All Forum Posts by: Phillip Austin

Very simply, large corporations pay into the tax base of that local community and that revenue is used to improve the community and make it a more attractive place for people to live. They're driving demand.

Communities will use that tax revenue to increase the overall appeal by providing more services, improving infrastructure, etc. 

It will also bring a lot of high paying jobs to the community. Those employees want nicer homes, restaurants, community centers, etc. They put more money into the local economy.

It will also attract all types of investors. Local restauranteurs who see an opportunity to open a new restaurant. Real estate investors who see development opportunities. You may see more "higher end" accommodations and hotels being developed.

It's a trickle down effect. But essentially Apple is injecting a TON of revenue into the local economy which attracts investors AND people wanting to move to the area.

@Jay Hinrichs @Russell Brazil Got it. So REI in California only makes sense if you've been there since the 70s or 80s OR if you're financially well off and can afford a few million dollar properties.

@Kenny Smith Thanks for sharing!

We all know 'housing affordability' is one of the hottest political topics as of late but I'm not seeing any commitments to increase inventory. 

The vast majority of new construction, especially in Denver metro and the surrounding communities, has been multifamily and townhomes. Built to rent communities are also becoming more popular. But, we don't need more rental inventory. We desperately need new homes being built.

If SFRs are being built, they're slim 3-story units often under 1,800sqft and priced around $600k+. Your "backyard" is shared with 4 or 5 of your next door neighbors. The new inventory is not appealing.

@Narotam Relwani Welcome to BP!

Pros - guaranteed rent, tenants stay longer on average

Cons - more mgmt needed (lease violations), they tend to not take great care of properties (increase maintenance expense or deferred maintenance)

@Esther Iroko Find a local eviction attorney and follow their advice. 

Yes, you need to post a demand for nonpayment of rent (or something similar) immediately. Becoming delinquent on month 2 of your lease is not good.

I would recommend being more diligent when screening tenants. If they're delinquent after only 2 months, they're either facing sudden life changes or you did not properly screen them to begin with.

Hi @Tanya Maslach, thanks for sharing!

So I understand, you are charging the tenants a $145 invoice because the plumber was unable to find anything wrong with the garbage disposal. This is also not the first occurrence. Is that correct?

To be honest, I would let your PM resolve the issue. You hired a PM so they can handle these types of issues. Furthermore, this is a minor issue that shouldn't require your involvement at all. 

Assuming you already paid for the first occurrence, if it happens again and the plumber doesn't find anything wrong then, yes, the tenant should be responsible for the invoice.

Your PM should be setting those expectations when they communicate with your tenant.

"Hi, we noticed you submitted another maintenance request for the garbage disposal. Have you followed the instructions we provided previously? I'm happy to send someone, however, if they find everything is working properly, you will be responsible for the cost."

This is also a $145 invoice. If they're great tenants and you want to keep them, I would consider covering the invoice and having your PM realign expectations so you don't incur more expenses in the future.

Thank you all for the thoughtful responses!

Each of you are correct in thinking expectations were not properly aligned during the onboarding process. Another broker on the team onboarded this client and transferred them to my portfolio due to capacity issues.

I have since realigned expectations with this client and addressed all of their concerns. All is well for now! But I don't foresee them being a long-term client.

Setting expectations is paramount. This owner has been self-managing for several years and thinks we should abide by their personal philosophy and processes when it comes to managing their property. 

As PMs, we're always open to feedback but we have, or should have, a proven process on how to manage properties. When clients come onboard, that process should be explained in great detail and by signing the PMA, you are agreeing with our standard processes and core values.

Far too often that process is never fully explained and/or proper expectations are not set, hence new clients try to tell you how to run your business.

@Lenny Montesano I love the hustle! A 22yr old father, student and college athlete that wants a side hustle. Kudos!

My best advice would be to begin networking as much as possible and find a mentor.

You've already taken the first step which is gaining knowledge. Continue reading as much as possible and couple that with your ability to network and meet people in the industry. 

REI is an ever changing landscape and you're chances for success are greater when you learn from and hear from others who have the experience.

As PMs, 20% of our portfolios take up 80% of our time. A few clients or properties can suck up all of our time and attention and ultimately, prevent us from taking on more business. Our end goal is to be in a position where we can be very selective and choose the clients and properties we work with so that doesn't happen. We desire a certain level of autonomy and trust with our clients. It takes time but that's the desired outcome. 

If you're a PM, how would you handle this owner? Would you fire them and give them a referral? Try to realign expectations? 

If you're an owner and investor, how hands-on are you with your PM?

This client was transferred to me by another PM in our company because her portfolio is maxed out and she doesn't have capacity to take on more properties.

This client had been self-managing a short-term SFR for the past several years and recently converted it to LTR. Her and her husband are getting older so they hired us to manage.

Tenant moved in the first week of December and there's been an excess of communication from the owners for somewhat minor issues or concerns.

- Tenant submitted a work order for low water pressure in 2 bathrooms

- Tenant submitted a work order because the garage door doesn't close all the way and left a 2-3 inch gap at the bottom

- Owner initially refused to address either work order

- Owner demanding the tenants place furniture pads on each piece of furniture

- Owner calling multiple times to speak through the work orders, asking when they've been scheduled, calling a couple days later requesting the invoices

- Owner calling because they want to access their storage in the basement so they can remove several pieces of furniture being stored

- Owner now emailing requesting multiple property inspections throughout the lease cycle

- Owner questioning my experience and relative PM knowledge because I'm not following up with her in a timely manner (the following day after the work order)

Keep in mind, this is 2 weeks after the tenants had moved in and the tenants are very happy in the home.

This is something we see on a regular basis. However, I thought it would be interesting to get general feedback from the BP community. Am I being harsh by letting this owner go?

I would recommend seeing the eviction through to completion and using it as leverage to recuperate as much from the tenant as possible. 

"I'm willing to cancel the eviction so it doesn't reflect on your record if you vacate on x day and pay x toward your outstanding balance"

Most tenants are unaware of the long-term consequences when they have an eviction on their record. Explain how difficult it will be for them to rent in the future. Explain why it's in their best interest to not have it on their record. Then tell them you're willing to forgive their entire balance if they're willing to pay x and move out by x date.

Do not cancel the eviction though until you confirm they're out and held their end of the agreement.