All Forum Posts by: Michael Smythe

Be careful hiring just a "VA". They typically have a freelancer mentality and won't really get involved with your company.

Better to hire a Remote Team Member for long-term that you can train up and give more responsibilities.

In our experience, most warranty programs aren't worth the cost. They intentionally make service requests difficult and lengthy to wait out owners. What do you tell a tenant that has no heat with a warranty company stating it'll take them 1-2 weeks to get someone out?

If you want to truly grow your portfolio, DIY manage a property or two for 12 months or so. Then, stop stepping over dollars to pick up pennies and use your acquired knowledge to find a good PMC to hand them over to. You'll make MORE money finding deals than saving a few dollars DIY managing.

Some district court judges are biased AGAINST owners representing themselves.

@Latesha Forte

Even if someone give you a referral, don’t make the mistake of assuming that PMC will meet your expectations, just because they met the expectations of the referral source.

We also can’t believe how many owners hire the first PMC they speak with!

Then they complain their expectations aren’t being met!

In our experience, the #1 mistake owners make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.

It's often a case of not doing enough research, as they don't know what they don't know!

Owners mistakenly ASSUME all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY, so price is the only differentiator – and they often select the first PMC they call!

So, the first question they usually ask a PMC is about fees - instead of asking about services and HOW those services are executed.

EXAMPLE: PMC states they will handle tenant screening – what does that specifically mean? What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.? You’d be shocked by how little actual screening many PMC’s do!

This also leads owners to ASSUME simpler is better when it comes to management contracts.

The reality is the opposite - if it's not in writing then the PMC doesn't have to provide the service or can charge extra for it!

We have a 14-page management contract that we've added our real experiences to over the years, with the intent of protecting both us AND the landlord. Beyond the Monthly Management, Placement & Maintenance fees, all other fees in our contract are IF EVENT -> THEN fees.

We don’t know any PMCs to recommend in the area mentioned, but since selecting the wrong PMC is usually more harmful than selecting a bad tenant, you might want to read our series about “How to Screen a PMC Better than a Tenant”:

https://www.biggerpockets.com/member-blogs/3094/91877-how-to-screen-a-pmc-better-than-a-tenant-part-1-services-and-processes

We recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.

EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!

P.S. If you just hire the cheapest or first PMC you speak with and it turns into a bad experience, please don’t assume ALL PMC’s are bad and start trashing PMC’s in general. Take ownership of your mistake and learn to do the proper due diligence recommended above😊

We’ve found the best way to raise rent is:

• Determine market rent
• Share the proof with the tenant
• Tell the tenant, given your rent is $x and market rent is $y, what do you think if a fair increase?
• Often, they may volunteer a higher amount than you were hoping for.
• Those that respond “$0” or something ridiculous, you can request income documentation from them to justify.
• Don’t be afraid to share with them how much your property taxes & Insurance increased and that YOU cannot afford to absorb the.

ALWAYS get an increase or something of value annually or tenants will start thinking they should never have an increase, making future increases that much more difficult to negotiate.

Make sure you understand the Class of the property you are investing in

Nice option

The two things that appear to be missing:

1) Verification of Rent, preferably via a rent ledger. Verify who property owner is before accepting from a private owner as many applicants have others pose as their landlord.

2) Verify two year work history with YTD paystub AND last year's W-2(s). Most can't pay rent on time if they aren't consistently working.

What do local laws require?

In Michigan, we can pick the best applicant.

In Seattle, WA and other places, a landlord must take the first applicant that meets their requirements.

Most states require a lease to identify the owner of a leased property, whether a person, trust, LLC, IRA, etc.

Landlord = Lord of the Land = Owner per deed

Agent = someone legally representing the owner

Property Manager = Agent