All Forum Posts by: Timmi Ryerson

Congratulations on your new investment. If you work full time at another job you probably should hire a property management company. Nathan gave some good advise on how to do that. If you do not work full time, you can use software to manage your properties. I use Smart Property Systems because it is easy to use and affordable. You would pay about $250 per month to use the software and collect rents. Most of the tasks are automated so you don't really have to do any work until you have a turn coming up. If you hire a property manager, and your rents average $1000 for 45 units and you pay them 8% commission it will cost you $3600 per month, plus any other charges that can be added for repairs etc. So your ROI would be $3,350 more with software.

If you live in the area, you can show the units yourself when vacancies come up.  You can also get your own vendors and vet them..I am sure there will be recommendations from members here.  The advantage is that you get to know your vendors and develop a relationship so that if you have an emergency you can get them to respond.  Property management companies have vendors like that as well but the cost is usually much higher plus the commission charged for management of the repair.  

If the property is in good shape, you will probably handle one or two repair requests per month with 45 properties.  If the units are not in good repair prepare to spend some time with getting these issues corrected. I recommend that if you can take extra money on the loan to do upgrades that you know about, do it.   When you have turnovers, you will be able to ask more rent for upgraded units.

Multi unit properties are only different because tenants live in close proximity and that is what causes most of the issues.  I wish you well with your exciting new venture.

I am assuming from what you have said that you are rehabbing to tenant and hold.  If that is not the case and you intend to sell, you must fix the square with wood as closely matched for width as possible.  The color can be either sanded of stained out.  You might put an add in Facebook using things for sale or free in "your city name" and ask for people who are doing rehabs and removing old wood floors for scraps.  You can also do this in miscellaneous sections of your local paper or contact flooring companies who are doing remodels.  Bet you can find some free wood to use.  I refinished the whole lower floor in my home.  It took me weeks (because it was my home) but the area you are doing should only take a few days...there is time between steps...sanding, tacking, sanding again, tacking and finally finishing.  Depending on the finish you choose it would take a day or more to dry.

If you plan to tenant, you could get by with not repairing but it would always be a problem.  People could stub toes, get slivers etc if it is not covered and putting a rug in front of the door is awkward...Just my 2 cent worth.

There are scammers out there who will offer interest in the 6-7% range.  They will ask for some documentation and then send notice that you have been approved but need to sent $4000 for mortgage insurance until you are able to sell or refinance.  Those are the scammers...never send money as Ryan Blake said. And beware.  Many of them advertise as Hard Money Lenders on Linked In.  They have unusual phone numbers (satellite phones) and also heavy foreign accents but they will talk a good talk.   

I have been a landlord for over 30 years so I have seen all kinds of problem situations.  What you left out here is for what you requested a repair.  If it was the carpet, that would be something that is not an emergency.  As far as the landlord is concerned, I think they are trying to help you. Having someone show up at your door unannounced with a key when you are home is not trespassing, especially since they did not come in.  I would recommend that you get in the habit of requesting repairs in writing and then give times during business hours for a week when you can be at home, if that is a requirement you wish to use.  Whereas I agree that notification is usually done, you may want to check your lease to see what that language is before you decide to sue. You may also be a young renter.  If that is the case, remember that it is best for you to treat your rental experience as a business arrangement.  As a tenant you pay rent in return for having a place to live.  You need to be cooperative with the management when you request repairs.  I will say that the only times I offer to let a tenant out of a lease is when they are difficult and have a bad attitude.  If your place is nice, it is never hard to get good tenants to occupy.  I only say that because I think you are asking for too much when you want to sue (which will not get you anything except legal fees) and then you want a free month's rent which I feel is unreasonable.  The point is that your landlord is trying to get whatever is wrong fixed.  You have used failure to notify as a reason for them not to be able to act on your request.  

Of course if there are many things wrong, it would be in your best interest to get these things fixed while you are home recovering.  I suggest that you call and nicely make arrangements for workers to get your place up to snuff.

I use Smart Property Systems for my property management software.  It is easy to use and the rent collection is automated for my tenants.  They automatically get their statement monthly.  They log into their tenant portal and can make their payment using the software from a computer or their phone.  Their payment is processed by the payment processor and deposited directly into my account.  But the best part is that all of the accounting is automated.  So I spend only the time it takes to look at my rent roll and enter my expenses for the month into my ledger.  Everything else is done for me.  I love it and my tenants love it too.  I get all of my reports and analysis as well. They have great customer service. I recommend that you call and find out what it would take to get your account set up there.

I have read this thread and find that you already have good ideas and answers. But as someone who has an LLC and had the occasion to have to defend it I want to say that the most important part of picking someone for advice is that you choose someone who specializes in your field. So you are a real estate investor, get an accountant (not a bookkeeper) who has experience in that area. They can help you choose your chart of accounts and allocate what money is considered capital and what is expense. It will make a big difference on your balance sheets and P and L etc. Good luck. Sounds like the person giving the podcast is a great resource for all of us as well.

I found this thread to be quite an interesting read.  All landlords are in the business of offering  a property in which to live in return for paying rent.  The landlord is responsible for providing  the property in good condition.  If during the course of a tenancy, something needs to be repaired and is reported by the tenant, it should be repaired with expediency.  So far so good.  You, as a landlord have done your job.  Your tenant has been what I would consider minimally disruptive by demanding that repairs be done at her convenience.  She pays her rent on time and I have seen no suggestion that she is causing the destruction of property or not caring properly for the property.

Clearly from the description, she deals with the world from a point of anger.  While it is not your job to do counselling or make her a nicer person, you can set up a situation where she will find that she wants to be less disruptive.  I really like Shaune Clark's solution of providing structure to the process of reporting the need for a repair.  I would add to that that you give her a month to month agreement for 6 months and spell out what you expect from her specifically.  In other words, the problem seems to be centered around responses from you regarding the need for a repair and nothing else.  Tell her that and set up the parameters for how you will do this.  Explain that she is on a trial period and if she abides by that agreement you will then sign the next year's lease agreement.  If she continues to be disruptive, at the end of the 6 month trial you will have the option to continue month to month, terminate or sign a full year lease.  As far as the rent raise, I would definitely keep up with the market and if you feel that you will be spending more time with her, you can add for your time as well.  Tenants have the right to be able to contact you or a manager if there are repairs required.  I recommend that you use a message system or email.  I have software that has a method of reporting maintenance and repair requests that auto files that message and saves it.  I like that method.  

Finally, I want to mention that landlords are dealing with the public when they offer homes or office space or warehouse space etc for rent.  I have met people from all walks of life in my experience as a landlord.  It is purely business.  I have had many tenants like the one described here.  I stand my ground and do my job.  Amazingly, some of those people have developed a respect for our relationship that has gone on for years.  I want tenants who pay rent on time and want to keep the place in good condition.  Let the aloofness you perceive as lack of respect roll off your back.  Ignore it.  You will be profitable and successful if you can do this.

I have solved the problem of tenants complaining.  The issue can be that the tenant, who may be older, is lonely.  If that is the case, any attention is better than none at all.  Think of your kids here when they want attention from you.  They will do what they need to get it.  My software that I use to manage my properties has a message center.  I can send messages to my tenants and they can message me.  I have educated them when they sign their lease that the software is where they go to see statements and payment history, pay rent and send me messages.  Voila!  No more phone calls.  I can see when a message is sent because I get a notification via email.  So I log in and read the message and respond.  2 minutes top of my time.  Everyone loves it.  I highly recommend using a message center for all tenants, even the good ones.  Smart Property Systems is the software I use.

So I am going to add my 2 cents worth.  I agree with what Mary said basically.  Tenants are entitled to quiet enjoyment of their home which they pay to use.  I suggest that you check your lease to be sure there is language that states quiet hours and if it is not there add an addendum to all leases and have all tenants sign.  In that addendum you can be specific about exact kinds of noise that are nuisance noises.  Obviously loud music, tv or alexa presentations should be included.  Stomping around in shoes and closing doors loudly in the middle of the night should be included..you get the picture.  Even if you do have a clause in your lease about nighttime noise you may want to write a clarifying addendum anyway.

I had tenants who worked the graveyard shift and slept during the day.  That is a tough one to solve but we did it.  I had side by side duplex units not up and down so it was just a matter of sending letters to all tenants who were close by. They were accommodating because it was a community of workers who understood the issue.  That is why I am going to suggest that you write a letter, rather than having a conversation, to the downstairs lady asking her to understand the needs of the neighbor upstairs.  Then you have done your job.  If anyone wants to move it is up to them to decide.  You can also copy the upstairs lady if you think it would help.  Sometimes tenants just want to know that they have been heard. Good luck.

Wow this whole thread is sort of the antithesis of what we want to see in the real estate market.  Very sorry to hear about this sequence of events.