All Forum Posts by: Maria Teo

Question for Real Estate Agents:  At what point/after how much interaction with a prospective client, do you assume you have an unspoken agreement to work together? 

I'm talking about the open-ended interactions, not situations where you've specifically spent your time for an individual. 

For example:

a) If a prospective client encourages you to send them your listings?

b) If a client shows up to your open house after seeing one of your listings?

Yes, technically you have to have the contract, but really when do you think a commitment can be assumed?

I always request my property manager be listed as "additional insured". During my most recent renewal, my carrier changed the language to "additional interest". My broker assured my property manager they will receive the same coverage as before, however internet articles claim
 additional insured  "is not covered by the polity for any liabilities arising out of your business."

"https://www.thimble.com/small-business-insurance/additional-...
https://www.propmhomes.com/blog/additionally-insured-v-addit...

I plan to circle back with my broker but does this check with what others have heard? Is this a new insurance trend?

Does your property manager pay property taxes and mortgage on your behalf?

All rental property expenses paid through the trust account I have with my management company, including property tax and mortgage. I like having everything coming from one account since it feels neat and organized.

I get copies of all mortgage statements and property tax statements so I know each bill is being paid.
Recently someone told me they'd never do this - "what happens if they forget to pay?"

What you the rest of you prefer and why?

Thanks!

I do the allowable rent increases yearly. I'm referring to a raise above the standard yearly allowable rent increase, as allowed by local ordinance for capital expenses.

Challenges always come from the long term 20+, 30+ yr rent controlled residents. I do believe it comes from them forgetting they rent not own. I can't fathom why they feel justified making more a fuss than new tenants. If they could only see whopping difference between their rent and a new tenant's, who are in effect subsidizing the low rent of the long term tenants.

I wish there was a way to give an succinct econ lesson, but likely it would fall on deaf ears.

Hello BiggerPocket members,

I'm probably in the wrong business but does anyone suffer from landlord guilt?

I have a rent controlled building and petitioned to do a capital expense rent increase, which will raise the monthly rent by 10% over their base rent. I wasn't surprised to receive  tenant objections, but one thing a tenant said got to me: "Just because its legal doesn't mean its fair".

This person has lived in the unit 10+ year without any previous capex rent increase. White collar professional. I wouldn't knowingly impose an increase on someone who is fixed income, and of course tenants have the right to petition for hardship. 

Still it has me thinking, what is fair in this business especially since this business deals with something so personal as a person's home. And from a tenant's POV, its always I already pay you rent, why do you need more?

What helps you determine what is fair? When do you push to increase a return on investment and when you hold back?

I'm shopping around for an insurance broker for multi-family residential in San Francisco

What should I be looking for in a broker?

What are some questions to ask?

Earlier this year, I was informed that personal liability is being excluded from my new business policy which as a SF landlord I've been told I should always get. Of course if all underwriters are excluding this I guess I have no choice. 

With an ever growing list of insurance exclusions and increasing rates - am I the only one wondering what I'm paying for?

For those of you in the SF/Bay Area what are the must have coverage for multifamily  and mixed used commercial buildings?

I've been with the same broker for years. How do you know if your current broker is still the best option or if it is time to switch?

Is it okay to shop your building with several brokers before setting on one?

And how to manage the switch over if you do choose to change brokers? My buildings have different renewal dates if that matters.

"For sale' listings provide both current and proforma financial analyses. In a market with rent control, the proforma can be significantly different from current. When considering a building for purchase which numbers do you use?

I always go with current figures because that is what is I can know. Who knows when a tenant will move and I don't want the headache of buying out renters to get the unit to market.

Do the proforma figures warrant any serious consideration and when, or are they just a "come on" to attract buyers?

Hi @Eduardo Reyes, thanks for the feedback. Yeah these are all GC I've never worked with before. I've been stopping by every week, which seemed fine when it was just at the framing and insulation stage - I wouldn't know what I'm looking at anyway. As the project wrapped up, I wish I had stopped by more frequently as things seem to pick up and there is more opportunity to give input on finishing touches. As this is just a rental, details like the vanity size or hand held shower vs fixed shower head seem minor and I can overlook.

@Alexey Petrenko, when I got bids for m project some were very specific enumerating details like shower glass, toilet brand, and some be very vague, just "framing" or "finish carpentry" with no labor/material breakdown. I think it is just a matter of what the contractor is used to sending out. Personally I like more specificity. I think it is reasonable to expect materials used to be listed, or if not okay to ask. Does flooring mean laminate, luxury vinyl, hardwood?

Perhaps other building professionals can chime in here.

It is a challenge when you don't have past experience with the GC, or if you haven't worked with a lot of GCs in the past.

Property owners, how involved do you like/try to be during a renovation? Lets assume your working with a GC who came recommended, and you are gutting a unit to the studs. Do you try to stop by the site weekly to see how things are going? Is it worth it to be involved in all the little things like selecting fixtures, tiles, heating units, or do you generally go with what your GC recommends? Do you try to be present when GC has meetings with engineers/architects, or just wait to hear back from the GC?

For building professionals, what are your thoughts? How much is too much involvement from the property owner? No one likes to be micromanaged so what is the appropriate level communication? As someone new to ownership/renovation, I see this as an opportunity to learn, but asking about every detail is obviously overkill and annoying for the tradespeople.

I'm guessing there is a lot of variability but I'd love to hear what other people's experiences are.