All Forum Posts by: Kyle Wheeler

Hey Calvin,

It sounds like you are ok with negative cash flow every month?

I run into this situation a lot where owners buy a property and then they move out for some reason and want to rent out the property but unfortunately the property was not purchased as an investment and the income will not support the expenses every month.

If I were you, I would look into a different strategy so you are able to have some positive cash flow every month.

Have you thought about furnishing the unit and doing Air BNB, or furnished mid-term rentals?

Another strategy that is gaining more popularity in urban markets is Co-living. Furnishing a home and renting out the rooms to tenants. 

How many bedrooms do you have? You can charge about $1,000 per room for this strategy in your area.

Let me know if you have any questions!

Hey Daniel,

I have dealt with this at previous companies I have been at.

We did require a passport of some sort.

I will say, we never had any issues with any of the tenants that rented with no SSN. They are typically hardworking, quiet, and keep the place clean. The only issue we did have was unwanted people living there who were not on the lease.

I am not sure on the specifics in your state as to evicting these people in case that you need to. 

I would definetly consult with an attorney before and ask if you would be able to get these people out of your property in you needed.

If may just be easier to steer clear and try to find a good applicant with a SSN#

Or, if there is a company that employs a lot of people without a SSN# you could reach out to the company, ask if they need housing for there employees, and then rent to the company instead of the person.

Hey David,

Unfortunately, this is something that you as the owner would be responsible for.

I am almost 100% sure that nothing in your PM Agreement will state anything regarding this.

I hope that they can get them out quickly.

I would ensure for the future that the PM company is securing the property correctly.

Was this a forced entry?

If not, maybe they were negligent and left the property unlocked.

Quote from @John Sigs:

This is privately arranged property management.  I am not a property management company.  A friend has offered to pay me to manage a house he owns in the Greater Hartford area.  I have not see the house yet.  Here are the details thus far:

There are 4 bedrooms.  He thinks they can rent each room out for $800 for a total of $3200/month

He has offered 10% for me to manage the renting of the rooms to the tenants and to take care of the lawn and snow.

This initially sounds low to me.  From my research here on BP, the average is 10% plus one month's rent ($800) every time I would have to find a tenant (does this mean he would pay me $3200 to find the initial tenants?)

Also, most property managers dont actually do the lawn and snow, correct?  They coordinate with subcontractors to take care of the lawn and snow, right?

Just trying to figure out what I should be negotiating for.  Thanks in advance!

John

Hey John,

A couple of things here - Do you have rental Property/have you ever managed property before?

If no to either I would be very upfront with him - letting him know that you are not a professional, etc.

Average monthly management fees for LTR are 8-10% with a 50-100% lease-up fee per unit. 

Does your friend want to rent out the rooms long-term? 12 months +? What he wants to do here is more of a co-living situation where you are renting out all of the rooms inside the property. This strategy requires a lot more work. 4 individual leases, home rules, and common area rules. Is he furnishing the home? You need to set policies and procedures around all of this.

If I was managing this strategy I would charge 12-15%.

You are correct regarding lawn and snow. Typically PM company will not "include" this. This is something you would contract and charge the owner. You could do this yourself and also bill the owner for this if you would like.

I would say it really depends on if you have property or have managed rental property before. If you have not then going from never doing this to managing a more management-intensive strategy like co-living may not be a good idea. I have been in Property Management for over 6 years now and I am very familiar with the co-living strategy, if you have any questions feel free to reach out!

Thanks, Kyle

@Jaime Aispuro

Nice to meet you! I am a Real Estate Agent and Business Development Manager for a large Property Management Company in St. Petersburg, FL. 

If you ever need anything feel free to reach out! I am also on my journey to learn and contribute as much as possible!

Good Luck!

Hey Jason,

A master lease to a reputable company may very well be a good option.

If you are looking to do LTR I would suggest a move-in special. 1/2 Off the first month's rent, etc.

Are they all the same layouts and finishes? I would get these posted online ASAP! If you have multiple different layouts/finishes I would post them all online (Zillow and other rental sites) Even if you are not finished with construction.

"COMING SOON! Newly renovated 30 unit building in highly sought-after business district. Multiple different layounts and finishes to choose from! 1/2 off the first month's rent! Come schedule a showing today!"

There is no difference in finding one tenant vs 30. You will have the same background criteria, you are just doing more showings, more qualifying, and more coordinating. Same process. 

This sounds fun, good luck with everything!

Wow, I did not know the extent of the situation!

Volunteer group to coach tenant's!!!

Sounds like they are very pro-tenant up there! I would at least talk to a lawyer and get their opinion, I am sure there is someone who will take your case!

Good Luck with everything!

Hey Claudio,

What Robin said - it does depend on what strategy you are implementing!

For us - we us ShowMojo for LTR, it syndicates to over 50 rental websites. We have had great luck!

Hey John,

We have not had any issues like this happening recently.

That is true, that Zillow can not post a unit for rent and for sale at the same time.

I think Zillow is making some changes on the backend and that may be causing some of these issues!

If you are not able to get it posted "by Property Owner" maybe try by "Management Company"

Hey William,

It seems like you have all of the info you need to prove your case.

I am not sure if there is any "gotcha's" he can say for not paying his rent. Especially if you have a signed lease, proper notices delivered after non payment, and a tenant ledger.

What was his case at the first hearing on why he did not owe rent?

Is he holding rent due to maintenance issues?