All Forum Posts by: Kenny Dahill

@Tony Thomas, you can definitely find more affordable software than Buildium, Appfolio.  Those are geared more towards professional PM companies or landlords with larger portfolios.

I'll message you directly with additional information on more afford solutions.

@Timothy Yang, are you looking to outsource every aspect of management or prefer to self-manage certain aspects?  For example: self-perform leasing but outsource maintenance coordination.

Definitely coordinate with the surveyor yourself.  As Nathan aluded to, if you miss-stake (pun intended) the property line then you could actually lose that land through adverse possession, if your state legally allows that.

Said differently: if you put a wall up and the neighbor uses that space assuming it was their land, in 10 years they could have the rights to claim it theirs unless you have stated it as yours.

@Emily Bell, every service agreement should have a termination clause.  I would review and follow its procedure.

If it's for cause, identify which clauses/terms in the service agreement that they were in embreach, negligent, etc.

Hate to be barrier of bad news about the $500 but that's probably a cost you have to absorb.  Hopefully it was done right, switching fan to light switch isn't too complicated.  You can try to scare her into the $500 with threat of small claims court but it's probably not worth the hassle of going through that process.  I would claim it as negligence though since she knew about a situation and didn't personally do anything to handle or resolve it.

@Abdul Azeez, unfortunately those are standard industry terms: 12 month and sales clause.

It's better you find the right PM and not the right now PM.  Instruct the previous PM company to send you all deposits, reports, documents, agreements, etc.  When you do find that next PM, you can always transfer the documents/deposits to them.

Yes, this is an extra step.  However, it's an extra step that can a) buy you more time, b) resolve the most urgent need, c) prevents a rushed decision for next PM.

@Geri May, tons of solutions out there from payment apps, bookkeeping software and property management software.  Is there anything additional that you're looking for or just rent collection?

I'm biased on which tool I use to collect rent but I'll provide some value for all property management software's (PMS).  PMS is designed specifically with rent collection in mind, unlike peer-to-peer apps or bookkeeping.  Majority of PMS utilize the same payment API (Stripe is popular).  I'd look for my PMS to have email reminders to tenant, automatic rent payments, automatic late fees added and allowing tenants to pre-pay rent if they wish.

Good luck getting tenants to sign that lease.  If I'm a tenant, I take my chance elsewhere with a lease that is flat for the year.

Also, that sounds like a headache to coordinate.  Whether you collect rent manually or with an automatic online solution.

More ideal and realistic: put next years rent amount into the lease once they go month-to-month.  Even then, that might scare off most tenants if they see a 20% increase YOY.

@William K., it sounds like the PM company lied to you about payments but they were never actually made.

Step 1) get this resolved.  Step 2) fire PM, if indeed they lied.  But you have to resolve Step 1 first.

Do your best to be professional and reasonable so you can get this resolved as quickly as possible.  Threatening the PM of termination or lawsuit will definitely not get your rent faster.

Moving forward, I would require...

Detailed Repayment Plan:  Have the PM provide their course of action to get the tenant paid and whole again.  If this is the PM's responsibility then they must detail the exact milestones with dates and amounts.

Penalty Recourse:  There needs to be recourse for the tenant and PM to get you paid in full.  Late fees need to be sent to the tenants.  Start the late rent notice and eviction notice.  Just because you send the eviction notice doesn't mean you have to execute on it.  However, at least starting the paperwork accomplishes a few things: let's the tenant know you're serious, saves you days in case you must evict, provides comfort there's progress being made.  As for the PM, I assume they aren't charging fees if rent isn't collected.  But make darn sure that's the case!  Their plan needs to indicate a form of fee deduction or retention until all rent has been paid.  They need a penalty as well, IMO.

Consistent Updates:  Now it's personal!  Communicate your expectation for a consistent update, however often you want them:  daily, weekly, bi-weekly, etc.  I think weekly is best.  Have this detailed in their correction plan so you can hold them accountable.  And make them aware of a consequence if there are not consistent updates.  Require them to provide documentation with their updates.  If they said rent was paid, show me the proof!

Partial Payments:  There's mixed reviews on BP whether you should allow partial payments or not.  I'm of the opinion that some money will be better than no money at this point.  In the past, I've changed unpaid rent to a longer extension but required semi-monthly payments in exchange.  These tenants had been there for a year and all of a sudden were constantly late for 3-4 months.  Turns out, she had a baby and her hours were cut back significantly.  Therefore, we made a plan to reduce rent for 2 months until she went back to work but months 3-6 had an increase.

Embreach Notification:  Review your Management Agreement for the proper procedure but immediately send them a notice they are embreach of their contract, if indeed they are.  Be professional and communicate this ahead of time.  I'd say something along the lines of "It sounds like you're working on a correction plan and I'm confident your team can get this resolved.  However, I am advised to submit this embreach notice now so we can follow the proper protocol of contract."  Similar to the late/eviction notices, just because you sent notice doesn't mean you have to execute any further actions.  But delaying the notice only protects the PM company, not you.

Happy to have helped!

@Hark Tukay, start by researching the Tennessee / Memphis property management laws and reviewing your management agreement.

Property Management Laws:  Typically on the state's real estate page, you'll find all of the responsibility and requirements for PM's when a client terminates their services.  Often it mandates the turnover of documents and return of funds with 5-15 business days.  Research all the requirements and write them down.  Then...

Management Agreement:  Examine your management agreement for all the actions they are required to take.  If they're in breach of contract, follow the clauses/terms and submit your notice.  Certified mail is probably the best way so you have proof it was sent.  Then...

Notify:  Write an email, letter, text, etc. that clarifies all your findings from the law and agreement.  Indicate the required actions and dates, then a penalty you're going to pursue if they don't accomplish.  Such as: small claims court, letter to real estate commissioner, etc.