All Forum Posts by: Turgut Oz

I have a rental property in Texas and I hired a local management company to manage it. They placed a tenant who did not pay the first month on time. The rent is due 1st of the month. The tenant paid two partial payments for that month later and still owes an unpaid portion from that month. In the second month, I noticed he did not pay the rent again and PM says (upon my asking about the situation) the tenant contacted them and told that he will pay half in 10th (half of second month's rent), and rest about 17th. So I am facing a situation where I definitely do not get payments on time, and also not in full.  Especially, it is not just late payment, it is partial late payments scattered over the month.

My property manager takes 100% of the late fees so it is actually better for them if a tenant pays the rent late every month. They did not even bother to let me know these partial payments plans if I did not contact them. While I know this is only a two-month experience but I also know that these things become habitual, occurring every month if the tenant knows it is OK to do that. Having payment issues in the very first months is a strong indicator that they placed a wrong tenant. 

How should I approach this property management? What are reasonable things to expect and demand from them? Currently, I feel like they do not care. Also, how many late payment patterns form a basis for eviction if this thing continues in the future?

@Aaron Gordy, @Bryan Noth thanks for the input... Really good discussion here. I am honestly thinking more like northern areas for the lower cost of acquisition, less regulation (hopefully), and tech job availability etc. That said, there is no guarantee that these smaller cities will not change their codes and regulations and making STR a lot harder.

@Ryan Roberts @Jordan Moorhead Thanks for your comments. Some questions: so where does these tenants come from? Employees visiting Austin for work for a few months? Are you guys suggesting some sort of corporate housing type of fully furnished rentals from higher rents? Isn't this diluting the potential pool of tenant candidates (and longer vacancy periods potentially)? 

Which platform should we advertise for this segment? Just as conventional renting listing? Sorry I am just trying to understand Austin's potential and this kind of renting is new to me. I am all ears though!

@Jimmy Woodard thanks for these info. I did not know about these rules. I recently turned my attention to Austin. By Type-2, you mean short term rentals right? Also, if one gets a license, another cannot get it if that property happens to be within 1000ft...? Is my understanding correct? Then, after locating a profitable property (which is a tough job itself), where do you check if there is some licensed property? From City of Austin? I appreciate your response. Very important information obviously.

@Brooke Roeder Can you expand on what you mean by "There are creative options like month to month furnished rentals that can improve cash flow if done right."

Hello. I am looking for a location in (general) Austin area to buy a house. I am planning to use it as short-term rental property. My questions as follows: (1) which locations are the best for this purpose in terms of legal issues/city codes etc.? (2) How are the surrounding parts of the Austin area in terms of short term rental in terms of income? Or, should one stick to more central areas where most tourism occur? Finally, if you are realtor in the Austin area, let's connect.

Thanks!

@Account Closed for your input. 

As far as I know, South Carolina does have outrageously high property tax for out-of-state investors.  Are there any other states to be aware of?

Same situation here. Trying to connect with realtors who understands investors’ needs. I tried buying a house in California but it was really difficult for someone who just started. Most people will suggest places where they operate but run your own numbers. Check desirability of locations. Stay away from war zones. 

@Yenlan Patton I sent a message to you and thanks for the info. 

@Aigo Pyles , yes, out of state is the only option I have been trying right now. I prefer AZ, TX, NC, SC, FL but open to other locations based on price, potential, and the quality of the neighborhood. That said, I am not interested in buying something in a war zone just because it is cheap or fits the 1 percent rule, etc. I am looking for some kind of balance between the price and desirability of the location and the property.