I'm turning the corner on getting my house ready to rent. Lesson learned pay others to do the time consuming labor. No matter..
Does anyone have any experience working with Renters warehouse. My main goal is to get this house rented so I can start shopping for my first duplex... I'm not asking you to bad mouth or anything. I'm just looking for some real world reviews before I sign the dotted line.
Did you end up signing with them? I was interested in their services as well.
The place certainly puts on a good face with their website.
I would be a bit wary of the fee structure. It looks like the type of place that might get expensive quickly. I'd figure exactly what $79/month gets you. They have lots of little fees built in, so I'm curious if those are also on the back end as well:
Return to collect rent again Fee x3: $30
Phone call with tenant fee: 8 minutes. $5 + .50 per minute.
Originally posted by @Mark Totzke :
Hi - I use Renters Warehouse to manage one of my single family homes in MN. They have managed the property for three years now and they have been great to work with. They are pretty cheap ($80/month) and I have had good luck with them funding qualified tenants. The fee for finding a qualified tenant is quite high though, one months rent. If you can find your tenants that will put a lot more money in your pocket. Mark
I realize Ali Boone just had a great blog post about PMs (the good, bad, and ugly) and how it is worth it to pay them for their services (if they are good). Having just gone through the lease-up process during a winter month, I can tell you that it is time-consuming! And then dealing with the 20% of residents who cause 80% of your time to be used - what a pain. They seem to have this down pretty well with a "less than 1% eviction needed" claim.
It looks like RW is a decent franchise. They seem to have all of the tools and provide a lot of back-end support to their franchisees.
But I hate lease-up fees. They are counter to the goals of an owner. An owner wants their rentals rented; lease-up fees encourage the PM to let the rental to go vacant so they can get the fee.
Give me a "low-vacancy" guarantee. If the PM can keep the "rental payment default rate" below 8%, he/she can keep 75% of that difference. If I don't get paid at least 92% pf the rent, for any reason, there is no bonus. That would be a model I could support.
That model encourages PMs sign long-term leases. That model encourages them to re-lease quickly on a resident-turn. That model encourages the PM to have people pay on time. It also encourages me to keep the maintenance up because I get a bonus for a quick placement and I don't risk getting fired by the PM for maintaining my property poorly. Under this model the PM's financial interests and my financial interests are well-aligned.
Under their current plan, a $12K/yr rental costs me at least $1,960 in fees with no guarantee I have a low vacancy rate. And the PM is encouraged to not to renew the lease so they can earn another $1000 lease-up fee. If it sits empty for two months, they still get paid. And if they don't encourage a re-lease, I have turn costs as well.
Under this new plan, vacancies and non-paying tenants cost the PM their bonus. They would make less under this plan, but the amount of work they have to do should be lessened because they are really looking for the very best, long-term resident they can find.
Atlanta Renter Warehouse appeared to be what I needed to find good tenants.
I have 30 rental properties, I was looking for 6 reliable tenants. Well they took sooo long to find a tenant with a good background I finally used a real estate agent in the Atlanta area. She is just what I needed. Also I communicated with Todd (the owner) regarding no progress with tenants . No response.
Honesty I would not recommend Atlanta
Hello, this is my first post on BP forums. Directed to the OP... Did you end up signing with Renters Warehouse?
I live in MN but am relocating to TX and considering keeping my property as my first rental. Can you share some information about your experience with RW. It seems they get mixed reviews on these forums.
My first impression of Renters Warehouse was that I didn't need them. But then I bought my four unit building in the Twin Cities, and partially due to time of year, and partially due to schedule, I called them in after our fall rehab was done, and they have done a great job getting me tenants....and they warranty them for six months. I use them to find tenants, but manage the property myself. They are very good at weeding out tire kickers, and their fee, for all the time they put in, is reasonable.
I have 2 properties rented out via Renters Warehouse in Minneapolis. They do a good job of finding tenants. However the maintenance department ( especially after they outsourced to SMSAssist) is such a nightmare that I am looking for a new property manager.
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!