All Forum Posts by: Roseann Koefoed

I'm an experienced Commercial RE property and Fund accountant.  I chose Yardi Breeze for my personal portfolio of 80+ apartment  units.  Reason is that Yardi Voyager (Yardi's main product) is the industry standard when it comes to commercial RE accounting.  They have thousands of programmers in India and have a solution built out for every problem.

Yardi Breeze is their dumbed down product for small-time landlords.  Works perfectly for me, and I know the product will only get better because it's backed by Yardi's extensive market share and workforce. 

If I decide to really grow my portfolio in the future and want to be able to write custom reports and automate CAM recs and those types of things, I can simply upgrade to Yardi Voyager and all my accounting history will stay.

I've also used and liked Appfolio in my professional career.  But when I went to get a quote from them, they required a minimum of 50 units which I didn't have yet.

 

What I meant was that many roof, window, siding or mold remediation companies will offer an interest-free (or low interest) option to pay for the work.  For example, I had siding replaced on two 4-unit buildings years ago through Window Works.  They offered interest-free financing to spread the cost over 3 years which helped quite a bit.  Point is that with good personal credit, you can take advantage of financing options to lessen your initial cash outlay.  

I'd add that sometimes even with smaller mom/pop contractors, I've been given the option to pay over 3-6 months.

You're taking action and that's everything.  Props!  My best advice is do not wait to raise the rent and potentially remodel the other unit.  If they move out, you're remodeling and renting at a market rent faster leaving you in a position to refinance and scale faster.  If you're tight on cash, leverage an interest free credit card for the home depot purchases.  Also for major building improvements like windows, doors, roof, mold remediation, you may be able to find vendors that will give you a zero-interest loan to finance the costs forward.  

I wasted a lot of years on my first 3-flat not raising rents or doing the reno work needed.  Now I move as quickly through that phase as possible to refi and get my money back.  You'll scale much faster this way.

Also, look into the 203k loan program for future purchases (since you're willing to live there).

Yes, red flag.  I've never heard of a student bank account that requires a low balance.  And for me, the monthly income (net of taxes and all deductions) must be at least 3 times the rent.  If you really like them and want to move forward, ask for a larger SD, do employment and prior landlord reference checks.

In Chicago, we're seeing a lot of scams with people applying for apartments with a friend's name and income.  Or people securing apartments and then subletting to someone else.  Be careful!

check out Yardi Breeze.  It rivals Appfolio, but does not have a minimum requirement of 50 units like Appfolio does.  Yardi Voyager is the premier commercial RE software.  So if you pick up a lot of commercial property overtime and all your accounting history is already in Yardi Breeze, you can easily upgrade to Yardi Voyager.  Yardi Breeze is $100/month ($1200 for the year).  Not too bad for getting a full accounting and property management solution.

I'll definitely take the blame for not reviewing the Jetz laundry "lease" before closing.  My mistake was that I had assumed it would be a regular "contract".  Normal service contracts do not move from owner to owner.  For example, in IL most trash removal contracts are 3 years, but I've never bothered reviewing them closely because as the new owner I'm not obligated to honor the prior owner's agreement.  So I go shopping and the cut best deal I can with a new or existing trash vendor.

The difference with Jetz is that their agreement is a "lease", not just a regular service contract.  It stays with the land so that future owners are stuck with it.  My lawyer did request all leases during DD and this was not provided.  It only showed up at closing.  And obviously I was angry because at that point I am under financial duress...had $10k in escrow, paid $10k for the insurance policy, $5k in loan costs.  Losing the 2023 tax benefits would have added to the financial pain, so I negotiated a credit and closed.  

As contemplated, I'm now researching how to fight.  I wouldn't be where I am with 80+ units (while also mother to four kids and demanding day job) if I was not motivated and resourceful.  A couple tenants told me that the machines are always broke and their customer service is terrible.  So they go to friends/family members' homes to wash clothes.  Jetz poor service is contributing to the low sales.  This alone should be a breach of contract on their side.  I also suspect someone on their team is pocketing quarters after reading some former employee comments on Indeed.  I'll get to the bottom of it eventually.  What I'm sure of is that $130/month (I went back and looked, they averaged $130/month, not $100) across 12 machines is way too low compared to what I'm getting elsewhere for machines with almost the same cost/wash.  A wash and a dry is about $4 total.  So with 24 tenants, $130/month would indicate that each apartment is doing a full load only 1.35 times each month.  

Thank you for all the comments.  I especially liked the idea to plant cameras and try to audit usage against the numbers they report.

I'm struggling to resist the urge to just disconnect their machines and let them come at me for the breach of contract damages which would only be like $3-$4k.  Problem is their legal fees can be $20-$30k.  That's how they screw you.

I just closed on 24 units in Illinois. I found out at the closing table that the Seller was passing to me a completely unfair laundry lease with Jetz. 10-year auto renewals if I don't provide 365 days' notice to cancel.  Was originally signed 15 years ago, two landlords ago.

Seller had lied in person when touring the property that they "liked" the arrangement with Jetz. After reviewing the Jetz contract at the closing table, I called the sales broker pissed and they admitted that they had also tried to get out of it but could not. I negotiated $10k in credit to cover my legal fees to fight the contract.  I had to close because I need the property for tax purposes.

I contacted Jetz this week and it's clear they are not interested in a buyout or being reasonable in any way. So if I remove their machines, they will sue me for "breach of contract". I want to buy them out because they are only making about $50/month anyway. 5 years left on lease, so $3000 would cover it.  Although I really don't understand how the machines are only generating $100/month (of which they keep 50%).  Just doesn't make sense relative to how much we make in other buildings in the same area.  Separate issue.

I do believe that their lease falls in the "unconscionable" category which is a means to fighting a contract in court. But looking for advice. I really need control of the laundry income because it impacts the NOI for my refi next year.

I just found this post as it is relevant to my current situation. I just closed on 24 units in Illinois. I found out at the closing table that the Seller was passing to me a completely unfair laundry lease with Jetz. 10-year auto renewals if I don't provide 365 days' notice to cancel.

Seller had lied in person when touring the property that they "liked" the arrangement with Jetz. After reviewing the Jetz contract at the closing table, I called the sales broker pissed and they admitted that they had also tried to get out of it but could not. I negotiated $10k in credit to cover my legal fees to fight the contract.

I contacted Jetz this week and it's clear they are not interested in a buyout or being reasonable in any way. So if I remove their machines, they will sue me for "breach of contract". I want to buy them out because they are only making about $50/month anyway. 5 years left on lease, so $3000 would cover it.

I believe that their lease falls in the "unconscionable" category which is a means to fighting a lease. But looking for advice.

Your post on Hyde Park is a bit old, but I came across it when in a search.  Are you invested in Hyde Park now?  I’m looking at buying an 8 unit there.  Please shoot me a DM if you’re available to chat.  I currently own 54 units around Chicagoland.

My go-to coin washer and dryer repairman is recommending that I install Clear Token on my machines.  This is a device that would allow tenants to connect their phone to the machine via bluetooth and pay for their wash or dry electronically.  The benefit to me as landlord would be that I don't have to pick up quarters anymore (or less of them because machines can be configured to accept coins or electronic Clear Token payment), revenues direct deposit to my operating account once/month net of a $5 monthly fee, and there is an owner dashboard where I can login to see where my month's revenue stands.  

I'm googling and the reviews are mixed from the tenant user side.  Are there any landlords out there using this technology?  If so, I want to hear from you!!