All Forum Posts by: Joe Norman

I'd be less focused on motivating them at this point and spend your energy looking for a self motivated PMC. The fact that you had to initiate the conversation about NOI dropping, as opposed to them recognizing it and being proactive, would be a big concern to me.

You will need to go through the eviction processes, although I'm not sure if it should be handled as a squatter or as a holdover. Either way plan to spend some money and for it to take 2-4 months to get them out. Feel free to shoot me a PM if you would like referrals to some resources here in Maryland.

In addition to a lawyer/agent to handle the filings and court representation, you will also need to have someone physically present to ensure proper postings and to coordinate eviction day of.

The mechanics of commission payment has changed a bit, especially with the co-op (buyer's agent) commission not being published on the MLS for all to see, but the amounts haven't (at least not anecdotally from my experience here in Maryland). I'm generally seeing 2.5% commission to the buyer's agent (still usually, but not always, ultimately paid by the seller) and 2.5-3.5% to the listing agent.

I am advising clients to plan on 2.5% commission to the Buyer's Agent when factoring in their net proceeds on a sale.

I would expect the following assuming you're paying a full/fair listing commission and that the house is not a high end luxury property (if so I'd expect more):

-Professional photos

-Listed on the local MLS

-Listed on all the 3rd party listing sites (Zillow, Redfin, etc.)

-Prompt responses to all inquires

-Some paid social media advertising

-Full sized sign in the yard with contact information for agent (and their broker, if required by local regulations)

IMO Open Houses are more for Realtors to meet prospective buyers than for selling the house itself. I'm not opposed to them as they don't hurt the seller/listing, but I personally wouldn't expect it.

I like sleeping well at night, and I don't sleep well at night if I owe more than I own.

If it were me I would NOT maximize the loan even if I did have a "plan" for the money. At most I would borrow up to 80% of the realistic resale value of the home, and only then if (1) it still cashflows to my minimum standard, and (2) I was doing something productive with the home (i.e., not blowing it on a new car or parking it in a bank account).

If MLS access is your only goal then becoming an agent is an expensive way to do it. I personally wouldn't spend all the resources necessary (time and money) to obtain, and maintain, a license simply for MLS access.

In Maryland you are required to provide a Move Out Statement that lists all of their credits (security deposit, interest on deposit, prepaid rent, etc.), outstanding charges (rent, late fee, damage) and the balance (surplus to be returned or amount still owed).

I would notify the tenant now that the SD is NOT intended as their last months rent payment, and that they will still be responsible for that as well as any damages. Collecting on that threat is a different issue but you can at least put it out there.

Depends on your question I guess but I would start by contacting your Realtor and/or your Property Manager. Both should be able to answer your questions or quickly get you an answer if follow up is required. If you don't have a trusted Realtor/PM, or if yours doesn't have the answers, then you can always contact whatever government entity is requiring the license (hint, in Maryland it will be either the County or Municipal government, not the State).

(1) You're not crazy, but make sure you're in compliance with what the lease agreement says about how rent can be collected. 

(2) I'd say whatever works best for you, just make sure that your lease is written in a way that gives the landlord flexibility on how rent is collected. Electronic payment is fine and I wouldn't worry too much about appearing "professional" as a mom and pop landlord, make it as easy as possible on yourself and for your tenants.

(3) Professional PM software is definitely not necessary for a 2 unit mom and pop operation, but do make sure that you are keeping good books come tax time.

Unless it's a habitability issue (e.g., the mess is attracting pests, allowing mold to grow, etc.) then I wouldn't worry too much about it. If the shower has to be replaced at turnover at this point then cleaning it now won't make a difference.

I would notify the tenants that they are in violation of their lease (assuming that they are) so that its on the record and then continue collecting their rent.