All Forum Posts by: Jon Kelly

@Pam Wils You don't need to do it this early. But, if it makes you take action then do it! 

Hard to tell if this is a serious question or someone just trolling to stir the pot... 

Zillow's stock declined because of very poor execution of a business model that many other companies thrive on. 

@Carmel Duffy the time for notice should be defined in your lease based on state laws and your requirements. It's typically 30 or 60 days. If it's not in your lease then make sure to add it. 

Form of communication should also be in your lease. Most likely you need to provide written notice. Does your lease allow text as a form of communication? Have you communicated with your tenant via text before? 

If none of this is specified in your lease and you haven't communicated via text before, then be safe and send a letter to the tenant

@Robert Shedden that's a smart approach. 

That's one of my favorite quotes. I think Nelson Mandela gets credit for saying it. If you're an MMA fan, John Kavanagh recently wrote a book, "Win or Learn"

@Robert Shedden This isn't a get rich quick scheme. If you're in it for the long-term, do the right thing and return the security deposit. The potential tenant changed their mind within 24 hours. Yes, you pulled the listing but you're in no worse a position than you were yesterday. Re-list it and make the adjustments to your listing. 

I typically add something like, "a non-refundable $300 deposit is required to hold the listing." If/when a tenant pays $300 then I will remove the listing. In your example if the tenant pays $1,500 for security deposit and then changes their mind, then you keep $300. 

ibuying isn't a new concept and won't be going away. I'm mostly surprised how quickly Zillow shut down this business. They had $billions in capital backing the business and it shuts down within 3 years...

The news speaks to how important it is for investors/companies to focus on the fundamentals:

• Strategy: what markets will you focus on and what is your capacity?
• Valuation: what data and assumptions are you using to come up with offers?
• Relationships with people: what is your network of sellers, inspectors, contractors, etc.? 

@Jason Tassinari Did you finish the stack of books you already have? I'd start there and then start taking action and analyzing deals. 

As you gain experience with analyzing, making offers, buying, rehabbing, landlording, etc. you may find other areas you want to dive deeper into. I wouldn't flood yourself with too much information before you take action. 

@Dave Jackson You hired a PM, why are you keeping the security deposits? Is this a full service PM? How much are you paying them? 

Your last paragraph is correct. Typically, the PMs will deduct expenses from rent before sending payment to the owner. Most PMs are flexible on the amount of reserves they keep for minor expenses. You want it to be high enough to where they are consistently asking you to deposit more funds, but low enough to where you're receiving enough rental income. 

I would interview other PMs in your area and discuss their process. You may end up making a switch. 

@Ben Feder The question if a local market will follow the national trends is entirely dependent on the local market you're interested in. 

National data can be useful for informational purposes (price, rent, inflation, days on market, etc.), but your local market can be drastically different. I wouldn't rely on national data to make decisions in your market. 

National data has the benefit of diversification. Local markets can be highly dependent on a few critical employers. 

You also have micro markets within your local market as others have already pointed out. Trends can vary drastically by neighborhood and even by block.