All Forum Posts by: Trevor Naumann

I agree with the others. Include the utilities in the outstanding charges, give tenant three days to pay or move out. If they don't, start the eviction.

At the same time, start looking for a Property Manager that knows how to handle these situations instead of leaving you to find solutions from strangers on the internet. :)

Remember: cheaper doesn't mean you'll make more money.

Start by going to www.narpm.org to search their directory of managers. These are professionals with additional training and a stricter code of ethics. It's no guarantee but it's a good place to start. You can also search Google and read reviews. Regardless of how you find them, try to interview at least three managers.

1. Ask how many units they manage and how much experience they have. If it's a larger organization, feel free to inquire about their staff qualifications.

2. Review their management agreement. Make sure it explicitly explains the process for termination if you are unhappy with their services, but especially if they violate the terms of your agreement.

3. Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers. It may sound nice to pay a 6% management fee but the extra fees can add up to be more than the other company that charges 10% with no additional fees. Fees should be clearly stated in writing, easy to understand, and justifiable. Common fees will include a set-up fee, leasing fee for each turnover or a lease renewal fee, marking up maintenance, retaining late fees, and more. If you ask the manager to justify a fee and he starts hemming and hawing, move on or require them to remove the fee. Don't be afraid to negotiate, particularly if you have a lot of rentals.

4. Review their lease agreement and addenda. Think of all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.

5. Don't just read the lease! Ask the manager to explain their process for dealing with maintenance, late rent, evictions, turnover, etc. If they are professional, they can explain this quickly and easily. If they are VERY professional, they will have their processes in writing as verification that policies are enforced equally and fairly by their entire staff.

6. Ask to speak with some of their current owners and current/former tenants. You can also check their reviews online at Google, Facebook, or Yelp. Just remember: most negative reviews are written by problematic tenants. The fact that a tenant is complaining online might be an indication the property manager dealt with them properly so be sure to ask the manager for their side of the story.

7. Look at their marketing strategy. Are they doing everything they can to expose properties to the widest possible market? Are their listings detailed with good quality photos? Can they prove how long it takes to rent a vacant property?

This isn't inclusive but should give you a good start. If you have specific questions about property management, I'll be happy to help!

Tenants are smart and some will game the system so that’s a risk. However, investors are leaving tenant friendly states due to how bad landlords got burned during Covid. So, I bet more and more really good cash flowing deals will pop up in those areas due to way less competition from other investors so that’s a plus. I have a W2 and don’t need to live off my rental income, so I’ve been taking risks like this and it’s been paying off. I’ve been burned a time or two, but over the long run I’ve done alright and have no regrets. So if it were me, I’d probably take a chance on it. Good luck.

 Where in NY are you where it only takes 2 months?

Hi @Edwin De leon New York is certainly a state that seems to favor tenants. That being said the main city that has been truly a problem for landlords is Albany. No eviction should be labeled easy, but outside of Albany evictions aren't as troublesome. 

1) All things being equal, yes buying in states with less restrictive laws is better. But this there are obviously more dynamics at play here.

2) I'm obviously biased being in NY, but there are plenty of ways to safely invest here. It depends on your goals. The WHY is that most markets here are stable cash flowing markets. 

3) The simple answer here is good systems and processes to avoid having a terrible tenant in the first place, including making sure management is aligned with your way of thinking. There's no magic wand to wave to fully prevent a bad tenant even in good land-lording markets. 

4) Short answer here is: YES. Absolutely can make a difference. 

5) There are some horror stories of course. Shortest I've been is 3-4 weeks before COVID. Now a days in Albany it can be a 2 month process on average. 

If you'd like to talk about the market up here please don't hesitate to reach out!

I'm not sure yet but probably going to opt for saving for a good sized lot and go the land development route by design/building a 25 unit two story apt building.