BiggerPockets

Hi,
I am an out-of-state investor with a few single family homes in Cleveland, OH. I've been trying to obtain property management services for them, but all the property managers I've spoken to have passed on the properties; either b/c it's not in an area they service or they don't manage single family homes. Since I can't seem to find property mgmt for these properties, I'm not sure what I should do:

1)Try to find a handyman that is willing to help me rent out the place?
2)Try to rent the place out myself by flying out there as needed?
3)Sell the homes (possibly at a loss)
4)Other suggestions?

Thanks.

1) Would it be illegal if he doesn't do the actual leasing? What if I just hired him to post some for rent signs and be there to show the property..whereas I will be doing the advertising and credit checks?

I have pretty much spoken to all the property management companies there(about 12 companies) ..and there were only 2 who managed single family homes and both did not service the area.
I actually have never seen the homes in person, but I've googled it..and the area looks decent to me. I don't see any obvious reasons why the mgmt companies passed them over.
I've also contacted the agent that sold me the homes and he has not responded.
Suppose I visit and the homes are in a war zone, should I sell it at a loss? How much of a loss should I be willing to accept?

Thanks.

Would it be illegal if he doesn't do the actual leasing? What if I just hired him to post some for rent signs and be there to show the property..whereas I will be doing the advertising and credit checks?

Don't know. Could you perhaps track down a real estate agent who was willing to do it?

I actually have never seen the homes in person, but I've googled it..and the area looks decent to me. I don't see any obvious reasons why the mgmt companies passed them over.

Personally I'd never, ever buy property sight unseen. But given you're now in this situation, I'd buy a plane ticket and go have a look. Feet on the ground may reveal more than Google Earth. You may find that in fact they are unrentable at any price and that's why nobody wants to mange them. The fact nobody will manage them is a red flag that something is wrong.

I've also contacted the agent that sold me the homes and he has not responded.

Call me cynical but there's a surprise. Were these some sort of turn key properties? How did you originally get in touch with this agent?

Suppose I visit and the homes are in a war zone, should I sell it at a loss? How much of a loss should I be willing to accept?

Not sure how to answer that. If they're only worth 25% of what you paid and you have loans for 100% of what you paid can you afford to pay to get rid of them? Are you willing to take the hit to your credit and the possible judgments from just walking away? Did you pay cash and would have a financial hit but could get away with nothing more than a loss? For a reference point, I had tech stocks that I sold after the dot-com bubble burst for less than 10% of what I paid. Lots of people took 50% losses in their stock portfolio in the recent downturn and I'm sure some of them sold. Is your entire savings invested in these houses so that you would be devastated if you sold at a loss? Or, is this just a tiny slice of your wealth?

Pretty much the same points as Jon. In certain states, you are able to hire a non licensee to oversee your properties. He may only do it for you and no one else. If he wants to expand, he must be a licensee when he adds a second client.
I think you already know you have an unhappy tiger by the tail, with few choices. If your agent isn't returning your calls, you probably got snookered. Go see the properties . Then you'll know how big the tiger is. Rich

Thanks. I will give contacting a real estate agent a try. Thank you to all that took the time to respond.

I know that it has been several months now, but I am curious of the outcome. I am a Property Manager and willing to take on the properties if there are nearby. I am on the west side of cleveland, oh

But it is in OH, where these properties are:

Ohio Revised Code Section 4735.01(A) provides a list of activities that if performed for another for a fee requires a real estate license. This list includes anyone who "operates, manages, or rents, or offers or attempts to operate, manage, or rent other than as a custodian, caretaker, or janitor, any building or portions of buildings to the public as tenants." Also included on the list of activities that require a license are any attempts to lease property, any acts directed at procuring tenants for a property, the negotiation of leases, or advertising or holding oneself out as in the business of leasing property. Under Ohio law, performing any of these acts without a license constitutes a first degree misdemeanor and subjects the offender to a civil penalty of up to one thousand dollars per violation. Each day a violation occurs or continues is a separate violation.

From http://www.ohiorealtors.org/absolutenm/templates/article.aspx?articleid=3179&zoneid=31

I'm not sure if the OP is still around, but this situation is a lesson for all to learn from. I do hope the poster found someone to help them or at least unloaded this thing.

1 - If you're a new investor, investing in properties that are not close to home is just a bad idea.
2 - Investing in a property sight-unseen is a bad idea unless you're a very savvy investor.
3 - Before you buy a property, always make sure you've got someone to manage it, and I'd go as far as to suggest having 2 alternatives.
4 - Investing in war-zones as a newbie is always a bad idea.

I'm sure there are more lessons here, but I thought I'd point these out for anyone who is reading . . .

BTW - If you find yourself in a situation like this, often-times selling at a loss and getting rid of your problem is the best solution.

When I was transitioning into the Rental business, from being a handyman, one of the things I did to improve my cash flow was to offer a five year lease to property owners who had trouble with their rentals. I offered to do everything for free in terms of management and maintanance but the materials would be paid by the owner. As you may know, labor costs are always way more than materials. At the time, about 20 years ago, I made $100 per month per property. In other words, I leased it for $300.00 and sub-leased it for $400.00. I paid the rent even if it was vacant. I did that to get around having to have a license to manage other peoples properties. I took on the risk of a five year lease in exchange for the profit potential.

The point here is to cover your taxes, insurance and materials and let someone else get the profits so you won't bleed to death.

It's a win win for you and the contactor/handyman of your choice. Most of them are really slow on work these days.

Wow, this thread has gotten quite a few replies :) Anyway, I did eventually find a property manager and yes, unfortunately they are on the east side of Cleveland..the numbers just looked too good to pass up...lesson learned.

Ben,
I'm in Southern CA...and yes, I'd love the contact info for your realtor in case I want to sell.

Thanks.