All Forum Posts by: Phillip Austin

@Mikey Liu If were you, I would do a walkthrough of the property, if possible. You'll get the most insight into why it's not leasing. If that's not possible, here are my suggestions:

1. Ask your PM what marketing platforms they're using (Zillow, FB, MLS, etc.)

2. Go online and look at comparable available units within a 3 mile radius, paying special attention to how long those properties have been on the market. If many of those properties have also been listed for 21+ days, it's most likely a sign that the low leasing season (holidays) is affecting the area.

3. If you find that it's overpriced, consider price reductions every 7 days until it leases. To offset the below market rent, you can offer a shorter lease option then raise the rent back up in the spring/summer.

With that said, you either have an incompetent property manager or you're a victim of the low leasing season. Or both! 

@Al Smith Yikes! You should seriously explore the option of hiring a professional property manager. This sounds messy!

For your immediate situation, here's what I suggest:

1. Speak with a local eviction attorney ASAP

2. Do not accept any more late payments

3. Try to negotiate with the tenant to terminate the lease

4. If she's unwilling to exit the lease, consult with your eviction attorney and proceed with an eviction

Depending on the state (not sure about TN), you don't have to continue accepting late payments even though the tenant cures a demand for nonpayment of rent. For example, if you have to serve her a demand for nonpayment of rent each month, let's say it's a 10-day demand, and she pays in full within the 10-day deadline but you have to go through this EVERY month, you reach a point where you're allowed to evict her for multiple lease infractions. Again, consult with a local eviction attorney and they'll give you the best course of action.

Be careful advertising on Craigslists! Although you can be successful, I've dealt with numerous scams throughout the years.

Zillow has been most helpful.

If you have a decent portfolio of rentals, consider using companies like Showdigs or Tenant Turner. Both are great companies and allow you to syndicate to multiple platforms. 

@Nathan Gesner @Richard F. Both have given you the best advice, in my opinion. Be upfront and transparent with your tenants so they have ample time to prepare. If they're all on long-term leases, determine which leases end soonest. Then, begin communicating with those tenants and let them know your intentions. Renovate 1 or 2 units at a time then maximize the rents. Then, repeat.

Rip the bandaid! 

@Chris Allen GREAT post! Thank you for sharing. We have a small multi-family next to a medical complex and have been wondering how to attract traveling nurses. Great tips!

I'm surprised no one has mentioned HUNTSVILLE, AL?! I might me letting the cat out of the bag but Huntsville, AL should be at the top of your list.

@Greg R. Keep your eye on tertiary markets in the mid-west and south. Although you can find deals anywhere and everywhere across the nation, you'll find more opportunities in the tertiary markets in the mid-west and south due to recent population and economic trends over the last 1-3 years.

Chattanooga, TN

Huntsville, AL

Birmingham, AL

Greenville, SC

Richmond, VA

Jackson, MS

Raleigh/Durham, NC (and surrounding areas)

Tampa/Orlando, FL 

@Mary Smith Yes, TransUnion created the Resident Score, I believe, shortly after the Covid pandemic or within the last 1-2 years. 

I currently use TransUnion and also used them when managing thousands of units, however, we never adopted the Resident Score in our underwriting criteria for various reasons. Small, boutique property management companies or investors who self-manage are more likely to build this into their criteria. However, there's currently not enough aggregated data to win over the larger companies since it's a fairly new metric.

@Tony Valle I recommend checking out tertiary markets in the Mid-West and South. Then, cross-reference those markets with population and economic trends.

Columbus, OH, Jackson, MS, Kansas City, MO are some hotter markets. However, I would check out Huntsville, AL which was recently voted #1 Best Places to Live: https://realestate.usnews.com/...

Late fee structures will vary from company to company. Most reputable companies are either going to split the fees 50/50 or take 100% of the late fees and it's for the reasons @Clay Lehman mentioned. Tracking down a delinquent tenant takes time, money and resources. 

Furthermore, the larger the management company, the more likely they are to keep 100% of the fees. They have hundreds, maybe thousands of properties and tenants they are tracking down each month which may include multiple calls, emails and possibly posting notices at properties. This becomes a revenue stream for the company that could produce thousands of dollars each year.

@Richard F. is correct. You will most likely need your RE license.

If you decide to pursue it, attend your local RE meetups and start networking. You'll come across investors who may not be looking for a manager themselves but may know other investors who are.

Another hustle habit I like when looking for prospective clients is scouring online available listings that are listed by property owners. Reach out to those folks and see if they need any helping leasing/managing their property. You never know! They may be self-managing only one unit or they may have 15-20.