All Forum Posts by: Laticia Braxton

I agree with @Linda S.. Consider hiring a PM company to pre-screen, conduct showings, process the applications and provide you with recommendations for solid tenant prospects.  That alone is definitely worth one month’s rent (if that’s what they charge) and is probably negotiable.  

Be sure to do your due diligence on the PM company to ensure they are a reputable, professional firm with great references. It sounds like you are prepared to self-manage which is great, as long as you are prepared and have a team in place to assist you. 

You need quality tenants and a not so great PM firm could take the one month fee and hand you a nightmare tenant, so just keep that in mind.

Best of luck to you!

Laticia

Hi Sam,

If the rental data is accurate and you can handle the expenses of being a landlord (primarily vacancy and/or repairs), I would suggest you rent your home. As you already know, your first step is to vet then hire a reputable property management company and stay on top of them. If they do a great job of screening your tenants and making sure your rent is paid on time, I believe you will be just fine.  Being a landlord can be challenging at times, but it’s all a part of the game. 

Best of luck to you!

Laticia

Hi Marcus,

I hope all is well.  I’m curious to learn how this worked out for you.  I am currently considering purchasing a property via online auctions (local assets) and hearing how you overcame that obstacle would be helpful.

Thanks,

Laticia

Great advice from Filipe.  I would also suggest that you offer a virtual showing/walkthrough of the space, recording it and uploading it on YouTube, IG, etc.  I’ve found that videos aid in getting much higher closing ratios than pictures alone.  You or your wife could walk through each unit highlighting the amenities and since you have fireplaces, you should definitely have them lit and show them off.  You may also want to have one unit at lest minimally staged before recording, if it’s in your budget. The idea is to draw your prospects in and get them anxious to see the space in person and complete that application.  Please let me know if I can be of further assistance and best of luck to you!

Laticia

Your ability to self manage is heavily dependent upon the time and patience you have available to do so.  You can save quite a bit of money while managing your properties yourself.  As long as you have the proper knowledge of your state and federal housing laws, tools and systems in place and an understanding of property management fundamentals, you can absolutely do this. Feel free to reach out to me if I can be of assistance.

Best of luck to you!

Laticia 

I’m very sorry to hear this.  Unfortunately, there are a lot of scam artists out there pretending to be property management professionals.  I have a few questions. Other than not paying you, how else have they been negligent?  Did they fail to make repairs which have caused major damage to the house?  Have you lost tenants dues to their lack of management? Have you reviewed the terms of your management agreement, specifically the clauses that speak to this type of situation?  Firstly, you should have a termination notice sent via certified mail, return receipt requested.  In that letter, you should also acknowledge that they owe you $XX for whatever that dollar amount represents; itemize the list and demand a refund (give a “by no later than” date which should be within a week of your letter).  Next, let them know that if they do not comply, you will immediately file suit. Be sure to have documentation for everything.

As mentioned by someone else, please notify your tenants immediately of what’s going on.  They need to know so that they can send you the rent payments and notify you of any other issues.  If you are out of the country, contact another local management company (with verifiable references) and ask if they could help you manage this complicated situation.  Ask if they could perform an inspection of the property for you this week and send you pictures.  I’m sure for a flat fee and the possibility of getting the management contract, you could easily get them to do this. If the former management company has keys to the property, you need to get the locks changed as soon as possible as well, to prevent access. 

I know this is very stressful for you, but you can manage through it, if you follow the right steps.  It may take you awhile to recover the money, especially if you have to go to court, but the most important thing right now is to gain control of the property and rent.

I hope this helps and best of luck to you!

Laticia

Great advice from both comments above. There’s quite a bit that you should be prepared for. Feel free to message me with more specific questions. 

I suggest you start looking into Yardi.  It can be expensive, but they most likely have a product that suits your needs. 

I suggest that you make sure the changes meet code and were performed by a licensed contractor.  Demand to see the service agreement, the invoice and the contractor’s certificate of insurance.  Then, have your contractor check the work completed to verify everything that was done and advise you about code requirements. Once you’re satisfied that your property is not at risk for fines and/or damage, send a strongly worded certified letter to your tenants, notifying them that they are in violation of the lease.  Cite the clause in the lease that speaks to what they did and include a sentence that says that any other lease violations will result in automatic termination. Do quarterly inspections and let them know you will be doing so in the letter. 

Considering the fact that they are otherwise great tenants, I would not evict, but I would word the letter in such a way that they are aware that this is their one and only allowable offense. As someone else suggested, if you don’t use this as an opportunity to reprimand them and reassert yourself, this will probably not be the last time they ignore the lease and do whatever they want to do.

I hope it all works out in your favor.

Laticia 

@Robert Ortega I agree with @Kaelyn Motzel and also recommend that you self-manage your first property. You may find it a bit stressful if you're inexperienced, but use this time to get more familiar with the basics (marketing, leasing, tenant screening, understanding leases and landlord-tenant law in your area, building a contractor list, etc.). Self-managing is totally doable if you properly prepare and have the time to do it, and the experience you gain will be priceless for your REI career. If you find that it becomes too overwhelming after a few months, you can always hire a PM later, but give yourself a chance first and save those PM fees :-) Feel free to reach out to me if you would like to discuss further.

Best of luck to you!

Laticia