I am a recent property owner and BP member. Things didn't start too well and I would appreciate any advice on what I should do if the situation does not improve :
Start looking for a replacement property manager. If the tenant is evicted, then you'll want to replace the current property manager.
Second thing is if your property management team are not doing the job, you need to replace them immediately. sounds like they are useless if they can't evencollect the rent for you.
Waiting won't fix the problem. Why has your management company allowed someone to fall 2 months past due,,that alone would be enough to throw them out.
so quickly without trying to tighten things up and see if the cash flow will turn positive. only two. That's the good news. The bad news is the action required is greater than what I think you're prepared to do.
Your new management company should start the eviction process on the late tenant now,,if the tenant can come up with the cash to pay as they have promised, they can still do so.
Everything you do here has to be double checked and verified. I'd suggest you make it your business to know exactly what's happening with these houses and the people you're working with. Investing is a hands on business, even from distances.
tolerating it. Some would argue that even if the tenant had been there for 10 yrs, paid on time every month, then was late a month, you should still start the eviction process. For your situation, I have no doubt that you should start eviction regardless of your other decisions.
Paid $80k, negative cash flow for six months, sat empty for a couple months while getting a tenant, all those are done and somewhat understandable. However, now you have a tenant and very early on they are bending the rules of the lease and you're Nike Air Max Thea Desert Storm
Any suggestion is welcomed
End of october 2013 I bought two rehabilitated houses in Atlanta for 80 000 $ each, the property manager was provided, and the houses rent were proposed 800 $ for one and 850 $ for the other. Unfortunately, they were rented only in february 2014. As the first month rent was for the property manager, I only started getting cash in mach. So I had to pay utilities (270 $ for one house and 930 $ for the other). The houses were supposed to be rehabilitated, but in 6 months rent, I had 1,254 $ maintenance cost for one and 858 $ for the other without seeing any invoice. The property manager found me an insurance a couple of month late (because the houses were bought through a georgia corp. belonging to non US citizen) with a cost above expectation. Just after a few months one of my tenant asked for a delay because he was not paid full salary, being in training. He is presently more than two months late in rent and supposed to pay back in september.
Best of luck with it. Call 5 ask them what parts of the city they like/dislike and why. Ask them what they see expenses running per category per unit. What do they see them selling for per unit, what is the market occupancy rate. What are the market rents? Ask them if they know anything coming up for sale. Great way to pick up some good info and possibly a deal. Select the Property Manager you are most comfortable with.
The two comments that are most concerning are: 1)Tenant is not paying rent AND it's being tolerated. 2) Repairs with no receipt from the Property Manager.
Bad start in rental experience
To make it short, after buying the houses end of october last year, I am still in negative cash flow and the houses were paid cash. I intend to wait a few more month before taking any action, I don't want to hurry, but I have to think at what action I should take if things do not improve. Changing the property manager ? As I live in France I need some advice before making such a move. Proposing the houses on a lease purchase ? I also need some avice before doing it. Do nothing and hope things will improve (it's what I am doing now)?
Find a new management company, it sounds like the management company was arranged by the group selling the house, find your own management company.
Number two, check your property management agreement. Do they need to provide receipts? If yes, then don't pay when there's not a receipt.
rehab. I'd wait a year, at least, before contemplating selling the house. Renting outhomes is much more straightforward than Europe. If someone does not pay their rent, you kick them out, no excuses and as fast as possible. In Atlanta, you can do this in a matter of weeks.
Thanks for the post and asking the questions. Not knowing the whole situation, you can only work with the future now. Request invoices from property manager and put tenant on notice to pay as promised or vacate in September. Each month you should get payment from the manager and in detail incomeand expenses, if not request that start immediately. Now that you have these up and operating, don't pull the plug Air Max Thea Metallic Red Bronze
On the maintenance cost, it isn't unusual for a small item to need to be replaced even after a full rehab, but it sounds like yours is excessive,,,get a new management Nike Air Max Thea Print company as soon as possible
Revisit your goals for buying the houses. If these houses can still meet your goals, then persevere. Most rentals require some breaking in getting a stable tenant and working out the issues with the house that were undiscovered during Nike Air Max Thea Sale Amazon
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