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So you think he waited around to rack up months of unpaid rent and legal fees. Sounds like a **** poor landlord. And then he wants to cry boo hoo? Crappy landlords deserve crappy tenants.
You have no idea what you are talking about…. How the heck you comment on situations you know nothing about nor the details escapes me.
Keep guessing though , maybe one day you will guess right ..so far it has not happened
You have no idea what you are talking about…. How the heck you comment on situations you know nothing about nor the details escapes me.
Keep guessing though , maybe one day you will guess right ..so far it has not happened
Dude, relax, don't do it! Seriously anyone that has been on CD for 10 minutes has heard your Central Park story. You are a renter posting BS in the RE forum. I got your number. That pisses you off for some reason.
I went through 6-7 pm companies over a 23 year period. When I had one rental it wasn't noticeable but as I accumulated more (eight total) I realized the same problems were happening again and again. It boils down to this: even with 30 units it's impossible for PM to properly keep tabs on tenants and repairs. Today if there's a problem I go to the property. Renters know the owner is watching. With PM tenants usually fill out a request form and send a photo. Whatever the renter says is wrong and the severity of the problem is taken at face value. And once renters realize nobody from PM is stopping by to check the problem they can say anything. Toilet is clogged, the dishwasher breaks... Hey, I didn't do it.
Repair costs: The PM contacts a local vendor who sends out a "tech" and the owner usually assumes this person is experienced but that's not always the case. When you manage dozens if not a hundred or more properties a PM will often farmed out the work to companies which can get someone out immediately. On the other hand I often have to make several calls before I can find someone available. But the person I send out I know for a fact has experience and is good. A PM company calls in a plumber and you're told this, this and this needs to be done. Maybe its true or maybe this "tech" isn't particularly experienced or good. (I found this is esp. true with AC vendors.) What's important is the vendor is licensed and the PM is legally covered. If someone has to return and address the same issue at a later date... tough. You're told something else went wrong. Translated this means you will pay again. Who really cares? The renters just want the problem solved and the PM wants to close out the work order. So, Mr. Property Owner while it does appear the same problem the "tech" said it's actually a separate issue. Please see attachments for a copy of the work order and bill.
The OP mentions $400 a month or $4800 a year. Yes, 50% set aside as operating cost is high but $400 is nothing esp. when using a PM company. All it takes is one or two repairs and there goes at least 25% of the yearly income.
Last but not least screening of renters. A PM company will run a background check the same as I do. But often a PM lets leasing agents show the property to potential renters. Yet, a leasing agent is usually paid on commission. The more properties they rent the more they earn. They'll tell potential applicants whatever they want to hear to get them to take the unit or house. And the PM might never meet the people. . As the owner I meet applicants when they visit the property which ensures there are no misunderstandings..
I quit my job and moved to AZ in order to manage my properties myself. I've cut operating costs by half. All said and done I found it more stressful dealing with PM than with renters. I'll never use PM again. If I have to leave AZ I'll sell.
Agreed PM are ridiculous. Basically, if you are not big enough to be keeping someone on your own payroll, then you are not in control and your interests are not aligned. Their interest is minimizing time spent on your property. You are interested in getting quality tenants and a supply chain that is reasonably priced and a PM schedule that will keep your place looking sharp...hopefully.
I went through 6-7 pm companies over a 23 year period. When I had one rental it wasn't noticeable but as I accumulated more (eight total) I realized the same problems were happening again and again. It boils down to this: even with 30 units it's impossible for PM to properly keep tabs on tenants and repairs. Today if there's a problem I go to the property. Renters know the owner is watching. With PM tenants usually fill out a request form and send a photo. Whatever the renter says is wrong and the severity of the problem is taken at face value. And once renters realize nobody from PM is stopping by to check the problem they can say anything. Toilet is clogged, the dishwasher breaks... Hey, I didn't do it.
Repair costs: The PM contacts a local vendor who sends out a "tech" and the owner usually assumes this person is experienced but that's not always the case. When you manage dozens if not a hundred or more properties a PM will often farmed out the work to companies which can get someone out immediately. On the other hand I often have to make several calls before I can find someone available. But the person I send out I know for a fact has experience and is good. A PM company calls in a plumber and you're told this, this and this needs to be done. Maybe its true or maybe this "tech" isn't particularly experienced or good. (I found this is esp. true with AC vendors.) What's important is the vendor is licensed and the PM is legally covered. If someone has to return and address the same issue at a later date... tough. You're told something else went wrong. Translated this means you will pay again. Who really cares? The renters just want the problem solved and the PM wants to close out the work order. So, Mr. Property Owner while it does appear the same problem the "tech" said it's actually a separate issue. Please see attachments for a copy of the work order and bill.
The OP mentions $400 a month or $4800 a year. Yes, 50% set aside as operating cost is high but $400 is nothing esp. when using a PM company. All it takes is one or two repairs and there goes at least 25% of the yearly income.
Last but not least screening of renters. A PM company will run a background check the same as I do. But often a PM lets leasing agents show the property to potential renters. Yet, a leasing agent is usually paid on commission. The more properties they rent the more they earn. They'll tell potential applicants whatever they want to hear to get them to take the unit or house. And the PM might never meet the people. . As the owner I meet applicants when they visit the property which ensures there are no misunderstandings..
I quit my job and moved to AZ in order to manage my properties myself. I've cut operating costs by half. All said and done I found it more stressful dealing with PM than with renters. I'll never use PM again. If I have to leave AZ I'll sell.
Very well said. Right down to the AC observation. And the exact reason I would never use a property manager.
...The home was bought for $54,000 and I loaned him $72000 (we estimated $18000 for repairs with him doing much of the labor). He now owes about $62,000 on the loan. It’s been rented to the same tenants since it was made rent ready. He’s earned about $5000 a year after expenses for about seven years or $35000. The home is now worth $200,000. So using not one cent of his own money he has potentially made $173,000 on his purchase in seven years. So he’s earned (before taxes) $24,714 a year for seven years ...
If after 7 years, your $54,000 house (or even $72,000 house) appreciates to $200K, you’re going to do well, even if your rental income is zero, and the house sits forlorn and empty. If on the other hand, you had bought a house for $200K, and decades later is it actually worth less (ask me how I know), your cumulative results might be… worse.
In other words, a good buy, establishes us with good prospects for profit. And if not, not. Details about property management companies, messy tenants, intrusive governments and so forth, certainly matter… but they matter less, than gross blunders up-front… or fantastic bargains up-front.
Quote:
Originally Posted by k350
Up until this past summer, I owned a condo I rented out. The rent was about double the mortgage I was paying, including the condo fee. ...
Let’s ask ourselves this: if I’m a prospective tenant, why would I pay rent, that’s double the PITI + HOA fee? I would just buy. Instead, I would rent, as a I presently do, where ramshackle hovels are selling for $1.2M, while an acceptably decent apartment rents for $1500/month.
Quote:
Originally Posted by MetroWord
Person B goes around and tells people don't go to college because it is not beneficial at all. Look at him, he says.
Understand what I'm saying?
If you already know what you’re doing, or can rapidly learn, then the risk is much attenuated. To your example of persons A and B, some people are naturally business-savvy, and can thrive whether in real estate, or running a franchise, or starting a tech start-up. Others are best at corporate-life. Know thyself, etc.
Dude, relax, don't do it! Seriously anyone that has been on CD for 10 minutes has heard your Central Park story. You are a renter posting BS in the RE forum. I got your number. That pisses you off for some reason.
No , I won’t relax ….your snap answers with out knowing details are just a load of bull.
Your liability stops if your value hits zero….it is a stock and like any stock carry’s all the risks
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