All Forum Posts by: Nathan Gesner

You can start by going to www.narpm.org and search their directory of managers. These are professionals with additional training and a stricter code of ethics. It's no guarantee but it's a good place to start.

1. Ask how many units they manage and how much experience they have. If it's a larger organization, feel free to inquire about their different staff qualifications.

2. Review their management agreement. Make sure it explicitly explains the process for termination if you are unhappy with their services, but especially if they violate the terms of your agreement.

3. Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers. It may sound nice to pay a 5% management fee but the extra fees can add up to be more than the other company that charges 10% with no add-on fees. Fees should be clearly stated, easy to understand, and justifiable. If you ask the manager to justify a fee and he starts hemming and hawing, move on or require them to remove the fee. Don't be afraid to negotiate!

4. Review their lease agreement and addendums. Think of all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.

5. Don't just read the lease! Ask the manager to explain their process for dealing with maintenance or problem tenants. If they are professional, they can explain this quickly and easily. If they are VERY professional, they will have their processes in writing as verification that it is enforced equally and fairly by their entire staff.

6. Ask to speak with some of their current owners and current/former tenants. You can also check their reviews online at Google, Facebook, or Yelp. Just remember: most negative reviews are written by problematic tenants. The fact they are complaining online might be an indication the property manager dealt with them properly so be sure to ask the manager for their side of the story.

I hope this basic guide helps. If you have specific questions about property management, I'll be happy to help!

You can start by going to www.narpm.org and search their directory of managers. These are professionals with additional training and a stricter code of ethics. It's no guarantee but it's a good place to start.

1. Ask how many units they manage and how much experience they have. If it's a larger organization, feel free to inquire about their different staff qualifications.

2. Review their management agreement. Make sure it explicitly explains the process for termination if you are unhappy with their services, but especially if they violate the terms of your agreement.

3. Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers. It may sound nice to pay a 5% management fee but the extra fees can add up to be more than the other company that charges 10% with no add-on fees. Fees should be clearly stated, easy to understand, and justifiable. If you ask the manager to justify a fee and he starts hemming and hawing, move on or require them to remove the fee. Don't be afraid to negotiate!

4. Review their lease agreement and addenda. Think of all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.

5. Don't just read the lease! Ask the manager to explain their process for dealing with maintenance or problem tenants. If they are professional, they can explain this quickly and easily. If they are VERY professional, they will have their processes in writing as verification that it is enforced equally and fairly by their entire staff.

6. Ask to speak with some of their current owners and current/former tenants. You can also check their reviews online at Google, Facebook, or Yelp. Just remember: most negative reviews are written by problematic tenants. The fact they are complaining online might be an indication the property manager dealt with them properly so be sure to ask the manager for their side of the story.

I hope this basic guide helps. If you have specific questions about property management, I'll be happy to help!

You just started with the company? Why isn't your Broker solving this problem? What software are you currently using? 

You can ask for anything you want but good luck getting it. Besides a drug test will show they are clean today but that doesn't mean they'll be clean two weeks from now when they've finally settled into the home and an invite their friends over.

I manage 300 rentals and some of them have been D or C class but I don't worry about druggies. Learn how to properly screen and you'll avoid 99% of them.

Buy and hold a multi-family. Occupy one unit, rent out the other three. Spend two years in the property building some equity and experience while saving for your next investment. Rinse and repeat.

Your first mistake was to offer them compensation when the septic is clearly not your fault. When something breaks, does your mortgage company offer to put you up in a hotel, pay you a month or two of mortgage payments, or otherwise compensate you? The septic issue is not your fault. You should either fix it as quick as possible or notify the tenants that the home is uninhabitable and force them to move.

Your second mistake is keeping crap tenants. As soon as they moved someone in without your authorization, you should have served them with a notice. Actually, you should have served them notice the minute the septic failed but that ship has sailed. 

Your third mistake is letting tenants blackmail and threaten you. Is this your property or not?

I seriously think you should cut off all communication with the tenant and hire an attorney immediately.

While your attorney deals with the tenants, I think you should do some research and find a quality property manager that can handle this for you before you make a big mistake that will derail your investment career.

I would time it so you will be ready to place the new tenant during peak season. If July is the best month and it will take two months to renovate, keep your current tenant until April 30th, spend May - June renovating and place a tenant in July.

If the unit rents for $1,000 - $1,100 after renovation, then $850 isn't too far below market and it's worth keeping the current tenant through the winter.

 I recommend you keep them on a month-to-month lease for six months before making the decision. They could pay on time the first month and then completely fall apart after signing the new lease.

@Elenis Camargo I will take it a step further and say you messed up prior to purchasing. Your offer to purchase should include a requirement that they provide all documentation and agree to sign an estoppel certificate (also called estoppel form or agreement). The estoppel certificate is a form filled out by the tenant and then confirmed by the Landlord. It's supposed to ensure there are no surprises after closing. For example, you buy the place and the tenant could claim the Seller allowed them to paint the walls black or that their security deposit was twice what the Seller claimed. How will you know? An estoppel certificate fixes this problem.

Some things it may include:

1. Tenant name, contact information, and address

2. Occupancy date

3. Is there a written lease? If so, review it to ensure it matches the estoppel certificate

4. Are there any modifications to the written lease?

5. Are there any verbal agreements or arrangements between the current Landlord and Tenant?

6. Current lease term (expiration date, month-to-month)

7. Current rent rate

8. Rent due date

9. Security deposit amount

You can find plenty of examples by searching for "tenant estoppel certificate doc" or exchange "doc" with "pdf" for more options.

Here is an example and explanation: https://eforms.com/rental/estoppel-certificate/

Some have a lot of legal jargon but this document does not need to be so detailed. This is an important tool for anyone buying a tenant-occupied property.

P.S. What breed is the dog? If it's on the list of dangerous breeds then insurance typically won't cover it. Your PM shouldn't allow animals that are not covered by insurance.