All Forum Posts by: Account Closed

Sorry @Account Closed , when you stated that "People tend not to take care of something that they don't have to pay for" it sounded like you were referring to the Section 8 tenants that have an income low enough, or no income, where they pay no portion of rent to the landlord. My apologies, not trying to put words in your mouth.

(Edited to remove a short discussion on research into Section 8's effects on rent and property values, now deemed irrelevant :-) )

Now don't get me wrong, renting to low income renters has its risks and downsides, no question. I just often see folks in my community and here on BP that have awful perceptions of the program or the people on it, and when they are based on erroneous information or a misunderstanding of what the program will or will not provide the tenants. I just attempt to correct those understandings when possible. 

- Unlike @Account Closed  suggests, the large majority of folks on the program actually do have income and will owe you a portion of the total rent every month. It unfortunately is a very common misconception that most or all of the folks on the program have no income. That portion they pay will depend on their income, usually about 30% of it, give or take depending on those projected utilities and the total rent. You can make sure to set your rent price over the maximum allowable rent for someone with $0 income to avoid those folks, if that's a major worry.

Income was never mentioned in my post. Not sure where you got that from.next time you tag me please have a better concept of the point I was making. Thanks 

 My tax guy thinks you're going to be in for a costly surprise!  He made it crystal clear landlords have to be very proactive ahead of time and it will absolutely not work to expect your tax preparer to sort it out after the fact.    

I joined BP about a month ago and from what I have read it seems that a majority of the posts feel PMs are out to get everyone and take their money.  Yes, there are some PMs that are not good but there are good ones out there. 

I am a PM myself and strive to treat any property that I manage as if it were my own.  A PM is there is look after your property while you are working, on vacation, looking for more real estate, etc.  I do charge a mgmt fee, a leasing fee and a renewal fee.  Any other fee that is charged is agreed upon when the client signs up with me to manage the property.  So there are no hidden fees.

These fees are necessary to cover the costs associated with managing the properties.  The PM also needs to earn a living since I am sure no one else here works for free.  If you manage your 1 or 2 units it is pretty easy to do.  Once you start managing in the 100's of properties there are some necessary expenses that a 8% monthly management fee is just not going to cover. 

Many might think that a PM just sits back and waits for the rent to come in so we can get our percentage but that is FAR from what happens.  

Remember a good PM is available in some capacity 24 hours a day 7 days a week to look after your property.  Looking at it another way a PM is making pennies per hour to look after your 50k, 100k, etc investment.  I think that is a pretty good deal.  

A renewal fee helps to align the incentives of the PM and owner. Imagine if you paid a PM a month's rent every time a unit turns over (plus suffered 2-4 weeks of vacancy on average) and paid them nothing (but their percentage) for a tenant that stays. You'd be providing incentive for the PM to find one-year-only tenants, which runs counter to the landlord's interest.

Kevin, welcome.  There are so many different markets an hour drive from you.  It can be overwhelming but focus on good credit, getting approved for a mortgage and savings for when you are ready.

Check out the different podcasts to see what grabs your attention.  I recommend the under $30k podcasts and the book, section 8 bible.

I'm focusing in Atlantic City now but Philly also offers tons of opportunities and jobs.