All Forum Posts by: Greg M.

Sadly, this year I've had two balconies demolished/removed, another one completely rebuilt, and waiting on MANY more to get torn apart and fixed. They're awful and expensive.

If it requires a roofer, it sounds like the balcony is probably not in great shape. They're going to hot mop it to create a waterproof barrier and then you can put whatever you want on top of it. You have several waterproof choices from here. This is not a DIY job.

If it's in OK condition, then all that is probably needed is a standard polyurethane deck coating product that is "painted" on. Kind of like rubber with some non-slip additive. This is a DIY job. 

Remember, no matter how waterproof the deck is, if the flashing isn't correct or screw holes, like where a railing is attached, aren't sealed, water is getting in. Seal them. Here we now have to add venting to allow water to escape/dry. Consider installing.

Hey look, I can use AI search engines too...

10 Solid Reasons Why Hiring a Property Manager Might Be One of the Worst Decisions You Can Make

While hiring a property manager can offer several advantages, there are also significant drawbacks that could make it one of the worst decisions for some property owners. Here are ten solid reasons to consider:

1. High Management Fees

Hiring a property manager typically involves substantial costs. Most companies charge between 8% to 12% of your monthly rental income, which can significantly reduce your overall profits. Additionally, there may be hidden fees for services like tenant placement, maintenance, or lease renewals that can add up quickly.

2. Loss of Control

When you hire a property manager, you relinquish control over day-to-day operations. This means decisions regarding tenant selection, maintenance issues, and financial management are made by someone else. If you prefer to be hands-on with your investment, this loss of control can be frustrating and lead to dissatisfaction.

3. Quality Variance Among Managers

Not all property managers provide the same level of service. Some may lack experience or dedication, leading to poor management practices that can negatively impact your property and tenants. This inconsistency can result in neglected maintenance or tenant dissatisfaction.

4. Communication Issues

Effective communication is crucial in property management but can often break down. Property owners may find it challenging to maintain timely communication with their managers, leading to misunderstandings and unresolved issues that could affect tenant satisfaction and property condition.

5. Potential Conflicts of Interest

Property managers might have financial interests that conflict with yours. For instance, they may recommend contractors or services from which they receive kickbacks, potentially leading to higher costs for you as the owner.

6. Inflexibility in Management Style

Many property managers operate on a standardized system that may not align with your preferences. If you have specific ideas about how your property should be managed or how tenants should be treated, a rigid management style could lead to frustration and dissatisfaction.

7. Dependence on Third Parties

Relying on a property manager means depending on their network of vendors for repairs and maintenance. If their contacts are unreliable or overpriced, this could lead to delays in addressing urgent issues or increased costs for necessary repairs.

8. Increased Tenant Turnover Risks

Some property managers may not prioritize tenant relations effectively, leading to higher turnover rates. If tenants feel neglected or unsatisfied with their living conditions due to poor management practices, they are more likely to leave, resulting in costly vacancies.

9. Legal Compliance Risks

While many assume that hiring a property manager ensures compliance with laws, this is not always guaranteed. A poorly informed manager might overlook critical regulations related to landlord-tenant laws, exposing you to potential legal issues and liabilities.

10. Diminished Personal Satisfaction

Managing your own properties can provide personal satisfaction and a sense of accomplishment, especially if you're passionate about real estate investing. Handing over these responsibilities might diminish your engagement and enjoyment in the process of managing your investments.

In conclusion, while hiring a property manager has its benefits, these ten reasons highlight why it might not be the best decision for every landlord.

Quote from @Lynnette Pombo:

I've got four units, all paid for and occupied by tenants. Even with high deductibles, the rates are high. Looking for some guidance on going this route.

Unless I missed it, there are a lot of missing facts that weigh into this decision.

1) What are the properties worth?

2) What is the cost of insurance and current deductible? With higher deductible? 

3) Are you thinking of getting rid of property and/or liability insurance?

4) How much are you will to spend to defend against a lawsuit? Insurance has a duty to defend, so if I sue you, the insurance company pays for the attorneys, specialists, etc. No insurance, you pay. At what point do you walk away - keeping in mind this is coming out of your pocket. 

5) What is your personal financial situation like? If the four properties disappeared tomorrow, would you still be OK financially or would it set you back significantly (both current income and retirement/net worth)?

Yes, it can be an issue. It's against the law.

I knew a guy who had a S8 tenant that was paying more than what their portion should be. He looked the other way when the tenant moved their mother in and let their ex-con boyfriend stay over in exchange for a few hundred extra a month. It'll be fine, no one will know, he said over and over again. Fast forward, S8 tenant uses this to coerce landlord into putting them up in a suite at a nice hotel while pest work is being done. Landlord now wants them gone. Tenant isn't stupid and complains she is paying too much to S8. Next thing you know, under threat of prosecution, landlord has to refund 100% of renters payments and 100% of S8 payments back to the beginning of the lease. It was something like $25K he had to pay back and I believe he was barred from the S8 program. Nothing happened to the tenant. 

A tenant not paying a rent increase and getting a dog without permission is not a nightmare tenant. You should google "nightmare tenant san francisco" to see real nightmares. Things that drag on for years and cost the landlord hundreds of thousands of dollars. 

You didn't give many details, so hard to say who is in the wrong here. It is possible the tenant is correct and the rent increase was invalid. Unless you are EXTREMELY familiar with SF & CA landlord/tenant laws, I'd spend some money and hire an attorney. Let then send the notices and if the tenant is in the wrong, let them handle the eviction. 

Quote from @Pooja Jadhav:

I did gave her option that, either she can have her friend during showing or I can record each showing before entry till exit to make sure that nothing of her's is touched. Still she say's it is not OK.

To bad. She doesn't get to make the decision. You've been more than reasonable.

It's industry standard to show the unit to prospects near the end of a lease. It's so common that many (most?) states have it in the law that this is allowed. 

Tell her that if she is 100% against it being shown while she is not there, she is going to need to cancel her vacation or pay an additional months rent. 

If it is in the lease or the law allows it, show the place. 

Flat out tell them that you cannot lose two weeks of critical showing time and it's unfortunate that they booked their vacation right before they are moving out. 

Maybe you can appease her by video calling her during the showings. She can see that nothing it being disturbed. Also protects you when that expensive ring "goes missing". 

Quote from @Owen Rosen:

Quote from @Greg M.:

Kind of. Just go online to the major carrier sites and quote a LANDLORD policy. Choose the coverages that are important to you and your risk level.

Obviously the dwelling gets covered, but do you want ordnance/law coverage (brings things like electrical systems up to date if need be replaced due to claim), loss of use (covers your lost rent after a claim), replacement cost vs actual cash value, workers comp, and personal liability. And of course the deductible you're willing to have.

 I strongly disagree with this strategy.  It's not really even a strategy since most companies that offer direct online sales don't really offer landlord policies as I pointed out.  Also, you listed workers comp in the list of coverages?  Huh?

I don't know what percentage of companies offer it online, but I had no issue with getting quotes online.

As for W/C coverage, yes, it is offered as part of HO3 & HO6 policies. It covers hired labor like a housekeeper or gardener who may not have coverage. 

Basically landlord and homeowner (property) policies are the same, except one is designed for the owner to live there and it covers their personal property and living expenses if they have to move out during repairs and the other is designed for a tenant to live there and reimburse the landlord for lost rent during a claim.

Kind of. Just go online to the major carrier sites and quote a LANDLORD policy. Choose the coverages that are important to you and your risk level.

Obviously the dwelling gets covered, but do you want ordnance/law coverage (brings things like electrical systems up to date if need be replaced due to claim), loss of use (covers your lost rent after a claim), replacement cost vs actual cash value, workers comp, and personal liability. And of course the deductible you're willing to have.