money which I am not supposed to touch unless tenants violate the lease in specific ways.

This is a large management company that operates in 7 states, not a flyby operation...one would think they know what they do.

To top it they also included as 'Other Income' the owner reserve fund which I was required to have in my account for incidentals...which is practically counting as income money I gave them...In other words me giving them money and they counting it as income when they returned it back to me!

Any advice appreciated...especially from other PMs

Thanks for the advice but this management company is definitely licensed...don't want to call out names (yet) but they operate thousands of units in at least 4 states...they seem to value expansion over client and managers retention and constantly makes mistake or fail to follow up on issues...some of the staff like the contractor kickback feels very questionable and unethical.

Who Regulate Property Managers in Pennsylvania?

Who do you complain to if you have issues with your property manager you are unable to solve directly with them.

The particular issues are:

- A placement fee the PM promised not to charge but then did. (I found two groups of students myself and the PM agreed to treat them as one group since one was only a filler for few months).

- A kickback from a contractor who the PM introduced me to and was supposed to be paid by the contractor but was overcharged to my house funds (Are kickbacks even legal?). This charge was never disclosed to me before I found it on my statement and I believe it was applied by billing in error to my account but PM just keeps going in circles about it without it ever getting resolved.

- Small sum of money which disappeared from my statement between one month to another. 

Any help is appreciated.

Couldn't find much in the forums about this.

I am in the middle of renovating a future student housing rental (in Pennsylvania) and since I have no good photos of the house (drywall is going up at the end of next week) I have trouble attracting new tenants. Was thinking of offering a referral/finders fee to the students who occupy another house I finished renovating over the summer. 

Since they know other students and know the quality of the house I provided them (they already asked to renew till 2023) they could be very helpful in finding new students for the next house...Was wondering if there is anything I should be aware of while doing so:

Is it legal to offer compensation (payment/gift cards/reduced rent) and since we are in tax season is this considered an expense one can deduct? The fee I am thinking of will be about $600-750 for a group that will end up leasing the new house.

Any thoughts will be greatly appreciated.

@Ruoxi Xie Houses on E5 up to the 500 block are within the zone...600 and East are outside so no new student housing is supposed to be allowed there unless it was already rented as such...the map in the regulation is very low quality so it is hard to tell...the people in the construction department are generally helpful when you have clear specific questions...the best thing is to go there or call them before making an offer...as mentioned before...even inside the zone you'll need to comply with parking requirement so not all houses can be SH.

The age of the housing stock there is for sure one of the challenges of that market...all my renovations there went over budget with unforeseen issues...but even then ended up well...as long as you leave enough margin for budget overruns you should be ok...as an engineer you are probably better equipped than most to spot them earlier.

Bethlehem is a great market but a very hard one to get a foothold in and just became even harder with the city council voting to create a Student Housing Zoning Overlay which limits what kind and where new student houses can be created. In a nutshell, no new 4-5 BR houses will be allowed outside a very small zone few blocks from the Lehigh campus, and new student houses within the zone need to have 2-3 off-street parking spaces. Existing student houses out of the zone are grandfathered but you have to verify they are in good standing with the city to make sure you'll be able to rent them to students. You can find the complete regulation with the map if you google 'Bethlehem Student Housing Zoning Overlay'.

I am a fellow New Yorker and an architect and have three student houses in South Bethlehem...I like Bethlehem a lot but started looking for an alternative market because even getting a deal or two a year became too difficult...Feel free to DM if you want to chat or have specific questions.

Good luck!

I own a student housing rental in a university where most students sign leases about 8-9 months in advance (signing around October for a lease that starts in June of next year). 

My question is, at which point do most student housing landlords collect the security and 1st-month rent in this situation?

My PM doesn't have much experience with student housing and one of the parents is questioning why do they have to sign a lease so far in advance. From what I gather following the listing of more established landlords, leasing in advance is a common practice around there but I don't know if rent and security are being collected as well.

Appreciate any advice.

@Matt M. and  @Jon Kelly

Thanks. Will try George. Was running out when Chris dropped the news and didn't want to bother you directly on a Friday.

Looking for a plumber recommendation to finish a job on a SFH in Bethlehem PA.

The contractor's plumber bailed out on us after all the covid work stops caused months of project delays.

Appreciate any help and recommendations.

I recently received an email from the management company that manages the coop building where I owe 1 rental unit telling me that in order to renew the lease with my tenant I would have to pay a 'renewal fee' of $250. This is a completely unearned and unjustified fee. 

How would you go about fighting it? Is there any place one can complain? If this fee was not originally disclosed, is it legal? Below some more details.

This is in NYC and to be clear the management is hired by the coop board to manage the building and not by me (I self manage the unit). The tenant I placed there with the help of an agent last year is a great tenant and was approved with no issue. Original application fee included a full board package, credit check, and background check...and was $250. 

The renewal paperwork, on the other hand, is just one sheet of paper where me and the tenant are agreeing to renew for another term.

This IMO is a totally unjustified inflated fee from management who just decided to dip its hand into the pocket of others because it is in a position to do so. Practically $250 for hitting ctrl+save on a scanned document.

I had this unit for about 8 years and was never asked to pay anything when renewing the lease with my own tenants. Furthermore, this fee was not disclosed on the original application my tenant filled when he originally leased the place (Application fee and move deposits were the only fees disclosed).

Any advice appreciated.