All Forum Posts by: Daniel Harnsberger

I have a question which hopefully other property managers who work independently or for property management firms can answer.  Later this week I am meeting with a realtor who works with investors.  One of the things we plan to discuss is a referral program (her to me) for property management.  

In the past, I have done cash referrals to acquire properties, but haven't offered such a program for my property management business.  Right now I'm drawing a blank as far as an incentive, especially in the case of a 1 or 2 property situation.  I am charging my clients 10%.  Rents in the area range from $800-$1200.  Any feedback would be greatly appreciated.

@Ross Sumner- I've never had this experience either, but I would ask him for justifications for the answers- especially ones you believe are fluff.  Like what specific businesses, industries are coming to the area when it comes to the town's economic forecast. I would also ask if they are going to offer incentives to the private sector to invest in the development of the area...and, if so, what they are. And what do town officials plan to do themselves. 

Also, at Richmond Housing and Redevelopment they hold a monthly meeting for new recipients of vouchers.  You can present your property at those meetings.  You can also hang up flyers for your property at their office on the bulletin board dedicated for just that.

@Matthew Maggy,

From my own experience, I especially recommend Section 8 for lower-price point properties (ARVs under $100k).  Otherwise you face a stronger possibility of not receiving payment, given the tenants those properties attract (not sure what you're about to close on).

There are several groups you can go to that provide housing/utilities assistance besides Richmond Redevelopment who is associated with the GoSection8 website.  Central Virginia Resource Corporation is GREAT to work with (ask for Melissa Davis) and Virginia Supportive Housing is a lesser known group (ask for Jenna Weiner).

You can post within those groups.  Rentometer is a good guide to make sure you're within market rents.  Also on any other posts you make (Craigslist, etc), be sure to state you ACCEPT VOUCHERS.  

The voucher holder will provide you with the paperwork you need to fill out once an agreement to rent has been made.  You will have them sign your normal lease in addition to filling out their paperwork.  From there, the group they are affiliated with will set up an inspection.  If your house is SAFE and up to code, you should be fine.  Make sure all smoke alarms are working, no windows painted shut, no exposed wires, etc.  

I hope you find this useful.

You stumbled upon a goldmine @Travis Shaw. Welcome and feel free to contact me. I'm an active rental property investor and property manager.

Welcome from a fellow Richmonder. To piggyback off Mr. Maggy's question- I think it's good to have a focus as to what type of investing you want to do to start. You can always change course later and of course diversify.

Sean Tluchak with Tluchak Law works almost exclusively with investors and gives great informational seminars at the Richmond REIA.

Your first one sounds a lot better than how mine has gone/is going if it's any consolation. To be continued...

@Aishah Amina

Title companies are fine for straight retail purchases. Investment transactions come with more risk and therefore you want someone who work for you to mitigate that. The fees- in my experience- are no higher.