All Forum Posts by: Phillip Austin

Although I'm in Denver, I'm originally from Texas and know that San Marcos and Lockhart are both strong markets. Lockhart is getting a TON of young professionals who cannot afford Austin but still want to be in close proximity. 

I would check out San Marcos, Lockhart and Buda. Maybe New Braunfels? 

Hey @Ben S.! Sounds like you received a "great" advertisement from Renter's Warehouse! lol

Given that you have other documented lease violations, I would approach the tenant and have an honest conversation about exiting the lease. Be careful! It's clear there has been a "falling out" between you and the tenant. So, you want to have a tactful approach and not a "threatening" approach. Remind them that they're on a month-to-month agreement and since it's clearly not working out, it would be best for all parties if we went our separate ways.

Typically, on a MTM lease, you'll need to provide a notice to quit which, depending on your state, may be 30 or 60 days (most common).

As a compromise, may give them a longer notice like 90 days so they have ample time to prepare and find another home.

Living there for 10+ years with no increase then playing the "it's not fair" card. Priceless.

@Michele Velazquez You and your PM need to be on the exact same page when it comes to deciding whether this tenant is worth keeping or not. There's clearly a difference of opinion.

I deal with this sort of predicament very often. As the PM, we know your tenant a lot better than you do and we see bad tenants ALL THE TIME. It sounds like your PM doesn't think your tenant is worth a non-renewal. You need to ask why.

If your tenant is legitimately late on a consistent basis, then yes, you need to get him out.

If he was late once or twice but otherwise has been an outstanding tenant who takes care of your property, I would follow the advice of your PM with a smaller increase.

All that to say, if you think it's severely under market value, your PM needs to have an open and honest conversation with the tenant letting them know so he can expect a large increase at time of renewal.

Agreeing with others who've posted, you may not get the desired cash flow based off the numbers you provided. 

@Nathan Gesner is exactly right. Vacancy, maintenance, capx, etc. should be included when forecasting cash flow.

With that said, if you're confident in your cash flow projections, I highly recommend self-managing for the first year or two IF you have the time. Not only will it save you a good chunk of change but the experience will teach you the most about landlording and when you do decide to hire a property manager, you'll be better equipped to find a GOOD PM.

 Okay, great! I would be worried if he did pass their criteria.

@Brian C. If the other applicant meets their criteria, I would feel confident in moving forward with that applicant. Disability checks from the VA means steady income which in turn means you shouldn't be worried about chasing down rent.

The policy is we try to avoid it as much as possible. We're allowing someone into the property that we ourselves don't manage. Any number of things could happen but we absolutely lose some effectiveness and ability to manage which is why many PMs don't allow it.

Many owners want to cut cost by doing it themselves which I'll allow. However, if it becomes an issue, I'll have a direct conversation with the owner and try to compromise in some way. If the owner insists and the issues persist, I'll consider firing the owner and terminating the management agreement

The local NARPM chapter will always have a list of the most reputable PMs in the area. I've yet to come across the perfect PM, however, you increase your probability of finding a good one when it's through NARPM.

@Joseph Cammarata 100% possible. Don't put limitations on yourself because of age, money in the bank or credit worthiness. This is your brain limiting your own potential out of fear of the unknown.

You've already been making sound decisions and you made another one by posting here on BP. Continue networking and you'll find others in your exact scenario or others who have been in your scenario. Those folks will offer the best advice.

@Jon Hackworth Visit the NARPM (national association of residential property managers) website for the local Akron chapter, maybe the Cleveland chapter if they don't have one for Akron. There you will find a list of the most reputable PMs in the area.