All Forum Posts by: Nathan Gesner

Nobody can answer this but you. 

You are financially capable of going full-time with REI. If your numbers are correct, the only decision is whether you want to take a W-2 job to accelerate your plan.

Personally, I would take the W-2 job to accelerate the plan. Why? Because I think real estate is peaking and expect it to slow or correct in the near future which may put a hiccup in your plan anyway. If that happens and your plan is slowed, you'll be in a safer position with the W-2 job.

I suspect one of three things:

1. Tenant wants to hide something and doesn't want you coming around until they are completely gone.

2. You've annoyed the tenant and they don't want to talk to you.

3. Tenant is busy moving and doesn't have time to chat, changed numbers, or some other innocent reason.

My initial suspicion is they're hiding something. Maybe the unit is filthy or damaged. Maybe they owe you some money and don't want the confrontation.

No matter the reason, it doesn't serve any purpose trying to guess what you'll find. Plan for the worst, hope for the best. 

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!

I just did a quick search of Ontario law and it's one of the most disturbing things I've ever attempted to read. I don't understand why anyone would own rental property there.

I recommend you contact the Landlord and Tenancy Board (LTB) and ask your question there.

Because they are bean counters, not property managers. There are many things they do that make no sense financially but they're dealing with big numbers and can't handle the work required to save a few properties here and there.

The only property manager I know there handles commercial buildings. I also don't know any NARPM members. Try a Google search for managers or look for an investors group in the area that can provide personal recommendations.

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!

Your property manager should already have these answers. The fact you are posting on here tells me they are unwilling to help you make the hard decisions or even offer you guidance. It may be time to find a new PM.

If the tenant put a hole in the tub, that is beyond ordinary wear-and-tear. They are responsible for repairing/replacing the tub and any additional damage caused by the water leaking out. Your property manager should notify them immediately and then pass the invoices on to them as they come in. If the tenant fights the charges, you should consider taking them to court to recover the cost.

It's hard to know where to lay the blame without seeing all their communication. The tenant initially reported it and the PM initially looked into it. Did the tenant continue to report problems? Did the PM continue to act or did they just ignore it? 

What damage was caused by the tub and what damage was caused by the leaking water line? It sounds like most of the damage is in the kitchen, probably from the water line. I don't know who's responsible for that without knowing if the tenant was reporting it or how the PM was responding.

The steps I would take:

1. See if insurance will cover any of the costs.

2. Notify the PM that the tenant should be held liable for the bathtub repair and/or replacement, as well as any damage directly tied to water leaking from the tub.

3. Ask questions to ascertain what the tenant communicated and how the PM responded. We know the tenant reported it quickly and the PM acted quickly, but did anyone follow up? If the tenant continued to report it but the PM failed to respond, then the PM may be liable. If the tenant failed to report it again then you can't blame the PM for not responding.

1. The reported eviction doesn't matter much because she's living with her grandparents who are stable. They would likely meet my requirements and be approved.

2. The second gal doesn't meet my income requirement of 3x the rent so she's out. Besides, she's working two jobs just to make 2.5x the rent. Those are part-time jobs which are very volatile and she could see her hours cut or her position eliminated at any time. Too risky.

There are more benefits to leveraging your money, which means putting a percentage down and financing the remainder. 

There is more safety in owning a property outright.

You should study the benefits of both, apply them to your situation, and then determine which option is best for you. I don't know all the facts but if you are looking for financial growth and a stronger return on investment, I would use the cash on hand to purchase another investment (or more).

Hard money lender

Private money lenders

Partnerships

Family and friends

Save

Be patient