All Forum Posts by: Matt Bishop

@Alan Clark, sounds like you are running a professional business and you treat your customers (tenants) as if they are valued and appreciated.

@Greg M. I didn't mean to sound like a know it all wise guy but what if the question had been posted as : Im preparing my own tax return, on what line do I itemize the replacement TV and do I have to depreciate the expense of a new roof or write off the entire amount? We'd all suggest engaging a tax professional because they can do the job for you, keep you out of legal trouble, provide peace of mind and probably save you more on your tax bill than their fee amount. A great property manager can do similar things for you. I had a house that developed a hot water pipe leak in the slab. The PM had the water turned off, plumber on site, water extracted tenant's furniture saved, and everything back as if it never happened. I admit I was not pleased to see a $3000 expense on the financial statement but then I realized that I would have had to spend the whole day arranging everything, listening to the tenant complaining, and probably paid more if I could even find a plumber to same day, tunnel under the slab, repair the pipe and restore everything. Remember I never knew it happened until three weeks after. The price was right. I've had this same problem at this house, twice in the past and it was about the same amount. I believe there is an issue with the electric ground to the water pipe or it was built with defective copper. I had a electrician remove the ground wire from the water pipe and replace it with two ground rods at the meter base instead. He said he thinks the power company has a bad neutral and ground that caused current to be conducted through my water pipes. The hot is more affected because of Electrolysis.

@Greg M., well that's something you can agree to in advance with your PM. You can agree to a dollar amount they are authorized to spend on your behalf without having to bother you while you are enjoying your freedom as a RE investor. Or you can arrange to be called about every situation. They'll do as instructed. I understand some people prefer to be more hands on with their investments and get a good feeling from it, that's cool. I prefer to not be involved and I completely trust my PM. I used to do it all, make readies, showings, everything and I loved doing it until I got too many properties to keep up with and I couldn't keep track of my finances. Now I pay them a percentage but there's no way I could do it all, myself. I agree, we all have different reasons and situations.

@John R Kepler, once you find the right one, stick with them. Keep your personal information and financial information up to date with them so they can get to work for you as soon as you call them with your next deal. Build personal relationships with the top professionals in Real Estate sales, Property management, financial services, legal services, maintenance, leasing, staging, lawn care...

If you are doing flips, standardize on everything you can, materials, and vendors. Really trustworthy professionals are rare and are valuable assets to your business. Treat them well so they will call you first when they see an opportunity for you. Your success in any business is determined by your ability to find and build mutually beneficial relationships with top professionals.

@Matt Bishop, even the roof would already be repaired and if it cost less than the threshold you set the PM would have handled everything without your even knowing until you see it on the financial statement.

@Alan Clark, don't you wish you could just ask your property manager to handle this situation. If you are asking for advice from strangers, you may really benefit from professional management. If you had a manager, you may not even know any of this ever happened because it was resolved and is minutiae, but inconsequential history.

@Kar Sun, you have presented another scenario where the property owner would be very wise to engage a property management company. Is there a reason why you are involved in this situation? Do you just enjoy negotiating and dealing with your tenants? Do you have extra time to be doing work a professional could do better? Are you leaving money on the table by self managing? I bet you are.

@Bill Brandt, you're a smart man. The property owner will very likely have more net income by engaging the right property manager than trying to do the job, himself. All with no work. My PM emails me the current financial statement every month on the 14th and wires my money every 15th. I have 12 houses around DFW and I have never met any of my tenants or been inside the houses since 2017. I was extremely fortunate to hang on and find my PM when I was considering selling everything due to my health reasons. I am millions ahead.

@Sam Byrd, I very much agree with Bill. Engage the services of a professional property manager. Check their references carefully. They may already have a list of well qualified tenants. Don't go it, alone.

@Sam Byrd, as a 24 year experienced landlord, I suggest you to find a great property manager to help you. If you find a good one, you will be way ahead by using their services. What city is your house located?