First Deal Gone wrong or bad PM?
Hi Everyone,
I closed on my first TK property in Memphis, TN on August 17th. Yay me!
Found out during the rehab's home inspection that there were (inherited) tenants in the property during the rehab, I thought this was a good thing until I asked what their rental terms were and got no clear response from my rehabber/PM.
September 10th rolls around and its time to get PAID!!! The PM says they did a lease renewal on Sept. 7th and the tenant would be paying on the 20th. I asked, are they paying Sept rent on the 20th or Sept. and Oct rent? No response. Sept 20th comes and goes and I get a message that the tenant did not pay and the PM wants to know if I want to file a FED! Yes, I do. I am not running a charitable housing establishment.
So lets review; I've collected $0 in rent. The tenant has already gotten at least 2+ months free rent, by the time I get them out it will likely add another month. I get to pay to evict. I also get to pay 2 months PITI out of pocket! Glad I had reserve funds set aside. To add insult to injury, I also received notice that the property in un-insurable. I've talked to some trusted advisors and they said this can happen when the insurance company inspects during the rehab process and can be easily resolved. I know I'm freaking out.
So is this just bad luck or should I be firing my PM after the eviction?
Thoughts and opinions welcome.
Thanks
Brian
Duke Investment Properties, LLC