All Forum Posts by: Tommy Loretz

@Tracy Streich

I appreciate the input and totally agree for SFR. I'm more so thinking of commercial multi-family properties where the gross rents are $10,000+ each month.

When the property management fee is 100% determined by the total rents received, the property manager's only incentive is to increase the rent (so the fee they collect increases as well). When the PM fee is based on net income, the property manager's fee collected increases when the rents increase, and when the operating expenses decrease.

Hello - Wondering if any investors have experience working with a property management company that charges their fee based on a percentage of net income (after operating expenses) instead of a percentage of gross rents. If so, was it beneficial? I assume it would incentivize the PM to keep expenses down in addition to increasing the rental income as much as possible. Appreciate your input.

@Kevin Lefeuvre - I hope that family did enjoy Disneyland before it was closed due to the virus.

First and foremost, I think AirBNB should be the one refunding these bookings as they can best handle the losses. And I’m not advocating for cancellations for no reason.

Yes, there are standard procedures for cancellations but this situation is anything but standard. At the very least, show a little humanity and work with the guests versus pointing to a cancellation policy that was not designed for this scenario.

I would be extremely concerned about my reviews as a host if I showed no compassion under these circumstances.

@Andrea Cole

I was in Europe when President Trump banned foreign travel into the country. I’m currently writing this on the plane from London to San Francisco! We had to cancel several AirBNB locations and all were understanding and agreeable.

So if your policies contain a subsection for “worldwide infectious diseases” then follow it. But in all seriousness, I would never book with a person that didn’t refund for COVID-19.

@Cori Leste

I rent in San Francisco at an excruciatingly high price. If I find an option (multi-family to condo) that I can afford at a lower rate then my current rent in SF! Doesn’t matter if it cash flows. If I’m building my own equity versus someone else’s and paying less than I would otherwise? Sounds like a positive to me.

@Renan Jay Maranan

Not sure if this applies to single family but you can use an owner move-in eviction for multi-family. 99% sure that it’s even easier for single family homes.

https://www.sftu.org/omi/