So here’s what’s up BP :
I bought my first rental property back in May. It’s a multi-family property in the city that I currently reside . It’s fully rented as well as 3/4 garages units our back being rented separately. I manage everything myself and everything is going pretty well. I’m a member of the National Guard and just got word from my unit we will be deploying out of country in about 12-15 months . For a total of 11 months and 9 abroad. I understand I’ll have to hire a property Manager, I just don’t understand how security funds are handled Incase of emergency and immediate attention in the scenario where I may or may not be able to reach right away . And also just what to expect and prepare for in general ...
I’m looking for anyone with experience who could give me advice and or an idea of what to expect? Things like security funds and or power of attorney?
Any advice or input would be appreciated
Alexander are you married or have any family in the are of your rentals?
@Alexander Churchill Most property managers will work the same way. They hold the security deposit funds in their own accounts (so you'll have to transfer it to them). You'll also discuss with them your "trip wires" for notification. Most will ask for authorization to fix anything up to around $250 (your mileage may vary on that number). But, you could even tell them that emergencies (think water damage or structural damage) could be authorized without your consent.
However, also consider if there's someone else State-side you could designate with a limited or durable Power of Attorney (which you need to do anyway since you're deploying). That person could authorize repairs when you aren't reachable.
Also, do you NEED to have a property manager? Most of the things property managers do you already have in motion on your property. Something to consider -- maybe a trusted friend could do some of the regular stuff for a fee.
@Alexander Churchill I have worked with some property management companies that are willing to not hold the security fee but most will want to at least get the go ahead to fix things under X dollars. If were you are deploying to won't allow quick communication then you may want a family member to be your authorized agent. I do not like giving Power of Attorney to companies. I personally need someone outside of the property management company to review the decision and family is the first place for me. So if there is a major item needed, then that person is who the Property Management company would call for the go ahead. Just a thought.
@Andrew Postell Absolutely agree about not giving POA to a property management company. Anyone that's deploying needs to give a general (or preferably a durable) POA to someone anyway, ideally a spouse, parent, or sibling. Since that's going on, that person may also be asked to make emergency decisions on the property.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing