All Forum Posts by: Patricia Steiner

Florida's insurance sector is in crisis.  Florida, Texas, Louisiana and more are considered high risk states and we've all had the hurricanes to prove it.  Rates won't be dropping any time soon and the engagement requirements are costly - there's no insuring with a roof that is 15 years old and without 5 years of life remaining, any out-of-code electrical and/or plumbing, and foundation or AC issues.  Just not going to happen.

The bigger issue is this:  the insurance industry doesn't work well for anyone anywhere.  Insurers want you to pay - but if you make a claim, the property is tagged for 7 years or longer on a national registry resulting in higher rates for the current and future owners.  

There's a lot been published on how the insurance industry will most likely bring down the real estate market/segments - not higher interest rates, not mortgage issues, not fraud/stupidity.  We need options for insuring properties that is beyond what is offered today.  It's just nuts...

You shouldn't have to hound them - and you shouldn't be the least bit concerned with telling them that you're not happy with the progress in renting the unit thus far.  Before a property is even rented, you should know what their strategy to attract quality renters will be.  Any idiot can list a property online...that's not marketing.  Not only should it be listed but there should be signs to attract driveby and pedistrian traffic, alert tenants in the building and surrounding ones that a unit is available, and more.  And, how many showings have they have so far and what has the feedback been?  How often will you be updated on the activity?  Why wait a month to find out it isn't getting a lot of interest or the feedback is so-so?  

Bottom line:  You've hired a professional and you should expect professional results.  If you don't manage them (aka hound), they'll focus on the other client who does.  

Call them. Share your disappointment on having to give away a month of rental income when you don't have a good idea as to why it hasn't rented so far.  Dropping the price and making concessions are last resorts and/or market requirements.  There's a lot more to renting properties than throwing it online and waiting for someone to respond.  Get your PM to give you an overview of the number of showings, feedback, and market strategy to date.  Ask for weekly updates.  

It's not hounding...it's effectively managing your resource partners.  Hope this helps...

It doesn't take a lot of time to list a property for sale; photos can be a major hangup and writing a great narrative can take some time - but we're talking hours, not days as long as the photos are available.  

Other things to consider:

Pricing is your call.  The PM should absolutely provide you with current valuation based on comparable sales - and that's a recommendation; the PM should pushback if your price is out-of-market but do so by explaining the impact of going ahead with a price that may be too high.  Overpricing can belabor a sale but you certainly don't want to leave money on the table because it wasn't properly valued.  Have that back and forth discussion to get the price that reflects the market value and gets it sold/rented. Again, the ultimate decision is yours.

Bolting from your PM may not be the right play; check your contract first.  The problem with having a PM handle the entire scope of your property is loss of control.  What is your property now becomes "their ball, their court."  Having said that, listing it when there will not be resources to show it or even handle inquiries is a killer.  It needs to be listed with an entire marketing support plan behind it.  

I recommend:

Speaking with the PM/Manager and sharing your expectations.  Now.  

Correct any incorrect property details now; if it's not listed properly, it's a waste of time and could result in claims of 'bait and switch' and the like.  

The holidays are a major interruption in the real estate market. The last two weeks of the month are a total waste for even attempting to get anything done due to resource partners being scarce due to taking time off.  Don't go out with a bang to then sit and rot.  

Rushing to the list isn't going to do you any good if you don't have a strategy for pricing it effectively and for responding quickly to inquiries.  There is no reason to have a PM - much less pay for one - if you're operating on different pages.  Start there and don't wait to have a voice conversation.  You need it now.  Fingers crossed you're up and listed fast!  Hope this helps...

Never.  If you're going to do it, just make sure that they're not on the Do Not Call List and do it during normal business hours.  

Fun topic...and it's one that affects me as well. Here's what the IRS says:  "The IRS requires businesses to keep receipts for all business expenses of $75 and up. Note that if your business is audited, you'll still need to be able to provide basic information about expenses under $75, such as the date of the purchase and its business purpose."  Retention of receipts is 3 years.  

So cash...here's what was shared with me:  "Your supporting documents should identify the payee, the amount paid, proof of payment, the date incurred, and include a description of the item to show that the amount was for purchases."

Then this when it comes to paying handymen/contractors:  "If you paid an independent contractor less than $600 over the course of the financial year, you don't need to submit Form 1099-NEC for them."

Hope this helps.  And, I just document every expenditure - regardless of amount...just is what it is and it is annoying.

Agree with the contributor above; but I am curious how the escrow was forfeited without the termination being signed by both parties.  That should not have happened.  The Title Manager should have had a release executed.  I recommend going to that person first and inquiring if the escrow was released to the seller and what release/acknowledgement they received before distribution.  Without it, the escrow should not have been released/paid.  

Fun, huh?

First of all, congratulations!  Quite the achievement.

And, I recommend this:  If you're in market, show up.  Post a letter on each door letting them know of the new ownership and providing information on how to report maintenance requests, make rental payments, more - if any of that has changed as well.  I have found that when tenants see that the new management is active and does show up, the respect level increases.  It's amazing how many tenants will claim they never got the letter/email about the change and claim they paid rent to the "last guy."  This avoids all of that 'nice try' stuff.

Hope this helps - and again, Congrats!

We've found that vacation rental financing has really dried up in the past few months. The lenders who are still doing it are charging some pretty high rates (my clients have 800+ FICOs, liquidity, low DTI) and don't really understand STR ('there is no rent roll or leases'). Two years of financials on the property has also been problematic for some properties that have a shorter history than that but have significant NOI.

So, a long way of saying: I want a STR lender who I don't need to train on STR, who is in the business today and will be in it tomorrow. Business awaits that lender...

Know this:  "Do you know what you should do if your tenant is jailed while renting from you?  Many landlords assume that they can move straight to eviction, but that is not true. Even if a tenant is serving some time in jail, this will not automatically result in their eviction. In fact, evicting them or taking the wrong steps when a tenant is jailed could get you in trouble instead!"  (Source: RentPrep)  I recommend that you read the article (there are many online - it happens) on steps to take when a tenant is jailed. Here's one:   

https://rentprep.com/landlord-tips/what-to-do-if-your-tenant-is-jailed/#:~:text=Many%20landlords%20assume%20that%20they,get%20you%20in%20trouble%20instead!

Unless your lease has a crime provision in it (mine does but most standard leases do not), you'll want to wait until rent is delinquent and/or make an offer for early termination as "a courtesy under these challenging circumstances."  Whatever you do, do it in writing and retain it in case it goes the way of eviction.

Hope this helps...

Should the tenant not vacate after the lease has expired - this is important:  Do NOT accept any rent from the tenant.  None.  If you do, it starts a month-to-month tenancy - and you'll have to give notice again, repeat the process.  Here's what I recommend:

1.  Do give the notice. And, if you have concerns, send it to them via email and retain a copy - as well as send it by US Mail with proof of delivery required.  That way, if you have to evict, you have the documentation you need.  One more thing here:  give a time of departure.  If you lease did not state an end time in it, then note the lease will cease on (date) at 11:59 p.m. - and that a locksmith has been engaged to change the locks upon their departure.  (It's not a bad idea to do that if you have concerns so that they don't come back in).

2.  At 15-days before lease end, schedule a final walk of the property with the tenants. It should be on the last day of the lease or before if the unit is vacant. Give instructions on what should be done by the tenants to retain their security deposit and/or avoid damage assessments; these include: removal of all personal items/trash, appliances/bathrooms emptied and cleaned - basically the unit is to be returned in the same condition as when they rented it (less normal wear and tear).  This step lets them know that the clock is ticking and that you are moving forward with their departure.

3.  At 5 days, confirm the walk through appointment.  If there is any push back by the tenants, let them know that the unit has been committed to another party and, as such, there can be no extension beyond lease end.

4.  No Tenant Response to your notices/scheduling requests...give a notice of inspection to the tenant giving your state's notice.  Most have 72 hours or less. Then show up with another party as a witness and walk the property; photograph any damage. If the tenant is present, reiterate the lease expiration.  If they tell you they're not leaving, stay calm and let them know that should they not legally depart per the lease and notice, an eviction will be filed the next morning - and that's something that you don't look forward to doing and that will have ramifications for them.  Then refuse to be engage further. 

5.  Confirm departure.  Revisit the unit on the first day following lease end.  If they're gone, buy a lottery ticket!  If not, file for eviction. Most municipalities have an online filing system that is efficient and inexpensive to use.  

This is more than you probably wanted but - as you can tell - it does happen and there are ways to keep the focus on lease end departure.  Hope this helps.  Fingers crossed for their departure.