All Forum Posts by: Richard Cole

As property managers in Massachusetts where cannabis is also legal, we understand your concern. 

We haven't found smoking in the units to be a problem with a strong lease and clearly outlining expectations multiple times in advance, including in written, posted building rules. If they are strong applicants who were up front about their medical card, they most likely will be okay if there is no other red flags that would trigger a more blatant denial, like a recent eviction. Make it clear in person and in the lease that they cannot smoke or grow inside the unit. The person could have concealed that from you and smoked inside anyways, so at least they started by being honest, which we find to be a good indicator that they should be in the future. 

Trust your gut and talk to a lawyer if you still feel unsure. Be careful not to run into a possible discrimination suit if the person may have a disability, which requires the use of medical cannabis.

It really depends on the tenant. If they live like absolute pigs, are uncooperative, and the unit will need a heavier turn, then yes, I could see waiting to show the property.

We have great success in pre-leasing our units to minimize vacancy between tenants. However, there are times when tenants live so disgustingly that it is more detrimental to show it before it is vacant. The longer it sits on the market, the less interest they'll have when they are physically able to show. 

It could go either way on this one.

Hi Nick,

-I'd look for someone who has experience within your asset class and a solid understanding of the market. Certifications, licenses, owning rentals, and the ability to do in house maintenance are also beneficial.

-Ask about experience, rental comps, vacancy rates, time to lease up, hidden fees, and how their pricing is structured. 

Hope this helps!

Hi Chauncy,

1. When a property is vacant, there is still overhead and time involved in managing the building out side the scope of lease up. Such as, maintenance projects, paying utility bills, site inspections, etc.

2. Lease renewal fees are typically negotiable. This covers the cost of running rental CMAs, getting owner approval, delivering notices, tenant communication, renewal inspection, and lease generation. 

3. Pest control, project management fees, in house vs outsourced maintenance. Look for someone who is transparent on pricing and has an investor's mindset.

4. Property managers are an essential real estate team member and they need to make money to stay in business and effectively manage your portfolio. 

Hope this helps. 

Check out SilverLiningsPM.com for a free quote. Expert team of real estate professionals dedicated to managing your properties like we own them and helping our investor clients profitably grow their portfolio.

My partner Makay left a neuroscience track at 19 years old to pursue real estate. We have since flipped 3 houses and own 9 rental units since we began in 2017. She also has her real estate license and we have started a successful and growing property management business together in one of the toughest states for investing or management: Massachusetts. Build a strong team and educate yourself. College is not for everyone.

Hello everyone, 

After some hefty pest control expenses from several building that we manage, we realized that pest control was not a line item we had when running our annual expense projections on a building. However, it is significantly impacting cash flow for some of our clients. 

We're in MA and have noticed a range of $680-950+/year for pest control in multifamily buildings in the area. Heads up to any investors running numbers and wondering what could come up in that "misc" expense category. Pest control is one of them. Going forward, we'll be adding this to our expense projections as its own line. 

What have other rental property investors noticed as unexpected expenses that you weren't aware of before investing/managing property? 

Thanks to all.

We manage property in Lowell. Check us out today for a free quote SilverLiningsPM.com

We have a potential seller finance deal on an off market duplex in MA. 

The seller has an existing mortgage of about $250k. The ARV is $225k, but the property still needs $35-50k in work.

Current mortgage is $1300, separately metered, with potential GMR of $3000-4000/m. Potential cash flow $1-2k/m

Curious as to different perspectives on creative financing options. Would you go subject to, lease option, or otherwise?

Will taking this subject to trigger due on sale? If this is 100% legal to do in MA, how would you structure the contracts to best protect both parties? How would the deed be held? Would it cost an ongoing fee to have a 3rd party attorney pay the mortgage? Is that even necessary? 

How does this all fit into Dodd Frank regulations? 

These questions would probably be best answered by the king of creative financing @Chris Prefontaine 

Looking forward to your input BP community. Thank you all as always for your insights!

Hi Matthew, yes, we're investors looking for value add multifamilies in that area.