All Forum Posts by: Jeyo Punnakottil

I just came across this post 5ys after .But I thought I will post my experience as I have worked with CRS on the above mentioned situation .I had my house for rent for 2000$ and CRS approached me with the same situation. They had someone whos house burned down and wanted temporary housing for 4 months and month to month after that .They said it is an insurance claim(Youngsters in Mid 20's) , and I can vet the tenants just like I vet normal renters and decide after that .The contract will be directly with the tenants but the rent will be coming from CRS .Crs was offering me 2X the listed rent which was tempting .I signed up with them, Rents came in as they mentioned ,They ended up staying on the property for 8 months .CRS would deposit the rent every month on the 1st .CRS will send you W9 form to fill out as they will report all the rent payments to IRS for tax purposes. At the end of the lease it was a pleasant expericene.The tenants did not damage the property visually ,so I returned the entire security deposit .The night mare started 1.5 yrs after the CRS tenants vacated . Right after the contract with CRS ended I got a long term lease signed for 3 yrs (Husb wife and toddler) Fast foward 1.5 yrs from the contract ended with CRS, signs of waterbacking up here are there started .At first it was backing up in the sinks ,then it started bubbling in commodes when commodes are flushed .We would do a plunger and it took care of it .One day the entire standing shower and tub shower backed up with poop.Now it was serious so we did a professional sewer scope and found feminine products clogging up the main sewer line .It was an expensive 11k repair .Had to dig up the main line in back yard and cut out a section as homedepot professional grade snake was not able to clear the line .Once the section of sewer line was cut it was found as tampon clog.The tampons were identified by the plumbing company to be 1 +yrs old .I contacted CRS about this and they denied and refused to make a damage payment .I had to eat it up. Basically any profit i made was washed down the line and incurred 4k loss on top of that .

@Hunter Morris

I am from Texas,and i have been approched by STR operating compaies like this for my rental .Out of curiousity ,i had a conference call with the company and started the process.When i reviewed the contract they send me i knew i was going to get F..ked left and right.Everything in their contract was in favour of the operator and against me .I asked them to use the contract that my attorney will draft and never heard from then again.All comments made in the chat has excellent points.Think about a law suit coming and it will be against the owner of the ppty 99.9% of time and not against the operator .Also7 like some one mentioned i can bet you the operator will be having only 500$ or less in their operting account.

Quote from @Kevin Polite:

Quote from @Bill Hampton:

@Kevin Polite

Have you looked into seller financing to sell your properties. This spreads the capital gains and taxes out over several years. contribute

Good idea for some and thanks for the suggestion but if someone doesn’t qualified conventional/FHA/VA financing are they a good risk for seller financing?

I would not advise you to go that rout of seller financing to typicall home buyer .But the catch here is why donot you seller finance to investors .If you do seller finace to traditional buyers the chances of default is high and you are back to square 1 but on the other hand if you seller finance to investors who are building up their portfolio it will be a win win and chances of an investor deaulting is much less compared to a traditional home buyer.

@Josh Cocker

If i were in your shoes, i would never skip the inspection. I would ask for a copy of the previous report ,go through it and order another inspection to make sure the issues has been rectified. As some one already said" Trust but verify". The has been a lot of cases where the rehab was done to make it look beautiful to the buyer but everything behind the walls or where eyes cannot reach is done incorrectly.Even big new home builders do this kind of shady business where it comes to a point it is necessary to order inspection for new home builds in US .

@Carmen Assang

Donot ever pay the tenant the 1st months rent or $$$ to move out . What if they say ok i will take the $$$ to move out and they donot move out after you pay them .Cash for keys is a good strategy if executed correctly.Only hand over the $$$ after they moved out and they hand over you the keys and you have rekeyed your ppty.Just something to think about

@Emory Clayton

Sounds really fishy.Those applicants are a pass for me if it is happening on my rental.On my LTRs ,i strictly donot lease anything less than 12 months. "MY RENTAL ,MY TERMS" I am from Tx and i do provide washer ,dryer and refringerator in my rentals .Just a nice perk and a nice selling point.I do charge that in the rent on back end as if a similar ppty with out those rents for 2000$/month then mine will be for $2100-2150/month. Appliances has its own head aches ,wear and tear and complaints .Circling back to your case ,your appicants sounds too pushy which is a red flag.They want it for 6 months ,when clearly your ppty is clearly advertised for LTR .They want utilities included and washer and dryer installed.BIG RED FLAG.They are too demanding.You are the Landlord and not them.Donot flex your criteria and property for the applicants.Tomorrow they will come back and say the compressor unit is too loud and must be replaced,cabinets are not shaker style and closes hard while closing and needs to be replaced etc etc.

To me this above mentioned applicants are a pass .

@Adam Bartomeo

John was asking " shouldnt PCM handle the eviction " .The answer is ,"REFER BACK TO YOUR PMC AGREEMENT". Some PMC handle it themselves inhouse.Most donot, but hires an attorney and send the bill to Landlord.It all depends on what is written in your PMC agreement.That is why it is very crutial to vet your PPC same as you vet your tenants when you are self managing .

@Kevin Sobilo

To my knowledge that is not how it works .Was there a written contract between you and the seller .Did both you and seller sign the contract. Depending on the state that you are in ,EMD should get to the title company in "X"amount of days stated in the contract along with the signed contract to make the contract binding.If EMD has not reached the title in the " X "days the contact becomes nullified.That coube be the reason why the seller has relisted back the ppty in market as available.

# dont sue me bro#Not a legal advice

@JD Martin Thank you

@Chris Rich Thanks you