All Forum Posts by: Shannon Allen

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $460,000
Cash invested: $120,000

Cute duplex in one of Boise's most desirable areas and will become an Airbnb!

Have you reached out to the owner?  Is this a deal going through another realtor? If you can start a dialogue with the other party you might be able to come to terms faster then throwing numbers at them!  Find out what they want out of the deal!

Good Luck

If you are looking for a Realtor make sure they know about rental properties! I would recommend interviewing companies that own or have a partnership with a PM company. Having solid data on the leasing market is very important when trying to identify an investment property. 

Our team Located in Idaho) has had huge success with investors, especially out of state! 

@Matt Devincenzo

I updated my post! Thank you for the information! 

Are you asking as a tenant or as an owner?

If asking as a tenant as long as the fees are detailed in the lease and it is mutually agreed upon it is not illegal.  There could be a grey area if the admin fee wasn't listed in the ad and then added to the lease upon signing.

If asking as an owner there should be a Management Agreement between the two parties.  If the admin fee is not disclosed to the owner I don't know if this is illegal but I would definitely look for a new company.  Increasing the rent for the tenant by adding the admin fee is not in the best interest of an owner (obviously a lower monthly rent will rent faster and more often) and the management company is not looking out for the owner.

In the situation above is the Administrative Fee the same as the Pet Damage Guarantee, it seems like the wording favors the PM company.  Most of the time when you hire a PM company you are using their vendors and contractors. 

I would start with contacting a Realtor and a PM company!

I would reach out to a PM company and find out about vacancy rates and leasing prices, there could be quite a range depending on size, location, amenities.

A Realtor can help you determine the relative pricing of the investment properties (it might take some time since there are so many) but knowing the value, cap rate, ROI will be important before determine the end price and any kind of "package" deal.

With this kind of deal it's important to find an expert!

I've seen listings on Facebook and Next Door Aps. 

Are you asking as a tenant or as an owner?

If asking as a tenant as long as the fees are detailed in the lease and it is mutually agreed upon it is not illegal.  There could be a grey area if the admin fee wasn't listed in the ad and then added to the lease upon signing.

If asking as an owner there should be a Management Agreement between the two parties.  If the admin fee is not disclosed to the owner I don't know if this is illegal but I would definitely look for a new company.  Increasing the rent for the tenant by adding the admin fee is not in the best interest of an owner (obviously a lower monthly rent will rent faster and more often) and the management company is not looking out for the owner.

In the situation above is the Administrative Fee the same as the Pet Damage Guarantee, it seems like the wording favors the PM company.  Most of the time when you hire a PM company you are using their vendors and contractors. 

There are lots of regulations between tenants and landlords but there are not as many for Owners and PM Companies.  You don't need a license, continuing education or even a degree to be a PM company.

First step call your title company. Then I would talk with the Realtor that represented you.  There is a lot of terrific advice in these threads but I recommend talking to the parties that were involved in the transaction and let them give you guidance, I'm sure its the title companies first time dealing with this!