All Forum Posts by: Carl Millsap

@Michael Gabin understandable...if the complaining tenants are a pain then maybe allow them to terminate their lease because of the barking dog. Win-Win...

You keep your good tenant, and the complaining tenant gets to move to a place they'll hopefully be happy in.

@Michael Gabin yes, we've dealt with this before. Depending on your lease I'd tell the offending tenant if they can't control their dog then they''ll have to get rid of the dog or you'll terminate their lease.

Tough approach as I'm a dog owner, but what I've told the offending tenant is everyone is entitled to quiet enjoyment of their home. Their neighbor shouldn't lose their quiet enjoyment because you have a dog. 

They usually find a way to co-exist. 

@Dillon M. Leonard I self manage 62 doors soon to be 115. I also have another job. What I've done is put systems in place that allow me to maintain sanity while we grow. 

If a tenant calls / text a maintenance issue I call one of a few contractors I use. Because I've been working with them for years they give me reasonable rates because I've established that I'll be a repeat customer. 

When I have to turn a unit I stop by the property on my way to work to check progress, get updates etc. I buy supplies and my contractors will pick them up or I drop them off time dependent.

The technology will support self management. When I list a property I use apartments.com / Facebook marketplace. When someone wants to apply I send them a link to https://www.rentapplication.net where my application / background report etc is all done in one place.

We have tenants who have never met me....a testament to systems.

My wife and I travel domestically and internationally, I'm still able to manage our units from my laptop / cellphone.

If you use a PM you'll still have to manage them and your cost will increase. No one is going to take care of your property the way you do. 

On the other hand I have a client who recently went from self management to using a PM and he loves life. The increased cost to him is an investment in his freedom / peace of mind....no tenants calling about leaking toilets etc. brings a smile to his face every time we talk. 

I enjoy dealing with every aspect of the business so that has to be factored in. 

Hope this helps.

@Quynn Costello Here are a couple thoughts:

1. Read their lease. In this environment that $700 isn't guaranteed.

2. Ask the seller to either 1 reduce the sales price by $7,000 ($700 x 10 months) or to put the money in escrow. Every month the tenant pays their rent they can reduce the escrow by $700. 

3. You could always offer cash for keys to the tenants or make the sale contingent on the tenants being gone at the seller's expense.

Just a few things to consider. I've heard of agents placing tenants to help the seller show it's an income producing property or to help the buyer have income already in place when they close. But in this environment no way I'm putting anyone on a 12 month lease.

@Randall Re II In our experience:

1. A tenant didn't have a lot of furniture so we were able to wipe off the walls, and then touch up the wall where their couch was pushed against. Since we use the same paint in every unit we were able to minimize labor cost, and down time. Plus our guys don't have to guess when they buy supplies. 

2. When you use colors it'll be hard to match again. Dye lots change. There's also the possibility a prospective tenant doesn't like the color. Seems trivial but it happens.

3. White makes the room / space look bigger.   

Glad to hear you plan to replace most if not everything within reason. Hard floor surfaces ie. tile, hardwood steps cost more up front but the long term benefit justifies it. We haven't replaced a tile floor yet. We put carpet in the bedrooms, no one wants to put their feet on cold tile in the morning. 

@Randall Re II the only thing I see is that your cost should be lower after renovations. 

If you're investing $50K to renovate I recommend you tenant proof the property. 

Tile floors throughout, carpet in the bedrooms only. Ensure your HVAC and Roof are solid, check the plumbing etc. 

Paint everything one color. We paint the ceiling all the way down to the baseboards semi gloss white. Makes it easy to paint, lowers cost and it looks good. 

@alecia loveless here is the body of the memo we use:

Mr. and Mrs. Tenant:

(Your Company name) purchased Chase Apartments from Hall Brothers, LLC on December 23, 2012.

First, if you have any outstanding maintenance request please email them to (company email address) or text them to XXXXXXXXX with your name and address until we can get you set-up in our system.

Attached is a Tenant Information form. Please complete the form and return it at your earliest convenience. It is important that we have your information updated.

You can scan and email the form to COMPANY EMAIL or drop it off at  COMPANY OFFICE ADDRESS

THE SELLER  has provided us your lease and deposit.

For your convenience we have two ways for you to pay rent.

1. You can drop it off at COMPANY OFFICE ADDRESS. Please make your Money Order out to COMPANY NAME.

2. You can pay online via Cozy starting June 2012. Once we receive your tenant form we will send you an invite to Cozy where you can set-up and schedule your rent payments. You can also submit your maintenance request via Cozy.

If you have any questions please contact me at XXXXXXX.

We look forward to serving you.

Good Morning Israel, 

Continue to learn as much as you can. I recommend you find someone you can work for in the business. 

My son is helping a friend demo a house, and then will help with the renovations. When he was your age I had him working in the properties, it's a good way to learn and appreciate the process. He just bought his 1st investment property last week.

Learn some of trades associated with the business. When you first start out the best way to save a few dollars is sweat equity. I painted, laid tile, installed carpet etc. in our units. Trial and error. That experience taught me the process, it's also helped me to see when contractors are cutting corners, or trying to charge too much. 

Hope this helps.

@Jorge Chocoj I wouldn’t evict for non-payment of rent; I’d evict for not having a valid lease and/or for running a business out of the house as a violation of the lease.

I don’t see the moratorium ending this month which means any evictions for non payment would be put on hold.

@Charlie Anne Is this going to be your primary home? Are you planning to live-in and flip or just live-in and improve? You stated it's a fixer upper so we know there are issues which brings us to the termite and water leak.

How did you determine cost for the other repairs? The same approach would apply to the termites and water repair.

Strategies: 

1. Get 3 estimates to fix the termite issue and water issue. Ask the owner to put the money for the highest estimate in escrow, but as long as your comfortable use the middle estimate. Refund the owner the difference if the cost is less than escrow amount. Anything over you cover the cost.

2. Get termites treated and purchase an ongoing service plan. Depending on how bad the damage is, ask for repair money.

3. Do the pipes need replacing or repair? Depending on the type of pipe you may want to replace it vs. repair i.e. clay pipes should be replaced in my opinion.

4. What if any contingencies did you and your agent put into the contract? If you present a list of repairs and the owner decides not to fix the issues can you back out?

What is the house worth once repairs are made? Is the purchase price and repair cost going to exceed After Repair Value (ARV)? If so you may want to walk or renegotiate the purchase price / repair allowance.