All Forum Posts by: Lynn McGeein

@Sweta Jain we just keep it simple. I didn't like the expense involved when I researched cost of maintaining a business account to self manage 1 rental and found that the LLC route wasn't necessary if we maintained an umbrella policy, so I just keep track of rental income and expenses (not that hard) on the one I self manage and any extra expenses on the ones managed by property management to add to their annual summary for my accountant. I placed the security deposit in a separate savings account. Rents just go into our personal account, and I transfer monthly excess into another savings account to be used for maintenance, renovation, etc. No fees involved and bookkeeping isn't that difficult. If I self-managed them all, I'd probably do it differently.

@Jordan Schneider it says you have assignment contracts on 2 of them, so don’t they spell out what your right is to access? Most of the wholesale offers I’ve received state clearly they want it fully assignable (vs seller approval to assign) and mode of access or specific procedures for access. If your contract doesn’t state terms for additional access, then I understand his concern, maybe ask if you can video the interior, although most tenants won’t want that. If it does have access clearly stated, then ask him to honor those terms.

@Jenna Bamlet. If you own the main LLC100% and most of sub-LLC's, definitely speak to an attorney and let them give you options to protect yourself. I'd want to know if I could just transfer all property to my own name, like if I have the right in LLC to buy & sell for the LLC, can't I just sell them to myself for a nominal fee? I've never gone into a partnership with anyone but my husband because I've had several family members have years of troubles exiting partnerships in businesses. Definitely not worth it unless you have built-in solid protection and are the one in charge of funds.

@Joaquin Reyes did your renewal lease also include a required notice to vacate if tenant does not sign? If I’m increasing rent or extending lease term, I send a lease addendum that rent is increased to $x per month starting x date and/or term extended through certain date, along with a letter stating see addendum for review and signature and that if tenant does not sign and return addendum to me by a certain date, then this letter is my notice to vacate by end of current lease term. Looks like Oregon has strict laws about notice and cause for termination, so you may want an attorney to advise you so you’re following proper procedures.

@Kathleen Park if you want the tenants to cover, just increase the monthly rent a bit at renewal to cover the cost. You don't want tenant paying the HOA directly because you'd still get charged as the owner if they don't pay or pay late, so best to handle the HOA payments, yourself.

@David Alejandro Hernàndez “harden” your rentals, do not add high maintenance items. If privacy is an issue, find a low-maintenance privacy fence, and even those are a pain because somehow tenants constantly break the latches and hinges on the gates. If there is landscaping that you can add where, once established while you live there, requires very little maintenance and water, then do that. Tenants rarely water anything. Maintenance costs don’t usually decrease over the years, so if you go with landscaping that needs care, expect your costs to increase over time.

@Kevin S. Most standard contracts have terms for the seller to deliver the property in the same condition, free of personal property, debris, etc., so if you have doubts that your seller plans to do that, maybe reach out and ask if the storm caused any damage that will delay closing, to make them aware you’re not going to accept new storm damage. I think they would need to file the insurance claim if there was enough damage, but possibly they could escrow an amount you’re comfortable with if lender allows. If the water heater worked fine at the inspection but leaking at the final Walk Through, they’d have to fix that. Storm damage should work the same way.

@Veronica Mitchell most contracts have a finance contingency where if you can’t get the loan then you get your earnest money back, but you’d still lose the money spent on inspections and appraisal if already done. Ask your agent if they have a local lender they work with that may have more programs available to finance you.

Yes, I have placed tenants over the years, and they never paid higher than 10% of first month's rent. That's very common here, with the occasional $250 or $500 offered instead. I only do it if I'm assisting a sales client find housing after a sale or helping a client's family member find a rental, definitely not worth focusing time on but if needed during a sale, I'll assist. But they don't need to pay more here as our area has always had strong rental demand, and some slowing would likely be a good thing as it's been nuts. I do not think rental commissions are part of the NAR commission settlement.

In my local area, most MLS rental listings only offer agents 10% of 1 months' rent to place a tenant, some even only 5%. I've helped my sellers find rentals in between homes or help clients' kids find a rental, so I've dealt with MLS rentals, but I don't normally handle them. I think most of these PMs make a lot of money off application fees, and have heard many stories from renters paying lots of application fees without getting refunded if the unit rents to someone else. I place my own tenant in the only one I still manage myself. It has never taken long to find an applicant, and I've never used MLS to do it. Also, I'm one of those sales agents who have never charged my listing clients 6% and as a buyer's agent actually give my buyers a large credit at closing from my side of the commission (must stop once buyer's commissions aren't advertised). I became an agent years ago because I felt and still feel 6% is ridiculous unless it's clearly a problem property or a very low sales price. My out-of-state property management charges me a yearly admin fee of approx $200 (up to 10 properties inclusive with the one fee), and does not charge for tenant placement, but will add on Zillow ad expenses (I think it was like $57 last time they advertised one there). I've been with them for about 15 years, and have recommended them to many. They do offer the option of placing it on MLS, but owner can choose the fee they offer to other agents. So there are multiple valid reasons why I think 1 months' rent is way too high to place a tenant.