All Forum Posts by: Chase Busick

Quote from @Theresa Harris:

If you don't have the deposit within 24 hours of them signing the lease, I'd let them know and move on to the next applicant.  You normally list having the security deposit as part of completing the lease (ie lease isn't valid unless full deposit is paid within 24 hours of signing the lease).

 Usually want to specify this too up front. Or also have a deposit to hold agreement signed, stating that time is of the essence to get it paid & needs to be paid by x date & time otherwise may be subject to a void contract & cancellation so you can move on. 

I had one like this recently where the person got all the way up to the point where the deposit was needed since was approved. I told them & had my document signed by them as well prior. They ghosted, but I hadn't removed the listing & still had other applicants waiting in line. They passed the timeline & I moved on, approved the next applicant & has been great! Little did I know, one of the references reached out the same day of making the approval saying that they had lost their job! So probably why..

Terri, I know you are out in Northern California & prices tend to be a little high. I'd always recommend getting an additional opinion on whether or not it actually needs to be done or if that company is just trying to sell you a new system because they know you may not know as much & because they can try. 

I've encountered situations where things are not actually as bad as some make it out to be. As well as some additional opinions align with the first option. I know this may seem bad, but not all service people in companies are the same. You want to work with people who you know, like & trust. By getting additional opinions can help secure your decision on whether or not you absolutely need to ASAP. There are some things I definitely do as well when I already know they need to be done because I may have inherited old & used.

Ivy, I agree with @Savannah Wallace. Her company is a great resource for both free & paid educational content. I personally work with them as a client & can agree that the different activities can be separated in order to prevent additional liability to reduce risk. 

When many people start out investing, many gloss over the structuring & general risk reduction side of things. They think they are protected because they have insurance, but our goal is to refine our business in order to be efficient, protected & stay in business for a long time! People will group everything together for the simplicity versus diving deeper into what can be done in order to better meet your long term goals & vision.

Like she mentioned the active business of flipping houses can bring in a lot of additional income, activity & potential for risk as they are active construction sites. You or your GC have to deal with many sets of contractors & subcontractors (who you may not know or trust). Accidents, injuries & general loss happen. You don't want something happening from one of your flips then affecting your passive side & rentals or worse things in your personal name. You want inside & outside liability protection, while maximizing tax efficiency & saving money.

@Kajal Aggarwal I agree with the others that have already posted.

The unauthorized consent of the other individual should not have been done.

Usually you do not want to give the tenants possession until after they have paid the move in costs upfront. Did you already give them possession? With just taking rent & not a security deposit? Or I assume just the lease, but nothing has been paid & no possession either.

I like @Wesley W.'s post a lot because he went into depth about what he does. I do something very similar to him in order to properly screen the applicants, ensure they follow the general process, ensure they meet qualifications/standards & that it will be a good fit before approving them. Usually you have to weed out a ton of people because they don't take the time to read & just want to see the place & expect you to accept them right away.

In Oklahoma. we have a free state court network site, where I can normally pre-screen them before even seeing the home in order to know who I am meeting for security purposes. Then also ensuring that you go over any questions they may have prior to doing the showing can also screen some out from continuing. 

Make sure you do what @David Peschio mentioned, then continue down your list of applicants. Usually we screen applications first come first serve (when they are completed & they've submitted everything we request) that way follow in line with fair housing, equal opportunity & local laws since I am a licensed professional. Try to always stick with a consistent process of how you screen, and don't deviate or make exceptions.

@Benny Weksler yeah I recommend doing a trial for tenant cloud. I think it'd be beneficial for you to just play with it & see how it goes. Can do this before having any tenants sign up. I'll most likely do the same.

I have used apartments.com for 5 years & know many others use it too, then progress to other options like tenant cloud, buildium, etc. when they are ready to progress. I also need to look into rental beast since through my MLS, but Idk if option for eveyone.

Apts.com is free, you are able to advertise on there for free & pay if want. The online payments are free & reports to renters credit. Their online system is good for beginners that don't want to pay. They syndicate leasing across many other popular websites as well. You can upload docs, take in maintenance requests. Their screening reports are ok, but if you are planning on doing the leasing you can probably do additional checks.

I think that Zillow also is starting a new platform for ongoing management as well.

Usually I will advertise leasing on Apartments.com, Zillow, Facebook Marketplace. Then just by doing that, it goes to 10+ other websites.

 Makes more sense. Yeah, I agree that it probably wasn't necessary especially if that was the amount of labor hours he claimed. Also knowing someone like a home inspector to scope lines too can help. I know here in Oklahoma there are a couple that only charge $150-200. But still, I think that determining the person's reliability is in question.. I know some will charge higher if you aren't present. 

I agree with @Payton Haight & @Bill B.

I answered a similar question for a plumbing issue for someone else a minute ago.

I think that referring back to the lease is essential. Shutting off the gas is a easy thing to do in most cases (at least for Oklahoma). You can probably walk a tenant through this if it were one of mine, or get somoone out their ASAP if it's inside where a carbon monoxide poisoning situation or something else can occur. The PM also should have sent out their maintenance man out to inspect or inspect themselves. Get their opinion if it needs to be hired out if they don't already have a licensed plumber come out.

This is a crappy situation because there is definitely some lack of accountability on the PM to ensure that the situation is handled in the best way it should. It would be terrible to have to do something that results in major financial costs when it could've been done for less if it was something simple. I would have also ensured you get additional opinions. If a tenant does something & makes a major decision for a repair, but didn't report it up properly even if it was an emergency can still be on the other party. This goes the same for the manager when they have to inform you if their estimates go over the spending limit in order to get an approval.

Ensuring you uphold the PM to a standard is essential. I had to fire the previous one I had while I was deployed because of similar situations that happened & I wasn't informed until a much later date. Most PM companies are too busy if they manage a lot, or make the most of their money from sales.

Robert, this sounds like a little messy situation. Apologies that you had this come up.

First of all I'd refer back to your lease. They most likely should have properly reported it to you if it was an emergency that way you can handle it, hire the proper personnel, & make the decision when you are advised of the situation. Them hiring it out themselves is on them in my opinion, because that probably goes against the lease on major repairs & how things will be conducted since it is your home & not theirs. Them being frustrated that the water isn't draining & they can't take a shower doesn't remove them of the responsibility of properly reporting it up to you so you can ensure the best course of action is taken..

For example in the lease I normally utilize in the Alterations & Additions section, Loss of Services, maintenance & repairs, & general provision - it goes over the proper reporting procedure as well as the guidelines for maintenance & repairs will take place. It also states that tenant must notify landlord of any discrepancies especially if it is an emergency. Granted there is more legal jargon & worded better in the lease, but this covers both parties in most situations. 

Considering that the tenant had them come out without your consent & did the work, it sounds like it should be on the tenant. Now I am not an attorney, so don't take this as legal advice & I recommend seeking out an attorney in case if more stuff comes from this. Because with your decision to not pay the rest & put it on the tenant can stir up some commotion on both the company not getting their money & putting the bill back on the tenant. Not to say that this is how it'll go down, but there are certain boundaries that the tenant definitely crossed that can be a breach of contract as they did not have the legal authority to hire out the repair when it is your home...

And just because they may be inpatient, & that it happened potentially on a holiday weekend doesn't mean they have people do major repairs behind your back & expecting you to pay for everything. Because they could be saying that it is corroded, buttt that doesn't mean that it needs to be fully replaced in order to get it back In working order. 

People can also say one thing without also providing proof of evidence that it actually needed to be done. With that being an extensive repair, I would be extremely upset that they went around to handle it on their own without the proper authority. I don't like being taken advantage of, and I don't trust companies that may say one thing is needed when it actually doesn't. (It's like when you take your car into a mechanic, & just because they can get an idea that you don't know anything they may try to sell you on replacing XYZ when they were all fine. This happens a lot with contractors & companies in order to keep a constant steady flow of work. Not saying this is prevalent, but you definitely have to protect yourself & trust those you hire to protect your hard earned wealth & assets). This is where you would have preferred to go with your preferred professional/contractor to get their opinion, then go from there if it is absolutely necessary. 

Sorry for this being a long post.

 Always maintaining good communication with the tenants, and following your standards during the leasing is very important to ensure that you have a smooth sailing ship.

I like @James Carlson's post & summarized it very well.

I think maintaining a good sense of boundaries are always good too. Getting referrals from your prior tenants can always help & decrease the amount of time in between vacancies.

Usually situations can get sour when things go neglected, handled wrong, bad communication through a particular situation, etc. I think staying on top of inspections, whether quarterly, semi annual or annual is a great way to maintain the property. You can follow the Landlord on Autopilot book tips & tricks. Usually if something turns bad, being empathetic & understanding is great.

If you are thinking about expanding, eventually you will probably run into leasing issues eventually. Always try to stay consistent with all marketing, screening, processes & following the standard for fair housing/equal opportunity to try not to discriminate.

Bethany, this is a valid concern. It is still also a somewhat busy time for many CPA's catching up on extended tax returns. Even though that is not an excuse to reply back, they can always get busy especially if they are a very small business or solopreneur. Getting on & answering questions from clients, then scheduling them in should be a priority since they are in a service business as well.

Are you looking for anywhere in particular in Oklahoma?

In OKC, there is Chrisman & Chrisman, P3 Accounting, & Plan Group. I do utilize C&C, but in an unbiased opinion they do a great job just as much as the others. There are a ton of local investors in OKC that utilize all 3 as most invest themselves. They also have teams that will service clientele & can always answer emails, hop on zoom or phone calls for strategy sessions etc. I know that many investors utilize P3 Accounting for their bookkeeping services for investors. But usually bookkeeping in general can be an expensive thing to outsource for newer investors but is something to consider when doing initial consultations with them. No obligation too, but I'd recommend chatting with multiple when you search that way you can see who y'all best match & align with in y'alls goals, vision, mission & lives.

I hope y'all find someone to help support y'alls journey!