All Forum Posts by: Mackenzie Grate

@Norma Rosa This is a hard situation and I commend you for putting yourself out there and asking questions. It is clear you want to make sure you do right by your tenants but also grow your business. No matter what you do, people will be unhappy. This is the hard work that most people don't realize when becoming a landlord. Tough decisions have to be made and you do your best to both be compassionate and support your tenants while also trying to not get taken advantage of and keep your business afloat. I would say at this point, definitely enlist professionals since this is your first one. Whether it's an eviction lawyer, a property manager or both. Watch how they handle it and take notes. It's critical you learn from this, especially if you find another deal in the future where part of making the numbers work involves increasing rents. And you may decide in the future that you only want to do deals that are delivered tenant free. Either way, use this as a learning experience, document what you learn along the way and apply it to future acquisitions. You probably will end up having to pay more out of pocket in the short term, but this is the cost of an RE Investing education.

Sending you good vibes from someone who has been in your shoes. Good luck and I'm rooting for you!

In my experience, 1031 exchanges have been winning out bids in this market because they are viewed by seller's a quicker (although they are not always) and as a motivated buyer who must close. So if switching to a MF is more in line with your goals (higher cash flow, growing your portfolio more in NYS, etc.) then I would say go for it. Just make sure it is aligned with your end vision and goals for what you want allocation wise in your investment porfolio.

Good luck! Excited to hear what you decide!

I agree. Send them an introductory letter immediately that outlines who you are and how to reach you. I would also introduce myself to them in person with a thoughtful little gift. It doesn't have to be significant. Just something small to start to build the rapport.

In terms of raising the rents, I would notify them as soon as possible. Just make sure you follow the rules for the state. If a tenant has lived somewhere over 3 years, you must give them 90 days notice. If it's 1-2 years, 60 days. Less than a year 30 days notice. That goes for all aspects: raising the rent, renewing the lease, etc. Additionally each town has enacted slightly different laws. Depending upon where your rental is located, there may be a rent increase cap. So make sure you are very clear on what the laws are before you take any steps. This is crucial because if you do raise the rent, but didn't follow local regulations, your tenants can challenge it in court. NYS courts tend to err on the side of tenants so make sure you are following the law explicitly and stay on top of the new regulations because they are continuously changing.

Good luck! You got this!

 My property manager collects it using Appfolio. But if I were managing on my own, I'd use Zelle directly to the property's bank account. 

I just linked @Claudia Day's comment to note that every town and jurisdiction can have specific rules and caps on how much you can charge in late fees. While this works for Claudia, it may not be allowed everywhere, so double check your town's rules first.

Good luck! Excited for you!

I use Stessa and love it. It actually has taught me a lot about book keeping specifically for real estate investors. It also helps me to ask better questions with my accountant as to what I can write off and what I can't. Plus... it's FREE! So I strongly recommend it. :)

I hear you and this is a frustrating situation for sure. Definitely review what your contract says, but also consider this...do you like your PM and do you want to continue working with them moving forward. If so, you may have to compromise here... You want to be delicate and not ruin the relationship. If you really like them, have a critical conversation for how you would like an issue like this handled in the future and put it into writing. Sometimes it's better to eat a cost than to burn a bridge. Especially if they provide significant value to you overall...

Good luck! You got this!

Yeah, I'm not sure it will be worth the time and effort on the back end for repair and maintenance...if this is more of an excuse to check on the property, that is one thing. But even that may seem a bit excessive for tenants. Totally up to you though. If that would give you more peace of mind, then do it. :)
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I work in the area. It is great for long term rentals and a lot of people are getting priced out of Kingston and moving up that way, which is good for finding qualified renters. The village is becoming more popular as well. I'm def happy to hop on the phone with you  and discuss the area a bit more too. Happy to share with you what I know. :)

#2. It's not just about the deals for me, it's about if the wholesaler is competent and trustworthy or not. I oftentimes disregard the cold emails or texts because I know they blast them out to everyone and I have no idea how solidly vetted the deal is or not. Build the relationship first before sending. I think you will find a higher response rate from quality buyers that way as well.

Good luck!

I'd say this is an opportunity to get creative. Have a critical conversation with them and offer a solution. Maybe you ask to put your signs up and that you will forward any leads to them that you do not end up offering an apartment to? Maybe they agree to send you their leads that don't quite make enough money for their units? See if there is a way to work out a win/win. And no matter what, build the relationship because you are sharing the same complex no matter what. They are the bigger fish, with the upper hand, but if they like you and you can figure out a way to collaborate instead of compete, it could be mutually beneficial. 

Good luck! You got this!