All Forum Posts by: Bob Collett

@Filipe Pereira I am curious... what are the typical rents in your market?

bob

Hi Everyone 

I am a property manager in the Cleveland area. I always keep 100% of late fees. These cover just a portion of the cost of collections. Often, we offer to waive late fees if tenant honors their promise to come current. 
With respect to maintenance, I charge a 15% markup. Most charge 30% markup or more. Beware of PMs who claim no maintenance markup... they might not be telling you the truth. I always suggest asking a PM what they typically charge for a hot water tank? What is minimum service call fee? What is typical cost for a new furnace? What is typical cost of an eviction?.

These answers will give a good idea of what the reality will be

Bob

@Steve Morris The residential property disclosure form (in Ohio) must be filled out and signed by the seller.   It has nothing to do with the wholesaler, because he is never actually taking title (ownership).  The disclosure is usually not a big deal for an investor, but it could be a very big deal if there is a hidden defect, like lead, or sewer system failure, etc. 

The only exception is for banks (well known for putting lipstick on a pig), and for attorneys (only when offering a property for sale as part of an estate).  

Robert Collett
Residential Property Manager, Remax Trinity

CJ

There were lots of good opinions offered.  I would tend to go with A because of the higher income and stability.  However, before selecting either, I would always get a criminal background check and and evictions report.  Foreclosure is one thing... an eviction is something else.  The criminal background check will likely make your choice obvious.

What do your written tenant requirements say about credit score?

Also, keep in mind that "recently separated mother" is a protected class by virtue of children.  Don't even think about using that as a deciding factor or consideration in weighing the merits of two prospective tenants.

Bob Collett
Remax Trinity Property Manager, Cleveland OH

Kwame

That is an excellent question.  I recently walked away from what appeared to be a great deal in Parma Ohio.  There were several red flags.  First, I had to use their title company.  After some research, I found the title company to be reputable.  They probably have extensive experience with these types of deals.  

However, the wholesaler was a middle man and did not have a direct relationship with the seller.  This, I don't really like.  But the deal breaker for me, was that the wholesaler who was assigning a contract, was not willing to show me the actual contract the he was assigning, and also would not provide a Residential Property Disclosure Form which is required here in Ohio.  He said "we just don't do business that way".  Since I am big on "full disclosure", I decided to walk away.  Glad I did.  Sometimes the best deal is the one you walk away from.

In Cleveland and inner ring suburbs, we are getting plenty of inquiries, but with more no-shows than usual.  We are also seeing more credit issues and more criminal hits on background checks.  

I had to chuckle when the Ohio Division of Real Estate recently sent out a reminder to Brokers advising them to check the criminal background of would-be new real estate agents.  Since new agent applicants must disclose any criminal convictions... the Division stated "please remember that DUI, OVI, driving with a suspended license, driving with fraudulent plates are not routing traffic violations". I get this from prospective tenants all the time that "I have no criminal convictions", and then they come back with two dozen traffic violations, contempt, disorderly conduct, etc.

I agree that the best candidates here are staying put unless they have to move.   In the Cleveland market when folks "have to move" the reason is often not a good one... "I had a bad landlord", "or the eviction was not my fault"

Background checks and both employer and prior landlord checks are now more important than ever... Be sure that you have well thought out, written tenant requirements. 

Bob Collett

Remax Trinity Property Management

@Eduardo Laffosse What zip code is your property in?

Bob Collett

Property Manager

What’s the question?

Doug

Parma is a great area and my #1 target area for rentals. I would be happy to help.

Bob

@Doug Reed what is the zip code for your property? Make sure your agent does credit and background check.. and has written qualification guidelines to avoid any fair housing issues.Are you considering section 8?

Bob