Managing class C when you're used to A

6 Replies

I am a 28 y/o investor managing my 4 properties since purchasing my first at 23. All class A. No problems with tenants. Everything in great condition.

Recently i branched out to an out of town owner of a beat up triplex and offered to manage it or him. There is one vacant unit.

I didn't realize how beat up it was. Some ton wall paper. Some damaged or missing light fixtures. Damaged blinds. Broken cabinets!

I brought up my concerns to the owner about not being able to find a quality tenant in this condition. But he is not willing to spend on improvements until he has a tenants deposit.

What should I do?

Is this a real question? What are you having trouble with? Either pay for the repairs yourself in order to get it rented. Which would be stupid.  Or quit. 

Or let it stay empty for the next six months and offer to buy it.  The landlord may get tired of having an empty unit.  But don't count on it.  You'd be amazed at how long people will hold on to crap as long as it produces even one dollar.

@Max Tanenbaum  

Walk away.  That owner will use you as a buffer from angry tenants and not care.  You will just be his punching bag.  

First times managing for someone else. I wanted to grow this. I don't want to walk away.

I see your points but I'm bothered by the thought of not being able to figure out a way to do this right.

I'm going to try and find a good tenant and explain the situation. Then make the repairs once the money comes in.

@Max Tanenbaum  

Good luck is all I can say.  You can't improve a situation when the owner doesn't care.  My latest purchase... The owner would glue sink lines to the stems instead of replacing the $4 line.  He literally bled every dollar out of that property he could.  You can care all you want and try to do the right thing.  If the owner doesn't feel that energy or care then it's a futile effort.  

Originally posted by @Max Tanenbaum :

First times managing for someone else. I wanted to grow this. I don't want to walk away.

I see your points but I'm bothered by the thought of not being able to figure out a way to do this right.

I'm going to try and find a good tenant and explain the situation. Then make the repairs once the money comes in.

Do not associate yourself with landlords who won't spend the money to do basic cleanliness and repairs to get a property rented.  Or who don't have the money until they get a deposit. Those are not customers or colleagues that you need.

@Max Tanenbaum  Your BP profile says in addition to your own properties, you manage a few rentals for other owners, not just this one. I don't know about your area, but in many places, taking on property management for others requires licensing and/or other considerations. Have you looked into that?

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here