All Forum Posts by: Rachel Payton

I have an offer in on what will hopefully be my first commercial investment property.  I'm wondering how the transfer of ownership is going to work in terms of relations with tenants.  When is it ok to start communicating with tenants?  Is it the current management company that informs them of a change of ownership? and therefore management?  Or is that responsibility with me, the new owner?  Any other information relating to this would be helpful!

@Thomas S. I never said they were a good tenant.  I said "life happens".  And when I have a tenant who struggles from time to time so I have to give them a notice, and they comply with said notice, that it's not grounds for eviction.  It's not an emotional reason, it's a moral one.  The company I work for agrees.  Thank you for reminding me why I do things the way I do them, and not the way you do.  My vacancy rate thanks you too :)

Thanks for all the info! We just put in an offer on the 5-plex today! So we'll see what happens. We've decided the best option is going to be starting an LLC, which we'll transfer the property to after closing (if we get it) I've spoken to 1 bank so far about financing, but plan on speaking to a couple more. It's going to be interesting learning the ins and outs of commercial real estate, but I'm excited for the challenge.

I appreciate the feedback and constructive criticism. I am able to admit if I am making mistakes, and maybe I do need to be a little harsher when it comes to giving notices.  I can make that change.  But I'm still not going to force out a person who has called our complex "home" for over 8 years (which in our industry is gold), when they have been compliant with every notice I have given them.  I think the bigger issue will be navigating the differences between myself and my assistant.  I do appreciate her experience and attitude.  I think it will push me to be a little more strict.  But I love that the company I work for realizes we provide housing for families, not just collect rent for profit.  Thanks again for the words of wisdom.  I will definitely post again if I have concerns or questions in the future! :)

I've been working at the same apartment complex for 8 years now.  I was promoted to manager early this year, and my new assistant manager has very different ideas on how to manage a property.  The asst. manager has a lot of property management experience, but all in California.  Oregon landlord/tenant laws are a bit different, so I knew when I hired her there would be a transition period.  

The issue I'm having is she is very black and white, by the book, "give them a notice and get them out" type of manager.  I am not.   I am aware that life happens to everyone, and one of the biggest lessons the previous manager taught me was; yes we manage a property for an owner, but we also provide housing for 160 households.  Having the power to affect their lives in such a major way shouldn't be taken lightly.  The property we manage is has very FEW problems.  Like dog poop is one of our biggest issues, few problems.  We do have a few residents who skirt the edge of what's acceptable as often as possible.  

One in particular has been paying late somewhat regularly.  I've had to give 72 hours notices occasionally throughout their tenancy, but the resident always pays within the 72 hours.  This resident has also been living at the property longer than I've worked there.  My assistant thinks we should just cut her loose. She's been paying late to much, and we just shouldn't tolerate it, and should tell her she needs to move.  To me this is so drastic and unnecessary. I mean at this point, I don't think I can serve a for cause notice.  Yes I have had to serve 72's sometimes, but rent gets paid.  When I make decisions, I try to think about any possible consequences.  Like if I did try to throw this tenant out, would a judge agree with me if I had to go to court?  Right now I don't think so.  She's complied with all notices.  

There are other similar issues going on between me and my assistant, but this one struck me as too much.  Am I being completely blind to what my property and owner need?  Should I be more cut-throat and strict about how I manage?  Any advice is helpful :)

My husband and I are in the process of selling our first (and currently only) rental, and we would like to use the money we have in equity to buy a 5-unit, multi-family property. I'm not sure how financing works for commercial properties and was hoping to get some insight. I know the required down payment will be slightly higher as well as the interest rate, but what kind of information are lenders looking for? From what I understand, financing will be less about my husband and I's income, and more about the property itself. Also, should we set up an LLC? And if we did, how would that work for financing?

Any help is appreciated!

Just heard about the site, thought I'd look into it!  I'm here because I'd like to learn more about real estate investing.  I currently work in property management, but would love to someday work for myself instead of collect rent for someone else.  I'd love to own rentals and flip houses in the future.  I recently purchased a second home and was able to start my portfolio by turning our first home into a rental.  At this point I'm eager to learn all I can.