People sometimes give me a raised eyebrow on the occasion when I divulge this whole rental property in Alabama thing. "Why Alabama?" They ask. Then I explain a bunch of things they really didn't want to know anyway.
I finally figured out when people say, "Why Alabama" they are really asking, "Why not somewhere closer?"
I had a bizarre epiphany this weekend with tremendous help from my cyber-friend, Happy Camper. Managing properties at any distance really doesn't matter. Problems exist whether I am here or there. You think this would have been a bit obvious, given I have done this for years and I have managed properties less than five miles from my home.
In many ways being closer might be easier. I would see first-hand if there were problems and be able to jump on them faster--if I drove by the homes. When I had rental homes in Arizona, I never drove by them. There is a lot to be said for just collecting a rent check and letting Fate take its course.
Living closer might also make it easier to cultivate some relationships with plumbers, handymen and electricians. I am certainly not going to be the one to replace a hot water heater (though I probably could). But, I have managed to develop these relationships anyway. Besides, as Marty pointed out, I wouldn't personally meet these vendors here in Phoenix either.
Living farther away allows me to put some distance between the tenant's crisis and reality. Living farther away also makes it so my tenants don't expect me to jump late Friday afternoon of a holiday weekend when the air conditioner breaks. They know there isn't much I can do from here.
In many ways, my tenants who are farther away tend to be more self-reliant than those who lived in Phoenix. My Alabama tenants know there isn't much I can do for the broken towel bar. If they want to hang their towel up, they take care of it.
Living farther away also has a mysterious factor. I am often told by tenants that when I come to town, please let them know because they want to meet me. They want a face with the name. I prefer not to personally meet tenants. I have grown to appreciate a certain degree of formality. I am a lot more scary over the phone or via e-mail than in person.
For a while now, Marty Sunshine and I have been trying to convince Mr. Partner to employ a property management company. We have also bandyied about the concept of hiring a property management company for our two homes. A property management company would find me potential renters, collect the rent, start the eviction process if necessary and coordinate all repairs. All these things I have successfully done.
Not only that, a property management company would still contact me for a decision about the renters and payment for the repairs. I would still be on the financial hook for the eviction process (and they pick the lawyer), but there would also be a middle man involved. And, the property management company doesn't have any emotional attachment to whatever my issue happens to be. So, I would be working at their pace, not mine.
Hiring a property management company always boils down to a simple question, "Will the PIA factor be less for us for the amount of money we would be spending?" I don't think so.
Monday, May 25, 2009
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4 comments:
re: personal relationships, that can be a negative when the "professionals" decide they can treat you as a friend (and let you down a ways) -- i would prefer they see me only as a faceless bureaucrat who cares nothing about their personal lives!
it never fails to amuse/outrage me how my clients/renters will see me as a *friend* when it benefits *them* and turn right around and treat me as a faceless company when *that* benefits them.
in other words, if they need me to cut them some slack, they approach me as an old friend - but if money is involved (for them), they treat me like an evil corp. sigh.
here's my latest funny story. i was *at* the commercial bldg when the mowers came to do the grass. they mow at 100 mph - their choice. i was standing RIGHT THERE when the mower flew by the side of the bldg and ran into one of the windows (which crank open) and broke it. i called the mowing co. *immediately*. she called back in half an hour and told me that the mower told her i *opened the window as he drove at it* - !!!!!
I prefer to have some distance with my renters, as these are business relationships. The ones I tend to like the best are the ones who don't contact me. That said, the cuture in the South is friendly. It seems to be the one constant. To get anything done it is safer to adopt that mentality.
Like you, it is amusing how renters see me as a friend when they want something. Experience has taught me otherwise.
Loved your mower story! Thanks for sharing that.
As you have stated in earlier posts, the best tenant you have is the one that lives on the mountain that you have never met. She pays her rent & treats you like a landlord. I adore my mechanic BUT I don't invite him to come see me or tell him my personal business and I couldn't care two shakes about his personal life. He fixes my car when it breaks and that's all I need to know. I often think Apuleius was on the mark when he said, "Familiarity breeds contempt while rarity wins admiration"?
i am unfailingly polite and friendly until there is a reason not to be. then i become what i like to call "iron hand in the iron glove". ;^)
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