All Forum Posts by: Tom Fidrych

I don't think the age matters as much as what updates have occurred since construction. For example, I have a 1910 home but the electrical, plumbing, windows, roof, and heating system have been updated in the past 10-20 years. I get very few service calls. Contrast that with a 1950's home with original galvanized plumbing, Zinsco breakers, and wood sash windows. 

Also, WHY do they have to move? If you contact the current landowner/landlord now (again, do NOT use the phone number he gave you), what does he say about the couple?

The current landlord or owner may not be a good source outside of verification of occupancy. I'll say whatever the prospective landlord wants to hear when I'm trying to get someone out.

Yes, but I wouldn't use use just any home inspector. A lot of the people that do inspections aren't that good IMHO-they sometimes miss the important things. When I got my first home inspection, the realtor had a few recommendations. I then asked her who the realtors use and she referred me to someone else.
He was really on his game and said realtors didn't recommend him at times because he rocked the boat too much-in other words, he told it how it was and potentially gummed up a deal. You are best to find the inspector that realtors use for their own purchase or a competent general contractor with a good eye for construction faults. 

I believe CA requires you to disclose the death for 3 years. You could likely keep the deposit if there is an early termination of lease.

Quote from @Andrew S.:

Chances are nobody will sue, depending on how serious the tenant's injury is/was.  That said they definitely could file a suit against the PM and against you.  This is what you have liability insurance (and possible an umbrella policy) for.  No need to panic.

No panic here, just want to be prepared. 
The present PM was bought by another Co. a few months ago and the new Co, Poplar Management,  is not a good match.
I was planning on changing PM next month but think I will stay with the existing until any potential situation is resolved.

I received a work order from the PM company regarding an electric coil burner on a stove that blew up. It burned a hole through the tenants frying pan and burned the tenants face and neck.

Pictures of injuries were provided by the tenant.

I let the PM company know to replace the entire stove but what kind of liability could the tenant throw my way? Apparently the same burner had an issue some time ago and was replaced by the PM but I/we had no reason to believe there was a safety issue.Anyone faced a similar situation?

Property Managers, do you allow your owners to make repairs to the property while tenant occupied? I'm not talking discretionary remodels, but needed repairs. 

In the past, I have preformed some repairs to a rental that was under management.  For example, one property had a collapsing sewer line. Plumbers were quoting 12-14K to replace a 50' sewer line 2' deep. Since the line was still functional, I had time to perform a permitted repair. I hired a licensed excavation guy, installed the replacement pipe, and had the city inspection done on day 1 and the line was function that evening. There was a portable toilet on site for the tenants to use. Got it done for less than 2k in 2 days. The 2 companies I have worked with never had a problem with this. But I'm finding that some property managers will not allow you to preform a repair on a tenant occupied property under any circumstance. I understand that point too. Some folks don't know what the hell they are doing, cut corners, take too long and expose the property manager to potential liability. What's your policy?

Quote from @Drew Sygit:

@Tom Fidrych BE CAREFUL about "Eviction Guarantees"!

Don't be foolish and just blindly look for them without understanding why they are offered. This will HELP you avoid being screwed.

As @Nathan Gesner previously posted, some PMC's do have actual Eviction Guarantees. 

Usually they are offered on Class A and sometimes Class B properties & the corresponding tenants. 

WHY?

Because the risk of an actual eviction decreases as the credit score of a tenant increases.

So, the odds of a tenant with a 680+ credit score not paying and having to be evicted a small. EASY to offer a guarantee on this as a PMC will rarely have to pay out to cover!

Would recommend being VERY careful if a PMC is offering an Eviction Guarantee on Class C properties => where tenants will usually have credit scores under 620.

Bottom line: if you have a Class A property, an Eviction Guarantee offering isn't worth taking a chance on poor performance. So, don't worry about it when screening PMC's. For Class B properties it will have some value. For Class C properties it may be a bait & switch the PMC will find some way to get out of.

Yes, that is a good point on the Class type. There are a least a couple companies in the town that only manage A and B but there are many areas in the country where a PM may not have that luxury. These are class B and rent easily due to proximity to the college. The PMC companies I'm looking at generally use 680 credit scores, have several hundred units, and have been doing it for 10+ years. Online reviews are a highly questionable metric but if a company has a vast majority of 1 star reviews from both owners and tenants and hasn't even responded to them, this may be a bearish indicator. I'm not going to use a newbie company that's still going through the learning curve. I was curious about the eviction fee structure but it was by no means a defining metric.

Quote from @Nathan Gesner:

Quote from @Tom Fidrych:

I'm shopping for a new property manager. If a tenant you have placed is to be evicted, do you take care or it as part of your management service or is the owner billed for each court appearance and all governmental fees?

Depends on the company. I have offered free evictions for almost a decade. Why? Because they are so rare for me. With 400 rentals under management, I have only evicted once in the past 8 years.

Most managers will charge the owner. Read your PM Agreement or talk to the PM to get clear on this.

Yeah, I felt like the companies eviction policy might be a testament to the confidence they have in their screening process. 

I'm shopping for a new property manager. If a tenant you have placed is to be evicted, do you take care or it as part of your management service or is the owner billed for each court appearance and all governmental fees?