All Forum Posts by: Andrew L.

At what point do you hire a property management company on an apartment complex? More specifically, at what size apartment building or how many units could justify it? I know it can depend on the Income and Expenses but is there a hard and fast rule? The property management companies in San Antonio want 10% of gross rents plus fees for renewing people. Thanks for any help on this. Andrew

I am looking at constructing a 200 unit boat and RV storage facility. This will be our first storage facility. I was wondering if there was anyone out there that could help me forecasting numbers. I feel pretty confident about forecasting rental rates and vacancy percentages. It's really the expenses I'm having trouble with. Below is what I have for expenses. Numbers are what I need help on. Accounting Bank Charges Interest (I can do this one) Repairs Maintenance Payroll Marketing Professional Fees & Licenses Utilities Income Taxes We will electricity on the property for the tenants. The rent will include the cost of electricity. But I would still like to know how to figure out the expense. Any help on the above mentioned expenses would be greatly appreciated. Also, are there certain expense ratios for this type of property similar to the 50% rule? Thanks again. Andrew

Originally posted by @Account Closed:

You are right. Put them on month to month at the same rate they are paying now, and if you're thinking about raising the rent after you take over you might lose the tenants.

Yup. Exactly. 

Originally posted by @Account Closed:

Why buy with tenants who might cause you problems. Have the seller to evict before you close and start new.

Joe Gore

 That's a great idea if the tenants trash the property and do not pay. If good tenants are already in there, then why would I pay a property management company to put someone in there? Why would I incur unnecessary vacany loss?

Originally posted by @Benjamin Timmins:

Opps hit  post too soon. I would think that you could give them a 30 day eviction notice, and then inform them that they can stay only if they agree to sign a lease and agree to your terms.

 That's what I am trying to figure out if I can legally evict the tenant if they do not want to sign a lease agreement.

I have this 3-plex I am looking at buying and it has 3 tenants. 2 of the 3 tenants have not signed lease agreements. Can this make it difficult when setting the rent? Can I evict the tenants if they do not want to sign lease agreements? I am very adamant that I will make the tenants sign lease agreements. I am worried it will be a he said she said game when it comes to rent once I purchase the property. 

Got it. I didn't mean to quote myself.

So if I call the utilities company they will give me access to that information? I didn't know that was public information. Seller will be providing bank statements to verify rents. He's only had property for less than 10 months. I've also asked why he's selling so soon.

Seller won't provide any information. Two of the three units are not on formal lease agreements. I told my agent that we need to verify those rents or we're backing out. Our 10-day started today. 

Buy and hold performing/cash flowing multi-family properties is our strategy.