All Forum Posts by: Scott Houin

@Isaac Galli  

Monarch title has a PM company.  reach out to Andrea Crawford.. I have never used them but I know Andrea.  I currently use 443stop.  I have not been happy with them and I’m currently shopping around for PMs.

Tyler Nielsen has a company. Just google search him.  I can’t post numbers or contact info in the thread

I have worked with Nathan Jones a few times.  I'm not sure how much he does in RE, but i know he does estate planning.    He's a good dude and can probably point you in the right direction. 

@Isaac Galli  Welcome to Columbia.  Congrats on starting your real estate portfolio.  There's a ton of information on this site so enjoy!     If you ever have questions or need anything please reach out. 

When I wrote this post I really was just looking for advice on the PM, but it kinda went off topic on to raising rents or not raising rents. I'm glad it went this way because I didn't think that raising rents $25 was really that big of deal and kinda just though that's what landlords did. LOL I agree with many of you that I don't think it's a good idea to raise rents if increasing the rents my cause more vacancy, but In this situation I'm not sure it would as I believe I am under priced by at least 50 maybe 100. The only way for me to know is to try. I really don't understand why you wouldn't maximize your ROI when you can. You can always go back to the lower rate if it doesn't rent for a couple of months and this is assuming your tenant doesn't just accept the increase. My daycare has raised my rates by more than this every year for the last two years, was I pissed yes, could i have found a different day care-yes, did I? No because in the end that would have been a hassle and overall i was pleased with the company. I guess my point here is why not try? I also think my perspective on this might be different this now because I only own a handful of properties and i'm trying to hustle to maximize my returns. I could see having a different perspective if i owned 300 units and was rolling in 30k a month in CF.

To get back on topic, I think the main issue with my PM is lack of communication.  At this point I think it would be best to treat them like I would any other employee.  I will reach out to the discuss my concerns, listen to their concerns(they could have a reasonable explanation or maybe I am micro managing) and see if we can set new expectations going forward.  If we can't come to a solution then it's probably best we part ways mutually and professionally.  No reason to burn bridges.  i might need them later. 

I'm sure it will work out in the end!  Thanks again

@Aaron Hunt

@Jay Hinrichs

@Nik Moushon

@Account Closed

@James Wise 

I'm don't want to manage the properties myself that I know for sure.  I also agree that they probably have a better grasp on the market overall.  However, just because I want to be passive doesn't mean I don't want to be communicated with.  This is not a situation where i called them up once and asked them to raise rates.  I actually reached out to them initially asking their thoughts on us raising rates.(over 6 months ago)  They didn't mention any concern about vacancy or market rates.  At that point i confirmed with them that we will be raising rates.  They responded with "Sure no problem we will do that"  I also sent them a reminder email 1 month before each lease renewal.   

MORE INFO: This isn't the only issue we have had with them.  We have had several issue with accounting and there numbers not adding up.  They have made some unauthorized repairs which have cost me more then what was needed.  They also have my property marketed incorrectly online. They have even paid me as much as 2 weeks late then per contract.   

I would prefer my investments to be mostly passive, but i also don't want to be taken advantage of.  I don't own a lot of properties so maybe that's why.   Is it totally unreasonable of me to expect communication on these issues? Is this normal behavior from PM's and something I will just have to deal with or should I expect more from them?

@Jay Hinrichs You don't ever raise rents?   This is interesting. I always thought a slow and steady increase would be better then an abrupt increase 2-4 years down the road.  Eventually won't your properties be under priced with inflation?   Or do you just wait till they turnover and then raise rates. I curious to hear your thoughts on this because I have a mentor that told me they raise rents every year no matter what and i should do the same.   

Thanks for all your responses.  I did check the PM agreement and it does state in there they have discretion to establish rates subject to me notifying them in writing.   They were notified multiple times via email and they responded confirming the request.  No mention of not being able to raise the rates or bad market conditions during those request.  

I'm not sure I can take much legal action as a lawyer would eat up a lot of the fees, but I have reached out to them asking what evidence they have that wouldn't support the increase and why I was never informed.  As @kenny Dahill suggested I will attempt to be reasonable and give them a chance to correct their error.  If they respond inappropriately we will be giving them notice and finding a new company, which we might do anyway.   I don't want to burn any bridges in town as Columbia, MO is a small town.  

Thanks again this was helpful. 

About 6 months ago I reached out to my property manager in writing and ask them to raise rents on all my properties by $25. I reminded them to do this about a month before each lease renewed. When I got my lease renewals I was told by the PM rates were not raised due to market conditions. Three out of four of my tenants renewed there leases and I was never notified that they weren't going to renew if we raised rents. I feel they didn't attempt to raise rents and just simply asked them to renew. I also have done a market analysis on the rents in the area via MLS, craigs list and zillow and found that the rents we requested were well within the market.

Should i fire this management team and find a new one? 

I recently received a maintenance work access authorization for one of my rental properties.  The county is looking to remove an existing storm water system and install new ones.  During the process they need 2-3 small trees and several bushes.  Does the county have to reimburse me for the these trees and bushes.?  I asked the manager of the project and he said they "typically" don't .  I wasn't sure if i had any rights on this?  

Thanks!

@David Waddleton I would suggest the Midwest. I personally live in Missouri and have bought homes under 40k. Also, with the west coast getting so expensive people and businesses are looking to move out of that area. I would expect the housing prices to appreciate in areas like MIssouri over the next 10 years.