All Forum Posts by: Amanda Thompson

The 2 roommates leaving have told me that the 2 remaining roommates plan to sneak in the 2 NEW roommates at the end of July. They are using the clause in the lease that says a guest can not stay more than 14 consecutive days. So technically they can stay 14 days, leave one night, and come back for 14 days? I do not like this clause and will be removing it from future leases, but it came standard in the sample Rules & Regulations.

How do I prove that new roommates moved in early?? Can they get away with the 14-day rule? Do I need to call a lawyer? Also, if I do prove it and evict them, then what happens to the new signed lease beginning Aug.30th?? Do I just let it go? They've always paid on time and I've really never had issues.

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Boise, Idaho

THANK YOU!!!! Thank you for your honest feedback and very thoughtful questions!!

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Quote from @Nathan Gesner:

Quote from @Amanda Thompson:

Are you licensed and insured? When managing for others, you need the proper licensing and insurance.

I would also point out you are exposing yourself to liability for others when you only have one year of experience. How well do you know the law? How well do you understand trust accounting, reporting, maintenance of records, privacy laws, etc?

Managing for others is not the same as managing for yourself. I would also like to point out that management really isn't very profitable with just 15 units after considering your expenses and liability. It's stacking nickels to make dollars, so you really need around 100 units under management to make a decent living.

Just some thoughts from someone that doesn't know you or your situation. :)

Those are all very valid points, thank you. I have learned so much after basically being thrown into this a year ago. This is basically a side gig for me, so I don't technically need to make a living on it, but I do expect to be paid for my time and the extras my company would provide. In Idaho there are no licensing requirements, but my company is LLC and is also insured. I have a legal service I can ask questions to, and a lawyer in case I need an eviction (hasn't happened yet). I didn't really expect to grow my business into managing for others, but now it's an option so I'm just weighing the pros and cons. :) My husband is a builder/developer, and we keep his builds as rentals, so there are more down the pipeline (including 8 more that will be available this fall). I truly appreciate the issues you bring up!

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Quote from @Drew Sygit:

@Amanda Thompson no one's brought up the point of an investor expecting a discount due to 15 units.

Another potential determining factor is what Class of property/tenant are these?

We charge a higher percentage rate for Class C than we do for Class A, due to the additional time required.

I'm not sure why they would get a discount for me doing more work. ;) I'm not sure about what the classes refer to, but the units are all 1-year-old, high-end duplex homes, which I have been managing since they were all brand new and vacant. :) I have high qualifications, so I chose all tenants and they're all great.

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Quote from @Bill B.:

If the rent is $500-$600 and there’s no placement or renewal fees you might get that. In the land of $1500_$2500 rents 8% plus $150 fee is more common. If the tenants are horrible having the PM is worth 12% (as long as the tenant pool is horrible and not the PM’s choices.) . If they are great 8% is gravy.

Ps. I hate move in/ renewal fees. It’s put the PM and landlord at opposing goals. When their “reward” for finding a new tenant is $150 while losing out on 8% while vacant you get more 8-15 year tenants. If their reward is a months rent, suddenly new turnover is their friend.

I totally agree with you about the nickel & diming of different fees. I would charge the 12% with no other fees. Our rents are $2400 and $2200, plus monthly pet rents. I hand picked all these tenants, and they are awesome.I have been managing the whole thing for a year.

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Quote from @Chris Seveney:

@Amanda Thompson

I think it depends on full scope of work and also what the gross rents are. Gross rents if $2k per unit is far different than $500.

Also what are your renewal fees, do you charge if unit is vacant and also new lease fees?

Good point! I answered a few of those questions in my last reply to someone, if you want to take a peek. I'd be offering a pretty full-service system for them!

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Quote from @Theresa Harris:

How much are you charging for lease renewals and placing new tenants? I'd negotiate the lawncare as separate. 12% is on the higher end, but if the lease renewals and placing tenant costs are lower, then it might balance out in the end. 12% plus a full month's rent to place a new tenant would be too high for me. My units rent for over $1000 a month. If they rented for $500 or 600, perhaps. Or charge a flat fee for placing new tenants. I'd also expect a bit of a discount for 15 units in one location.

I would include things like lease renewal fees, or placing tenants within the 12%. Like, I would not charge extra for those things, they'd be included. Our rents are $2400/mo and $2200/mo depending on the size of the unit. Thank you!

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Quote from @Scott Trench:

If you include lawn maintenance and snow removal, and you handle vacancy professionally, I think this is great.

I'd pay 12% for a property manager who kept my vacancy to an absolute minimum. I don't want to see units sitting, however, and would require that at 12%, if you let any unit sit vacant for more than 30 days, that I have the option to move that unit to a new PM with no termination fee, and no questions asked.

I think I would probably either not charge them for vacant units, or charge for only one month and if for some reason it doesn't get filled, then they would not pay until it is filled. The market here is crazy though, so I doubt we will have any vacancies. Thank you for the advice! What exactly do you mean by handling vacancies professionally?

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Quote from @Mark S.:

Quote from @Kathryn Schauer:

@Amanda Thompson

When I was a tenant and my landlord wanted to do this it was always a hassle. The realtor said they’d give me plenty of notice, but often did not. They treated me like I was problem (I wanted to leave for the showings).

As a landlord I now wait until the home is vacant and cleaned before I show it.

If they want to be present just be respectful of their space and time, it is a disruption to their lives. Or wait until they move out.

The same. I wait until the property is vacant, clean, fix anything that needs fixing and then rent. I remember being a renter when I was younger and dealing with showings when the owner put the condo up for sale. It was annoying as hell, because the realtor would sometimes show up without notice. One time I was sitting on the toilet with the door wide open - and this bathroom faced the front door. All of a sudden the front door opens and the realtor walks in with these two elderly women. As we locked eyes, they got scared to death and ran out of the place.

Oh no! I'm pretty sure that's illegal! Yikes.

It is written in the lease specifically that we can give tours after the tenant provides 30 days notice, and I MUST (and always do) give at least 24 hours notice and work with the tenant's schedule. I'm incredibly respectful of their space and time, but waiting until they're all moved out and the house is cleaned causes a lot of lost revenue.

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I currently own a property management company (started it one year ago!) and personally manage our own 22 investment properties.

We are in negotiations to sell a chunk of land that has 15 units on it.

The buyer "very much would like" me to continue managing them!!

Here's my pitch:

- Extremely convenient for the buyer to not have to shop around for a PM company

- all the infrastructure is in place (tenant accounts, payment portal, maintenance requests, leases, etc)

- I hand-picked these tenants. I have high qualifications, so none of them have been a problem at all. They're all on 12 month leases.

- My husband's company does maintenance, lawncare, etc so we would continue with that as well (although extra charges for the new owner as far as repair costs, etc).

- The tenants know me, they know the system, it is a smooth transition with nothing changing except the person ultimately calling the shots.

- I do all my own marketing, social media, listing vacancies on websites, etc (we are at 0% vacancy)

- I have intimate knowledge of all previous maintenance and the layouts/highlights of each unit, relationships with subcontractors, and honestly I have personal (PROFESSIONAL) relationships with each one of my tenants.

I'm sure I could think of some other benefits to hiring me. But, I think that based on all of those things, plus the pure convenience of having it already set up, is worth the higher end of the spectrum. I am thinking of asking for 12%.

I value any input you have to gift me!!!

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All Forum Posts by: Amanda Thompson

Amanda Thompson has started 28 posts and replied 118 times.

Post: Sneaking in new roommates before the lease starts

Post: Is 12% Management fee outrageous?

Post: Is 12% Management fee outrageous?

Post: Is 12% Management fee outrageous?

Post: Is 12% Management fee outrageous?

Post: Is 12% Management fee outrageous?

Post: Is 12% Management fee outrageous?

Post: Is 12% Management fee outrageous?

Post: Tenant wants to be present during tour

Post: Is 12% Management fee outrageous?