Hello all. I'm one of the owners of JWB and would like to provide some additional information as well as clear up any miscommunications.
@Craig Oram - Hi Craig. It's been a while since we've had the opportunity to chat. I hope you and your family are doing well and staying safe. I can tell you're frustrated on a number of items. I've read through the notes on the conversations you had with my team as well as pulling real numbers on your maintenance and property turn costs and your lease terms.
You purchased your property in 2017 with an expected rent amount of $1,549 on the original property evaluation.
In 2018, we had a property turn and the net cost to you out of pocket was around $500 (costs to repair minus the security deposit that was returned to you.) We were also able to recover $1,550 in liquidated damages from that resident which meant that you were not out of pocket at all for that property turn.
In 2020, we just had a property turn. The actual cost of the turn is $2,843.17 but the security deposit returned to you is $1,650 (may change slightly on finalized intent to claim proceedings.) The net cost to you is roughly $1,193.17.
After the turn in 2020, your property was rented within a matter of days at a rate of $1,699. That is roughly 9% rent price appreciation over the original rent estimates. We signed a 3 year lease with your tenant for you.
It is common for rental property investors to feel the pain when a property turns over but keep in mind that is why we retain security deposits for you. The net cost of the turns is what really matters to your return on investment.
I also wanted to clear up that fact that JWB does not mark up maintenance items. If you get a plumbing bill for $100, that $100 goes directly to the plumber. Our goal is to keep your maintenance costs low to keep your return on investment high. The only time you would see a fee related to maintenance would be a project management fee if multiple trades are required during a property turn. That fee is based on the amount of work completed but is somewhere between $150-$400 typically.
As far as the 10% fee charged during the first month that we lease a property, you are correct that is a part of our fee structure. This is explained early and often with new clients and it has always been a part of our fee structure as long as you've been a client. The reason for this is there is certainly a lot of heavy lifting of resources required by a property management team to bring on a new resident including rent collection, setting proper expectations, accounting and building a positive relationship in the first month.
As far as the quick re-rent of your home, I was hoping that would be something in which you'd see the value of working with us. Renting a home in a matter of days is something we're really excited about for you as it is a great thing for your overall return on investment. Just because we did it so quick shouldn't diminish the value, hard work and systems required to produce the result for you.
I'm going to take your comments about the communication to heart. We would never want to make a client feel as if we are scripted, heartless or looking out for ways to maximize our fee structure. I'm sure there are things we can do to get better and we'll use this as a learning opportunity.
