All Forum Posts by: Kim Meredith Hampton

https://apple.news/Ato5hWMeBRlCND30G8-h_Yg

Heat kills at least 28 people this week

Hi Jagan 

I think we are really seeing this across the US. It’s really a reset of all the craziness from the last two years. Rents accelerated at unprecedented amounts, more multi family built and now here we are at this time feeling the effects of rents stabilizing and experiencing higher vacancy. It’s not a bad thing, it’s just where we are right now. Some may have to decrease a little on those double digit increases. 

Kar 
Im going to try and play devils advocate here; she definitely needs to adjust her attitude as there is no need to treat people that way no matter the circumstance.

I just heard and checked the temperatures in Tennessee and most places this summer, and it’s hot there! in the 90s!! You may be ok with 77-82 degrees inside your home, but I have my air at 74 when i’m home. Everyone should be able to enjoy their home. Just because you don’t have the money to repair, does not mean that a tenant needs to endure someone coming out three four times to repair something that seems it’s unrepairable and problem needs to be replaced. 

I own a pm company and always give best effort to repair something, but after three or four times, it’s time to replace. Work out a payment plan, put it in on a credit card, but get the thing replaced! 

You are retaliating about wanting to kick her out, and in some places that would be illegal. I would be very cautious about how you handle this, you may be in for more than just replacing the AC

Typically the PMC handles the payroll, taxes, etc… for the employee and property on behalf of the owner. We also manage, fire and oversee onsite staff. This makes it really hands off for the ownership. You should not have to do anything

The onsite manager shows and rents apartments, oversees third party vendors like, maintenance, landscaper, pest control, pool. Works day to day with resident complaints etc…. 
Most of the administrative tasks such as posting rents, verifying applications, paying contractors, payroll. human resources, paying taxes, paying owners etc…. are dealt with at a higher level with the corporate office PMC

Hi Cindy

Congratulations on starting your investing journey. Couple of questions;

What condition is the condo in? Any deferred maintenance that will need to be addressed? Does the coa cover roof, lawn etc? Is the coa well funded and good reserves? Are there any special assessments on the horizon? Does the coa allow renters and what is the process?

Lastly, I would try and manage yourself if the coa takes care of everything outside, this will allow you a cushion in case something goes wrong.

Yes, those number ratio numbers are correct for how many units per manager. 

The management company handles a lot on your behalf, besides overseeing the manager. If you aren’t an experienced investor, most bank will require you to hire a professional pm company to oversee and manage the daily operations of such.

Do you actually think that the PM company could afford to pay a manager out of the 4-6% they receive??? think about how much money that would be, almost nothing. Let’s say that your 50 units rent for $1500 for each unit on average. That would be approximately $3750 per month based on 5% mngt fee. I don’t know about you, but I can’t hire anyone for that amount??? That is very little money for the amount of work performed, but not only the onsite manager, but all the people behind the scenes that no one sees. The manager and mngt company work in tandem daily to manage tenants, buildings, maintenance, contractors, accounting, escrow, HR, taxes, fair housing, municipalities, legal etc… It does take a village for sure. 

I’m not sure what your state requires under landlord/tenant on a “separate “ account, but it really is cleaner to keep them separate, but if you reconcile each month and show those funds there, it should be ok. Again, please read thoroughly the statutes, they should outline if you must or not keep separate, of course interest or non interest bearing, etc… As long as it does not specify “where” you keep the account, you should be able to put that in your brokerage account.

Here in Florida, we can’t commingle accounts and must reconcile each month. They do allow us to do interest or non interest bearing, but if we do interest bearing, we must share with the tenant 

Security deposits are never to be spent, they actually aren’t yours to use, they belong to the tenant until after they vacate.

Tyler 

Having a wildlife type removal company is the best thing to do immediately. Typically, if tenants need to vacate, the rent would be abated for that amount of time (just like a probate) until the time they are able to get back into the unit. 

There have also been times when I needed to put and pay for a hotel for such things as tenting a building, do major plumbing or big repairs etc….

I think it depends on your area and is that common or out of context?

Could you instead do ones that require a card or app to do laundry? much better and more tolerated than the old coin ones