All Forum Posts by: Jeff Takle

I've looked all over and right now there's nobody doing it for smaller landlords that I'm aware of. However, my company is looking into this. With 1,000+ units, we're observing the data necessary for an insurance underwriter to assign a risk rating to the bonds. The net impact may be that we're able to offer the product even to landlords with 1-2 properties.

I suspect we're at least a year out from that, at best.

I would bring in one or two professionals for their opinion. Nothing against your father in law, but fixing a foundation isn't like changing a shower head. Professionals will come out for free, take a look, and give you a lot of great feedback and advice.

If it's easily fixable then you're getting a steal; most potential buyers will walk because of the floors. If there are major problems, you could be in for a money pit.

Tim, would you please wire me $500? I could really use it and you seem willing to give it away to keep everyone happy. (kidding)

If you're not willing to charge market rents for your property it can only mean that you don't believe in the value of what you've got to offer. Would you go to a job interview and when they offer $80,000/yr say, "Oh, no, that's just too much. Please only pay me $60,000?" Then you're being inconsistent. If you want to give money away, perhaps give it to the Children's Hospital, or cancer research, or a homeless guy. They need it much more than a tenant who's trying to score a bargain.

It's okay to ask people to pay for the value you deliver. It's not about being nice or being good. I give lots of money away each year but I give it to causes that make a difference and help people who need help.

[list]Tenant Network has an excellent reputation.
AMSTies is also good.
RentingYourHome (my company) also does them.[/list:u]

It's getting more difficult for individual landlords to run credit checks on tenants because as of October 2006 the regulations changed. You are now required to be individually screened with an on-site inspection at a fee of $60-$150 per site before being allowed to run credit. Many companies on the web still allow you run credit without the inspection, in violation of those regulations.

The three companies listed above are legitimate sources that comply with the regulations.

-Jeff

Oh, forgot. You'll be able to tell the areas that need replacing when you pull up the carpet and padding because the wood will be deeply stained. I did the sand and seal on most of the rest of the areas, certainly anywhere with a hint of "water damage" on the wood.

You will probably only need to replace a couple subfloor panels per room.

I had a similar problem. You can buy neutralizer at a pet store. It's expensive.

In my case, we had to remove the carpet, the padding, and then tried the odor remover, which didn't work sufficiently. Had to sand, then seal (with polyeurothane) the subfloor in some areas and replace altogether in others. Nasty, nasty, nasty.

The good news is that subfloor isn't too expensive and it's less work than "sand, treat, and seal." I was worried about low level residual smell that other cats/dogs might still detect -- once they start going on one area of the floor, it's very hard to get them to stop. That's why I just replaced a lot of it.

It may depend on what you want to do with the software. What is your intent?

If you are interested primarily in using it to record information, then there are many software tools that basically function like an accounting package. Gita Faust has a quality Quickbooks solution / training / program.

If you're looking for transaction support -- e.g. Advertising, Running Credit Checks, Collecting rents electronically (automatic and recurring), or Managing maintenance problems -- then you'll want a different kind of solution.

Here are some best-of-class recommendations for each transaction type:
[list]Advertising - RentMarketer.com
Credit Checks - Tenant Network
Collecting Rents - PayRents or RentPayment.com
Finding Maintenance Personnel with user reviews - Angie's List, CircleChoice.com
[/list:u]
If you're looking for one place that does all of those things in one place, then my company is one that can help. Our value proposition is twofold: first, it saves a lot of time and hassle by going to a single place to solve all these problems -- single sign in, simple pricing; second, by negotiating in bulk, we're able to get and pass on to customers a much lower price.

It really depends on what's important to you and how you want to spend your time and money.

Jeff

Something I'd add:

Talk with the tenants. A lot. Set up a table somewhere with a lot of tenant foot traffic and put coffee and donuts in the morning with a big sign "FREE" next to it and just casually talk with the tenants.

Tell them you'rre looking to make improvements to the management of the properties and ask them this:

"What is the biggest issue that you think the management should be doing here to make this place better?"

I've made a career out of buying free coffee and donuts and asking open ended questions.
-Jeff

If you can, I'd prefer to meet with each business and talk the situation over with them. There is something to be said for tenants who've paid consistently and on time for 10-15 years...that's half the battle. Receiving a "we're raising your rent" letter blind from new owners is not a warm feeling.

Bring comps, explain market rents, and talk about how much new tenants are paying. Ask them for suggestions on how to bridge the gap--you may find that a gradual increase to market rents over several years will work better than a single large jump (=they leave = vacancy).

Or, if you're looking to flip/sell, just raise the rents, aggressively find new tenants, and then sell at new cap.

Jeff

I manage all of mine myself but subcontract the maintenance on all the out-of-state properties.

Incidentally, I've heard many landlords tell me they don't think they can manage a property that's out of state. I've found that it's not difficult to do at all as long as you set up the proper arrangements beforehand.

Self management is the fastest way to gain +8% operating margins on your rentals (less your time, of course).

-Jeff