All Forum Posts by: Kevin Epp

I give them an option: $50/mo per pet or $500 up front.

Most choose $50/mo/pet. That's $600/year/pet to the owner.

I very much agree with Alan Asriants above. Almost always, it's the owners that determine what happens with their pets and how much damage they do. Same pet, two different owners, can have two different outcomes.

Haven't though of this yet, but Alecia Loveless' technique of putting in the lease that tenants pay for any/all pet damage is smart.

To be a good dude - split the cost.

From a negotiation standpoint, you can open with asking them if they would like to pay for the cost to do this. If they agree, cool. Maybe throw in some money after that to build rapport.

Bottom line, I would move forward with doing this, even if they only pay a little (or not at all). Helps you out a good bit.

Begin the eviction process as you would any other tenant, immediately. Typically, I would recommend handling the notification portion yourself then handing the rest to a professional team that does this.

Maintain rapport with daughter, tell her you have initiated eviction process. Hope this brings her to speak with her mother. If the daughter is not on the lease, ensure you have signed papers from the mother herself if they move out early.

Almost zero chance they will pay rent again. Even smaller chance you recoup expenses via collections. Recommend cash for keys here (like you already tried) and getting them to sign a termination of lease.

If the lease period ended and they are on month-to-month typically you have leverage (depending on what your lease says, or local laws) to end the lease at the end of the month given prior notification. If you're in that situation, ensure you follow proper procedure and proceed with that option in conjunction with your eviction process to have redundancy.

Being a landlord isn't rocket science if you're on the ground. It will be a learning curve if it's your first one. Stay up to date on all laws, federal down to local. Best of luck.

Since I'll be taking over in the middle of the tenant’s lease, what actions do I need to take with the previous property manager?

Contact PM. In writing, exit contract. Request all deposits (security, last month's rent, etc) back to you - in writing.

How should the contract be handled moving forward?

Lease stays as is. Sign a new one upon renewal.

What is the best way to officially inform the tenant about the management change?

Call them. I'd do it sooner than later. The PM could notify them before you and will make it a hassle with telling them what's going on. More confusing.

Do I need to draft a new lease with the tenant, or can I continue with the existing one?

Existing.

How should the security deposit be managed in this transition?

PM transfers it to you. Put it in separate account for only security deposits.

What specific responsibilities does the previous manager have to ensure a smooth handover?

Give you money, notify tenant.

Lastly, would it be better to introduce myself to the tenant as the owner, or as the new property manager?

Introduce as owner.

If you own rental properties and are opening a PM business then you already should know what you do/do not like about your PMs. To include fee structure.

If you have never owned rental properties or had a PM and are jumping into the business, it will be harder for you. Not impossible by any means. Just a learning curve.

To answer your question: I only do single family homes. I keep it as a percentage of gross rent and a lease-up fee. This isn't optimizing rev, sure. But right now "junk fees" are popular in the national conversation. To stay away from that, I've kept it to two, up front fees. It makes good money and works for me. Might change it, might not.

WA requires you to hold a brokers license and be under a managing broker for 3x years before you can have a firm yourself. I've liked this, as it's essentially a mentorship opportunity. I assume CA requires something similar. Find a managing broker who leans on the mentorship side. They'll get you squared away and you'll get some reps at the various situations you'll find yourself in. If you want to jump ship after three years, they may require to keep your clients too. Keep that in mind. If you can find a MB who will allow you to keep contracts when you jump and mentor you, that's a good deal. Who knows, you might just want to stick around too. Priorities change.

I lurked on these forums for a long while when I was starting. A lot of these PMs who post a lot (^Nate and Adam)...I just copied them and implemented the systems they mentioned. Worked really well for me.

Join NARPM, that's also a great resource.

The systems to get to a decent portfolio are not complex, especially with today's software. Just lean heavily on educating yourself on the laws, notices, etc. early on. You'll be fine otherwise. Not rocket science.

Give them ample notice you're raising rents to market price. Show them all the examples of properties that are at this same price.

There are awesome tenants at market rent. In fact, this exact tenant who is at $850/mo was once at market price. Just nobody raised rents on them, and now it's your issue.

Should have evicted immediately.

Looks like you're in NYC.

Take a look at your laws but I would do a non-renewal of their lease (if NYC allows that) at the end of their term. You need to get in writing the delinquencies on rent. Start a paper trail.

Otherwise, as long as rent is coming in, just hold on (hopefully) until the lease is up.

It is your obligation as the landlord to make necessary repairs in a timely fashion. You cannot withhold repairs for lack of rent. They cannot withhold rent for lack of repairs.

Lower rents here (WA south sound)

Check your lease. It should say in there what the terms are for ending the lease in the case of month-to-month.

Then check your state and local laws. It will be spelled out there for sure.

When you provide notice: ensure you do it correctly. I live in Tacoma, WA. The laws here specifically dictate how a notice can be given and accepted in the case of non-compliance. Your state and local law will spell this out.

Here is an attached example for how we notify someone. This can be different based on your location. Again, refer to your lease (if reviewed by a lawyer, I hope), and your state & local laws.

@Nadia Muga

Property management is not rocket science, but it's not for everyone. Regardless, you got this!

1) If you want to hire a property management company.

A professional property management company will handle all of this for you. If you need to choose one, I highly recommend you check out this thread and scroll down for Nathan Gesner's post on how to screen a PM. Additionally, BP has an entire post on the 78 Essential Questions to ask a PM.

2) If you're going to do this yourself.

It is not rocket science. Just a lot of systems, paperwork organization, and staying abreast of/within the law (required notices, addendums, etc.).

3) The screening criteria we use:

650 credit score or above

Income 3x the monthly rent

No pets (depending on the property)

No smoking

No evictions, notices to comply, or money owed to landlords in the past 12 months

Proof of income and financial responsibility

Additional:

First, last, and security deposit due at signing

750+ credit score does not require last month rent (helps incentivize quality tenants)

Best of luck!