All Forum Posts by: Lynn McGeein

For us, NO CATS. So much stench that is so hard to remove. I guess we'd have to if someone actually had a real ESA cat with proper paperwork, but so far, it's been the ones trying to force us to allow their cat, and they've been ruled out for other qualification issues. We used to charge an extra refundable pet deposit added to normal deposit for a pet, but once the ESA online thing got so ridiculous, we just raised our security deposit requirement across the board so we're more protected even if someone has an ESA or tries to get an ESA once they move in. Probably lost a few applicants by demanding the higher security deposit, but it works for us. 

@Gustavo Delgado sellers already factored buyer commission and closing assistance into the list price as ultimately what matters is seller net. Many buyers cannot afford down payment, closing costs and buyer agent fees so seller will still expect to see them in offers and factor into list price. I was an agent when buyer broker agency was introduced in VA, as a solution to avoid the many lawsuits post-sale arising from buyer confusion that the agent assisting them actually represented them, when at that time all agents worked for the seller. It's much harder for buyer to have a legitimate reason to sue seller when buyer had their own expert guidance. So buyer agency actually protects both buyers and sellers. Buyer ultimately pays it all, anyway, as seller factors in costs before accepting offer. But now, instead of a known, transparent amount, it will be an unknown negotiated term. Not sure how the lawsuits arrived at this outcome, but either a certain % of buyer broker fees become an expected term, which list prices will reflect, or they solve the issue outside of the offer, like it becomes commonly added to the loan amount, so list prices eventually stop reflecting it. Guess we'll wait and see how it plays out.

My husband's day job is very important to him, too, but our portfolio is just as, if not more important to our future. How much extra do you have to work to cover the difference in higher costs? Taking a day and getting a few estimates is really the best way to understand if management is way too high or just reasonably high, and you just may find some great contractor relationships that save you $$$$ for years. We've had long-distance properties under the same management for years and really like our managers. But when their quote for larger projects is unreasonably high, we drive down and work on things we know are labor-cost-intensive through management while waiting for contractor estimate appointments. When in between contractor relationships, I'll schedule 3-4 estimates because some don't even show. There's no point in idly waiting - we have travel bins ready to go with things like window screening, exterior trim paint, gate latch parts - they're always broken, deck screws, toilet replacement parts, outlet covers, etc. Several times we've found contractors that saved us thousands off management's estimate, especially when we've requested some renovation in addition to turnover. We found a painter that saved us so much on about 7 years of turnovers, and an excellent flooring guy, but they've now both retired. We recently found a licensed contractor reasonable enough that we now call him for things that aren't an emergency, initially saved us thousands off management's estimate for repairs due to a break-in during a turnover (apparently management calls an outside contractor to quote potential insurance claim repairs, and he was beyond ridiculously expensive). We still use management's team for emergencies and easy turnovers, worth it on those because we don't want delays. FYI, over the years, we've also learned to save a lot of money wasted on excessive management labor costs (we call them "stupid trips") by planning the occasional weekend to drive down, inspect our units and address any labor-cost intensive items that we can do over a 3-day weekend. Works really well when we could also line it up the day a unit went vacant so we could handle all the dumb stuff that they charge so much for in a turnover, then let their crew handle what we didn't want to do. Great for both saving hours of high labor costs and finding things management doesn't notice. Like once we found that a tenant moved a gutter downspout, eroded the soil under heat pump pad and caving in enough to shortly damage the heat pump. Even just a back door frame starting to rot due to rain splashing up, we put up a diverter and fixed the frame. There are so many items that you'll find early, easily fix & extend useful life, by just devoting one weekend to several units, instead of letting them becoming major problems with major expense, which is usually when tenant and management notice. I know many are hands-off, want to just let management handle it all, but it's a huge investment for our future and we know we've saved so much with minimal involvement.  

@Sara Valentine know your state and local requirements in addition to federal. Unless it’s self-evident what the disability is, I believe that you can ask for a letter from a licensed medical professional stating the tenant has a disability and that they need both service dogs for their disability. If they provide that, then you can’t charge pet rent, pet deposit or pet fees. They would still be responsible for repairing any damage above normal wear and tear.

@Kathryn S. I’d rather trust a professional with a moisture meter to see if it’s dry (just after or even during a heavy rain would make me feel better) before fixing the ceiling. Even if tenant responded, you couldn’t be sure. If a landlord asked me, I know I wouldn’t set myself up for landlord to say I was somehow responsible for that determination. I’d say not actively dripping at this very moment but no idea if there’s still a problem or not.

@Jim Bouchard the only thing I noticed you maybe should address is making the screen doors not slam when closing. When you choose a living situation with other people above, below or beside you that share walls, especially an older building, you should not be surprised that you may hear babies cry, toilets flush, alarm clocks, phone calls, etc. I have friends that routinely use ear plugs in a detached single family to eliminate noise from kids, spouses, cars going by on street, etc., when sleeping. There are solutions for regular noise issues that don’t involve the landlord.

The last few years, I've preferred listing agent. You work just as hard, but in a different way, less stress, and 90% sure you're actually going to get paid than as a recent buyer's agent. I used to prefer helping buyers, when you'd schedule a buyer to see a morning or days' worth of homes, lots of choices, maybe schedule a 2nd showing the next day for favorites, then negotiate an offer and be surprised with the occasional multiple bid. Even with the pickiest buyers who took some time, you at least weren't competing with 20+ other offers once you found the right one. Recently, buyer's agents have to jump immediately, each time a new listing hit, due to such limited inventory, huge competition, and listing agents not placing or honoring offer deadlines. So many buyers' agents scrambling to show, place offers, and lose out even with strong offers, just a total waste of time with no paycheck for all the many who didn't win the bid. While listings take a lot of effort, at least I could dictate the timing, place a deadline on offers (which I honored) and still have a life.  I couldn't do that recently any time I had a buyer, constantly dropping everything to scramble, show and write in case they present early (which they did frequently, even if they promised they'd honor a deadline). It's finally calming down with more listings on the market, and buyers settling down, no longer panicking and needing to jump the second one hits the market.

Is your friend interested at all in buying the townhouse he's lived in for the last 3 years?  That might be a win-win, especially if the seller will offer a good price due to not having to wait for tenant's lease to end, find a buyer, and likely pay listing commissions.  Or possibly negotiate "cash for keys," figure out a dollar amount that would make it acceptable for your friend to end his lease early.  If so, make sure agreement is in writing, signed by both parties, specifies new end date and ensures any existing security deposit will still be dealt with properly per landlord/tenant laws, and I'd also ask for a partial payment to be issued at signing to make obtaining his new place easier.  Since lease was just renewed and he has almost a year left, I would think the amount should be 2-3 months' rent plus estimated moving expenses. Otherwise, he should just tell the landlord he plans to finish out his lease, and then landlord would have to sell with the existing lease in place, limiting his buyer pool to investors, or wait until lease ends next July. I think Colorado recently passed stricter laws protecting tenants, so he can research that to see if it helps him.         

I think most real estate agents won't waste time on buyers who are "coming in with an offer well below asking" with their main justification being they want to pay less, fishing for that rare seller who will randomly accept a much lower offer before dropping list price first to generate competition. I, personally, wouldn't continue to work with a buyer who tries to dictate how I negotiate, especially one who wants me to "repeat back ... how they'll present." Our local market is still very competitive if in good condition, good location and priced right. I've helped buyers learn our market, send them closing prices on ones they've looked at or lost so they can see the difference in their offer and what it actually sold for. I send them info on homes where experience tells me they may get a low offer accepted, but usually they aren't interested in those. If you really don't value your agent's ability and think you can do it better, it's likely best that you 1) interview more to find one that you do trust, 2) go through the listing agent, directly, if you're that comfortable with handling your side on your own, or 3) maybe get your license so you can control your side of negotiations with the proper tools needed (MLS access with agent info, showings, contracts, tax records, uploaded listing docs like surveys, disclosures, broker assistance for questions, etc.).

@James McGovern apparently in my area, we're now supposed to provide any seller offer to pay buyer brokers commission upfront in writing somewhere but not in the MLS. Doesn't make any sense. My sellers will have to consider those costs just like CCA, anyway, when determining list price, so it will likely take a while before any savings is actually seen. Hopefully a logical answer will present itself once all the problems arise.