All Forum Posts by: Nathan Gesner

The yard is being used as a parking lot.

I've lived in many places around the world and parking on the lawn is always a sign of a low-class property.

You have a large population so the demand exists. You need to fix it up and price it to match your market. One month of vacancy costs you more than reducing the rent 10% and getting it filled. A 6-month vacancy costs more than reducing the rent 60%!

If you think it's expensive to hire a professional, try hiring an amateur.

I think you're making a mistake. You would have a tenant in charge of their own unit, which is a recipe for disaster, and they may completely suck at managing the neighboring unit. It wouldn't take much for this entire situation to go bad and end up costing you a lot.

If the two units rent for $2,000 a month then a property manager will cost around $2,400 a year. One bad tenant can cost you twice that in just a few months. Pay for a pro that can protect your investment and give you some peace of mind.

I don't accept co-signers. A lot of people rent to college students and they seem to do well with co-signers because the parents are usually footing the bill anyway. But I don't do it for a typical rental because the co-signer tends to whine and cry when I try to hold them responsible. They are willing to sign but don't understand they are taking full reponsibility, no matter how hard I try to explain.

They want a shorter term, they have no credit, they have a pet, and I'm willing to bet they don't have a Landlord reference, either.

Hard pass.

Go to www.google.com and search for "property management agreement (state)" and you'll find plenty of samples for your particular state.

Try 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!

Generally, you don't want to be the biggest or nicest house on the block. In this case, the surrounding properties could drag down the value of yours. It will be difficult to get top dollar for the large house when everything around it is renting for cheaper. Yours would likely attract large families while the neighbors would be small families, singles, or couples with no kids.

It doesn't sound attractive to me but everything is a good investment if the price is right!

It's not possible to answer without knowing the numbers but I suspect you'll get a better return on your money by renovating the current property. I suspect you could add a second unit for $20,000 - $30,000 which is cheaper than buying another property.

Contact each company and see if they'll let you try out the software for free. Many of them will let you use the software for 14 - 30 days as a test run.

There is no such thing as "landlocked" property. If the property doesn't have an access road, it just means there's not an access road "yet" but you can fix that.

Every landowner has a right to access their property. If the legal access hasn't been developed yet, the property may be considered "landlocked" but you can purchase the property and then go through the process of creating an "easement" that allows you access to the land. Sometimes this is a very simple, inexpensive process. Other times it can be very costly and time consuming.

The easement isn't always the shortest route. I know someone that bought 40 acres (Lot A) and there was an existing road across the neighbor's land (Lot B) that made for a very short, convenient commute. However, the easement was never legal or official. Shortly after someone bought Lot A, the owner of Lot B put up a fence and closed the road. The new owner of Lot A spent a lot of time and money fighting it. They eventually lost and were forced to create a new easement that increased their drive by 25 miles to access their property.

You are usually fine as long as it is more than 30 days at a time. I recommend contacting an attorney to ensure, see if there are any city/county/state rules that you haven't considered, and you can get a local lease from them.