All Forum Posts by: Preeti Tibrewala

Quote from @Preeti Tibrewala:

@Jason Mak Did you get any response for this? Did you end up getting this membership? I am also evaluating if I need this membership.

 @Preeti Tibrewala

Hi!  I didn’t get any response from this but I ended up subscribing.  It ended up being useful for me because of the constant changing COVID-19 three day notice forms needed  in the last few years.  

I also use it for other random notices and templates.  

Worth a try to see if it is worth it for you. 

Aloha,

There are a lot of reasons NOT to have a tenant oversee your property!

1) Depending on how you structure the arrangement, they can easily become, in the eyes of the law, your employee. This means you need to deal with taxes, insurance, etc. ANY discount on rent IS "payment", from the IRS perspective, and needs at least a 1099.
2) At a minimum, if they get injured on your property, you have a potential worker's comp claim...whether or not you have workers comp.
3) Often you find personality clashes. The "manager" will make friends with some tenants, and others not so much. This can lead to Fair Housing issues, if all are not treated the same with regard to responses for maintenance requests, rule violations, etc.
4) Site managers that have access to materials that YOU are paying for, may use them for unauthorized work...helping out their friends in the building, or maybe next door. You need close inventory control. This even extends to situations where you send a contractor to do one job, and the site mgr has them do additional work that doesn't show up on the invoice.

Hire a small vendor to perform regular cleaning, and make sure your House Rules have something about how tenants are to handle their regular trash daily (bagged and tied, nothing left outside of the receptacle) as well as in common areas (clean up spills, use proper receptacle) ....and an appropriate fine system to change behavior.

A camera system with remote access and at least two weeks of continuously saved recordings is by far the best, and only way, to keep MULTIPLE eyes on your property and see what really is taking place, and who is responsible, even after the fact. Just be sure video is "evidence" quality...very clear images, digitally zoomable, and easy to review, download or save segments, and print "snapshots". You will have the cost of internet service, but in my experience it is absolutely worth it. People do crazy stuff when no one is looking!

@Preeti Tibrewala install an internet connected camera to monitor who is not cleaning up after themselves. People often behave better when they think they are being watched.

Agree with @Nathan Gesnerto not offer lower rent, but to compensate separately. Just make sure to get a W-9 signed BEFORE first payment.

@Preeti Tibrewala You should be able to place all three properties onto one commercial policy since they are smaller sized building. All insurance carriers have taken rate this year. The key is to find the right insurance company that is specifically looking to build their rental property book of business. Not all insurance carriers go after rental properties and it will reflect in their pricing. An independent insurance agent will be able to quote your business with multiple carriers to find you the best policy.

Quote from @Preeti Tibrewala:

As a rule, I do not reduce rent in exchange for labor. If they screw up or fail to complete the job, you've loss the value of their labor and you've lost the rent income. It also puts you in a precarious situation when other disagreements come up.

Tenant pays market rent. You pay tenant for work after the work is done completely and to your satisfaction, just like you would with any other contractor. I only hire the Tenant if a local presence is advantageous and I can get the labor for a discount.

Personally, I would notify all the renters that they need to do a better job of taking care of the trash and cleaning up after themselves. If they fail, hire a cleaner and pass the charge on to your renters.

@Preeti Tibrewala I have had this arrangement quite a few times with tenants, and I have intentionally sought it out a few times. Typically, I have had this on C class buildings here in Berwyn or Cicero outside of Chicago where there is a lot of trash in hallways, trash can issues, etc. I would probably not do this on a 5 unit though, as you have a much greater chance of figuring out who the issue is if you have someone littering or not respecting the property. On larger properties, it can be nearly impossible to track down who is littering to truly enforce these things. 

I wouldn't do it. Perhaps common areas do need to be cleaned more often and you should consider hiring someone to clean common areas from time to time. But a 'manager' position for a tenant who does not have a background in real estate just seems like asking for a big problem.