All Forum Posts by: Anna Sagatelova

I would not suggest you splurge for the carpet cleaning unless they are willing to sign a lease with you (if you want to keep them long-term, that is). You will end up cleaning the carpet again as soon as they move out, and at this point it could be in a month or so. They have no "skin in the game" and they'll enjoy the cleaned carpet the same for 1 month or 12... and their new carpet in their new rental will be just as clean if not better if and when they decide to move.

In my experience, lots of tenants use a change of ownership as an opportunity to get some upgrades.

Hi all, PM here weighing in with my two cents.

I see how there is legitimate frustration on both sides. When tenants get a bad "first impression" of the property, they are then more likely to nitpick and nag. Many tenants are used to an apartment mindset, where there is an on-site maintenance staff and all requests, minor to major, are generally addressed within a day or two, sometimes within hours. It isn't your fault if that's their expectation here, but as landlord it is your duty to explore and understand their point of view if you want to curb the frustration on both sides.

Getting maintenance calls nonstop is one of the biggest reasons why owners who are otherwise capable of running their own rentals turn to property management companies. PMs get between you and the "headache" - it's our job. Of course, we have had tenants tell us the same thing - they don't like a vendor (who we know is licensed, does quality work, and is almost universally beloved by everyone else who has worked with them), they insist a repair should have been done differently, etc. But at least you don't hear it directly.

I agree that in this case, you should try to see their point of view and repair the relationship. Find out if they want to stay, and if so, why? But if there is any ambivalence there, let them out of their lease, and start over. And do consider hiring a "middle-man" to field the phone calls in the future.

I hope this situation works out for you! It sounds like you are trying to do the right thing.

@Jay Shah You are very welcome! Please feel free to message me if you have any more questions I can assist with.

@Jay Shah there is job growth in the Cleveland market, the Cleveland Clinic is a big employer driving higher end relocations, plus the Amazon warehouses in the suburbs. Population growth hasn't quite caught up to job growth in Cleveland yet, but I expect we will see year over year growth by 2020. Columbus pop growth is absolutely exploding, it is also a big college town so there are a lot of student rentals. Ohio has a diverse range of markets and properties for every budget. It's just important to keep in mind that because we have had such an explosion of out of state and out of country investors here, cities are cracking down on rental registrations in many municipalities.

@Jay Shah simply put, California-based investors can't find deals that cashflow locally. Ohio markets offer cashflow that is very attractive to CA investors, even though appreciation is slower in Ohio.

Weigh the pros and cons and consider how their late payments affect your finances. For owners who have a mortgage on the property and rely on the rent payments to cover the mortgage, consistent late payments are a deal breaker. For other investors, the late payments are not a problem as long as the full balance is paid by the end of each calendar month, late fee included. Also know the condition of your property; have they lived there a long time and will you need a more comprehensive rent-ready? What is your anticipated vacancy period if you do evict? Maybe you can raise the rent next time around, maybe that is unrealistic. These are all the factors we advise an owner to consider.

Hi Jonathan,

In many states, Property Management companies are required to be licensed brokerages. This brokerage may engage in property management as its primary business but still house agents who exclusively do transactional deals. 

Is your property manager just a licensed individual, or are you working with a company? I think it may be worth while to ask your PM to find you some deals, especially if you are working with a PM company as opposed to an individual; in this case, the agent who finds your deal might not be the same agent who communicates with you on the property management side, but generally, agents who work for a PM company are more knowledgeable about what rents and what doesn't.

Hope this helps!

Hi Idan,

In many states, property managers have to be licensed agents, and yes, many of them do engage in transactional work.  How long have you been with this PM company, and assigned to this particular manager/agent? Are you noticing issues with performance or communication? 

I think that unless you are noticing issues with performance or customer service, you have nothing to worry about. If you do have concerns based in performance - for example, it is taking a long time to get calls returned or emails responded to, or you are not informed timely of major changes, like a tenant moving out, or it takes a long time to receive a rent-ready estimate - ask to speak with the portfolio manager's supervisor. I recommend always having a solid understanding of how your PM company is structured, how many agents they have, how they measure each individual portfolio manager's performance, etc. Once you have an understanding of this, interview a few other PMs in your local area to compare and contrast. 

Hopefully your PM has a good relationship with your tenant(s), is able to efficiently and economically resolve maintenance issues, and has good communication with you. 

Good luck!

Anna

@William Houstian the most important thing you can do is ensure your current landlord (and past, the more history the better) is available to give their reference and also has specific knowledge of your situation. Too often, we call landlords for references and they don't get back to us, or in an apartment community we get ahold of someone who doesn't know anything about the tenants; they might be able to check payment history but that's it - there is no knowledge of how they kept up the overall condition of the apartment.

I agree that for most professional landlords, two male roommates should not raise any major concerns, but you may be renting from a self-managing home owner, and it's possible that you will run into this bias. If you do, the best thing is to be ahead of the curve and to know that the reference you are listing has detailed information and will be able to provide it promptly.

I hope this helps and good luck renting!