All Forum Posts by: Daniel F. Harb

@Jay Hinrichs, I understand, but I am new to PMs out of State, so I am just getting my legs trying to understand the dynamics. I know PMs get a small sum monthly, but I just want to understand what I need to cover myself "IF" a tenant burns down the house. Now I know that the PM is not responsible or liable, at least that is what I am understanding.

I would definitely need to have comprehensive rental insurance to protect against this. I don't mean to beat a dead horse, but I would rather know from the outset.

I have to insure I don't get a 14 thousand dollar bill after my rental is reduced to rubble.

Just learning.

~Daniel 

@Tom Gimer, how does a new investor OOS (or anywhere for that matter) protect themself from losing potentially thousands or tens of thousands of dollars?

Are all PM companies absolved of all responsibility across the board?

Should one have a super~comprehensive investment insurance policy for protection? 

Thanks in advance.

~Daniel 

Hello Jay,

I am at a loss why the PM would have no liability with 14K or 40K damage? What hope do new investors "Out of State" have in finding a PM that has zero responsibility if the home is "leveled" or burned to the ground?

That is pretty scary. 

Thank you, Jay Hinrichs. 

Kudos to Thomas H. Gimer, Esq.

~Daniel 

Very Nice, Thomas H. Gimer, Esq. 

"Hold harmless and Indemnity provisions"?  What if your investment is burned to the ground, they have no liability? 

The threshold is over $14,000.00?

How can the PM company get away legally, unscathed?

Tom Gimer...

Research "Esquire", friend.

If you don't think the PM has a portion of responsibility, you need to think again. Friend. 

Tom Gimer, esq.?

Doubt it. 

You are kidding, right, Diane G.?

It is the PMs responsibility to MANAGE the investment, not just accept a rent check each month. If it were me and it was my property, I would have ZERO problem sitting down with my "Pit~Bull" attorney and seek strong legal advice.

This has EVERYTHING to do with that property management company, doesn't matter if the property is in an "A" neighborhood or an "F" neighborhood.  Period.

Yes, the investor has responsibility AS WELL as the PM company. What would you think of a new tenant every 4 months? That is o.k.?  Never!

Alright, I'm done.

~Daniel F. Harb 

Thank you, Mike D'Arrigo. That is precisely what I need. The real & unvarnished truth. Mr. Jay Hinrichs gave clarity to me the other day when he said to drive to LA and look at the properties in the worst part of town. I know I wouldn't get solid tenants to live in those properties & surely it would be a nightmare and a financial lampooning. Seriously appreciate you, Mike, and the expert information by Jay Hinrichs and many other amazing RE Wizards. You are saving us many thousands and tens of thousands of dollars! Thank you! ~Daniel F. Harb

Thank you, @Mike D'Arrigo, for your posts, warnings, and expertise. :)

Best to you!

~Daniel F. Harb

Thank you, @Jay Hinrichs, for keeping me (us!) on that "Straight and Narrow". I am "almost" persuaded to buy a $40~$45~$50K property. I think "If" I find an amazing PM, "If" it is different for me, "if, if, if"...

Thank you, Mr. Jay Hinrichs, for your wisdom and expertise.  :)

Daniel F. Harb