All Forum Posts by: Spencer Abeyta

I do not recommend putting cameras on the property. If you are worried about something reasonable, you could pay someone to drive by the property every month. If you are worried about the tenant smoking in the property, you could have someone complete annual inspections. Cameras are a bad idea, and ignoring the breach of privacy issue, it will likely lead to you micromanaging the tenant. 

If you do find a company that manages by the room, they typically charge a higher management fee. In my experience, short term rental managers charge the most, followed by room by room, followed by longer term management.

There may be an opportunity for you to do this yourself if you plan to continue living in the home. You will need a lawyer reviewed lease. You will probably pay more for maintenance because you will not have the vendor network that a PM company will have. But it could be an option to self manage.

You've learned a valuable lesson in that not all PM companies communicate the same. You need to decide what you like in terms of communication and then determine what price you are willing to pay for that service. Having a person answer the phone costs the PM company substantially more than operating a support button with a delayed response. But the PM company with the live person answering phones will cost more. 

Because this is your first rental property, I would recommend finding an amazing PM company and paying them what they are worth. You will learn so much from them that it will be worth what they charge. You have to pay for knowledge one way or another.

Hello Angelo, in Colorado Springs we have a large military presence due to the multiple military bases we have in the city. If you can find a home near Fort Carson that you like, the chances are other military members will also like it. I recommend a home with at least a 1 car garage, 2 car would be great, because this is a big draw. In that price range, you will likely be looking at 2 or 3 bedroom houses around 1000 square feet. There are larger options but these tend to need some TLC.

For your initial search, Zillow can give you an idea of home prices and amenities in your price range. Once you get closer to making the move, reach out to local agents to get up-to-date info from the MLS. I would be happy to connect you with my broker. We have helped quite a few military members purchase homes and then transition into SFR when they relocate.

I don't think that Zillow offers a property management service, especially for free. They have a Zillow Rental Manager but this is only a platform to allow a property owner to list their property for rent on Zillow. They only offer the platform for advertising but not the management of the property. 

It looks like they are offering a lease as well but I would highly recommend paying a local real estate attorney for a lease. It will cost more than what Zillow charges, but it is worth it to protect an asset worth hundreds of thousands of dollars.

I would look for a property management company that has credentials in the industry. This shows that they are involved in the industry and care about the industry. If a PM is doing the bare minimum to stay in business, they are likely doing the bare minimum to manage your property. 

Hello Daniel, I recommend jumping on Indeed and searching for property management jobs. Odds are, there are a lot of openings. Set up some interviews and you are off to the races. I would recommend researching companies before you join to see if they align with your values. The hiring process costs the employer a lot of money and if you don't think you will be a good fit, it is going to be an uphill battle for both you and your employer.

Hello Joe, what a property manager charges is very location-specific. You have to remain competitive when starting out because your goal is to grow your business. It sounds like you are primarily asking about charges to the owner of the property and not the tenant. You want to be transparent. There is nothing that ruins a business relationship quicker than poor communication and unexpected fees.

Some PMs add a flat fee or a percentage on top of maintenance bills. I have seen some that add a flat fee to bills over a certain dollar amount and they call it a project management fee. Personally, I do not believe these fees are in the best interest of the owner and we do not charge mark ups on maintenance. If you have to change a water heater, which now costs around $2000 in Colorado Springs, that is a large unexpected expense that the owner has to pay for. It doesn't feel like adding a mark up to that for sending out a work order to a vendor is beneficial for the owner. Now if this is clearly disclosed, at the end of the day it is your business and you can run it how you choose.

Keep in mind, there is a lot of competition in new PM businesses because of the changing real estate sales market. Many agents have reduced transaction volume and need to supplement income and they decide that property management is the next step. Because they are new to the business, they assume it is a commodity based business and they win business by being the cheapest option. I would recommend becoming an expert on the local laws and the area you service. This allows you to charge more for your service and owners will be willing to pay for expertise.

Welcome to BiggerPockets! House hacking would be a great decision for a first time investment in Denver. There have been a lot of restrictive laws passed in the past few years in Colorado. Luckily, one of the remaining carve-outs to the laws is owner occupied properties. If you have a 4 plex and live in one unit, you are exempt from some of the laws. Of course, I would highly recommend staying up to date on the laws for when you do move out of the property and onto your next house hack.

Insurance is important to factor into the rental equation as well. The past year we have had insurance prices increase up to 40% for some owners. This can mean an increase of $100 per month in costs. In many cases, the market has not supported a $100 increase on the tenants to cover the cost. This causes owners to take a cashflow loss of $25 to $50 per month.