All Forum Posts by: Account Closed

@Greg Von Notias there are many unethical property management companies out there, taking advantage of naive investors. I started a PM business this year after trying multiple companies and being frustrated with the poor quality and suspicious about the excessive charges.

The best thing you can do is look for another property management company to replace them. Once under better management you can determine if there is any recourse against the old company, but unless you have good documentation, it’s better to cut your losses and move on to someone that will help them make money. I wanted to go after the former companies that I felt ripped me off, it didn’t think I had enough documentation to prove it. I do know of other owners that had documentation and were able to get large settlements.

@Patrick M. Yikes! I believe our property management software uses Forte, and was under the impression it immediately transferred the payment into my account. Sounds like that service had a delay between when the tenant paid and when it was transferred?

We have too many units and need a service, plus they offer a way for tenants to pay cash at Walmart or Kroger. So no more money orders getting lost in the mail.

@Jill F. That’s good to know. We have had a few tenants complain about smelling marijuana from other units. I’ll tell my maintenance people to order some carbon filters and install one the next time they get a complaint. Thanks!

@Patrick M. Curious about ‘the debacle that ensnared one of the tenant based systems”? What are you referring to? Thanks.

@Maya Torres something else to think about. This time of year it would be more difficult to get a new tenant. Also, is medical marijuana legal in your state? If she has a prescription, then it could be a violation to evict her for it.

My two cents - talk to the tenant you think is smoking weed. First, if it’s that bad, you should smell it when you go over to talk to her. If you smell it, mention to her you can smell the marijuana and the tenant on the other side is bothered by the smell. Ask her to buy some Ozium and spray it when she’s smoking. There are also edibles, elixirs and tinctures, which would allow her to have marijuana in a smell free option.

@Saravanan Varadan most property management contracts provide the owner with the right to terminate with 30 days notice for violating terms. They also typically state no work can be done above a certain dollar amount without first getting approval from the owner.

Read your contract and if it has those clauses, then send them a certified letter documenting their violation of the contract terms.

You can fire them, but the question is - do you then owe them anything? Look for the termination clause and read it carefully. Some state one month fee, some 90 days and others will say you owe them for the remaining duration. I really think most put that in as a negotiation point when you exit.

@Sergio Ferreira there are laws that must be followed when dealing with tenant issues. A handyman will not know what is required by law in certain situations. You could end up in a lot of trouble without a property manager with proper training and certifications.

@Jeff D. Here’s what my experience has been.

- Local bank, no broker fees, but they want to dig into personal finances and the loan is recourse

- Freddie, Agency loans - non-recourse, better rates, lower down payment, but typically need a broker to access them. They always charge attorney fees in addition to the broker fees.

- I did find a Freddie/Fannie originator that you can go to directly and bypass the brokerage fee. However, the process was a mess. Poor communication, too many people involved and the seller was getting frustrated by all the delays. I saved the brokerage fee, but had a lot more headaches and an annoyed seller in the process. I don’t know if it was a poor rep or if the broker normally handles all the lender issues and you don’t see them.

Broker fees are negotiable, so maybe find a broker that is willing to reduce their fees.

@Tony Asbille I’ve been investing in real estate for over 20 years. Only been doing multifamily for about 5 years, but have over 300 units. I’m also interested in connecting with other experienced owner/investors. Always good to have others to share ideas with.

Lila

@Ingrid J. I’ve reviewed all my contracts by myself. They aren’t hard to read and understand. I’ve also heard Florida has some unique laws around multifamily, so I would find someone who has multifamily in Florida who can give you guidance on what you need to look for and be aware of.