All Forum Posts by: Phillip Austin

@Maranda Tucker Great question! This is something that is being discussed across the industry whether you have 250 doors or 25,000.

The bigger companies with tens of thousands of doors are developing their own proprietary software because of the exact thing you mentioned, running TOO many softwares and processes.

For your current company, I'd recommend looking into Asana for your day-to-day operation. Although it doesn't integrate with AppFolio, it can provide a TON of value to organizing daily operations plus it's a super easy software to learn and use.

Here was my core tech stack when we scaled from 500 to 2,000:

AppFolio, Asana, LeadSimple, Tenant Turner (leasing), Property Meld (maintenance)

With 250 doors, Tenant Turner and Property Meld may be unnecessary and also, too expensive especially when AppFolio includes leasing and maintenance features.

Given that you said first and second floor, my guess is the estimate to repair will exceed their security deposit amount. If that's the case, it's still worth trying to recoup damages from the tenant by sending them a letter stating their outstanding balance and the repercussions of not paying (reporting against their credit). However, they rarely pay.

Hardwoods are tough in rental properties. This is most likely not the last time you'll see this issue, irregardless of pets. I would suggest exploring other flooring materials.

@Andrew Reis You will need an escrow account to hold the tenant's security deposit. You're not opening a bank account on behalf of the tenant. You're simply opening a separate escrow account solely to maintain their security deposit. 

Security deposit funds should not me mixed or "commingled" with your operating funds. One account for your income and expenses. A second escrow account for the tenant's security deposit.

Good luck finding a deal on the Front Range of Colorado that meets the 2% rule.

I'm always shocked at the differences in how each states handles these types of things. Why doesn't the RE commission in Illinois simply upload all of their standard RE forms to their website and allow anyone and everyone to download?? So dumb.

Markups for things like utilities, HOA dues, property taxes, insurance, and even 3rd party contracted maintenance are starting to become way more popular. But, it should be explicitly stated in your management agreement. Read it carefully.

Also, ask your PM if they are marking up any other expenses. You may be surprised at other things you missed in the mgmt agreement.

To answer your question whether it is even legal, it all depends on your state/local laws. In most states, yes, it is legal as long as such mark ups are explicitly written and agreed to in the mgmt agreement.

Look into Buildium! They don't have ACH fees.

@Tonya Oliver Look into Evernest. They're a national full-service property management company with a heavy presence in Atlanta and the surrounding areas.

@Zulf H. Raise rent. Find a way to cut your expenses. Or take your investment into another state/market that offers better cash flow.

@Matt Allen For your question about non-interest accounts, it depends on your state/local laws. Some states allow non-interest bearing accounts, others do not.

For your question regarding setting up accounts for each property, many of my investors choose to setup accounts for each portfolio because it makes the accounting cleaner. However, if you don't have many properties, accounts for each may be unnecessary.