All Forum Posts by: Phillip Austin

Does anyone have a solid referral for a custom home builder in North Carolina, specifically the Charlotte/Winston area?

My family purchased 12 acres in Mocksville and we're having trouble finding a solid and reputable builder. Land is cleared and we're wanting to start building asap. Any referrals are appreciated!

@Ananth Subramanian What type of evictions is it? If it's related to nonpayment of rent, the changes they appeal is very low. 

Cash for keys is a good option but it depends how much they owe. If it's a larger debt, I would not offer cash for keys.

@Hiren Patani Ask a local eviction attorney in your area for a referral! They're the ones working with those agencies on a regular basis and have the best referrals.

As far as recovering the debt, try leveling with the tenant as much as possible so they grasp the seriousness of being sent to collections. While at the same time sending their balance to collections. Get everything in writing!

@Justin Smith Your best advice was given by @Theresa Harris and @Nathan Gesner.

The tenant has to call the cops and report the noise disturbance. Period, end of story. That resolves the issue 9 times out of 10. I dealt with this exact scenario last week with one of my tenants in a multi-family.

Most often, tenants and neighbors are timid and not wanting to call the police. It's easier to file a complaint with the PM. However, the last thing you need to do is step in and play mediator. 

Make sure they send you a copy of the police report so you can follow up with the tenant causing the issues and send them some sort of warning in writing. Whether it's a legal demand for compliance or simply an email, it doesn't really matter; just make sure everything is in writing. If it happens again, they need to call the police again and you need to proceed with lease violations and work toward terminating their lease.

@Paola Astrid Find the local NARPM (national association of residential property managers) chapter's website and you'll find a list of each professional PM. 

BiggerPockets also has a great tool for finding local property managers. 

@Christian Pichardo Echoing what others have already said, investing out-of-state without having a solid and local team already in place is definitely rolling the dice. Couple that with the fact that you're buying somewhat distressed properties and you can easily find yourself in a difficult situation.  A solid property manager could have mitigated these losses most likely.

I would highly recommend contacting local housing authorities and advertising on their suggested platforms if you haven't done so already. Additionally, there are a ton of housing providers and organizations around the country trying to fill vacancies. Poke around online to see if any of those organizations are in the area.

Thanksgiving through the end of January is the absolute slowest time of year for leasing properties. Give it a few more weeks before you make any moves out of desperation. 

@Wesley W. I wouldn’t be too concerned with this. There are more serious red flags that come up during the screening process. 
For this situation, communicate very clearly and bluntly with the tenants and try to realign expectations so they don’t do this same with you. Also, if your state allows it, add a clause in the lease and attach a fee to protect you if they leave without notice. 

@Nathan Gesner Do you personally work with any such organizations? Are there revenue opportunities for PMs?

I can understand security deposit assistance for certain markets. For example, many of the nicer ski towns around Colorado require first month, last month, plus the security deposit upon move-in which can easily amount to $7k+. But we’re starting to see this program gain traction along the Front Range especially with lower income tenants and properties. Tenants taking out bonds for a $1,400 security deposit, becoming delinquent after only a few months, then PMs filing claims and expecting payouts. It’s really damaging to tenants.

As always, @Nathan Gesner coming through with the most solid and practical advice.

If you have issues with your PM, be very direct and state your case. If they’re violating the management agreement, state your case plainly and try to work it out. If they refuse to cooperate and you can clearly identify breaches in the management contract, file a complaint with your states real estate commission. PMs are forced to respond and are more likely to settle. It saves you time and money by not having to hire an attorney.

@Greg Scott A professional tenant indeed!

@Chris Seveney @Nathan Gesner The owners offered to cancel their lease and return their security deposit in full. Thankfully, the tenants agreed and moved out within 72hrs. 

As professional PMs, these scenarios are less anxiety inducing to us because, unfortunately, we deal with professional tenants more than your average landlord. However, there are a ton of brand new landlords self-managing their homes for the very first time. And when you’re in an extremely tenant friendly state such as Colorado, this can be a nightmare situation. 
My biggest advice I have for new landlords self-managing is know the laws and have a beefy lease. This owner found a free lease template online that provided very little landlord protections.