All Forum Posts by: Joshua Feit

@Mike McCarthy Yes, we've had our certified plumbers do the on-site meter readings, and they are showing no problems. We have the written documentation to back it up, too.

@Andres Rivero Yeah -- that sounds like Atlanta watershed. I generally don't like conspiracy theories, but the whole thing feels like it's rigged against landlords. ATL is so deep in the hole, and the infrastructure is crumbling. Sometimes I think they are just pinning arbitrary bills on unsuspecting landlords, turning them into illegal liens against the property, and then hoping that we will skip the hassle of litigation and just pay them off at the time of conveyance.

I can't believe something as simple as water service can turn into such a huge headache. Thanks mostly to Atlanta Watershed, I am looking outside the city for future investments. (Just bought two houses in Jonesboro, for instance.)

Let's stay in touch, and we can help each other deal with these water monsters.

Hi Daniel,

I'm not an expert -- I'm newer too! (I have been investing for a couple of years, and I have nine units here in Atlanta.) So take my perspective for what it is worth:

It all comes down to numbers. In my opinion, a good buy/hold deal is one that makes money every month. So, if you can find a property at your price point that will cash flow, you probably have a winner. If not, I would stay away.

Use the BP buy/hold calculator to make the calculations, and over-estimate all of the monthly costs. And always include 10% for management, even if you are going to manage it yourself. (Because, you not want to self-manage the property forever, and you want to make sure the numbers will work if you do decide to hire a manager.)

Best of luck as you hunt for a solid first property, and let us know when you find one!

Cheers,
Josh

@Dan Mahoney Thanks for the response! I have been going down in person -- seems like every month I'm making an Atlanta Watershed pilgrimage.

Good advice on separating the issues. I really do wonder if something is wrong with the meters. We had a regular meter at one property, which was completely fine. ATL came out and replaced it with a  'remote read' meter, and suddenly, all of these issues!

When the properties are vacant, we are getting bills around the $100 range (when there should be very little usage) and then as soon as a tenant moves in, the bills jump to the $1000 range. 

It feels like ATL is just adding an extra '0' to the end of the bills.

Regarding the liens, do you have an attorney you would recommend who would be able to get this cleared up?

What's up BP -- if you are in Atlanta, I need HELP!!!

Atlanta Watershed is NUTS. I have two properties in the city limits, and both are having massive water problems. Every month the bills are huge, even though we have sent out certified plumbers multiple times, and we have reports stating there are no leaks.

We keep contacting the watershed, and are getting nowhere. Even though the bills are in the tenant's name, and even though GA law clearly states that these bills follow the tenant, Atlanta Watershed pins them to the property as liens, which need to be paid off before the properties can be conveyed. 

So we are racking up crazy bills that they are going to try to pin onto our properties, and they never address the problem.

HELP!!!

1) Does anyone know anybody at Atlanta Watershed that is actually empowered to help people like me? (Instead of the abysmal customer 'service' reps that answer the phone)

2) At your ATL properties, do you just let the tenants set their own bills up? And if so, do you track whether or not they are paying these bills?

3) If you have ever sold an ATL property that had an Atlanta Watershed lien on it from a similar situation, how did you get rid of the lien so the property could close?

@Account ClosedTrue! Tenant screening is not an issue -- most of our tenants stay for years, and we've had no evictions. This couple got a divorce and decided to move. Not much we could do to change that situation!

@Account Closed I appreciate this perspective. And I am looking forward to your post.

Thanks everybody! Good to know that the quote is not crazy.

Sounds like this is the summary of wisdom here

-Don't paint in between every tenant, maybe try every 3-5 years
-Try to use the security fee if possible to make the repairs
-Try to use eggshell paint so it is more clean-able
-Try to negotiate with the PM on price and scope of work

Really appreciate the advice!

@Tavis Stice
PS -- I know that turnkey usually refers to buying rehabbed properties with a tenant already in them. Around here the management companies refer to in-between rehab and repairs as turn-key. Thanks for the clarification though!

Greetings!

I use a property management company to rent my units, and they are doing a good job. But every time one tenant leaves and another comes in behind them, the costs associated with the turnkey repairs seem really high.

For example:
I have a house that is 3/2, 1500sf. The quote on the repair work is $2500, which includes painting the whole house for $1500 (and a bunch of other miscellaneous stuff, including a couple of small plumbing repairs, reglazing the tub, cabinet repairs, etc.)

The house went vacant a year ago, and we paid to paint it then -- for $1500.

Questions:

1) Is it normal to paint the whole house between each tenant?

2) Does it really cost $1500 to paint the whole house?

3) How does anyone make money on their rentals with this sort of expense on the turnkey?

Let me tell you something about Atlanta Watershed -- Atlanta Watershed is the WORST. Every property, every time, they find a way to stick landlords with ridiculous bills.

On two of my properties, there are some outstanding tenant bills (in their name) in amounts of 10K and 5K.

@Michaela G. is right. There is a GA statute that won't let them turn these debts into liens against the property. I hired an attorney and he verified this was true.

But ATL doesn't give a s&%# -- They threaten to do it anyway.

They're the worst Jerry, the WORST!