All Forum Posts by: Rick Bassett

Post a sign that says 'Authorized Tenant Parking Only, all other vehicles will be crushed and cubed'

Hi KC, I know that many people have been successfully investing out of state but it's not for us. 

We manage about 50 properties, many of which we own, and some are managed or rented for others. They are all within 15 miles (30 mins) and it keeps us pretty busy. We have good systems, a reliable vendor/contractor base, and know the market (and building depts) very well. This deep knowledge of our area, and being here to network & develop relationships, has given us the opportunity to buy numerous off-market houses at excellent prices.

Up until about 10 years ago, I was trying to do this absentee from about 45 miles away but the business wasn't getting much traction. It wasn't until I moved here, where our investments were, that things really took off (a steady 10-year burn).

Rick

@Ryan McCann look at Danbury

We charge 10% on repairs over $100, the owners generally authorize us to do repairs up to $250 without authorization unless it is a health and safety issue. We screen all tenant requests and do not grant all of them, long-term we'd rather keep the owner as a client than having a steady stream of tenant to-do list items.

We do have occasions when an owner wants to manage a significant repair or upgrade on their own (like a roof or HVAC replacement). If we aren't involved, at all, then we waive the 10% fee but if we get pulled in any capacity then it gets charged.

We will not manage or coordinate service for home warranty contracts. If an owner wants to self-manage those then we waive the 10% fee but if we get pulled in any capacity (including arranging appointments) then it gets charged.

We have 3 alternative ways of charging but we are picky on the properties/owners that we take on: 1) Bundled with leasing / releasing services (75% of a month's rent for a new lease / 8% PM fee on rent collected) and 2) Ala carte PM, no leasing (10 - 12% on rent collected), 3) Leasing only (100% of a month's rent) 

There may be some other costs but those are always negotiated on a property by property/owner by owner basis.

@Tomiko Graves , it depends. Are the countertops quartz? 😀

@Mat O'Grady - condition G, it’s a Connecticut law although I’ve never used it.

No landlord may bring an action of summary process or other action to dispossess a tenant described in subsection (a) of this section except for one or more of the following reasons: (A) Nonpayment of rent; (B) refusal to agree to a fair and equitable rent increase, as defined in subsection (c) of this section; (C) material noncompliance with section 47a-11 or subsection (b) of section 21-82, which materially affects the health and safety of the other tenants or which materially affects the physical condition of the premises; (D) voiding of the rental agreement pursuant to section 47a-31, or material noncompliance with the rental agreement; (E) material noncompliance with the rules and regulations of the landlord adopted in accordance with section 47a-9 or 21-70; (F) permanent removal by the landlord of the dwelling unit of such tenant from the housing market; or (G) bona fide intention by the landlord to use such dwelling unit as his principal residence.

We were using QuickBooks and cozy up until Covid hit. It became clear to us that too many things were happening outside the system, they were manual functions that required us to stay on top of things. We switched over to Buildium in April and it’s the best thing we’ve ever done in our business.

The workflows and the automation have been incredible time savers and ability to collect rent in EFT has really sped up our collections and our tenants really love it

Like others have said, look at the competition. I use that info to determine if it is worth standing up an STR in an area and the type (2 - 5 bedrooms). In general, if it's not going to generate at least 2.5 - 3 times net monthly revenue compared to a long-term rental would bring in then it's not worth the extra effort that STRs require.

Rick

We applied when the program first came out and didn't hear anything for 3 months and then got an offer for a EDIL loan @ 3.75% for 30 years for $100k...yep took that, didn't have to ask me twice.