All Forum Posts by: Greg Weik

Did you sign a PMA (Property Management Agreement)?  

The PMA - if you signed one - should outline the process for cancellation.  

I would normally not advocate going to the Real Estate Commission, but in this case I don't see a lot of other options if they won't respond to you.  You need to get ahold of the unit keys, security deposits and leases in order to take over management. 

I hate hearing stories like this that give my industry a bad reputation. Best of luck. 

The Cleveland Browns made the playoffs. Ohio is officially on the map. 

The takeaway for landlords and professional property managers is to focus even more on tenant screening.  Look at who still pays on time and who doesn't - use the data to help mold your processes tighter for the next time.  Be quicker to charge larger security deposits on risky applicants (or deny them.)

If this has taught us anything, it's that there actually can be something more expensive than a vacancy...

Hey @Brett Mather, we market on Zillow and it can be finicky - but they have surprisingly good customer service.  We've submitted many support tickets over the years and typically we are met with quick responses. 

They do charge $9.99/week per listing, so it's possible your PM is trying to cut marketing costs.  It used to be free and I think it still is for private landlords.  

I would make sure he's also on FB marketplace and responds quickly to IMs on there.  Hope it gets rented for you!

As others have said, "it depends."

The issue is not really whether a year of rent up front is "good" or "bad", you just can't let that take the place of your screening. In other words, rent upfront should not move the needle on the approval process.

Smart tenants won't lock up that much money without earning a return, so any tenant who offers up a year of rent should raise a red flag.

As a property manager, I've had this offered numerous times. In my experience, if a marginal applicant has extra money to put down, the landlord is best served to collect additional funds as a double or triple security deposit, not as future rent.

A large security deposit is where the money can most easily be used in the event of default.

In no case should additional rent paid upfront open the door to a tenant that would otherwise be rejected.

Hi @Andrew Rosenberg, Google Reviews are one way to tell who is reputable in property management.  Not just the reviews, but the owner responses to reviews. 

I suggest calling to see if they answer their phones, texting them if they have that capability (most do not), and emailing them to see if they respond quickly. 

Check their website.  Do they clearly identify their services and fees, or do they want you to "get a quote"?  If it's the latter, they are salespeople, intent on closing a sale, vs. a professional service provider with a clear list of services, fees and accountability.  

Check for hidden fees.  Agreements with vendors are a big one.  Charges to tenants are another big one.  Most PM companies hide this in the fine print of their Management Agreement. 

Ask if they operate in silos.  I.e., 1 area for maintenance, 1 area for marketing, 1 area for financial statements, etc.  Most PM companies operate this way, and the end result is a lot of frustration if you're trying to understand something on your owner statement.  

Also, @Drew Sygit has to say "you get what you pay for", because that's the only defense for over-charging for services.  

Our firm charges the least, offers the most and is now serving Colorado Springs.  Good luck!  :) 

Hi @Axel Meierhoefer, very good points.  I think where I'm coming from is that you simply won't have historically strong appreciation in an area where there's high crime, bad schools, or a marginal tenant pool.  

My experience has been that appreciation itself covers all these bases.  Strong appreciation in a given area is the result of all the other factors, not independent of them.  

If you focus on 14, you'll find it answers pretty much all the other questions.  Areas that have steady appreciation over time, tend to be established and desirable areas, where there's little-to-no room for new construction to push down appreciation. 

I like the idea of your list, but I think it's too long and you have not assigned weights to each number. I.e., appreciation and unemployment rates should be weighted very differently. Ultimately, I don't think you need to look at all those factors to have a successful SFR buy/hold.

Finding the best SFR deal that is a solid 14 on your list is where I focus my energy. If it's a buy and hold, always talk to a professional property manager (the one you'll be hiring to manage) before closing the deal. They have data that is nearly impossible to accurately acquire elsewhere.

@Account Closed you are 100% correct. Zillow is also buying houses everywhere and flipping them - they seem to be shooting for only a very nominal upside and instead of a bit hit, they are going for volume.  Absolutely brilliant.  

Listing agents beware! 

Everything in business today is based on efficiency and scalability.  If you don't truly adopt those concepts, expect to be gone. 

@Steve Mandelbaum, your concerns and approach are valid and intelligent, IMO.  

There is a service whereby AC filters can be delivered directly to your home monthly, every 2 months, etc. and you could elect to eat this charge in exchange for the tenant texting you proof that the filter has been changed out in your HVAC system.  Alternatively, you could just put this cost and requirement in the lease.  

As to interior inspections, the results there are going to be mixed.  Property managers who get tenant placement fees during turnover usually have no trouble conducting multiple interior inspections during the lease.  This is obviously because the inspection itself LEADS to higher turnover.  Good tenants don't want to be babysat, and they definitely won't feel like it's their home. 

Preventative maintenance is smart, but in my experience as an investor and property manager, the AC filters are really the only routine maintenance item you need "eyes on" for more than annually.  It's possible there is a slow leak under the kitchen sink or something that has gone unnoticed, but I don't think it's worth your time and the tradeoff to be in your rentals more than annually. 

Ultimately, tenants are who they are.  Some are going to be incredibly clean and will leave the place spotless, and some are going to be dirtbags.  This will be true regardless of the number of interior inspections you do.  Tenant selection is really the key to everything.