All Forum Posts by: Kim Meredith Hampton

Honestly, I would not sign any lease until you positively close and legally own the property. Anything can and does happen all the time. I have seen these circumstances; people die, go out and buy a car, lose their job, etc… 

Just my own two cents, I’m not an attorney, just play one on TV

John

First look at your states licensing laws, they can easily be found online. Most states require a RE license and or Broker’s License. Here in Florida, you first obtain your RE license and work under a Broker for two years. 
If I were you and you need to meet the requirement of working under a Broker, just make sure your agreement with the broker allows you to take all your properties with you once you leave, obtain your brokers license and start your own brokerage

I would also start looking at software systems and joining the National Association of Residential Property Managers. This association is the best thing you can do for yourself in the education, networking and vendor relationships

Jackie

Is there any way they can go and visit the current PM and also meet the new PM, or even ask the new PM to go by the office of the current PM to see if they can see if they are still in business? Go online to check the DBPR and make sure they are licensed. They could also call the local board of realtors and talk to the grievance or professional standards dept to file a complaint. I’m sure this will get their attention.

I had to do this same thing with a client that had not heard from the short term PM in months

Unfortunately. this is typically considered normal wear and tear. Obviously, if there is a large hole in the wall or they painted a different color, then you can charge them to paint. Always be cautious of what you charge on things like paint, flooring etc.. most judges will use life expectancy and divide out a pro rated amount you could charge the tenant for excessive damage and not normal wear and tear 

Rick

Treat this like a business. I think you are letting your feelings get in the way of making bad business decisions. You really should non-renew them now and let them find something more affordable. Be extremely cautious when processing your next applicant, this one seemed doomed from the start. I use the 3x rent for my first barometer, steady employment, good credit, and of course 3 years of rental history. Stick to these tools, and you should be significantly happier with your next renters 

Sara, Just very slow this year in long and mid term. Where are you advertising?

It also has been one of the slowest rental cycles this year than almost any that I can remember. No time to start too high, it just creates a slow death and makes the listing stale

I’m going to share some of my thoughts when I talk to new investors;

Are you pre approved, and for how much? 

What is your risk tolerance, and are you ok with properties that need work, or do you want turn key?

We run calculators on what you can expect for expenses beyond your mortgage, I don’t like surprises. And always set aside reserves for the unexpected.

always look at location, schools and is there an area that is gentrifying where we could take advantage of better appreciation 

Inspections are paramount. Due diligence is key before you sign on the dotted line

Build a network of a great property manager, lender and maintenance team

Depending on your budget, I usually would start with at least a duplex, triplex or quad. Of one unit is vacant, at least you have money still coming in on a monthly basis. With SF, if it’s vacant, you have no income

Eric,

Without going into too much detail on each line item, at first I use my back of the napkin method with a 40-50% expense ratio. A lot of lenders used to apply 35% for expenses, but in the last several years, the numbers for supplies, labor, utilities, taxes, etc… have increased significantly.

Also take into account the age, occupancy and how has the property been maintained, this will affect the expenses too

Daniel,

If its something you really like from all accounts, get with an inspector and property manager to give their thoughts on the area, condition of the property etc... Try and get some referrals on here from other ivestors