All Forum Posts by: Ron Fiscus

I agree, those are steep rates, takes most (if not all) of the profit out of it.  Thanks for the input, I have been looking for such a guy, but it can be challenging with the C level properties.  One of my issues is if you have a good maintenance guy who knows what he's doing and has some business sense to him, they are home owners or too expensive for this level of building.  But, I keep looking.

Hello,

This is a very similar situation that I’m in and I would like to tag along on this conversation. I have had difficulty filling the position with a good candidate. I have a “C” level building (low income in tough part of town) and have tried many options. I’m not clear yet on my next move, but I do know that paying a maintenance contract provider that charges $65 per hour around here doesn’t work. I routinely get the tenant call for a bad garbage disposal, plugged sink or toilet, stove burner that doesn’t work, window crank that’s stripped, even a light that’s not working (and it’s the light bulbs), change the locks, leak under the sink, etc., etc. I can go on and on. The problem is that most of the time I get these calls they are very often the 20-minute fix. The problem is to have a maintenance guy or company go over to address the item I get billed 2 hours for their round-trip travel and time on job. I’m not saying this isn’t fair, it might take them 2 hours before they are back, but economically this doesn’t work out on my end. For example, I can pay $90 for a garbage disposal and do it in 20 minutes. If I pay someone its 2hours labor and the $90 for the parts. I will typically get 4 or five of these calls a week and as you can see the maintenance expenses start to add up before we even throw in the make ready work and the capital items. When I talk to the Realtors about maintenance costs they say I should plan for $70 per door per month. I’m hear to tell you, no way in my experience. I wish you the best and would love to share ideas.

Ron

Sounds good, talk to you in the next day or two. 

I would love to chat with you about this building and the forecast income/expenses.  I have a fairly painful situation with my 30 unit, but it’s a C level building in a lower end part of town.  This has been an eye opening experience for me.  I’m thinking I want to go back to small rentals after this one.  

Yes, it’s the same company.  I deal with local office in in Anchorage if you called them (https://representatives.countryfinancial.com/lyndsay.briley) I’m sure they would be able to direct you.  And I forgot to mention the 30 unit was built in 1977.  

Try Country Insurance.  I have a 30 unit in Anchorage and paying $13,000 per year on about a $2,000,000 building value.  I have another 12 plex with Country and had a fire about 4 years back and they treated me very good.  Also, great question on the self insurance, I would be very interested in this too.  Been doing rentals sinc 1994 and the only claim I have ever had was the fire and it was about $30,000 in damages.  Thankfully never any injuries at any of my properties, that’s what scares me.

To be fair we need to consider the risks with rental property as well.  I wont waste everyone's time hear, but if you want to hear how bad things can go with a rental property, feel free to contact me at (the website didn't allow me to post my email).  Just trying to help give a balanced view.  I have had plenty of good rentals, but please consider how things can go out of control and consume your life and money.  I will always have rentals until I fully retire, but be careful and consider the possibility of what can go wrong.  For one small snapshot, consider spending $12,000 on bed bugs in one year.  I can tell you that was never included in any of my (or the professionals) pre-purchase projections.  And may more.  Best wishes for all in their future investments, go make lots of money...it's good for you and our country.      

I would like  to discuss how other owners are dealing with maintenance.  I currently have 50 units in Anchorage, Alaska.  I find that $65 per hour for maintenance work is fairly common.  Rents don't support paying a maintenance guy $65 per hour.  What are other owners doing for maintenance and how much are they paying per hour?  At what point can you justify hiring someone for maintenance, if ever when you consider all the headaches and extra effort to have employees, and the stress of keeping them busy and enough hours to keep them happily employed?  I can go on and on regarding this topic because I have tried a few ideas but still struggling with this issue.  I can also give plenty of examples of issues I'm having.  This is causing my growth potential to stall at the moment. 

Thank you,

Ron 

Wow, $220,000 per door cost.  This must be a trendy water front property.  No way that’s going to work, I guarantee you if you put something together at those numbers you would be sorry.  Take it from me, I have a 30 unit that keeps me awake at least two nights a week.  Not a pleasant situation to be in.  I’m happy to share my expenses.  I’m no pro like a lot on this site, but I have a fairly good handle on the expenses since I pay them.