All Forum Posts by: Timmi Ryerson

I use Smart Property Systems which is a full service software.  My properties have been located in my state and other states.  The software allows my tenants to pay rent through a tenant portal. They can see their statements that are sent monthly.  I can amend those statements if I need to before they go out and it only take about a minute of my time to do so.  But the tenants can also see a full accounting of their rental account history.  The really like the set up. I can actually do all of the things a property management company can do. I hire an agent to do showings when I have a vacancy...or I go to the property to do inspections and show the property when I have a vacancy.  The advertising is done by the webflyers in my software and I get lots of applicants.  I can also screen tenants from anywhere I happen to be.  I just use the built in software to do that and I get a report back from Transunion within about 2 hours of the tenant fills out the verification of identity piece.  There is much more.  I get reports I need and have a messaging system for communication that works very well and files all communications I have.

I used a property management company once.  It was a horrible experience.  I know that there are good ones out there, and if you decide to go that direction, be sure that they are using software like what I have explained to manage your properties. Otherwise you will have an experience like I did where they were using my rent money to buy carpets and blinds etc for other people and for their own properties.  We did an audit and found this out.  Even so, a judge would not release me from the contract, which I had to buy out.  Good luck.  Management from another state can be done with good software and good planning. 

If it was me, I would use software to manage my home as a rental.  It can be as easy as pi to collect rents and communicate with your tenant.  Most people who rent homes stay longer.  The other thing I would do is contact the company that warranted the property and find out if that warranty is voided if you rent the property.  I think it is better to find out before so you can place the rents where you need to have them.  Of course tenant caused damage is paid for by the tenant.

I use Smart Property Systems, as I have mentioned many times. It will cost you about $18 per month to use the software which includes rent automated rent collection.  You can do all of the accounting in the ledger.  If you use automated rent collection, the accounting for that is automated.  It makes you look professional...and makes long distance management easy.  You can hire someone to show the property if you get a vacancy.  But all communications with applicants and tenants can come to you through the software.  

I recommend that you start advertising for someone who is a "jack of all trades" handyman.  Of course that depends on how many units you manage.  I had a guy who could do plumbing repairs, replace shower surrounds, replace countertops, do light electrical repairs (like changing out a plug socket).  I paid him hourly and supervised his work with we had a large project. I picked the tile when we did surrounds and chose colors and paint brands for painting jobs.  He was great and reliable.  I used him until I sold that complex several years ago.  It solved many issues.  However, if you have projects that need to be signed off by inspectors you will need licensed journeymen.  I found that my handyman was needed about once per month to keep things in tip top shape.  He was partially retired so that worked for him.

No criticism at all.  There are some companies that have been very successful with that model in the Western states.  I would suggest only that you consider looking at Far Infrared floor heating.  Whether you are going to sell as a family home or rental, this solution is easy to install in the building process, and the heat is extraordinary.  I have used it is my rentals and now in my home...and I could not live without it now.  I used a company called Carbonic Heat. They will probably work directly with the manufacturer to install the heating system which is controlled room by room on thermostats.  Good luck.  It sounds like you have located an property that is in a good location.

Hi @Tanya,

I recommend that you get a very good software for property management.  My preference is Smart Property Systems.  Then when you get a client, you can show them your software product and how you will maintain transparency.  Good Luck.

#Lori N.

I know about roof warranties because I managed a family commercial building for years and had to get roof repairs and finally replacement.  Any changes made to the roof, especially penetrating incidences that are not caused naturally, will nullify the warranty.  The tenant is/was not authorized to make the repair at all.  But I think that your problem really is the property manager.  If you have evidence that the PM lied on several occasions, you may have grounds to cancel your contract.  I had only one PM whom I hired just after I paid off my apartment complexes.  I thought I was going to be able to rest and relax and enjoy the money that was coming in.. It was a disaster.  I had vacancies going for 4 or 5 months when I had gotten my units turned in maximum of 2 days.  I was amazed about how much money was being spent so I had my accountant come in and do a surprise audit.  We found that they were using our funds to buy  blinds, carpet and vinyl for other properties.  They had even put in sections of vinyl in kitchen areas of some of my properties that did not match the colors of vinyl in a common area. (so bad)  Even so, I was not able to get out of the contract and had to pay the balance of the contract fee to cancel it (judge ordered).  I did that because it would have cost me more to stay until the contract was over. 

I would get out of the contract you have.  If you do not wish to manage for yourself, do a search for a new company.  You can also hire a person who has experience and then use software to help them become organized.  I recommend Smart Property Systems for software.  I use it and it makes my management tasks mostly automated.  Plus I have no problems like this with my tenants. It also solves the problem of noticing, as there is a built in message center.

As with all learning experiences in property management, this too shall pass.  I would still notice the tenant and would probably meet with them and discuss this really bad situation.  Depending on the result, I may still evict.  Good luck to you!!!

@lori N.

I have been reading this thread.  You definitely have a very difficult tenant on your hands.  My take: Since the dish company is required to have written permission from the "owner", I suggest that you get a copy of that paperwork.  If you get the paperwork, and you find that the tenant did sign as the owner, It may actually be a criminal thing.  The clause you have in your lease is very clear.  So you now have reason for finding the tenant in breach of contract not only because they impersonated you, but because they installed the dish which was specifically prohibited.  That means that you can terminate the lease early.  I would explain that to this tenant in writing.  Do it calmly and in matter of fact language.  Explain that they are responsible for damages and that if those damages are not paid promptly you will terminate the lease.  You can use the security deposit to collect for the repairs.  This tenant will certainly do more to "disturb the peace" of your relationship so in case they do pay the damages, do warn that this kind of disruptive behavior will not be tolerated and will be grounds for immediate lease termination.  No one wants an eviction on their record.

On the first matter you mentioned, I just want to say that in all of my years of having been a landlord (over 30), I have never had a tenant complain that I came with the vendor or repair person after they had been noticed of the entry.  Sometimes I attend and sometimes I don't.  But in this case, I agree with @Nathan G that you gave proper notice.  So I would not apologize for entering. I would explain that the tenant gave permission and that implicitly included permission for you.

One last thought.  When I meet with a tenant to have the lease signing, I go over the entire lease with them and explain that it is a legally binding contract.  I also explain that they are responsible for abiding by this contract.  And further, that if they do we will get along well.  If they don't they will suffer the penalties that are written into the lease that they are signing .  I also explain that it is part of my job to enforce the provisions of the lease.  I have never had anyone back out of signing at that point.  They appreciated the direct approach.  In the event that I am sending the lease for esign, I have them initial all of the places that are potentially overlooked if they do not read the whole document.  So I can't help but wonder whether you went over the lease with this tenant.  It seems that the tenant may not have been aware that they were not to put up a dish.  That being said it was blatant of the tenant to do so without your permission.

Welcome to Bigger Pockets.

Your first purchase can be a scary thing.  Be sure you educate yourself on buying rental property.  So far the advice already given is very good.  You can determine a price point but you need to do the sale through a title company to be sure that there are no construction liens against the property from unpaid bills by the owner who passed away before repairs were finished. Also get comps on rent in the area.  You can get them for free at www.rentometer.com.  That will give you an idea of where the rents for your potential building fall.  If the are high, beware.  If they are low, you will be able to raise them over time as leases matriculate.  But if that is the case, I would insist on new leases for every tenant before you close.

Tenant history is very important.  Payment history of those tenants is also very important.  You may want to have all current tenants move out and start over again but that depends on their history. You will want to do inspection of the units with the person that inherited the property and your contractor to determine if the tenants are caring for their premises satisfactorily.  If that is not available, then I recommend that you be cautious about the price you are willing to pay.  Get price reductions for lack of data and or access.

Be sure to go to the expense of paying for a contractor to go through the building with a fine tooth comb to  determine the condition of the building. You will also need estimates for completion of unfinished rehabs. Find out how utilities are handled.  Hopefully all are on separate meters and billed separate to the tenants by the utility companies.  If not get a history of the utility billing and learn how to best determine utilization of each unit.  If trash is a dumpster then that is easy to equally divide among the tenants.  To avoid potential problems, it may be wise to install separate meters for water, electricity and gas unless you have central heating.  I did this with one of my properties, and while expensive, made the property more valuable when it came time to sell and I more than got my investment back.  Be sure to check heating and air conditioning units.  Have the roof evaluated.  Those can be very expensive to replace.  But with careful due diligence you can buy this property and be secure in knowing the condition, your expected work load and the expected costs.  You should also check on the permits for the building as well as confirm the zoning to be sure it is permitted in the area located.  I know that sounds trite but I have heard horror stories about people who did not pull required permits and no one found out until the building was sold.  It was a nightmare for the buyers.

Of course you will need to know the taxes assessed and be sure you can either assume the insurance policy or get a new one.  Contact an agent of your choice to get that process under way before you close your sale.

You should sign up for property management  software to organize your rental process and rent collection so you are not overwhelmed if you decide to move forward.  You can use the software to plan and account for rehabs and repairs.  Be sure you learn to use the software and notify the tenants ahead of time that they will be given logins for access to their portals which allow them to pay rent online.  I use Smart Property Systems and like it .  It is easy for you and your tenants to use.  You will have a way to advertise vacancies, screen tenants, automate rent collection, communicate easily with your tenants and more.  

Finally, now that you have done your due diligence, do contact an agent and look at comparable properties in the area.  You should find that your property compares well to others that are available for sale and then you will know what you need to know to confidently buy.  Good luck!

@naTarrio Jones.  I think you did the correct thing here.  Since we all have had a long history of listening to the excuses some tenants use because they used their rent money for something else and got caught, this is not a new scenario.  Your goal is to get paid and not have this happen again.  Hopefully, knowing that the fees will no longer be waived in the event of another NSF payment, you may have convinced her that she cannot get over on you.  I do hope that you also charged a late fee as the rent would not have been received on time.  That action further supports the training process for getting tenants to pay on time.

Finally, I am glad that you called Forte and learned that you can now do that right away to find out what actually happened.  I recommend that you do that in the future.  Your rent processing company, over and above your software company for property management can be a real asset.