All Forum Posts by: Bob Collett

As a property manager in Cleveland, I manage mostly 1 to 4 unit properties and I use section 8 or Eden in some of our properties but not all of them. 

The reality in Cleveland and the inner ring suburbs is that many if not most renters live day to day, hand to mouth… even when they are not on vouchers. The section 8 does certainly help keep the rent money coming. I have only had one section 8 eviction for non payment of rent. As others have stated, the most important part of accepting section 8 tenants is to do your due diligence and pay close attention to background checks and the total number of occupants. Make sure you have well thought out written guidelines. In summary, in my business, section 8 is a case by case decision.

Your other question is more difficult. It is very difficult to control expenses even when you are in full control of operations. How do you know how much your maintenance is being marked up by your 30% partner? How do you know if they are churning your tenants?  The most important thing in my opinion with a partner is trust.  How well do you know and trust the 30% partner.  How do you handle dissolution if it becomes necessary? Will there be a property manager involved or will your 30% partner provide the management functions? a huge question is how is the 70/30 split calculated? 
having a partner who finds the properties and makes them rent ready sounds very attractive for sure… but you certainly will need to be hands on and ready to use your veto power to protect your 70% interest. You will need to oversee the entire operation, even though your 30% team is doing the work.

Good luck.

Amir

Several months is way too long. Where (zip code) is your property located? What is the condition? How are you marketing? 

bob

@Marcus Lopez. Probably.  PM me if you have specific questions.

Bob

@Jag C. I think if you send the current property manager a termination letter, and ask them to cooperate with the new manager; that should do it.   I find that most property managers don't really want to work with a client that is not happy... so the feeling might be mutual.  Give them a chance to make things right, but if there is still a problem; send the termination letter.  Let them know that you simply need to go in another direction... no hard feelings.

Bob Collett, Collett Property Management

I generally do not think it is a good idea to have the owner do work himself or hire their own contractors.  Since I only markup maintenance by 15%, there is no real savings for the owner.  If the owner wants to do so, we would talk about it, and then I would most likely allow it.  If the reason is because they want to save the 15% mark-up, then it is probably an indication that the owner needs a new management company.

Years ago, one of my owners wanted to hire their own guy to do carpeting to save money.  When the work was done, we had a big mess to clean up as the carpet company left all of the carpet on the front porch :)

However, if the owner tells me that his uncle is a licensed electrician or plumber, and wants to do the work... I am happy to give it my blessing; since I really don't make money with a 15% mark-up.

Bob Collett, Collett Property Management

@Ned J. I agree with Ned. Most mold is not toxic, and even most black colored mold is not "black mold". When I have a situation with mold, I first eliminate any source of water or moisture. Next clean the area with something like TSP. If the tenant is in a panic, or sometimes even when they are not; I bring out a certified mold inspector to test for toxicity. This costs about $300 - $400 in my market.

Be sure to hire someone who only tests and does not do mold mitigation.  The mold mitigation guys will ALWAYS find dangerous mold!

Often, once a tenant (especially their parents and friends) hear the word mold or see any kind of mold, they go into a panic and nothing short of tearing down the walls will make them happy.  And then they will still not be happy.

For these types, I offer them the opportunity to break the lease without penalty, and also give them their security deposit back.  Of course before moving in new tenants we want to make certain there is no danger to tenants or the property.

Bob Collett

Collett Property Management, Plum Tree Realty

Matthew

Any professional property management software platform will do the job.  I use Buildium, but online payments are a standard feature across all platforms.  The "Pay Near Me" option is also good, so that tenants without checking accounts can go to a nearby CVS and pay with cash which is then automatically posted and deposited to your property management platform.

I allow tenants to mail money orders... but avoid all cash collections.   If you take cash, then you have to count the money several times, and you have the added burden of getting it into your accounting system (property management software platform), and often more than one person has to count the same money.  Worse, once a tenant knows that you will come and pick up the cash... its like having a part time job.  We just don't do it.

Bob Collett

Collett Property Management

Good luck Ivan.  Its hard to find good contractors in the area... and especially hard to get them to give an hourly rate for handyman type service calls.

Most of the responses here are reasonable, with sewer about 50% more than water.  More importantly, both have increased considerably over the past year.  Gas has probably increased 50% over the past year.

Remember, if I get a running toilet or any kind of leak, it can run up a huge bill very quickly into hundreds or even a thousand or more.  

I have a clause in my lease that requires tenants in SFR to pay all water and sewer. I have tenants in two family units each pay $50 or $75 monthly toward water and sewer.

Bob Collett

Collett Property Management

Find anyone yet… I too am looking for someone to do my pre-rental cleanings in and around the Cleveland OH area… some are normal cleaning… some can be nasty. East side and west side.

Bob