Bad start in rental experience
I am a recent property owner and BP member. Things didn’t start too well and I would appreciate any advice on what I should do if the situation does not improve :
End of october 2013 I bought two rehabilitated houses in Atlanta for 80 000 $ each, the property manager was provided, and the houses rent were proposed 800 $ for one and 850 $ for the other. Unfortunately, they were rented only in february 2014. As the first month rent was for the property manager, I only started getting cash in mach. So I had to pay utilities (270 $ for one house and 930 $ for the other). The houses were supposed to be rehabilitated, but in 6 months rent, I had 1,254 $ maintenance cost for one and 858 $ for the other without seeing any invoice. The property manager found me an insurance a couple of month late (because the houses were bought through a georgia corp. belonging to non US citizen) with a cost above expectation. Just after a few months one of my tenant asked for a delay because he was not paid full salary, being in training. He is presently more than two months late in rent and supposed to pay back in september.
To make it short, after buying the houses end of october last year, I am still in negative cash flow and the houses were paid cash. I intend to wait a few more month before taking any action, I don’t want to hurry, but I have to think at what action I should take if things do not improve. Changing the property manager ? As I live in France I need some advice before making such a move. Proposing the houses on a lease purchase ? I also need some avice before doing it. Do nothing and hope things will improve (it’s what I am doing now)?
Any suggestion is welcomed