All Forum Posts by: Juan Hernandez

Quote from @Michael McVety:

Hi Juan.

I would definitely look at the termination clause.  Sometimes it is for an unexpired lease term, other times it could be just a flat fee for getting all the documents together and ending certain services.  Also, do you have a lease for you to use? That is really the way that YOU will manage the property as opposed to how the property management company did it.

Good luck with your rental unit because there are a lot of laws that affect the CA landlord and renter, including more city/ local areas.

 Hi, Thanks for your input. After a more careful review of the PMA I do see a line item that references termination of either party. It indicates that a 30 day written notice must be given (as most have eluded in this thread) 3 months after commencement of original agreement. So I think I'm in the clear on that front. As for the lease, I would continue on the original terms agreed upon with the Property Management Company since lease was just renewed for 12 months. I would just send over Transfer of Management Acknowledgement (as recommended above) so I know that tenant knows that I'm the new manager. After 12 months expire I would have them sign "my lease" (which would be very similar terms as original + additional nuggets of terms I've picked up over time, like inspections - current manager performs no periodic inspections).  

Quote from @Tim Baldwin:

Speaking about how this would go in Florida... If you have a specific term contract with the PM with no early termination clause, then it would be a breach of contract to terminate early without good cause (i.e. the PM materially violated the agreement). Normally, PMA's provide that the PM is entitled to damages for early termination, such as, the fees the PM would have earned for the remaining term or perhaps liquidated damages. Before you terminate the PMA, I recommend that you consult with an attorney in your area to advise you. Best wishes. 

Do you think I should consult with attorney even before letting PM know of my plan to take over? Manager has been managing property for 2 years. Is it still early termination due to initiation of 3rd lease renewal? 

Quote from @Nathan Gesner:

Quote from @Juan Hernandez:

I hope you are prepared. California is the most litigious, regulated corner of the world and navigating the law isn't easy. Many California tenants know the law better than the landlords and they have free access to legal assistance. Prepare yourself now.

Give the property manager notice in writing and at least 30 days to prepare for the transfer. When the transfer happens, they should provide you with copies of the tenant records, tenant contact information, your owner records, spare keys, codes, etc.

The PM should notify the tenant in advance that management is transitioning back to the landlord. I recommend doing this 30 days before transfer. Then, right before the next rent is due, you should deliver an introduction letter. Let them know who you are, how they can pay rent, and how they can communicate with you (emergency and non-emergency). I also recommend you schedule a walk-through inspection within one week so you have the opportunity to ask/answer questions, document the condition of the rental from that day forward, etc.

I hear ya! I’ve heard the stories about CA. I’m fortunate to have found a very nice lady whose willing to mentor me. She’s been managing for over a decade. I actually tried to hire her as my property manager, but she denied my request saying she’s happy in retirement only managing her 15 rentals. Then she offered to mentor me and share her contractors and maintenance team, etc. 

Thanks for the input! I like the walk-thru idea and introduction letter! 

Quote from @Drew Sygit:

@Juan Hernandez is your management contract month-to-month? If not, it may not be as easy as giving them a 30-day notice. 

Also, 30-day notices are typically legally required to cover the regular term of the corresponding contract. So, if your contract is based on a calendar month, you giving notice in mid-June would then legally be effective at the end of July.

Do you have tenant contact info? What about rent ledger?

It's always better to have a tenant sign some type of Transfer of Management Acknowledgement.

The contract doesn’t specify if it’s a month-to-month. They’ve managed this property for me for 2 years. I do have tenant contact info. And I have my own rent ledger that I track, but PM has provided a ledger upon request. But good point, this is another document I can request so I verify no discrepancies from what I’ve tracked. 

Hello BP Community and Property Managers,

I'm planning to take over as property manager on one of my rentals and I'm looking for input for a smooth transition. I currently have a property management company and I'm looking to take over in mid-July and notifying property manager in mid-June (giving about a month of transition period). I currently have a tenant in place who just renewed a 12 month lease. I've reviewed the property management contract and there's no details about terminating property management services. I have copies of signed lease, the copies of signed renewed leases (including the one recently signed), and all the Move-in photographs. I plan to use RentRedi to manage the rental. So here are a couple of questions I'm looking input on. And please let me know if theres anything else that comes to mind to help with the transition.

Do I need to have tenant sign another addendum acknowledging the change in management? Or is a simple email introducing myself suffice?

Is there any special consideration for taking the security deposit from current manager? Or can they simply transfer the funds to my account?

Any other input. 😊

Hi Nadeem, 

Out of state BRRRR's has been something I've kept in the back of my mind as a strategy to pursue in the near future.. Being that it would be my first BRRRR, I thought it prudent to do one in my own back yard first. That way i see it unfold in real time, I understand the necessary systems to have in place, the right players to have in my team, etc. I'm going to connect with you so we keep in touch :)

I appreciate the response.

-Juan

Awesome! Thank you Rob! 

Hi Rob!

Thanks for the heads up. I've had my eyes peeled on Meetup, but no hits on any clubs near me. Please let me know if there's a meetup planned soon, or if there's a link to the club :) .
 

Hello BP Community, 

Newbie investor here looking to connect with other investors from the Coachella valley or general Riverside County Area. I'm looking for fixer uppers to buy. I have a few properties under my belt that have been live-in-flips, but now I'm ready to jump into BRRRR or other strategies. Also interested in STR space. I've been looking for hard money lenders and agents to work with, so if you have recommendations to look into, let me know.

Happy REI!

-Juan