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All Forum Posts by: Phillip Austin

Phillip Austin has started 6 posts and replied 233 times.

Post: Property Management Recommendation

Phillip Austin
Posted
  • Property Manager
  • Denver, CO
  • Posts 236
  • Votes 204

@Gloria Grotjan Try searching within BiggerPocket’s! They offer  search function for members looking for property managers.

In addition to BP, try searching through local NARPM chapters; national association of residential property managers. Most reputable and professional PMs are heavily affiliated with their local NARPM chapter. Find the local NARPM chapters website and you’ll find an entire list of PMs. 

If you need immediate assistance and you’re out of state, I would consider calling Evernest. They’re a national chain with a regional office in Jackson and offer very competitive rates. 

Post: Property Management Recommendation

Phillip Austin
Posted
  • Property Manager
  • Denver, CO
  • Posts 236
  • Votes 204

@Gloria Grotjan Try searching within BiggerPocket’s! They offer  search function for members looking for property managers.

In addition to BP, try searching through local NARPM chapters; national association of residential property managers. Most reputable and professional PMs are heavily affiliated with their local NARPM chapter. Find the local NARPM chapters website and you’ll find an entire list of PMs. 

If you need immediate assistance and you’re out of state, I would consider calling Evernest. They’re a national chain with a regional office in Jackson and offer very competitive rates. 

Post: Difficult Tenant: Escalating Issues & Safety Concerns

Phillip Austin
Posted
  • Property Manager
  • Denver, CO
  • Posts 236
  • Votes 204

@John Cooper I can understand your frustration. Yes, we need to treat it like a business; however, when renting out a room in your personal home, you're essentially picking a roommate. In the future, and this goes for all househackers renting a room in your own home, you can choose to use more discretion when picking "tenants" because they're legally seen as roommates FYI. Be picky!

To resolve this as quickly as possible, you can either choose to level with the person and see if they'll agree to move out on their own accord (you may need to offer concessions) or get an eviction attorney involved. If you choose to contact an attorney, there's no guarantee you can get him out unless he has violated the lease. Even then, tenants have a right to cure any lease violations. So, the eviction route is a longer process. 

Post: Looking for a McHenry County eviction lawyer ASAP

Phillip Austin
Posted
  • Property Manager
  • Denver, CO
  • Posts 236
  • Votes 204

Here you go: https://dicksonlawgroup.com/practice-areas/landlord-tenant-d...

The biggest difference between eviction attorneys is pricing. Most are relatively the same.

Post: Property Management is Much More than Collecting Rent…

Phillip Austin
Posted
  • Property Manager
  • Denver, CO
  • Posts 236
  • Votes 204

@V.G Jason Very interesting. Yes, those are the standard fees and pricing you'll find at most PM companies. However, we still get beat up on a daily basis over our fees.

I left one of the largest PM companies, who had those exact fees, and started my own business with the sole intention of eliminating all of those fees. I only charge a 10% mgmt fee, nothing else. No frivolous leasing or maintenance fees. I find the revenue to be more than enough so long as I maintain a certain portfolio size.

I appreciate you sharing your though! It's nice to hear a different perspective.

Post: Nightmare Tenant - This is why you need a property manager!

Phillip Austin
Posted
  • Property Manager
  • Denver, CO
  • Posts 236
  • Votes 204

One of the best examples I found this year as to why you need a property manager (especially in Colorado). This client chose not to use our services and instead, tried to self-manage their primary. This was the very first time they had rented it; brand new landlords. The home was clean and in great condition. The showings with the tenant went well and they didn't have any questions during the showing. They moved in and within 24 hours sent the following letter (names have been changed):

"Hi Dawn and Brian,
Sindy and I are frustrated, disappointed, and really struggling with the idea of moving forward with the move into your home.
We realize this is the first time you have rented a property to someone, and may not be aware of the responsibilities that landlords have, and want to inform you that there are habitability issues with the home that are quite literally against the law, pursuant to Colorado’s Warranty of Habitability Law, CRS §§ 38-12-501 et seq. See below for explanations, with headings taken from the attached document.
Broken windows or exterior doors-
The two narrow windows in the living room do not fit into the walls properly. Both screen doors upstairs do not function correctly.

Plumbing problems-
The garbage disposal in the kitchen was not cleaned, is smelly and the rubber is flipped outwards.
The bathroom sink in the smaller bedroom does not drain correctly despite us using an entire bottle of drain cleaner on it.

Common areas that are not kept clean or have garbage-
There was no attempt to clear the patio of years of accumulated debris and filth. We as tenants had to acquire a shop vac and clean it ourselves, including dragging rugs full of filth and animal hair to the dumpsters. Window ledges had debris and dirt. Spiderwebs were all over the patio, fireplace, basement and ceilings. Upon move-in, appliances, cabinets, floors and walls all had built-up grime and residue from your habitation of the home.

Infestation of bugs, pests and rodents-
There was no attempt to treat the house for pests, as evidenced by the more than 15 spiders we have already seen in the basement, and the live, active wasp nest in the patio fence.

Floors, stairways and railings in poor condition-
The carpets are stained and smelly. The carpets covering the stairs are matted down, stained, and especially smelly. The smell has not dissipated, pointing toward a bigger problem than one shampooing can fix, and because the living room carpet was still full of indents from the previous furniture it is unlikely that the carpets were properly shampooed. Furthermore, after having a dog live in the house for 3 years there is almost certainly animal urine that has soaked through the carpet into the subfloor. To remedy that, the carpets should be ripped up and sealant applied to the subfloor, at minimum.
There are also tiles in the smaller upstairs bathroom that are lifting up and creating a safety hazard; putting a rug on top is not a sufficient solution.

The house is in a condition that materially interferes with the health of household members. Tenants have dog allergies and chronic asthma; the persistent smell and the dog hair found in multiple areas so far are harmful to our health and have, can, and will exacerbate health conditions of tenants.

We believe the issues described above present a materially dangerous or hazardous condition to the health and safety of our household. We are thus asking that you fix the problems. We are within our rights as tenants to request that you initiate a fix to the problem within the next 24 hours due to the condition of the house presenting both health and safety hazards. If you are unable or unwilling to do so we may elect to terminate the lease and request a return of our deposit--which we offered in a good faith agreement that we would be presented with a habitable dwelling--and our prorated rent. If that is the path moving forward we will be left without a home as of 9/21/24 which will create incredible financial, mental, and physical stress on our part. We hope that you can remedy the situation so that we can move into a habitable home.
Suggestions that we have to fix the issues:

  • Hire a company to rip up the carpets, treat the subfloors, and replace the carpets, at least on the main level and on the stairs.
  • Provide an air purifier as a start to remedying the smell.
  • Replace the garbage disposal.
  • Hire a plumber to fix the draining issue in the bathroom sink of the smaller bedroom.
  • Fix the tiles in the upstairs bathroom so they no longer present a safety hazard.
  • Replace or fix the screen doors.
  • Fix the gap between the windows and the walls in the living room.
  • Hire a professional company to treat the entire home for pests. This is typically done 3x a year.
  • Hire a company to deep clean the washing machine, drier, and dishwasher.
  • Reimburse us for the combined 8 hours we have now spent on cleaning the home.
  • Repaint the walls, at minimum in the basement.
  • Prorate our rent for the days we are unable to be in the home due to the current issues and any repair time.

Please let us know how you would like to proceed.
Thank you,Sindy and Cary"

You need a professional property manager!

Post: Buying my first home Denver. $100k saved

Phillip Austin
Posted
  • Property Manager
  • Denver, CO
  • Posts 236
  • Votes 204

@Andre Bertoncin Congrats on making moves! 
I'm a property manager that manages along the Front Range from Fort Collins down to Colorado Springs and everywhere in between. Feel free to use me as a resource! I provide free rental analysis when you're trying to determine potential rent values. I'm always happy to help!

Post: Property Management is Much More than Collecting Rent…

Phillip Austin
Posted
  • Property Manager
  • Denver, CO
  • Posts 236
  • Votes 204
Quote from @V.G Jason:
Quote from @Drew Sygit:

@Gamal Harding you forgot that it's never fast enough for tenants or cheap enough for owners:(


 It's too cheap for us owners. I work with probably 10-12 different PMs around the nation, I don't get how they are in business. That's short term and long-term, it just does not add up.

I am expecting some form of disruption in the industry, but things are so tight in RE it won't happen anytime soon or it'll happen sooner because of how tight it is. 


 Interesting. When you say it's too cheap, what kind of pricing are you getting from your various PMs? As PMs, we often hear the opposite so I'm interested to hear more.

Post: Texas or Florida?

Phillip Austin
Posted
  • Property Manager
  • Denver, CO
  • Posts 236
  • Votes 204

Better to live is a very personal question and depends heavily on you and your family's needs and wants. I grew up in Texas around the Houston area and loved it. But it's not for everyone, especially the weather.

Regarding starting a PM business, I would want a less mature market that has a lot of growth potential. There are a ton of PMs in Austin, for example, including a bunch of national and local brokerages so the competition is thick. The volatility of Austin's RE market also presents challenges. However, there are several up and coming thriving communities surrounding the Texas metro centers that may be worth looking into. The same can be said for Florida. Follow the building and migration trends. See where the most homes are being built and where populations are growing. 

Post: TREND - PM companies offering financial assistance for security deposit down payments

Phillip Austin
Posted
  • Property Manager
  • Denver, CO
  • Posts 236
  • Votes 204

As a professional property manager, I'm coming across an interesting trend related to institutions providing financial assistance for tenants who have trouble paying their security deposit and I would love to hear feedback from the BP community.

Large PM companies have begun partnering with financial institutions, such as Rhino Insurance, to help tenants who struggle with paying their security deposit. Here's how it works:

If their deposit is $1,500, they can either choose to pay the SD in full or elect to take out what is essentially a loan with Rhino Insurance and only pay $25 per month ($20 goes to Rhino and the remaining $5 goes to the PM company) toward their $1,500 SD. If the tenant becomes delinquent and stops paying rent, Rhino will insure their full $1,500 SD plus an additional nominal amount to offset the losses incurred by the landlord. For a $1,500 SD, they would most likely ensure an amount close to $2,700.

From my perspective, we should never move in a tenant who cannot afford their security deposit. We should also never have a revenue stream and make money off a tenant's security deposit. Lastly, if the tenant does become delinquent and we have to file a claim with Rhino Insurance to collect their deposit, we're adding to the financial woes of that tenant and putting them into an even worse financial position when they wouldn't have qualified in the first place.

Thoughts? Is this is a positive trend? Do you have any personal experience with these types of programs? Is this a predatory practice by PMs? Should we be allowed to make money off a tenant's SD?