Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
×
Try Pro Features for Free
Start your 7 day free trial. Pick markets, find deals, analyze and manage properties.
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Jenny Bayon

Jenny Bayon has started 1 posts and replied 24 times.

Post: Lets talk about Self-Storage

Jenny BayonPosted
  • Property Manager
  • Posts 24
  • Votes 10
Quote from @Frank Granata:
Quote from @Jenny Bayon:

Hi! We prefer self-storage over residential rentals by far, but we are in California and the laws are 100% in the tenant's favor. We've owned the storage facilities for decades, so I am no help with your other questions. 

Best to you!

 Thanks! @Jenny Bayon - Do you have a system for analyzing cash flow to see if it's a good deal or not? I understand the current owner will provide P&L's but do you estimate the loan payment and taxes just like you would on a conventional mortgage?


 Hi Frank! Hopefully you farther (further?) down the road in your quest for self-storage investing! I'm sorry it's taken me so long to respond. My father-in-law built his first facility in the 70's to store boats that he made & sold to customers and then bought another self-storage facility in 1978 that he expanded. He likes to make 10% on his investments, which is a very high standard I think. My hubby are the property managers now and are upgrading everything and trying to bring up occupancy levels. :)

Cheers!

Post: Storage Unit Investing

Jenny BayonPosted
  • Property Manager
  • Posts 24
  • Votes 10

Hi all! Our family has owned two storage facilities for 40+ years. For many years our properties were run very old-school and we are currently in the process of upgrading everything. My hubby and I took over the management in January of this year. We are in the process of upgrading our fences to 7' iron with spikes, as chainlink is child's play to cut and enter. We have automatic gates with a key code box (integrated with our software) and our gate hours are 7AM - 8PM. We are upgrading our security cameras, but as a previous poster mentioned, if no-one is watching the cameras at night or the system is not setup to alert you, the cameras are only good for monitoring during office hours and playback for thefts that occur during the night. We have an office at our larger facility that manages both properties and is open 9-5, six days a week. We have had a very hard time with management and we are currently living at the facility managing ourselves. We are in our second eviction for our live on-site managers this year. 

Managing remotely seems like a pipe-dream for us, to be honest. Maybe that works if you are in an upscale area where people always behave and follow rules...heh. We do a drive-through of the facility every night after gate hours to hustle people out who have not left, and to check all locks, and nooks and crannies for dumped trash, etc. Just last night we had a couple who had not left after the posted gate hours. My hubby told them they needed to wrap it up and leave within 10 minutes (they had stuff strewn about in front of their unit.) My hubby went back to the office. Then a neighbor (another storage facility owner that lives on-site) called him and said there were people screaming in our back units. My husband went out again and the couple were having a domestic dispute (this happens with our customers more often than we care for!) and the husband had thrown and broken things. They swept the items in a pile and covered it with a tarp for the night. The man was supposed to come back today to clean it up. People often stay past gate hours and have to be physically told to leave and watched to make sure they do. We've had domestic disputes that could have turned very ugly (guy had done time for shooting someone in the face) if we were not there to stop it, call police, etc. We've had homeless people attempting to live in their units and stay at the facility all day. It seems like we have people or unit issues on the daily.  

We also do a drive through of the property first thing in the morning. We often notice that people have not secured their locks properly or have accidentally taken their lock with them and the unit is unsecured. We then secure the unit with our own lock and call the tenant to let them know. I'm not sure how this kind of thing would be accomplished remotely without having boots on the ground every day. 

Regarding cleaning out units: We often get people who move out and leave stuff. We then have to load the trash in a utility trailer and haul it to the transfer station. We have also had people move out and dump things in a corner on the property so their unit looks clean to get their deposit back, but they've left a mountain of stuff in a corner somewhere. If a manager is not monitoring the cameras, this is not caught until later. We live in an area where there are black widows and other undesirable spiders, so we have a pest service come every single time someone moves out; however, if a unit is empty for a time, black widows move back in and must be exterminated before a tenant moves in, so we do an inspection of every unit before someone moves in to make sure it's ready to go. Sometimes people just move out without notice, so if we are not inspecting the place every single day, we would not know until our system charges them rent and we attempt to collect. 

Even with all it's complexities, I prefer self-storage to residential rentals – at least the gate locks tenants out after 11 days if they are behind on rent. The lien process is lengthy though and labor intensive. 

I would love to hear from other owners/managers on how they have accomplished remote management. We would like to work smarter, not harder. ;)

Thanks for listening and for any input you may have,

Jenny

Post: Raising Rent to Fair Market Value

Jenny BayonPosted
  • Property Manager
  • Posts 24
  • Votes 10

Hi Brian! Thanks so much. We are slowly getting a handle on things. We are in various stages of eviction for three of our properties, and completed one in January. California tenancy law is really something. We are considering selling all our residential properties and reinvesting in self-storage. We have two storage facilities already and have learned to greatly appreciate them over residential.

Best to you!
 

Post: Raising Rent to Fair Market Value

Jenny BayonPosted
  • Property Manager
  • Posts 24
  • Votes 10

Hi Ken! Sorry it took me so long to say thank you for your thoughtful reply.

Best to you!

Post: Lets talk about Self-Storage

Jenny BayonPosted
  • Property Manager
  • Posts 24
  • Votes 10

Hi! We prefer self-storage over residential rentals by far, but we are in California and the laws are 100% in the tenant's favor. We've owned the storage facilities for decades, so I am no help with your other questions. 

Best to you!

Post: Tenant refusing to sign 1-year lease

Jenny BayonPosted
  • Property Manager
  • Posts 24
  • Votes 10

We are also in California. We are in the process of FOUR evictions. Each eviction costs $3,000 or so, plus loss of rent that we will never see. Know this, in CA, every law is in favor of the tenant. People in WY or OH saying, "it's your house, you make the rules" are, unfortunately, very incorrect. Since the Tenant Protection Act of 2019, you can not simply terminate a lease. You have to have a 'just cause'. If your yearly lease lapses without signing a new yearly lease, the lease automatically converts to a month-to-month. Our two lawyers have given us different advice on which is best. My personal advice is, if you have a good tenant, thank the heavens and do the month-to-month like they requested. 

We are considering getting out of residential properties altogether and focusing on commercial. CA law has created tenants from hell!

Post: Self-Managing Landlords on their Properties

Jenny BayonPosted
  • Property Manager
  • Posts 24
  • Votes 10
Quote from @Nathan Gesner:
Quote from @Chris Mullinax:

What scenario would you NEED to hire a property management company ASAP?


You drive by to look at your property for the first time in six years. There are four cars in a driveway meant for two, three more on the street, and another one on blocks on the front lawn. The grass is completely dead and the beautiful tree you placed your father's ashes under is now laying across the neighbor's fence. The garage door has been removed and replaced with a poorly built wall and a wood stove vent sticking out the front. The upstairs windows are broken out, replaced with plywood, and there are smoke stains around them. The sign in the front lawn says, "2 for 1 special! Call Maria and Jenny at 555-867-5309".

That's just one scenario where you would call a Property Manager ASAP.


 Ha; but also a tear or two! That description pretty much sums up the situation we inherited with our family's real estate portfolio. We are on our third eviction for situations like you described. The struggle is real! 

Post: Raising Rent to Fair Market Value

Jenny BayonPosted
  • Property Manager
  • Posts 24
  • Votes 10

Thank you for your thoughtful reply, @Joe Splitrock. Your advice is sound and I am crafting letters as we speak. We will only raise two homes to begin with: one from $1200 to $1500 and one from $1000 to $1200 (this tenant has been with us since 2009). The values are still very low and we will likely raise again next year. We just paid $50/gallon for exterior paint for trim! Inflation cometh with a fury!  

@Joe Splitrock Thanks, again! I will definitely purchase the book! 

Post: Raising Rent to Fair Market Value

Jenny BayonPosted
  • Property Manager
  • Posts 24
  • Votes 10

Hello! I recently became a property manager for single-family homes that have not had rents increased in over a decade and were low to begin with. My father-in-law is the owner and wants the rents raised, but is leaving the amount and method up to me. Several of the tenants are long-term tenants. Rates are currently $700-900 below market value (Gasp!). None of the properties are under rent control. What the best way to get these rents to market value without losing our long-term tenants or giving them a heart attack? Thanks in advance for your thoughts and ideas!

P.S. We live in Del Norte County, CA and the housing market is extremely tight.