All Forum Posts by: John M Chludzinski

Wellllll all those folks wanting to find tenants without using an  agent, I suggest that you have not found a good one.  Hands down, an owner will always do a better job assessing the tenants when they meet them, but a large part of the value proposition is weeding out the wackos, the scammers and the flakes from the rental process. This takes time.  In Central NJ, our average rental is about $1800 to $2000 per month, and we split that with two agents.  So the  agent is typically getting a 60-70% split of $1000 to process a rental, and the average time a rental takes on the listing side is about 4 hours of work, and on the tenant side maybe 6 hours.  so if the average is 5 hours, the listing or tenant's agent is making $600 for 5 hours of work, pretax, and maybe $400 after tax and fees.  BUT in our area an owner might have to show the unit on 6-8 separate days, for 1 hour per visit (assuming they are local) to find one good tenant, then prepare forms for another hour or two, then meet the code compliance officer for an inspection (1 hour to 3 hours waiting time) so on average we are talking about 12 hours to find a tenant on the owner's part.  Maybe a lot more. So the owner saves $100- 150 per hour, but what if the property is 2 hours away?  Then the time doubles, and the savings is eaten up by the time investment.  

Illigitimatum non carborundum - "Don't let the bastards wear you down"  

great advice for landlords and real estate brokers!

This problem is far more prevalent with commercial brokers than residential. 

I second Kelly's thoughts.  But have to wonder why you did not ask your Broker? That is what I do as a broker - support my agents that need help!

If the HVAC and hot water heater are all only 3 years old, you might skip it until you get to year 7-8, since the units SHOULD give trouble-free service for another 5 years..  That is not an unreasonable assumption. but it is an assumption.

Mold is definitely caused by occupants showering for protracted periods in confined spaces and is very common.  I agree the best way to prevent it is for the HIGH capacity exhaust fan to be connected to the lights, and also make sure the tenants pay their own water and gas-electric bills.  Then they have an incentive to economize on the duration of the shower.  Beyond that, maybe a signed agreement that you have cleaned the area with the appropriate cleaner, repainted, and the tenant is responsible for all subsequent problems in the affected area.

Most of the time, I have found that it is pretty easy to get into a house.  Were I at the house, I would jimmy the window or door and open it up, then replace the locks with a set I brought with me from Lowes for that purpose.    If the windows and doors are really new, and well-made, and tightly sealed, then maybe it is cheaper to call the locksmith, but most are not, and maybe the contractor left the window unlatched?

New Jersey requires a real estate license to manage properties for third parties - i. e. properties not owned by YOU or your company. You can get a salesperson's license with 75 hour coursework and a test, and then place your license with a broker that does property management to get started. If you want to form your own company, you will need a licensed broker on your staff.

Hi, Brian:  If you are still looking for an experienced agent, I would be happy to give you the benefit of my experience.  Give me a shout anytime.

Oleg:  In your simple example, I think you forgot to express that vacancy assumption of 5%? Thus the cap rate of 5.5% instead of 6% where your math showed?