All Forum Posts by: Tashfeen Islam

Thanks @John T. for the feedback.

It seems like it’s more time-consuming and effort to try to get these funds back but the insight you provided is great in case something bigger happens one day. 

Thanks @Basit Siddiqi for the feedback. 

Unfortunately you’re probably right as it’s unlikely to be an easy judgement. 

Thanks for the feedback Drew and tell me about it when it comes to collections.

I’m not sure about their credit scores (PM found them and received their applications) but since they live/work in Texas, there’s no state income taxes. 

Hello,

Two tenants of mine, one who moved out in November 2020 and another that is in the process of being evicted, each owe $1.7K+ in balances due to unpaid rent, utilities, and damages caused to the property, even after I retain their entire security deposits. Both signed Texas Association of Realtor (TAR) leases with my property manager as the property is located in the state of Texas. 

My property management company says they have submitted one case to a collection agency and will do the same for the other after that tenant is evicted but to this day, nine months later, I have yet to receive any feedback from collections about the tenant that vacated last year.

Thus, if both of these tenants are taken to court, how would I be able to be paid back for what they still owe? Would it be through a wage garnishment program at work or some other manner?

If for some reason they win the judgement, would I be held liable for their legal fees? How about if I win, are they liable to pay for mine?

Based on the balance amounts, does it even make sense to pursue both tenants legally?

Thanks in advance!

Tash

@Bruce Lynn Thanks for the thorough feedback.

This PM firm does not use MLS listings to avoid paying commissions to renter's agents since they themselves don't collect commissions for tenant placement nor lease renewals.

I have discussed with my PM about offering either two weeks free on rent or a $100 move-in special so we’ll have to revisit that idea.

Pets are allowed but a deposit is required since most of these units are newly remodeled.

In terms of marketing, ads are posted locally but also online through Zillow, etc.

That’s a great point in regards to application and processing fees. I’ve reached out to ask them what, if anything, are they charging.

I’ll have to ask the independent contractor I’m working with on a few of the units that need more work to take a look.

@Enrique Huerta Thanks for the feedback but from the half dozen or so PM companies I interviewed, all of them required a 2-year agreement. Also, this PM had great reviews on Google (4.6/5 stars from 444 reviews) and already manage a few properties in the area, thus I felt that they were the right partners for me. Although long-term agreements are typically not the norm, because things seem to move slower in this area, that requirement doesn’t entirely surprise me. As for getting rid of them to start over with a new PM, unfortunately there’s no guarantee that the new one will have any better results but the recourse for me breaking this contract is that I still have to pay them their monthly management fees through the end of the term. Thus, I’d be paying two monthly fees instead of one. I’ll ask them if they have ads on those sites you’ve recommended though.

@James Ivery Please do PM me the name of the PM company you’ve worked with. The one I’m currently using has great ratings online (4.6/5 stars from 444 reviews on Google) and amongst the half dozen or so I interviewed, I got the best feedback from them. Of course, an interview and results on the job are two different things but initially, it seemed like they were the best fit. As for having a heart-to-heart with them, I had one recently so it seems like they’re feeling a bit more of the pressure.

@Pete Harper Thanks for the feedback. You’re right, I also noticed quite a few closed businesses in this area which is likely why this property was selling for less. I’m less risk-averse though so pursuing a project like this with higher risks but also higher rewards intrigued me. However, in the future maybe I’ll look more into areas that are a bit less crime-ridden.

@Marco G. Unfortunately, every PM company I interviewed in the area required a two-year commitment, which is vastly different from any other place I’ve invested in before. The recourse from breaking the contract is that I’d still have to pay them their monthly 10% in management fees through the end of the contract. Thus, by switching to a new PM at this time, I’d likely be paying two management fees per month instead of just one and there’s no guarantee that new PM will do a better job than this one.

@Peter Loudis Thanks for the feedback. Better quality photos would be very beneficial but the ones I have are taken by my PM so I’ll have to explore other options in that case.