All Forum Posts by: Phillip Austin

I agree with @Bob Okenwa. Save your money! And instead, focus that time and energy on growing your network either through local BP meetups (https://www.biggerpockets.com/...) or your local real estate meetups.

It's not WHAT you know but WHO you know!

If you're using a Property Manager, @Nathan Gesner hit the nail on the head. I would adopt the same strategy.

If you're self-managing, you need to set CLEAR expectations at the time of move-in. A good practice is to make sure your lease states explicitly how maintenance requests will be handled then follow that up with some kind of "move-in packet" reinforcing what's outlined in the lease (tenants may or may not read their lease). Review the move-in packet with the tenant on the day of move-in so you set CLEAR expectations.

Tenants need to know what is their responsibility and what responsibility falls on the landlord. If these expectations are not clear up front, it will result in a multitude of calls and requests. 

With that said, you don't want to 'scare' them into not reporting actual maintenance issues out of fear they'll be charged. So, make sure your lease has a provision outlining the repercussions of not reporting maintenance issues. Then, reiterate that provision in the 'move-in packet' as well.

And yes, find a general handyman you trust and have that person on speed dial. Ask people in your network or folks in your neighborhood for referrals.

One last thing, ALWAYS charge the tenant if you can prove the issue was caused by the tenant. This should be outlined in your lease as well as your move-in packet so there's no surprise when you send them a bill. Choosing not to charge them because you want to "maintain good will" is only going to compound the issue you're trying to solve.

As a Director who has worked with one of the largest PM companies in the nation (who uses AppFolio), I can confidently tell you it's because the metrics don't paint the full picture when it comes to measuring success. @Jeff Copeland @Joe Villeneuve are both correct.

@Jeff Copeland is exactly right. A company who has a large systemic issue, let's say in client retention, can conceal that issue much easier than a smaller company. Some of these companies have tens of thousands of properties under management compared to the average PM company that has between 300-600 units.

Really great question @Amal Bhatnagar!

Immediately consult with a local eviction attorney and proceed to post a demand for nonpayment of rent according your state/local law.

Here are things you MUST do going forward:

- Leave emotions out of property management.

- Collect ALL fees including any prorated rent, security deposit, pet fees, etc. PRIOR to executing the lease.

- Include a provision in your lease stipulating that all 'late rent' must be paid in certified funds. 

- Once the grace period expires and your tenant still hasn't paid rent in FULL, post a demand for nonpayment of rent the VERY NEXT DAY. I believe in NC it is a 10-day demand. So, this will start their countdown and if they don't pay and cure the demand, consult with your eviction attorney and proceed with eviction.

Remember, leave emotions out!

@Amal Bhatnagar If you only have one condo and don't mind the occasional tenant call or maintenance request, I would recommend utilizing a property management company that offers what we call "lease-only" services. Many companies offer to lease your unit from beginning to end including screening applicants, showing the vacant unit, moving in a qualified tenant, then handing you over an executed lease with a qualified tenant. You then manage the day-to-day until it's time to find another tenant. Companies typically only charge a higher leasing fee, say 80% of monthly rent. 

@Hersh Shah @Nicole Heasley Beitenman Both are correct. Do not waste time sending a new lease. Simply create an addendum with an effective date and have all parties sign.

Absolutely speak with the tenants first and see if you can get an honest answer as what's going on. If you're not satisfied with their answer and determine they're not abiding by the lease, post a demand for compliance according to state/local law. If they don't cure the demand, connect with your local eviction attorney and proceed with an eviction.

@Michael Mason Congrats on becoming a landlord!

Your lease is by far one of the most, if not THE most, important agreement as a rental investor. My first suggestion would be to partner with a local attorney who has vast experience in landlord/tenant law in your area. Then, have them draft a custom lease for you. Although this may cost you a penny ($500-$1,000), it will end up saving you in the long run. Plus, you can use that lease template for all future leases and properties.

If you're dead set on creating your own, here are the most important clauses I would include in addition to your standard clauses such as security deposit, rent collection, etc.:

- Early termination: how to let them out of the lease if they wish to move out early

- Pets: what will you allow and how you will treat violations)

- Pests: how you will handle a pest infestation (if caused by the tenant or otherwise)

- Smoking: how you will handle any smoking violations

- Maintenance/repairs: how you will handle both standard and emergency maintenance requests. 

- Move out procedure: what exactly is required of the tenant upon move out (I suggest having them professionally clean the property as well as any carpet and provide you receipts for both. It, also, doesn't hurt to provide them a cleaning checklist)

Industry standards:

8-10% monthly mgmt fee

50% leasing fee

$50-$150 renewal fee

Fees will obviously vary depending on the company and some companies will charge an assortment of different fees in addition to the ones I listed above. I've seen some management companies provide their clients with an "Owner's Handbook" that was 40 pages long and tons of fees listed on each page..not kidding!

Read their management agreement carefully. Ask if there are any additional fees not listed in the agreement. And be careful, some companies have undisclosed mark ups which are prohibited in some states.

Hey @Amal Bhatnagar, as a professional Property Manager who has worked for both small and large, national PM companies, I think I can help. Here are my suggestions:

1. Go online to the local NARPM (National Association of Residential Property Managers) chapter's website which I believe would be Atlanta's chapter: https://atlanta.narpm.org/memb...

2. Check out the Property Managers already listed on Bigger Pockets: Local Property Managers

3. Find a local real estate broker you trust and ask them for a few recommendations. 

In my experience, if your property requires more time management (older property with many maintenance issues, difficult tenants, tough neighborhood to lease, etc.), go with a smaller management company. They tend to be much more hands on and are better at mitigating some of those issues.

If your property doesn't require a lot of management and is much more "hands off," I would go with a larger management company.