All Forum Posts by: Paul Hextell

I'm using an older version of Quicken, so my comment may not apply.  That said: For your situation, don't use the "Bill Reminder" that is setup by the Rent Center. Delete it and create your own income reminder manually, just as if you had a weekly bill, except this is income, of course.

Good luck, Tom.  In the interest of ensuring that I communicated my own situation correctly.... I do handle "tenant relations" myself.  Just not the initial placement. Once the PM advertises, screens and places the tenant, he/she is out of the picture and it's all on me.  A typical "tenant relation" issue interaction might be:  Tenant calls me.  I call the contractor.  Later I pay the bill.  (Often I WILL visit and look at the issue myself first but if you are too busy or on vacation that can be forgone.)

But the important thing is that you MAY be able to customize a management solution that works best for you.   Even if the right solution for you proves to be paying someone else to manage 100%, at least you will know by experience that that is the correct solution for you. (BTW, it can never truly be 100% because you can't completely trust that the PM is doing their job right.  No one will care about your property as much as you!

Tom,  I know you are busy with your "other business" but consider that you may be overestimating how time consuming it is to manage rentals on a monthly basis.  I purchased several duplexes a few years ago and have had them renovated and rented while also working a full-time job.   While I screened and placed my first few tenants myself I quickly realized that I really disliked that aspect of the business.  I wasn't all that good at it and I found it very time-consuming.  So, I stopped doing that and began contracting out tenant placement to a local realtor/PM, keeping the day to day management to myself. I have been pleasantly surprised at how well this has worked out for me.  My time investment is truly minimal and easily worth the monthly 10% standard PM charge.  Basically, all you need is a smart phone and the numbers of persons to call or text.  I say this because whatever issue that comes up can be resolved quite easily contacting the: plumber, electrician, handyman, painter, roofer, etc.  You mainly need to just develop a Rolodex that you can access from anywhere in the world.  However, you WILL need to periodically check up on your properties.  I prefer to do that myself but I suppose you could even pay a trusted friend or a contractor to do some (not all) of that as well.

I agree with Jim M.  Unless it is impossible in your situation, initially try managing the properties yourself for a while and THEN make your decisions going forward.

Good Luck,

Paul

Has the enamel trim been working out for you, Derrick? My rentals are all-latex except that on my last renovation the (new) painter really made a pitch for enamel on the baseboards, trim, etc. I did do that in that case but there has not been a move-out yet so I don't know how it will ultimately work out. In the meantime, I may have some more paint jobs coming up at other rentals. Wonder what everyone interested in paint thinks of enamel on the trim.

John, I have bought a handful of duplexes (Florida) in the last couple of years. Really like working with duplexes so far. Anyway, I'd think long and hard about taking a reduction in cash flow for the 15 yr. mortgage. Cash flow is key, especially if you want to add additional properties in the future. Remember, if things go well for you in the years ahead you can pay down your mortgage with extra principle anyway.

Are you sure you have no upfront costs? How is the roof and the AC or furnace, appliances, etc.? Is it on septic and/or well? If you are correct that there are no looming capital improvements to be made, then your prospective deal looks pretty good to me. Is the taxes and insurance in the $3000 expense figure? I have found that the expenses at my duplexes, including taxes and interest payments, is typically about 40% of the rent total. The $3000 figure seems a little low but maybe you have it right.

Some long timer posters are probably going to cringe when they read this but I prefer to let the unit go vacant so that I can turn on the utilities in my name and do all the repairs and touch-ups needed to make the unit show well. I work a full time job in addition to managing my duplex rentals and I have found that the hassle of getting the existing tenants to cooperate for showings, etc. was not worth the hassle. And my units show better empty ,with fresh paint, etc. rather than with someone else's furniture and belongings in them. My effort goes into providing excellent service and retaining tenants for multiple years, ie, minimizing the occurrence of vacancy.

I agree with Ellis. First and foremost, you need to assess your current tenant, his or her history with you and whether you want to continue the business relationship. If you are "on the fence" on that consideration I'd probably lean toward allowing your tenant the opportunity to make things right and continue on.

I like your approach, Al! I don't know if I am the best in my area but I am almost certainly one of the best. It's about customer service and having a product you can be proud of. I've been in this business a few years now. My take.... bad landlords are a worse problem than bad tenants. (I'm sure many of them really watch that bottom line.) Thanks for doing your part to give "landlording" a good name.