All Forum Posts by: Tracy Streich

Brad Larse. With rentwerx.  

You are correct.   It is a fee paid up front.   However, you are doing it to protect yourself from pet damage.   You call it a fee to make it non-refundable.   That is fine we do that as well.   However, I can see how the new owner might see this a unfair to them because they now have not financial protection from the pet.   You keep the money and they get the potential problem.  If they are agreeable with you keeping in fine.   However, does this problem create a deal killer for them?   Maybe if you offer to prorate the fee it would help.  With that in mind it really is yours to keep but just be fair with your buyer to keep the deal moving if you really want to sell it. 

They cannot charge a new fee unless the lease states the owner can add fees with a certain notice.

Most Pm's will view 3 units similar to single family  8-10% of monthly rent is likely the going rate

Get permission from the seller after inspections are complete.   If they say you can start to market the house for rent without showing it then you should go ahead and get a jump on it.   Make sure your loan is finalized and inspections complete.   Things could still fall through but getting started early always helps.   I would say do not accept a deposit or any money until you have closed. Permission from the seller is critical.  

It really depends on how important the renovations are to do right now.   If you do the renovations how much more will you get in rent.  Use this example:

current rent $800

rent after renovations $1000

$5000 renovation - remember it always cost more than you think

This means you will break even in 25 months.   Why not let them stay if they are not asking for the renovations and just renovate each unit as it comes vacant.   The 25 month break even does not include lost rent during the renovation.   If it takes 2 months to renovate and lease it again you removed $1600 income as well.   

I am not sure why people love to "start fresh".   The the key to having a rent home work is occupancy.   I love buying occupied homes.   I have income from day one.   You can get them on your lease.   Let them know you would love to have them stay and offer the exact same terms.   Same rent amount and leave it month to month.   Then you have the lease with your wording and you remain in control with the month to month lease  

Not sure how they do it in Seattle.   I can be very typical to the PM to keep the late fees.   Never heard of the keeping part of the retained security deposits.   Read the PM agreement closely.   These fees can always be negotiated.  

Not sure why you would pass on potential good tenants because you don't want to pay out a couple of hundred dollars.  You don't have to pay them 75-100% of the first months rent like a typical property management deal.  Most co-brokered deals in the PM industry between realtors pay significantly less.  Offer to pay them 10% of the first months rent if it works out.   You can still show it and run them through your processes.  

Not grey at all. Black and White. The owner does not have to like it and it may be a bunch of bull but the law says you have to allow the emotional support animal. You can stick with the no pets but since it an emotional support animal it is not considered a pet. Neither you or the owner want to have anything close to HUD investigation into this area.

Many times the fees are spelled out in the lease.   Read the lease first.   If you still have the PM do not contact the tenant directly.   Work through your PM.  If you start saying one thing and the PM is saying something else it could get worse.   Some of it seems high but it depends on how dirty it was.   Does the PM have a documented move out inspection with photos to back up the charges?   Just because they sent a letter from an attorney does not mean they are filing suit.   Could be their best friend helping them out.   Typically you can settle with them for a lesser amount to avoid the trouble but make sure you are on the same page with the PM.  

National Association of Property Management has some of the best education around for PM.  Message me or reach out and I can give some more personal insight