All Forum Posts by: Jared Coley

I recently had a client propose the below question in regards to the client transferring ownership to a new investor, but still being the point of contact and decision maker between the PM and new property owner.  Before consulting my attorney, I was wondering if any members have crossed this bridge before and if so, how was it handled?  Any input?

I have changed the company name.

See below emailed questions.

From Client:

First, let me give you an idea first of what we're trying to do – The plan is to sell current ABC LLC homes to incoming Investors but to make no changes to the "management" of those homes. Everything would stay the same with the day-to-day operations as we would be working on their behalf to handle everything, and just pass their return back to them. The concern is that there may be some technicalities within the PM side that might prevent us from doing this, so that's where I need your help! 😉 Please see the questions below and let me know your thoughts.

1. It is imperative that we continue to work directly with you on behalf of the new Investor. All communication would continue to be sent to us, decisions would be made by us, document signed by us, and even bills would be paid by us. Basically nothing would change other than the Owner of Record. Do you see any problem with this? Can ABC LLC continue to be the main contact on behalf of the new Investor? What documentation would be required for this? (i.e. Owner Authorization? Power of Attorney?)
2. Could rent income be paid to ABC LLC directly, or would it be required to go to the Owner of Record? Would this affect Tax Reporting?
3. Would a new Property Management Agreement be required with the new Owner’s name? What about a new Lease for each property?

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Thank you for you time and I appreciate any feedback.

Jared

Try dry erase board paint. I currently use a 4' X10' painted dry erase board. Framed the edges with floor trim. Looks great and gives me plenty of room to work!

Jimmy, The property is currently available. I will send you a PM. Thank you.

Jeff, It is my hope to have a few contractors look at the property this coming week and provide estimates.

If the tenant is a good paying and clean occupant, raise the rent $25-$50/month on a month to month lease with a 30 day written notice to vacate. A notice clause that can be submitted by either party. If you force them into a 12 month lease, they will still leave whenever they want and like mentioned above, you will just chase them in the courts for your money which can be exhausting unless you work with a good collections attorney. If they are not paying on time and are not clean, get them out sooner that later! This type of tenant will cost you everyday they are in the property. Get them out, rehab, and increase the rents to the top end true market value. Good luck!

Curt, This is the first I have heard of this in my 11 years as a professional property manager. Defintely not common practice in my market area. The last thing I want as well as my clients, is the tenants contacting the property owner or even knowing who they are. A good PM handles all tenant relations.

Sunitha,

I sent pictures in a PM.  Scheduling a viewing would be no problem at all.  If interested in a viewing, PM me your brokers availability.

Thank you.

$99,900

4-plex apartment home located 6 blocks south of the Indiana State University Campus.  

Gross rent potential:

Apt A: $550

Apt B: $450

Apt C : $695

Apt D: $650

Total: $2,345/month

Tenants pay electric, water, and sewage.

Home is in need of the following repairs:

Electric baseboard heat needs to be replace with forced air heat.

Exterior repairs including roof, facia, soffit, guttering, siding, are needed.

Price reflects repairs needed.

We just had an appraisal complete at 518 S 5th for a 6 unit apartment building that came in at $188,000K

Property is managed by Complete Landlord Solutions