All Forum Posts by: Phillip Austin

@Bryan Soto Annable Typically, basic property management softwares are not great at tracking those types of expenses. Often times, expenses related to debt service are tracked separately.

If you intend to progress with your RE investing, I highly recommend partnering with a local CPA who specializes in real estate/property management. They can advise you best!

@Jose Rocha If you intend to progress in your RE investing, best practice is to setup a LLC for each property and also, separate bank accounts for each LLC.

The primary reason for doing this is from a liability prospective. Worst case scenario is you have a tenant at one property sue you for one reason or another and if LLCs aren't created, they can come after all your personal assets. Not good.

@Cesar Garcia If you sign up for BiggerPockets Pro membership, you get free access to Rentredi which is a property management software that includes rent collection/disbursement. 

Regarding chasing down tenants, I highly recommend finding a demand for nonpayment of rent form used in your local area and physically posting that demand on your tenant's door whenever they do not pay rent within the grace period. If rent is due by the 3rd and they haven't paid, post that demand on their door on the 4th, no exceptions and regardless of any communication you've had with the tenant. This is the absolute best way to minimize delinquency.

Hi @Delicia Brown! Congrats on "almost" closing on your first multi! If you haven't already read "The Multifamily Millionaire" by Brandon Turner and Brian Murray, I highly recommended going through that book.

As a professional PM who has managed a ton of small multi-family, my best advice is to hire a CPA who specializes in real estate/property management. 1-10 units is nothing you can't handle on your own; however, as investors grow their multi-family portfolios, they tend to underestimate the complexities of property accounting and end up spending a significant amount of time reconciling their books. A solid CPA and/or property manager will save you A LOT of time and headache down the road!

@Anna Jenkins Here are a couple other threads asking the same:

https://www.biggerpockets.com/...

https://www.biggerpockets.com/...

You should also visit the local NARPM chapter's website; national association of rental property managers. NARPM has chapters in most metro cities across the country and most reputable, ethical property managers are members!

I'd recommend sending one email outlining each option:

1. 18 month lease at $1,750

2. 12 month lease at $1,800

3. MTM at $1,900 or $1,950

Let them choose! Generally, you want to increase monthly rent by 10% if tenants wish to go MTM.

@Mark Vella Irregardless of HUD, you should run a comparative market analysis on your property and list it accordingly. DO NOT use HUD's maximum rent allowance as a metric for determining your own market rent.

Moreover, when a section 8 tenant applies for rental assistance, the housing provider will essentially underwrite their application to determine their voucher amount. If they're only approved for a $1,000/mo voucher and the tenants wants to apply for your $1,350 unit, the tenant will be required to pay the difference themselves. So, you'll get a $1,000 check from HUD and $350 from the tenant each month.

If you invest in Colorado, manage in Colorado or are considering investing in Colorado, you absolutely need to BE AWARE of the upcoming legislation some of which goes into effect TODAY!

If you want to learn more and how to navigate these changes, Pete Muccio, a well-known attorney here in Denver and landlord advocate, is speaking at Denver's NARPM chapter on June 27th. Here is how to register: https://denver.narpm.org/event...

HB23-1068 Pet Ownership in Housing

• PASSED

HB23-1095 Prohibited Provisions in Rental Agreements (Class Action Waivers)

• PASSED

HB23-1099 Portable Screening Report for Residential Leases

• SIGNED INTO LAW, EFFECTIVE: 8/6/23

HB23-1120 Eviction Protections for Residential Tenants

• SIGNED INTO LAW, EFFECTIVE: 6/7/23

HB23-1186 Remote Participation in Residential Evictions

• PASSED

HB23-1254 Habitability of Residential Premises

• SIGNED INTO LAW, EFFECTIVE: 5/10/23

SB23-148 Illegal Drug Laboratory Property and Certification

• PASSED

SB23-184 Protections For Residential Tenants

• SIGNED INTO LAW, EFFECTIVE: 8/7/23

SB23-206 Disclose Radon Information Residential Property

• PASSED

Agreeing with @Melanie Thomas, becoming an affiliate in your local NARPM chapter is a great way to stay top of mind with your most reputable PM companies in the area. I would also list out all of the PM members of that chapter then personally visit their office and introduce yourself to the decision maker in the office.

To network with investors, try attending a local RE investor meetup which you can find right here on BiggerPockets.

@Jonathan Decoster Mistakes happen! If they're unable to lease it quickly and you incur additional vacancy because of THEIR mistake then, yes, you should ask for compensation in the form of a discounted leasing fee.