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All Forum Posts by: Josh Otero

Josh Otero has started 6 posts and replied 32 times.

Post: Nightmare Tenant - This is why you need a property manager!

Josh OteroPosted
  • Property Manager
  • Los Angeles, CA
  • Posts 33
  • Votes 14

100% agree that they should've gone with a property manager. One thing my property management company does, is that we give the tenant a move-in checklist before we give them the keys. We allow them to note anything they see wrong with the property before moving in and they sign it. That way, we won't run into any of these problems in the future.

Also, a property manager would've been able to sniff out a tenant looking to take advantage while touring them. The screening process is so important and the one's who move people in all the time have a 6th sense for these kinds of things.

Post: Nightmare Tenant - This is why you need a property manager!

Josh OteroPosted
  • Property Manager
  • Los Angeles, CA
  • Posts 33
  • Votes 14
Quote from @Greg Scott:
Quote from @Phillip Austin:

One of the best examples I found this year as to why you need a property manager (especially in Colorado). This client chose not to use our services and instead, tried to self-manage their primary. This was the very first time they had rented it; brand new landlords. The home was clean and in great condition. The showings with the tenant went well and they didn't have any questions during the showing. They moved in and within 24 hours sent the following letter (names have been changed):

"Hi Dawn and Brian,
Sindy and I are frustrated, disappointed, and really struggling with the idea of moving forward with the move into your home.
We realize this is the first time you have rented a property to someone, and may not be aware of the responsibilities that landlords have, and want to inform you that there are habitability issues with the home that are quite literally against the law, pursuant to Colorado’s Warranty of Habitability Law, CRS §§ 38-12-501 et seq. See below for explanations, with headings taken from the attached document.
Broken windows or exterior doors-
The two narrow windows in the living room do not fit into the walls properly. Both screen doors upstairs do not function correctly.

Plumbing problems-
The garbage disposal in the kitchen was not cleaned, is smelly and the rubber is flipped outwards.
The bathroom sink in the smaller bedroom does not drain correctly despite us using an entire bottle of drain cleaner on it.

Common areas that are not kept clean or have garbage-
There was no attempt to clear the patio of years of accumulated debris and filth. We as tenants had to acquire a shop vac and clean it ourselves, including dragging rugs full of filth and animal hair to the dumpsters. Window ledges had debris and dirt. Spiderwebs were all over the patio, fireplace, basement and ceilings. Upon move-in, appliances, cabinets, floors and walls all had built-up grime and residue from your habitation of the home.

Infestation of bugs, pests and rodents-
There was no attempt to treat the house for pests, as evidenced by the more than 15 spiders we have already seen in the basement, and the live, active wasp nest in the patio fence.

Floors, stairways and railings in poor condition-
The carpets are stained and smelly. The carpets covering the stairs are matted down, stained, and especially smelly. The smell has not dissipated, pointing toward a bigger problem than one shampooing can fix, and because the living room carpet was still full of indents from the previous furniture it is unlikely that the carpets were properly shampooed. Furthermore, after having a dog live in the house for 3 years there is almost certainly animal urine that has soaked through the carpet into the subfloor. To remedy that, the carpets should be ripped up and sealant applied to the subfloor, at minimum.
There are also tiles in the smaller upstairs bathroom that are lifting up and creating a safety hazard; putting a rug on top is not a sufficient solution.

The house is in a condition that materially interferes with the health of household members. Tenants have dog allergies and chronic asthma; the persistent smell and the dog hair found in multiple areas so far are harmful to our health and have, can, and will exacerbate health conditions of tenants.

We believe the issues described above present a materially dangerous or hazardous condition to the health and safety of our household. We are thus asking that you fix the problems. We are within our rights as tenants to request that you initiate a fix to the problem within the next 24 hours due to the condition of the house presenting both health and safety hazards. If you are unable or unwilling to do so we may elect to terminate the lease and request a return of our deposit--which we offered in a good faith agreement that we would be presented with a habitable dwelling--and our prorated rent. If that is the path moving forward we will be left without a home as of 9/21/24 which will create incredible financial, mental, and physical stress on our part. We hope that you can remedy the situation so that we can move into a habitable home.
Suggestions that we have to fix the issues:

  • Hire a company to rip up the carpets, treat the subfloors, and replace the carpets, at least on the main level and on the stairs.
  • Provide an air purifier as a start to remedying the smell.
  • Replace the garbage disposal.
  • Hire a plumber to fix the draining issue in the bathroom sink of the smaller bedroom.
  • Fix the tiles in the upstairs bathroom so they no longer present a safety hazard.
  • Replace or fix the screen doors.
  • Fix the gap between the windows and the walls in the living room.
  • Hire a professional company to treat the entire home for pests. This is typically done 3x a year.
  • Hire a company to deep clean the washing machine, drier, and dishwasher.
  • Reimburse us for the combined 8 hours we have now spent on cleaning the home.
  • Repaint the walls, at minimum in the basement.
  • Prorate our rent for the days we are unable to be in the home due to the current issues and any repair time.

Please let us know how you would like to proceed.
Thank you,Sindy and Cary"

You need a professional property manager!

Wow. That was quite a letter. 

This was clearly a "professional" tenant.  They have probably done that same thing multiple times over the past decade.  As soon as they make a house unlivable, time to move to the next uneducated landlord.   OUCH.

 A professional tenant indeed. Sadly people will always try to get away with these things when they can.

Post: "Reject" tenants that would have passed screening?

Josh OteroPosted
  • Property Manager
  • Los Angeles, CA
  • Posts 33
  • Votes 14

Hi Brandon, 

This is a great problem to have lol. I would let the other applicants know that there is already a tenant that rented the place. So that is the reason why you will put reject.

Post: LA meetups for networking?

Josh OteroPosted
  • Property Manager
  • Los Angeles, CA
  • Posts 33
  • Votes 14

Hey @Chris Pratt

I'm also in the LA/SFV area. There's a meetup that's shown on the BP site. I don't know how many people are going to show up but here's the link. If there are any others that we know of, let's share them with each other.

https://www.biggerpockets.com/forums/521/topics/1226631-real...

Post: Which form or notice should I use to end lease with tenant

Josh OteroPosted
  • Property Manager
  • Los Angeles, CA
  • Posts 33
  • Votes 14

Hi @Laura Kreinbring, you can give them 30 days notice before their lease ends (written via email & a letter on their door) stating that you will not be renewing their lease. 

If their lease date is far from being over, I suggest letting them know that they have violated lease terms under section x (whatever part of the lease they violated) and that the lease will be terminated in 30 days.

Post: Raising Down Payment Money

Josh OteroPosted
  • Property Manager
  • Los Angeles, CA
  • Posts 33
  • Votes 14

Hey @Kyle Deboer, it's great that you're eager to get started. Don't let anybody tell you you're "too young" to get started. I suggest getting a job anywhere and saving your money to then invest. It's up to you if you want to put it in an ETF, CD or something else in the meantime. At this stage of your life, communication skills are most important so be sure to develop those. Some jobs that help are by being a waiter at a restaurant or try getting a job in property management or something real estate related of some sort. You're in the Ohio market where it's definitely possible to team up with maybe a sibling and get a property when you're 21 ish.

Post: Plumbing Issue - Landlord's vs. Tenant's expense

Josh OteroPosted
  • Property Manager
  • Los Angeles, CA
  • Posts 33
  • Votes 14

Hi @Chan Park, this is an interesting scenario. You must first confirm that the cause of the leak was because of the tenant. If so, then you can refer to your lease in the part that states they are liable. 

You have many options here.
1) Terminate the lease: It clearly states that they must have renter's insurance and the lapse can result in a default
2)Have them cover the damages with sufficient evidence that they caused it
3) Claim it on your insurance for the property, likely they won't give a good payout unless a fire, flood, or some sort of wind damage.

Post: Tenants not paying rent

Josh OteroPosted
  • Property Manager
  • Los Angeles, CA
  • Posts 33
  • Votes 14

Hi Esther, I personally as a property manager in Los Angeles have a process when it comes to tenants not paying rent. I have RentRedi charge them a late fee after the 4th day if rent is not paid. Then on day 8, I put a notice on their door. If they have not paid, then in Los Angeles, you're eligible to file for eviction 30 days after putting the notice on their door. In this case, I would file for eviction. 

My advice is to require them to pay the full balance upon the next payment. If not, let them know that they will be sent to eviction.

Post: Property Management Software

Josh OteroPosted
  • Property Manager
  • Los Angeles, CA
  • Posts 33
  • Votes 14
Quote from @Ashley Kehr:

Hi Everyone! I came across a question for our Rookie Reply podcast episode asking about property management software. I have used several but am wondering what everyone else is using and why you like/dislike it. Over the past several years it has seem there have been more and more options. I'd like to be able to give a variety of options for the listeners along your recommendations and feedback on the options. Thank you!! 

Hi Ashley, I recommend using RentRedi. It's much more affordable (you can get the $100 annual version instead of $300 per month like Appfolio). All the add-ons are a la carte so you can definitely get a lot of value based on what you need.

One thing I personally don't like is that when tenants pay rent, they are charged $1 per transaction for ACH use. Of course credit card is going to be like 3.5% but it does kind of such because it's already hard to get tenants to pay it lol.

Post: Property Managers Violated Contract

Josh OteroPosted
  • Property Manager
  • Los Angeles, CA
  • Posts 33
  • Votes 14

Hi Briar, 

These are always tough situations. This PM company definitely did not do what they promised and therefore violated their contract. I suggest that you do ask for a reimbursement. Also see what company they used to replace the damage for that issue. They may have used one of their friend's companies or something shady like that. If you're in the LA area, it's definitely very common. If that's the case, then you definitely have a strong argument for getting a reimbursement.