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Hello BP,
I am potentially closing on a 4-unit multifamily property that I will owner-occupy. The property is located in West Virginia and I was wondering what I need to have in place to legally rent out the other 3 units. I am going to hire a property manager in order to learn how to set up systems much more quickly. Are there any licenses or certifications I need? What safety requirements do I need to provide to the city or state in order for me to have all my "i's dotted and t's crossed".
If you are already interviewing local PM companies they should be able to provide you a list of everything needed on your end.
#5 Multi-Family and Apartment Investing Contributor
- Investor
- Shelton, WA
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#5 Multi-Family and Apartment Investing Contributor
- Investor
- Shelton, WA
@DeAndre Mason in my area (Wa) one county requires a business license and an inspection. The other two counties where I have rentals require nothing. You need to know LL-Tenant laws, how to market properties and how to screen tenants. You can enroll in PM classes offered by local REI and apartment owners associations. Google for those. Hire a PM until you are ready. Get local laws from Nolo and take some classes. BP is outstanding as well.All the best.
Your city website should have an ordinance - It should read "tenant and landlord ordinance"
This will help you with all requirements if ever in doubt youtube it or try to search for a podcast of local realtors and you will find some good data . Wish you the best!!
#1 Tenant Screening Contributor
- Property Manager
- Honolulu, HI
Aloha,
There is just so much more to learn about dotting your i's and crossing your t's than local LL/Tenant laws, although that is a good place to start. Fair Housing; Fair Credit Reporting Act; applicable EPA regulations; Privacy laws; IRS reporting regulations AND what constitutes an "employee"; if you will have employees, OSHA laws will become very important; contract law basics; Life Safety code; local building codes and permitting requirements; local Real Estate Licensing laws (at least basics, which may limit what you are able to do); and probably others that do not come to mind right now.
Here in Parkersburg we just needed to have the city inspector inspect the building to make sure it’s up to code and the fire marshal inspect. Then they will give you your certificate of occupancy. Pay your b&o taxes on your rentals.
There's not many REI groups in WV, but I've seen one for Charleston, I've seen them post before.
Could you let me know what kind of rates you’re getting for your property management? I’d like to know. I’ve heard 30% from someone who does taxes for someone that uses one. Thought that was very high.
Good luck and congrats!
#2 Managing Your Property Contributor
- Property Manager
- Royal Oak, MI
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#2 Managing Your Property Contributor
- Property Manager
- Royal Oak, MI
Your PMC should be able to answer all those questions for you.
Quote from @Amanda Gill:
Here in Parkersburg we just needed to have the city inspector inspect the building to make sure it’s up to code and the fire marshal inspect. Then they will give you your certificate of occupancy. Pay your b&o taxes on your rentals.
There's not many REI groups in WV, but I've seen one for Charleston, I've seen them post before.
Could you let me know what kind of rates you’re getting for your property management? I’d like to know. I’ve heard 30% from someone who does taxes for someone that uses one. Thought that was very high.
Good luck and congrats!
10% mgmt fee. 30% is highway robbery. What is the REI group in Charleston called. Where can i find it? Thanks!
Quote from @Amanda Gill:
Here in Parkersburg we just needed to have the city inspector inspect the building to make sure it’s up to code and the fire marshal inspect. Then they will give you your certificate of occupancy. Pay your b&o taxes on your rentals.
There's not many REI groups in WV, but I've seen one for Charleston, I've seen them post before.
Could you let me know what kind of rates you’re getting for your property management? I’d like to know. I’ve heard 30% from someone who does taxes for someone that uses one. Thought that was very high.
Good luck and congrats!
Clarksburg is very similar. Code enforcement wants to come out and inspect before you rent it out, and if the property is 4 units or more, the fire marshal also needs to come out (fire code). If you choose to start a business entity for liability purposes, make sure whether or not your town requires you to pay B&O tax. We learned a lot through self managing, although my wife had previous property management experience from a prior job.
Also, I'm not sure where you're located, but there is also a REI group that has recently been meeting in Morgantown once a month.
The Charleston group is Central WV Real Estate Investing Group on Facebook and the Morgantown group is Mountaineer REIA on Facebook. Charleston is the 2nd Tuesday of the month and Morgantown is the 4th Thursday. (July date is actually 7/26). I help out with both groups if you're interested let me know.