All Forum Posts by: James Paine

I ran a PM company that we scaled and sold. I can tell you that managing a diverse portfolio of SFRs is hard to do profitably. We didn't fee people to death. We had a simple flat fee. That is what we preached. Well the company I sold to is running the same structure but they charge a maintenance mark up. They are profitable, I didn't make any real money until I sold the company. I could see that as "gouging" from the investor side but man that is a tough business.

1. Hard to make money

2. Tenants hate you (late fees, repairs, etc)

3. Owners hate you (fees, you only every call with bad news - repairs)

4. When staff get little positive feedback from tenants or owners they tend to burn out

***Having said all that I own tons of rentals and require my managers to bill me for their fee, repairs, and services. Country Club billing. That makes it very clear to me what I am paying. Most PMs won't do this well at least unless you have a lot of properties.

1 Vote

@Melissa Gittens

VRBO.com

Airbnb.com

Flipkey.com

Howaway,com

craigslist.org

vacationrentals.com

https://www.vacationhomerentals.com/

I list on all the sites at different prices as well. For example I am probably lowest on AirBnb because it is the most competitive. Other sites that have less properties I am usually higher priced but still below my competition.

1 Vote

@Andrew Wong

One thing I would also say is get quotes from several different guys. We quote 3 different companies every time we buy a rental. Prices are different every time sometimes buy $500. Also there seems to be no rhyme or reason.

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I flipped a house that backed a grave yard. Did a light rehab and sold it within a week. So I bought the house next door, did a more normal rehab (full cosmetic) and it sat for almost a year. I think there are 3 groups that are buyers.

1. Folks who just want to get into the neighborhood or school district and it is one of the cheaper houses available.

2. People who grew up there

3. Weirdos!

There are a limited supply of the second two groups so you might get lucky and you might have to sit on it awhile.

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Originally posted by @Claudia Bonaudo:

Hello!

Do someone have experience buying a property that said "Buyer will be responsible for obtaining possession of the property upon closing", how easy is to do that?

I do like the property and believe could be a great investment opportunity but not in the mood for taking out people and dealing with them.

Thanks!

What state is the property in? In PA or IL that can take a year. In HI that can take a lifetime. AZ and TX are fairly quick. If you don't want a hassle then don't buy an occupied property.

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Are you married? lol Seriously though go meet a husband. (At Berkeley maybe I should just say significant other and let you decide the sex)

Get your degree. I've been on both the corporate and entrepreneurial sides of real estate. A degree from a top school is a pre-rec to get in the door at any of the funds, REITs, etc. I can tell you that also when raising capital having that degree is a big help.

Don't worry about the debt part of it. College loans are pay as you earn for the most part now. APPLY FOR AS MUCH SUPPORT AS YOU CAN!

With all of that being said I'm a college drop out. So that I don't have to type it all again link is below:

http://www.businessinsider.com/james-paine-west-realty-advisors-2015-3

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Originally posted by @Jay Hinrichs:

http://theriangroup.com/your-home-guaranteed-sold-in-29-days-or-we-buy-it/

In our market in Portland Oregon there is usually one mega agent running this scheme

and I know its kind of an old play ( at least to us old guys) But I am wondering if this is legal in your state.

Its like buying listings.. and or its very smart you either buy it wholesale or you get the listing.. he is expanding to CA..

Brokers Agents whats your thoughts and or maybe its something to copy.

I bet this agent spends at least 20 to 30k a month on Radio and other marketing.

This is what Craig Proctor teaches. ERA used to offer the same guarantee during the "good old days". He has a few outs but in hot markets it works.

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Originally posted by @Craig Garrow:

I charge $100 for a lease renewal. I see it as a little bit of a bonus because a lot of times, it's customer service that keeps the tenants wanting to stay. I'm not sure I could charge much more than that and still feel good about it, though. Just my opinion!

Craig - Thanks for the input. Every bit helps!

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Originally posted by @Nathan Gesner:

@James Paine I think that fee is fairly normal. I charge a flat fee of $50 for a lease renewal of an additional year. This covers a mandatory inspection of interior/exterior, signing a one-page renewal agreement, and the tenant rent is automatically increased 3%. The rent increase is enough to cover my fee.

It may seem like nothing is done, but your PM should be inspecting the rental, reviewing the tenant's record, and verifying everything is good before locking the tenant in for a year. Half a month's rent seems exorbitant to me but the market must support it. You will have to shop around to see who you click with. I'll tell you right now that some managers charge fees without producing results and others are worth their weight in gold. You need to familiarize yourself with what your market supports, what your manager does for his/her money, and how it compares to others.

My fees are lower than what you've pointed out, but I am definitely the most expensive in my market. However, I also put more money in the pocket of my owners year after year. You sometimes get what you paid for.

I agree with everything you mentioned above. $50 to $150 is really reasonable especially if you take a trip to the property. If it is as simple as getting a doc-u-signed extension then it seems crazy.

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Originally posted by @Dawn Brenengen:

@James Paine Clearly, I don't charge enough. I charge 1/2 of one months rent when I have to turn over a property. There is no renewal fee if the tenant stays. Actually, most of my leases simply go month to month after the first term, so there isn't really anything to renew. If they don't go month to month, it's already built in to the contract that it goes for another year. If I need to change a term like rent amount, there is a one page amendment I can fill out.

1/2 rent for renewing a tenant seems a bit much. Are their ongoing fees cheaper than usual, i.e. 6% instead of 8%?

Fees range between 6% and 10% depending on the area,etc. 1 months lease fee.

My properties in CA are handled exactly how you mentioned yours are above. I'm not sure what to do though.

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All Forum Posts by: James Paine

James Paine has started 15 posts and replied 133 times.

Post: Dear Property Management Companies....

Post: Re: What are some Great Vacation Rental Websites?

Post: Insurance Confusion. First time shopping

Post: A house that backs up to a graveyard

Post: Obtaining possession of the property

Post: Aspirations of A Young Investor Wannabe

Post: Real Estate Brokers is this legal in your STATE

Post: Re-Lease Fee to Property Managers

Post: Re-Lease Fee to Property Managers

Post: Re-Lease Fee to Property Managers