All Forum Posts by: David McErlean

Thank you everyone for your input. 

How easy is it to combine all of the systems calendars so you don't have double bookings? Is there any software that you use to control all of the platforms at once? 

What are people using for booking. AirBnB, VRBO, or both? Am I missing something with VRBO only being $399 per year? 

Thanks, 

Thank you for the reply Shaun. Appreciated. 

Hi everyone. This question is for people having a property manager handle all leasing and managing. What are you paying for leasing commissions to your property management company? I am from California where 6% is a pretty standard rate. Im looking at property in Florida and the property management company wants the full first months rent (8.3%), plus their 10% on top to manage. I would love some input. Thanks, 

Use this free zillow lease app. It has everything you will need to know. 

https://www.zillow.com/rental-manager/resources/re...

For the banking information under credit history, (Checking/Saving Account) just have them attach a recent bank statement because you can't call the bank to verify an account anyways. 

Was the lease counter signed by the landlord? (You or PM if PM has authority?) If so, you have a 12 month lease. California is a tenant friendly state. Check with your eviction attorney but my attorney has told me that it is next to impossible to evict someone who is on a lease, and paying rent. 

My tenant was subleasing to homeless people by the night and selling shower time. They had people living in the garage, in cars out front, and beds through the apartment. Luckily their lease was up and I got them out quickly. 

If it comes to a point that you have to evict, hire an attorney! California is against landlords every step of the way. A professional tenant can string out an eviction 6 to 12 months if you don't file the paperwork correctly.

Utilities are also very tricky. Check with an attorney before you do anything. It is my understanding that it is against the law to turn the utilities off for non-payment if they are in your name and tenants are in the building. 

Anthony, 

The agent selling you the house should be able to give you a blank lease contract that you can use. You can also google and find a simple lease contract online. Just make sure that it is your state specific. If either of those options don't work, a local property management company might be able to give you one for a small fee. Most people won't expect anything fancy with renting out rooms. 

Get the people to fill out a simple lease app(find on online), and a bank statement. If they don't have a bank statement, look elsewhere. It means they don't have good enough credit for a bank to allow them to have one. 

To run credit, I have people run their own credit on Experian.com. It is free and since they are running it themselves, it does not bring down their score. Between the credit, bank statement, and a prior landlord reference you should be good. In my experience, people with good credit want to keep their good credit. 

If the credit is bad, watch out! Call the landlord references and make sure the reference is the owner of the property. Bad tenants have a habit of listing their friends or parents as prior landlords. If someone has a story it is not a good sign. Good tenants don't need a story. 

Hope this helps. 

http://www.experian.com/consumer-products/free-cre...

Chris, 

If you can, refi the property with a fixed loan. Home equity lines rates usually fluctuate with prime interest rates. Many people are also caught off guard when the interest only time frame ends and the monthly payment increases by 2 or 3 times. With interest rates still at all time lows, and the fed threatening to raise interest rates, take advantage of locking in the low interest rates now. With a good 15 or 30 year loan, you can pay it off early, but your monthly payment won't increase on you. All the interest is also tax deductible. 

Finding the property is the easy part, keeping the deal alive when things go wrong during the sale is what your agent is making the money for.

Find a real estate agent you like, calls you back and somewhat knows what they are talking about. If you have someone showing you spaces and spending time with you, its best to use that person, even if you found the property on your own. Agents don't make a dime until you buy something so all their time with you is unpaid until the close. Many people think they can get a better deal going direct to the listing agent but the owner of the property is typically paying the same commission either way so it is good practice to be loyal to your agent. You never know when he/she will have control of the next deal you want. Trust me when I say agents remember those people they showed for weeks, and see the sale comp in their email a month down the line. 

 If you don't have an agent then call the listing agent. As long as the state allows agents to double end the deal there is little to no risk in having the agent work directly with both of you. 

If your property manager is also your agent showing you space, then it might go a long way with your future relationship. Otherwise I would have an agent represent you. Most property management firms hire managers at low wages with little incentive to close deals. An agent that lives solely on commission will have more motivation to call you back when the bank needs more time to close and you need to extend the sale a few days. 

Hope this helps. 

Talk to a CPA to confirm but,

In order to 1031 exchange, the property must be a like for a like, (ei Investment for investment) and the title must be taken in the same entity as the property sold. If person A sells, then person A and only person A should be on title of the new property. Otherwise you could complicate the tax laws and have consequences. 

First American has an article about it. Link below. 

https://firstexchange.com/Same-Taxpayer-Rule-Addin...