All Forum Posts by: Kenny Dahill

Hi @Megan Davis, what was challenging about Tellus interface?  Was it only due to the screen size?

I'll follow Rob's lead; would be more than happy to answer any questions you might have if you ever consider other options.

What are your thoughts about their $9.99 per weekly listing?  I would hate to forget to remove my listing, or worse rely on my property manager to remove it.

@Clifford R Fowles, property management is an investment state of mind.  A few things:

• What is your investment strategy?
• Where are you located?
• What is your portfolio size?

Consider the fact that more than 75% of landlords self-manage their rentals.  But why is that?

• Debt on property:  If you have a mortgage then that can be 70%+ of AGI, plus the 20% PM costs and your deal doesn't pencil very well.
• Volume:  The vast majority of landlords own less than 5 units, 1 rental unit is the most common as expected.  You can self-manage 1-5 units easily

Here are the 4 typical 'landlord'/'investors and their goals:

• Real estate investor:  They buy rentals for passive income and want to max their profits.
• Wealthy Individuals:  These wealthy individuals view real estate as a commodity and use it for investment diversifying or tax benefits.  They are not too worried about squeezing every penny of profit.  They commonly are informed by their financial advisers to do this.  It's also not uncommon for them to own free-and-clear, which generates more cashflow.  They don't want to handle tenant issues or even be involved, they simply want a certain pref return.  They hire property managers to handle the headaches.
• Accidental Landlords: This is a large group who either inherited a property or might have been moved for work. Their strategies are commonly a mixed bag of "break even" to "I want to make $XXX per month". They typically don't take the ROI perspective. This group will commonly hire a PM because they accidentally became a landlord and do not want to handle the headaches.
• Corporate Funds:  The last isn't a person but an investment group or some type of corporation.  They'll be similar to the wealthy individual, focused on their pref.

There is a need for property managers and it mostly resolves around their strategic planning.  I am sure @Anna Sagatelova can contest which type of landlords are the best/worst to work for.  I'm assuming the corporate funds and wealthy individuals are the easiest clients to handle and individual 'investors' are the most difficult.

The simple fact is property management  and mortgages combined make it extremely difficult for any investment to look attractive.  Property Managers aren't all bad, but it can be a difficult job when they're being micro-managed by the landlord.  They serve their purposes for the accidental, wealthy individual and investment group type of landlords.  Luckily there are plenty of software sites that make it easier for landlords to self-manage now.  Especially for out of state landlords who need local support.

@Mike Brecko, HARD NO.  That significantly increases your vulnerability to risk, with no upside in financial gains!

Put it in your correct that any short-term renting is prohibited.  You do not want to handle that nightmare when something bad happens.

@Theresa P., you definitely need their consent for private information.  If it's public, have at it.

Also, sites like Cozy and even us do not actually perform the background check.  We are simply a platform provider that allows you to order screening reports.  It is your responsibility to still perform due diligence on the tenant.  Consider it a tool among your process of the macro screening process.  Anyways I personally use our site for my screening reports, I still have more tasks to fully screen a tenant besides only the report.

If you would like additional information on screenings, please feel free to contact me and I'd be happy to address.

@Robert Tinker, I would agree with Jim's 15%, if not a little higher. 1 month = 8% vacancy. I typically carry 10% for CapEx/Repairs.

Something to consider when you have new homes: living stress test.  You should expect a lot of maintenance requests your first 6 months of occupancy.  You can test plumbing and electrical all you want but nothing is a better test than the daily use over several weeks.  It will eventually slow down but be ready for volume of requests.  Luckily most of it should be under warranty, it's just time consuming.

@Viral Patel absolutely!  Being on the Burbz team, I am familiar with the ACH process since we just went through the development process.  If you have any questions I am always happy to address them.

JD is absolutely correct.  These are separate issues that have no direct correlation with one another.

Typically tenants can only hold rent for emergency or unlivable conditions.  If she refuses to pay rent then notify her that late fees are still applicable due to the minor maintenance items.

Hi @Mel Hayes,

You should be able to make an amendment to their lease stating you as the landlord and removing any reference to the previous manager.  Sometimes the PM's put themselves down as landlord as well.  I would not create a new lease agreement, unless you like them and you're able to raise rents.

Be aware that typically Management Agreements have a clause that state you owe them all their fees regardless.  It's completely unfair they do a bad job and still get to keep 100% of their fees even if they didn't provide the full 12 months of service.

You will also have a 60 day termination notice.  Look up your state laws regarding the deadlines for PM's to transfer all the proper documents to you or the new PM.

My college rental had tenants that moved out of the house half cleaned, basically took the stuff they wanted to keep.  Turned off the power in Arizona summer and left all the food in the freezer.  I was traveling for a week and unknown to be was the 10lbs of ground beef left on the top freezer shelf.  It thawed over the week and dripped all over the kitchen floor.

I initially tried to be the nice guy and clean everything myself to help them keep more of their security deposit and not have to buy a new refrigerator.  After their complaining about me charging for my time trying to salvage the frig and saying they'll take it to court (he was a law student), I simply bought a brand new refrigerator and cleaning crew.  Complaint handled.  Zero dollars returned.

Lesson learned: their choice to give up security deposit, not my problem. Especially when they're rude.