All Forum Posts by: Tim Baldwin

I don't know your market, of course, but there does seem to be a problem with that long of a vacancy. I think the answer likely falls in this: what does the market call for in that area and type of home, and what are successful PM companies doing to reduce vacancy rates? 

Too high fees, deposits or rent can drive potential tenants away, especially if it's in a tenant's market. If you do some research on houses like yours in that market area, you may be able to see how long it takes for the property to rent.

There are security deposit alternative policies now that make it even easier for tenants to meet security deposit requirements. Maybe see if your PM takes advantage of those insurance policies, which could help to alleviate that problem (if it is a problem).

If the PM company is a licensed real estate brokerage, and they are members of state and local real estate associations, they should have access to a large number of websites that syndicate the listing. Ask them what websites their listings are syndicated. Go to those sites and see how they are listing the property. 

Additionally, they should be using a lead generation and tracking software programs so that details can be seen of where leads are coming from and at what stage they are lost. 

Since your'e PMA requires 2 months' notice, I would take some time (sooner than later) with them to see if they can explain to you why there is no interest in your property based on their experience. If they can't give you some analysis in this regard, it could indicate they are not using resources to really track and understand leads and lead failures. 

Best wishes. 

I normally advise my clients in Florida in this situation to:

1) give proper notice of non-renewal, and at the same time,
2) give notice to pay.

If tenant doesn't pay within the notice period, file eviction, and the non-renewal notice serves as a "back stop", if you will, in the eviction, in case you needed to amend the complaint to add that count to the action. 

Best wishes. 

It appears that the advice you are seeking should be coming from, in part, a real estate attorney who can navigate the issues you are dealing with (especially in light of the consequences across the ocean). You may also need to consult with a CPA regarding tax implications. From a liability perspective in Florida, it's advantageous to have a limited liability company own the property, especially considering that you are getting into the real estate business and intend to acquire numerous properties. Best wishes. 

Look to your state laws and get legal advice regarding whether the violations are non-curable or curable and the number of days required for the proper notice. In Florida, unauthorized occupants/guests is a curable violation and requires at least 7 days written notice to cure. If they don't cure, the landlord can file eviction. If they do cure, but then violate the same prohibition again within 12 months, the landlord can terminate without having to give additional cure opportunity. 

The way you described this, the smoking situation is also likely a curable violation and would require opportunity to cure pursuant to your state laws.

In the meantime, give a notice of non-renewal according to your state laws and lease agreement. 

Again, I recommend you speak to a landlord lawyer to get advise based on your state laws. 

Best wishes. 

Simply put, the more insurance coverage there is, the better :) Best wishes.

Welcome to BP. I would also suggest going to local meetup groups for investors. Relationships are key in this business. Best wishes. 

I presume the PM is using a good PMS (property management software) program so that you have easy access to information about their management. Some of the most basic information you will want to know during the tenancy are:

1. periodic reports from the PM regarding inspection results, including pictures and notes
2. periodic (e.g. monthly, quarterly) finance reports from PM
3. lease terms of new or renewed tenants

They should contact you about:

1. major problems or concerns with the tenant or property that may warrant termination of the tenancy or non-renewal. I would suggest that you not concern yourself with minor situations, as that is why you have hired a PM. But you can always ask the PM from time to time if they have experienced any problems with the tenant.
2. expenses that exceed the pre-authorization threshold in your agreement.
3. maintenance problems or concerns, especially ones that are not minor, but you can always ask about any problems, and they should be keeping record of maintenance problems during their management, even minor problems. 
4. near expiration of lease term (e.g. 60 days), inquire what their plan in for a current tenancy, whether to terminate or renew. The PM should actually be reaching out to you about this, to inform you of their decision one way or the other, but if they do not, you may want to know what their plan is at the end of the tenancy. 
5. results of move-out inspection

Best wishes. 

As several folks have said here, you need a written resident selection criteria. Ensure that it complies with federal, state, and local housing laws. Unless you're using an online application program, have every applicant submit application in writing. I would encourage you to also have an attorney prepare Application Terms & Conditions. 

As for the persons you said you would send an application, you may have to just be honest and let them know that since they have pets, you are not going to send an application because you have decided not to permit pets. It's better not to leave them hanging. Not allowing pets is a legal selection criteria, unless the person is requesting a service or ESA animal under fair housing, in which case, if they and you qualify, you'd have to permit. 

Best wishes.
 

It's a risk, of course (because they may not sign your lease or move in on 8/1), but to offset your risks, here are some tips in general terms. 

Present an Offer to Lease with your terms and conditions for the applicant to become a tenant (sign lease, pay move-in monies) by a date certain prior to 8/1. 

Require the applicant to sign a Holding Agreement, with a requirement that they pay a non-refundable holding fee for June (pro-rated) and July. You will want to make sure the Holding Agreement agreement clearly provides that the monies paid is not the required move-in monies, rent, or a deposit and is a fee to hold the property from being rented until August 1. 

The Offer to Lease would also need to include provision that if they don't sign your lease agreement and pay the move-in monies (e.g. August rent, security deposit, admin fees, etc.) by a date certain before August 1 and move into the premises on 8/1, your Offer to Lease is revoked, and the property will be listed and re-rented to another tenant. 

Best wishes.

Right on. Just make sure you can terminate the PMA without penalty at the time you want to take over management :) Best wishes.