All Forum Posts by: James Devereaux

I will throw in this link to an article someone recently pointed me to. One thing I wanted to be aware of when choosing a business card is that the card wasn't reporting to my personal credit... That was important for me and my situation. I try to keep all those separate and don't need my business debt reporting to my personal credit. Now I think if you are delinquent, all cards are going to do that. But at the very bottom of this article, this shows a large list of cards & how they report (some business cards also report to your personal credit & some don't even report at all which makes no sense to me)

https://www.creditcardinsider.com/learn/definitive-guide-building-business-credit/#credit-card-issuer-business-reporting

@Peter Tverdov

I like simple :)

I understand the value of doing business with a PM company. Just like I understand the value on anything I buy or service I continue to pay for. I just feel like that value is diminishing by how expensive this is becoming. 

@Kenny Dahill

So recently for example, I inquired as to why a recent statement (I don't have access to live statement, just sent mid month and end of month) was missing part of a customers rental income. It was weird because the rent that was missing was section 8 rent, not the tenants portion of the rent. I have never had any issues with section 8 paying... So they had to track it down and apply it to my statement.

Things like that don't happen often, but when they do, I am alerting them. Sometimes multiple times.

@Kenny Dahill

I couldn't agree more. I have given them the benefit of the doubt... With that said, they have shaken my faith a little bit lately.

I recently had a large repair that needed to be done. Regardless of the cost being covered by insurance, I asked them for a second quote as the first seemed super high. You would have thought I was asking for them to move a mountain. So I got a little hesitant at that time. Unfortunately, I haven't (and this is a wake up call that I should) put a list together on my own with two or three names of companies for each type of major repair. 

Historically, they have been great in general. I have been with them coming on 3 years now after a terrible experience with a previous company. But lately, I am having to bring things to their attention as far as corrections on my statements, or push them to provide me with what is being done to handle certain situations. Like the late rent for example, why are they only reacting to me asking for answers. They should be proactively giving me options or at minimum bringing something to my attention. 

You are right & I take some of the blame as well for not finding out what those additional costs may incur outside of what makes them appear competitive.

Thank you!

@Kenny Dahill

Kenny, thank you for such a detailed reply. Although I didn't mention it, I feel the same way about creating a bad experience not only for myself but for my tenant. 
The missed appointment was for a handyman showing up (a second time. They didn't bill the first) when they had set appointments with her. 

I am on their "investor pricing" since I have multiple properties, so they are only taking a % of what is actually collected. Their other packages are a flat fee no matter what. 

You have confirmed some of my worries & made me feel a little less unreasonable. You have also given me a few things to think about that hadn't come through my mind.

Thank you so much for your thoughts!

@Theresa Harris

It looks like I will be on the hunt for another property management company. The 10% was something that I thought was unusual as well originally, but understood the extra time and effort they took into getting quotes. I do agree with Kenny below that it doesn't encourage them to find the best deal for me. Possibly just the most expensive one. 

Thank you so much for your reply!

Hi Bigger Pockets! I have been a member of this awesome community for several years now (at least a year before I embarked upon my first real estate deal ~4 years ago) & have learned so much! This is my first time posting or replying to a post though. I am hoping to get a little guidance with my property management company. Specifically with their fees.

So a little history with me, I have 3 residential homes that they manage. I live in a different state than these homes, so I am definitely needing/wanting a management company. 

I am hoping you all can give me some advice on if I am getting angry for no reason or justified in my thinking. 

The issue at hand is regarding a tenant who is behind on her rent, quite a bit behind on her rent. After having to get after them several months ago, they placed the tenant on a payment plan to get caught up... I don't think they would have proactively done this had I not put the pressure on them. Well fast forward to now and the tenant is still pretty far behind on their rent. So after reaching out and asking what is being done they ask if I want to put her on a new payment plan (they didn't answer my question on what was being done and what communication they had already had with her. I asked 3 times. It makes me think there is none and they are taking action only because I am putting them on the spot once again). I got a copy of their entire history with this tenant which also shows their fees they charge the tenant. This is something I don't normally see, I usually just see my statement of rents in, disbursements to me, and any expenses for my mgmt fees or repairs.

When viewing their statement I was a little bit shocked. Since January of this year, they have assessed the following fees:
NSF Fee (for a payment returned by tenants bank): $30*2=$60
Notice Posted Fee (them making a notice to tenant of late rent): $65*2=$130
Late Fee" $70*5=$350 
Missed appointment fee: $78*1

TOTAL: $618

Now I don't mind necessarily even mind that the PM takes the fees. I also understand that some of the fees, like the NSF fees, aren't even necessarily even going to them because they pay a charge for a returned payment. I also understand that they operate on slim margins. They are only making 8% of my gross rents (So for this property, they would make $672 for the year based off the 8% alone. Granted this is by far my lowest rent property). I don't even mind they charge 10% of any repairs that need to be done to cover their cost and time of setting up the repair and overseeing it. But in mind that this has created a culture where my tenant is $1200 behind in rent and they are making an additional $618 in fees. Fees that they take when the tenant does make a payment before giving me the difference of the rent minus this fee... Why would the be inclined to keep the tenant paying on time when they can make an extra $70 per late fee.

Thank you all in advance, I am definitely needing to get out of my own head with this and get some advice from you all.