Well now, it appears one can teach an old Hat new tricks. Last Christmas Eve, Flunky, the maintenance guy for the property management company I employ, took the liberty to send me dozens of pictures of my destroyed now-former home in Pinson. The pictures told a story that caused a small stroke. One picture I remember too clearly was the garage door, hanging by I-don't-know-what and ultimately defying gravity. Mr. Hat suggested we "address that immediately before someone gets hurt."
But that isn't where I was mentally stuck that particular day. The pictures also told me something bigger and far worse than the thousands of dollars in damage I was staring at. And unfortunately, when pressed, he admitted I had a serious right to be upset. You see, Mr. Hat, in the middle of an eviction, WENT ON THE PROPERTY, which made the eviction process take longer.
Now fast forward 365 days. This Christmas Eve, Mr. Hat sent me a sweet e-mail. He acknowledged that today is the beginning of a holiday time many of us celebrate. He wished me well. He said he was sorry to bother me today. He then asked if my vacant home was rent-ready. I am pleased to say Mr. Hat ended it with a simple, yet polite, closing which suggests to the world he was raised right. I was floored at his professionalism. And I guarantee his mother would have been proud.
Thursday, December 24, 2015
Wednesday, December 23, 2015
August 2009
I just sent Mr. Partner an update on the o'le LLC. I needed to address the maddening situation with Ms. Angie (for another blog. And certainly not fodder for a Merry Christmas). Anyhoo, I couldn't remember how long she had been living there. Instead of rummaging through the hard drive for a copy of her lease, I just did what comes naturally when I need to look up something related to my accidental business: I went back to my blog archives.
She Must Have Thought I Stuttered
So, as you three readers may remember, I went on an absolute tear last month with the property management company. You see, they were letting the three tenants in the homes Marty Sunshine and I own without a partner just slide and pay whatever they felt like paying each month. Lease agreement be damned!
I suspect if one of these tenants had come in last month with a dead pigeon and a pot of rotted carnations, that would have been exchanged for one month of free rent. And believe me, I may have said something along those lines to the property management company, because as far as I was concerned, they hadn't been working for me.
As I was writing this post yesterday, I was happy in the illusion that everything is straightened out. However, no sooner had I written the above paragraph Ms. Amy called. It appears Ms. Martin didn't seem to fully understand that if she didn't follow through with her commitment to pay the remaining December balance by December 18th and subsequently "break her back" (her words) to make sure rent would be paid on time thereafter, I meant business. So, when Ms. Amy sweetly broke the news, I replied with a few unholiday-like sentiments. And, I told her to affix a notice on her door telling her to move out.
I suspect if one of these tenants had come in last month with a dead pigeon and a pot of rotted carnations, that would have been exchanged for one month of free rent. And believe me, I may have said something along those lines to the property management company, because as far as I was concerned, they hadn't been working for me.
As I was writing this post yesterday, I was happy in the illusion that everything is straightened out. However, no sooner had I written the above paragraph Ms. Amy called. It appears Ms. Martin didn't seem to fully understand that if she didn't follow through with her commitment to pay the remaining December balance by December 18th and subsequently "break her back" (her words) to make sure rent would be paid on time thereafter, I meant business. So, when Ms. Amy sweetly broke the news, I replied with a few unholiday-like sentiments. And, I told her to affix a notice on her door telling her to move out.
Friday, December 18, 2015
The Funk Has Lifted
"If you go to the grocery store and count out 10 people, eight of them will have bruised credit." I said last week to some really nice folks, who didn't think any landlord would consider renting to them. And then I finished with the same line I have been saying--and meaning--for the past 13+ years, "Your credit score is just a number. You are not your credit score any more than you are your street address."
A credit "score" is just a number. It is a benchmark of where you are in your life right now. It goes up and goes down. But it doesn't look you in the mirror and say, "Hey, today you are a 583!" In fact, it is a complete pain in the butt to try to find your credit score if you really want to.
I have never judged folks based on their credit score. Life happens. I have people in my life with amazing credit scores. I have people in my life with crummy credit scores. And I have people in my life with no credit scores. In fact, for the most part, I probably can't tell you who is who. And I really don't care.
That said, I have been identifying myself by my crummy credit for the past six months. I called myself a failure. I've shamed myself. I beat myself up over our choices--logical choices. Choices I still stand by. Choices that in hindsight were inevitable. And frankly, if I had my way, they would have happened sooner. I started lobbying Marty and Mr. Partner years ago to thin the heard. (Actually, I lobbied them heavily in 2006 not to buy any more homes... and lost.)
But here we are. I have been in a profound funk for most of the year over this. I have processed my funk with you three readers. Sometimes sitting across from you. Sometimes in this blog. Thank you all for listening and reading along. And thank you for reaching out when you thought I needed you. Your calls, e-mails, pep-talks, hugs and friendship mean more than you know.
Two events happened on Monday. The first was Buckaroo came up to me in a quiet moment and asked if we were moving into an apartment. It took me by surprise. I hadn't realized how much he had processed our situation and what kinds of conclusions his limited life experience had brought him to. The other was dinner with a friend who reminded me how I have never judged others of their situation and how harshly I have judged mine.
Our situation is what it is. Times are lean, but not impossible. Buckaroo and Polly still have a roof over their head. We have our health. We have each other. We have friends and family who love us and support us. They loved us and supported us when our credit score was higher too. We have friends and family who love us and don't support us. They loved us and didn't support us when our credit score was higher. In fact, when I got to thinking about it on my drive home after dinner I realized, other than unburdening ourselves with the inevitable, nothing has really changed because it is just a number.
A credit "score" is just a number. It is a benchmark of where you are in your life right now. It goes up and goes down. But it doesn't look you in the mirror and say, "Hey, today you are a 583!" In fact, it is a complete pain in the butt to try to find your credit score if you really want to.
I have never judged folks based on their credit score. Life happens. I have people in my life with amazing credit scores. I have people in my life with crummy credit scores. And I have people in my life with no credit scores. In fact, for the most part, I probably can't tell you who is who. And I really don't care.
That said, I have been identifying myself by my crummy credit for the past six months. I called myself a failure. I've shamed myself. I beat myself up over our choices--logical choices. Choices I still stand by. Choices that in hindsight were inevitable. And frankly, if I had my way, they would have happened sooner. I started lobbying Marty and Mr. Partner years ago to thin the heard. (Actually, I lobbied them heavily in 2006 not to buy any more homes... and lost.)
But here we are. I have been in a profound funk for most of the year over this. I have processed my funk with you three readers. Sometimes sitting across from you. Sometimes in this blog. Thank you all for listening and reading along. And thank you for reaching out when you thought I needed you. Your calls, e-mails, pep-talks, hugs and friendship mean more than you know.
Two events happened on Monday. The first was Buckaroo came up to me in a quiet moment and asked if we were moving into an apartment. It took me by surprise. I hadn't realized how much he had processed our situation and what kinds of conclusions his limited life experience had brought him to. The other was dinner with a friend who reminded me how I have never judged others of their situation and how harshly I have judged mine.
Our situation is what it is. Times are lean, but not impossible. Buckaroo and Polly still have a roof over their head. We have our health. We have each other. We have friends and family who love us and support us. They loved us and supported us when our credit score was higher too. We have friends and family who love us and don't support us. They loved us and didn't support us when our credit score was higher. In fact, when I got to thinking about it on my drive home after dinner I realized, other than unburdening ourselves with the inevitable, nothing has really changed because it is just a number.
Saturday, December 12, 2015
Top Tenant Tips for Not Annoying your Landlord
Last week I said I would write this. I promise to stop at five six.
1. Pay on time and pay what you are contractually obligated to pay. When you filled out the application I asked for pay stubs to make sure you can afford the house. You also signed a contract. Ms. Kathy, who used to live in my home in Moody (and now, lives next door to my home in Moody, but that's for another blog) used to tell me--and she meant this as a compliment--"I am so glad I can deal with you and not a company. You understand." What I understood was she was probably spending her rent money on blow, trinkets or (in one case) bail money for her brother.
2. Keep tabs on your family members: I had a tenant in Fultondale who had at least twelve siblings. One died each month and she needed her rent money for their funeral--because funerals just happen to cost $1000 each. Perhaps she was getting a volume discount? We owners are happy to extend a courtesy once in a while when a tenant is short funds for true emergencies (life happens). We aren't willing to do it all the time and we aren't running a homeless shelter.
3. Don't make the neighbors call me: I once had some random person in Alabama hunt me down through the Arizona Department of Real Estate (a former tenant told her what I did for a living) to tattle on her current neighbors, my tenants. I had another neighbor once call me to tell me my tenant's teenage boys were jumping off the roof of my home. Behave like everyone is watching and assume they will call me. I just counted. I have contacts for neighbors for five of my homes--that is not including Moody, where I used to rent to two of the neighbors. If you act up, the neighbors will gladly tell me.
4. Don't loose your broom: When I rent to folks who used to live in an apartment, I generally advise them to think of a few extra costs they will have when they move in to a home: a broom, lawn mower, etc. Dear tenants: now that you own the broom and lawn mower, use it. Often. If you are grown up enough to rent a home, keep it tidy on the inside and out.
5. Sweat the small things: If a door handle is loose, tighten it up. It is probably loose because you pulled too hard. If a towel bar is wobbly, tighten it up and tell your kids to stop hanging on it. Fix the minor stuff that you probably caused anyway and leave the broken hot water heater to me.
When I wrote this, I thought five would sum it up. But I then realized I forgot the one way tenants annoy me the absolute very most.
6. Just don't do this: If you are going to be late on rent. Don't tell me the day rent is due. If something is broken--and you know about it ahead of time (and I know you do)--don't wait until 5 p.m. Mountain Standard Time on a Friday before a long weekend to tell me. Nothing throws goodwill out the window faster than this game. And I have a good memory (ask Bliz) and know how to hold a grudge. You want me to respond right away if you have a problem. Do me the same courtesy.
1. Pay on time and pay what you are contractually obligated to pay. When you filled out the application I asked for pay stubs to make sure you can afford the house. You also signed a contract. Ms. Kathy, who used to live in my home in Moody (and now, lives next door to my home in Moody, but that's for another blog) used to tell me--and she meant this as a compliment--"I am so glad I can deal with you and not a company. You understand." What I understood was she was probably spending her rent money on blow, trinkets or (in one case) bail money for her brother.
2. Keep tabs on your family members: I had a tenant in Fultondale who had at least twelve siblings. One died each month and she needed her rent money for their funeral--because funerals just happen to cost $1000 each. Perhaps she was getting a volume discount? We owners are happy to extend a courtesy once in a while when a tenant is short funds for true emergencies (life happens). We aren't willing to do it all the time and we aren't running a homeless shelter.
3. Don't make the neighbors call me: I once had some random person in Alabama hunt me down through the Arizona Department of Real Estate (a former tenant told her what I did for a living) to tattle on her current neighbors, my tenants. I had another neighbor once call me to tell me my tenant's teenage boys were jumping off the roof of my home. Behave like everyone is watching and assume they will call me. I just counted. I have contacts for neighbors for five of my homes--that is not including Moody, where I used to rent to two of the neighbors. If you act up, the neighbors will gladly tell me.
4. Don't loose your broom: When I rent to folks who used to live in an apartment, I generally advise them to think of a few extra costs they will have when they move in to a home: a broom, lawn mower, etc. Dear tenants: now that you own the broom and lawn mower, use it. Often. If you are grown up enough to rent a home, keep it tidy on the inside and out.
5. Sweat the small things: If a door handle is loose, tighten it up. It is probably loose because you pulled too hard. If a towel bar is wobbly, tighten it up and tell your kids to stop hanging on it. Fix the minor stuff that you probably caused anyway and leave the broken hot water heater to me.
When I wrote this, I thought five would sum it up. But I then realized I forgot the one way tenants annoy me the absolute very most.
6. Just don't do this: If you are going to be late on rent. Don't tell me the day rent is due. If something is broken--and you know about it ahead of time (and I know you do)--don't wait until 5 p.m. Mountain Standard Time on a Friday before a long weekend to tell me. Nothing throws goodwill out the window faster than this game. And I have a good memory (ask Bliz) and know how to hold a grudge. You want me to respond right away if you have a problem. Do me the same courtesy.
Friday, December 11, 2015
How to be a Good Property Manager*
*from a landlord's perspective.
There is a reason for this series.
Know who you work for and never forget it: You work for the owner. That's it. You don't work for the tenant or the plumber. Your fiduciary responsibility is only to your owner. Jot it down. There will be a quiz later.
Answer your phone: By far, Kirby has been the best of the property managers I have gone through in Birmingham. However, Kirby had to be the absolute worst at answering his phone. I understand property management companies manage hundreds of homes. Which means they have hundreds of owners, tenants and vendors. So there is never a lull in the action. But still! I find it strange when I am researching property management companies in Arizona, how many reviews start with "company never answers their phone" or "my call always go to voice mail." My company has a simple policy for its sales agents: come in and help once in a while and you will get leads. So, two hours once a week picking up a ringing telephone can be worth multiple commissions.
Return Phone Calls and E-mails: In all fairness, we all have people in our lives whose phone calls and e-mails we shove to the bottom of the food chain. Those people earned it. But most don't. Call/text/e-mail back those who call you--even if it is to say "Hey, got your message, tied up right now because a heard of dead water buffalo just died in my lobby. I will get back to you soon."
Give us a Head's Up: Tenant pay late? Their lease is up? Let us know. Most property management software applications have an automatic e-mail notification built in for such occasions (including Luigi's company--because I know what software he uses). It drives me insane to find out when I get my owner payout every month that tenants couldn't be bothered to pay the rent. If I had to pick one item that drives me buggy about the company I use in Alabama, it is this.
Half a Loaf of Bread is Not Better than a Full Loaf of Bread: Do not take a partial payment from a tenant. That means the tenant stays for the entire month on reduced rent. When offered a partial payment, hand it back to the tenant and tell them to try again.
Recognize that Perpetually Late Tenant Whose Grandmother Died. Again: Seriously, know the excuses and call the deadbeat out on them.
Don't Threaten, Do It: Evict when necessary. End of story.
Fix It for a Reasonable Price: Reasonable Price: $200-ish for a garage door opener. Not reasonable price: $2,000. I realize you up-charge. Me not dealing with the moment-by-moment drama of what the plumber is doing is worth it to me. But I am not stupid.
Be Professional: And hence, the reason for this series--because this happened to me this week. Though I complain about them, I swear this company in Alabama is better than any other I currently have available to me. I like most of the people in the company. I like Luigi, Jay, April and Willy. I am even lukewarm on Flunky right now. But dear Heavens! Don't send me a friend request Facebook. I may be fond of you, but we aren't friends. We are in a business relationship. I don't want to know if you need prayers for your sick guinea pig, what your political affiliation is or if you are (Heaven forbid) a Dodger's fan, And more to the point, if I am telling you I am out of funds and you see a picture of me on a tropical island, you may think I am fibbing. But maybe I am not. Maybe I have an uncle-in-law who lets me stay there for the price of painting his shed. You don't know. And I don't want you to know.
There is a reason for this series.
Know who you work for and never forget it: You work for the owner. That's it. You don't work for the tenant or the plumber. Your fiduciary responsibility is only to your owner. Jot it down. There will be a quiz later.
Answer your phone: By far, Kirby has been the best of the property managers I have gone through in Birmingham. However, Kirby had to be the absolute worst at answering his phone. I understand property management companies manage hundreds of homes. Which means they have hundreds of owners, tenants and vendors. So there is never a lull in the action. But still! I find it strange when I am researching property management companies in Arizona, how many reviews start with "company never answers their phone" or "my call always go to voice mail." My company has a simple policy for its sales agents: come in and help once in a while and you will get leads. So, two hours once a week picking up a ringing telephone can be worth multiple commissions.
Return Phone Calls and E-mails: In all fairness, we all have people in our lives whose phone calls and e-mails we shove to the bottom of the food chain. Those people earned it. But most don't. Call/text/e-mail back those who call you--even if it is to say "Hey, got your message, tied up right now because a heard of dead water buffalo just died in my lobby. I will get back to you soon."
Give us a Head's Up: Tenant pay late? Their lease is up? Let us know. Most property management software applications have an automatic e-mail notification built in for such occasions (including Luigi's company--because I know what software he uses). It drives me insane to find out when I get my owner payout every month that tenants couldn't be bothered to pay the rent. If I had to pick one item that drives me buggy about the company I use in Alabama, it is this.
Half a Loaf of Bread is Not Better than a Full Loaf of Bread: Do not take a partial payment from a tenant. That means the tenant stays for the entire month on reduced rent. When offered a partial payment, hand it back to the tenant and tell them to try again.
Recognize that Perpetually Late Tenant Whose Grandmother Died. Again: Seriously, know the excuses and call the deadbeat out on them.
Don't Threaten, Do It: Evict when necessary. End of story.
Fix It for a Reasonable Price: Reasonable Price: $200-ish for a garage door opener. Not reasonable price: $2,000. I realize you up-charge. Me not dealing with the moment-by-moment drama of what the plumber is doing is worth it to me. But I am not stupid.
Be Professional: And hence, the reason for this series--because this happened to me this week. Though I complain about them, I swear this company in Alabama is better than any other I currently have available to me. I like most of the people in the company. I like Luigi, Jay, April and Willy. I am even lukewarm on Flunky right now. But dear Heavens! Don't send me a friend request Facebook. I may be fond of you, but we aren't friends. We are in a business relationship. I don't want to know if you need prayers for your sick guinea pig, what your political affiliation is or if you are (Heaven forbid) a Dodger's fan, And more to the point, if I am telling you I am out of funds and you see a picture of me on a tropical island, you may think I am fibbing. But maybe I am not. Maybe I have an uncle-in-law who lets me stay there for the price of painting his shed. You don't know. And I don't want you to know.
Thursday, December 10, 2015
How to be a Good Landlord*
*in the eyes of a property management company.
Let's make a few assumptions here. The first being everyone is getting along. The second being that the property management company is competent.
Be Fussy: If you pick a bad tenants, you get drama. Which means the property management company gets drama. Six months down the line, choosing a bad tenant will come back to haunt you. By then you have forgotten it was your choice to have this bozo in your home and everyone's level of drama will be at an all-time high. So, pick well the first time.
Check the calendar: Don't, for the love of all that is right and just, call the first Monday of the month. Nobody--from the broker all the way down to the commissioned salesperson who is helping out for a few hours answering the phones--has time to deal with you. We are busy dealing with your tenants. There seems to be a correlation between tenants paying the rent and tenants asking for repairs. Either that, or there is some vast conspiracy for all items in a rental home to break the weekend before the first Monday of the month. Either way, don't call.
Write the check: Things break. They break in your own home too. Fix them. I am not saying install hardwood floors if a floor tile is cracked, but if you have a drippy faucet, fix it immediately.
Pick your battles: If you need to fight, fight. But make sure you know what you are fighting for and that you are fighting with the right person. "I didn't get my owners' statement until the 17th of the month and you told me I would get it on the 16th," is just going to ensure your next phone call or e-mail isn't answered promptly. (Are you listening Canadian owners????)
Make sure you are communicating with the right person: The bookkeeper can't tell you how many showings you have received. The leasing agent can't tell you if the tenant paid the rent. You wouldn't call your electric company and demand that the CEO fix a discrepancy on your bill or the accounting department to turn off your power. The same goes here.
Don't assume you are being ignored: Most property management companies have about 10 folks working there. We have five, with a few as-needed folks waiting in the wings. Sometimes issues are triaged. We know you are interested in hearing if the weeds were pulled at your home. But perhaps someone else's home burned down last night and the weeds haven't been top of mind. And by the way, we can't tell you that another client's home burned down last night. It isn't any of your business anyway.
Don't immediately jump to conclusions: Life happens. While you are thinking your 78 year old tenant who has been renting from you for the past eight years and has always paid early or on time is now a crook because rent is 15 days late, it might not be the case. Perhaps his wife is in the hospital, there's been a problem with his social security and his car broke down. What you may not know is that we, at the property management company, know this and the tenant is completely embarrassed by his situation. He isn't looking for a handout, but is in desperate need of a hand up. In the background, we have taken up a collection from our office, surrounding offices in our business complex and from other real estate agents we know for help for his rent, utilities and food. We may have asked some of our plumbers, electricians and roofers we work with for donations as well. We may have contacted a local garage and asked if they can fix this man's car. We also may have slipped a local Uuber driver or taxi company a few bucks for gas and asked if they could drive this man to and from the hospital every day while his car is being fixed. There's a lot we do behind the scenes. This is a people business. The human aspect is crucial. We understand this is a business for you. We also understand human dignity.
We don't work for free: Our kids are addicted to groceries just like yours are. I understand when things break they need to be fixed. It isn't Luigi's job to pay my plumber or roofer. If you are "tired of paying for everything," sell the house.
Be nice: Manners go along way. There isn't a mother alive who will admit they didn't raise their child right. So, I am willing to bet you have used the phrases, "please" and "thank you" on many occasions. Do it when you call us as well. That will get more done in your name than screaming from the rooftops what a$$h***s we are when you are talking to us. Telling everyone you talk to how incompetent that particular person is, will not win friends. And, it probably won't get your home showed either. Trust me.
What A Property Manager Brokerage Does
It occurred to me that though I blog about managing properties, I have never actually defined what a property management company does. My accidental business was defined by the Arizona Secretary of State's office as a "property management" business. And you can see how well that turned out. I was able to get around a few major points--like not having a real estate license in Alabama--because I was only managing my own properties. But for the most part, someone at a property management company better have a real estate license.
I currently work for a property management and real estate brokerage. In fact I was the first "real estate" portion of the real estate brokerage. There are now four of us (and a few part-timers) who sell real estate and rent out homes for our company when the occasion arises. But mostly we sell and sit around processing the absurd stories we hear on a daily basis. There are enough true tales where I work that they don't need this blog.
Anyway, I am in the mood to type this morning and thought I would take a few chunks of cyber space to explain a few things.
Property Managers Work for the Landlords: Actually, we are called "owners" in the biz. That's what the contract says. That's who pays the company. There should never be confusion about this point. Ever.
Property Managers Find Tenants: Tis true. I am certain you are shocked by this. Landlords hire a company to show homes, screen tenants and negotiate leases between tenant and landlord. I equate it to Charlie's Angles. Charlie was never seen but was the guy everyone needed by-off from. Charlie is the owner.
The property manager will say, "let me see if the owner will allow you Mr. 760 credit score who makes $300,000 a year to rent this $1000 a month home. I am not sure..." The tenant then waits. And waits. And calls (repeatedly) asking if the owner approved. Then when they are told "not yet," the tenant proceeds to give lots more personal information about why they are so hot and the owner should pick them. The property management company then takes copious notes of what the tenant says and puts it into the database. For later. Just in case. Of course, what really has happened is the potential tenant has called sixteen times in an hour and the owner just hasn't checked their voice mail yet.
Please don't confuse this: property managers don't approve tenants. That's the landlord's doing.
Property Managers Schedule Maintenance When Something Breaks: I don't fix broken toilets. Neither does my broker or my company's accountant. We call someone to do this. The big misnomer I hear from owners is that they are surprised they have to write the check anyway. After all, they have a property management company! The work isn't done for free. Sometimes (like in the case of Luigi's company--and actually the one I work for as well), the property management company has an on-site maintenance company they are affiliated with to handle repairs.
Property Managers Handle the Legal and the Ugly: Property managers call the eviction attorney (guess who writes the check?). Property managers go to court to explain to Your Honor that the tenant really did trash the home. Here is the proof. Here is the lease. Here is the receipts.
There are some statistics somewhere that suggest that most novice owners hire property management companies when relationships go South. The owner and the tenant have been chummy. The tenant gets a little late on rent and figures there is enough good will floating around to stretch things out a bit. Then something breaks and the owner, who hasn't received rent, doesn't want (or can't afford--because they haven't received the rent) to fix the broken whatever. Then the tenant, who is pissy that the broken whatever hasn't been fixed withholds rent. This vicious circle continues and eventually the owner, fed up and feeling helpless, hires a property management company to straighten out the tenant.
Property Managers Keep Really Good Records: Actually, in Arizona at least, property management companies are more closely scrutinized and more often audited than non-property management brokerages. For one reason is because there are trust accounts. Property management companies handle tenants' security deposits. Think of it this way: if a property management company manages 800 homes and the average security deposit is $1200, that's a lot of money a property manager has in the bank. In addition, any tenant can complain about anything to the Department of Real Estate and be heard. So, property management companies keep tighter controls on their books and need to be meticulous in their record keeping.
Property Managers Handle Frustrated Owners: And we are all frustrated. We feel helpless. A smart owner knows they are not the only fire-drill on the property manager's plate and knows how to be gracious when the need arises. The foolish owner demeans everyone, making sure their calls won't be returned and their e-mails will be a lower priority.
Property Managers Tell Stories Everyone Who Hears Thinks We Made Up: No we didn't. The guy who had the presence of mind to send a selfie of him holding an envelope in front of our office as "proof" he paid the rent, yet it was never received, is hilarious to us. It brings a bit of amusement to balance out the frustrated owner who did not receive their money.
I currently work for a property management and real estate brokerage. In fact I was the first "real estate" portion of the real estate brokerage. There are now four of us (and a few part-timers) who sell real estate and rent out homes for our company when the occasion arises. But mostly we sell and sit around processing the absurd stories we hear on a daily basis. There are enough true tales where I work that they don't need this blog.
Anyway, I am in the mood to type this morning and thought I would take a few chunks of cyber space to explain a few things.
Property Managers Work for the Landlords: Actually, we are called "owners" in the biz. That's what the contract says. That's who pays the company. There should never be confusion about this point. Ever.
Property Managers Find Tenants: Tis true. I am certain you are shocked by this. Landlords hire a company to show homes, screen tenants and negotiate leases between tenant and landlord. I equate it to Charlie's Angles. Charlie was never seen but was the guy everyone needed by-off from. Charlie is the owner.
The property manager will say, "let me see if the owner will allow you Mr. 760 credit score who makes $300,000 a year to rent this $1000 a month home. I am not sure..." The tenant then waits. And waits. And calls (repeatedly) asking if the owner approved. Then when they are told "not yet," the tenant proceeds to give lots more personal information about why they are so hot and the owner should pick them. The property management company then takes copious notes of what the tenant says and puts it into the database. For later. Just in case. Of course, what really has happened is the potential tenant has called sixteen times in an hour and the owner just hasn't checked their voice mail yet.
Please don't confuse this: property managers don't approve tenants. That's the landlord's doing.
Property Managers Schedule Maintenance When Something Breaks: I don't fix broken toilets. Neither does my broker or my company's accountant. We call someone to do this. The big misnomer I hear from owners is that they are surprised they have to write the check anyway. After all, they have a property management company! The work isn't done for free. Sometimes (like in the case of Luigi's company--and actually the one I work for as well), the property management company has an on-site maintenance company they are affiliated with to handle repairs.
Property Managers Handle the Legal and the Ugly: Property managers call the eviction attorney (guess who writes the check?). Property managers go to court to explain to Your Honor that the tenant really did trash the home. Here is the proof. Here is the lease. Here is the receipts.
There are some statistics somewhere that suggest that most novice owners hire property management companies when relationships go South. The owner and the tenant have been chummy. The tenant gets a little late on rent and figures there is enough good will floating around to stretch things out a bit. Then something breaks and the owner, who hasn't received rent, doesn't want (or can't afford--because they haven't received the rent) to fix the broken whatever. Then the tenant, who is pissy that the broken whatever hasn't been fixed withholds rent. This vicious circle continues and eventually the owner, fed up and feeling helpless, hires a property management company to straighten out the tenant.
Property Managers Keep Really Good Records: Actually, in Arizona at least, property management companies are more closely scrutinized and more often audited than non-property management brokerages. For one reason is because there are trust accounts. Property management companies handle tenants' security deposits. Think of it this way: if a property management company manages 800 homes and the average security deposit is $1200, that's a lot of money a property manager has in the bank. In addition, any tenant can complain about anything to the Department of Real Estate and be heard. So, property management companies keep tighter controls on their books and need to be meticulous in their record keeping.
Property Managers Handle Frustrated Owners: And we are all frustrated. We feel helpless. A smart owner knows they are not the only fire-drill on the property manager's plate and knows how to be gracious when the need arises. The foolish owner demeans everyone, making sure their calls won't be returned and their e-mails will be a lower priority.
Property Managers Tell Stories Everyone Who Hears Thinks We Made Up: No we didn't. The guy who had the presence of mind to send a selfie of him holding an envelope in front of our office as "proof" he paid the rent, yet it was never received, is hilarious to us. It brings a bit of amusement to balance out the frustrated owner who did not receive their money.
Sunday, December 06, 2015
Yea, I Said That
The phone call today was cathartic.
It was the mortgage company calling once again, (after being unwilling to negotiate with us several months ago), telling me before we continued the call I would have to verify my social security number. This particular representative was a bit more innovative than many I have spoken to in the past. When I refused, he asked if I could verify my payment amount or my street address. I happen to know from past experience, when they ask this particular question, they are only referring to the home where they are the mortgage holder.
I was pleased to say, "I don't have a mortgage with you."
It was the mortgage company calling once again, (after being unwilling to negotiate with us several months ago), telling me before we continued the call I would have to verify my social security number. This particular representative was a bit more innovative than many I have spoken to in the past. When I refused, he asked if I could verify my payment amount or my street address. I happen to know from past experience, when they ask this particular question, they are only referring to the home where they are the mortgage holder.
I was pleased to say, "I don't have a mortgage with you."
Friday, December 04, 2015
"Precarious and Unpredictable"
I left a reply for Realestaetchief about Number 3, but the author chose not to publish it. It went like this: Do not "reward" your tenants for doing what is contractually obligated. This is a business relationship. The IRS does not reward you for paying your taxes. The mortgage company doesn't reward you for paying your mortgage. Additionally, personal relationships can come back to bite you in a court of law.
Some of you three long-time readers may remember, I once said "Happy Mother's Day" to a tenant and spent two hours in 2011 testifying against her because of something so innocuous.
Maybe I will write a post later titled, "5 Tenant Tips for Not Annoying your Landlord." But not sure I can stop at 5.
Update: realestatechief wrote me back: he said, "Obviously you only do this with good tenants." No. No. NO. Please don't do this with any tenants.
5 Tips for becoming a successful Landlord
1. Don’t let a good tenant go over desire to minimally increase rent. Greed is toxic. It destroys all relationships. For a minimal increase in rent don’t risk losing a good tenant. A 25 to 50 dollar increase every month is not worth losing a tenant who pays on time has kept your property clean and is trustworthy. Keep good tenants happy.
2. Keep your property clean and renovated. You don’t want to attract the wrong type of tenants. Uncleanliness and disorder in the property you own will breed that sort of behavior with your tenants. Floors bathrooms kitchens and light fixtures should always be updated. This will attract clean and orderly tenants. It is a wise decision to do this trust me.
3. Reward good tenants with holiday gifts. Even a 5 dollar Starbucks gift card given to your tenants will make them happy. These little tokens of kindness go a long way and are very meaningful. Any good relationship even if it’s a tenant landlord one requires work and sacrifice.
4. Avoid pets. Pets ruin properties. They damage wood eat everything and can cause significant damage. Be careful when it comes to pets.
5. Choose tenants very wisely. Screen your tenants. Low credit scores and bad background checks are grounds for dismissing a potential tenant. Felony charges on a potential tenant are a definite no.
Always remember that the tenant landlord relationship is very important and must be maintained. Keep your tenants happy and you will be content as well.
Wednesday, December 02, 2015
Hat Tricks
So this week I got an e-mail from Flunky the AssHat. He sweetly told me my tenant in Alabaster is having some trouble with her garage door opener. He sent me the work order and asked if I would like him to handle this or if I have a preferred vendor. He has never asked me before if I have a "preferred vendor."Generally, it is "What do you want to do." And the answer of course is: "figure it out yourself--that's why I have hired a property management company in the first place."
When I asked him for the scope of work, because "garage door isn't working properly and tenant changed batteries and can't figure it out," didn't exactly give me enough reassurances this wouldn't be a $10,000 cost to me. Flunky the Hat professionally and promptly returned my e-mail saying he didn't think it would cost much. And, (AND) if I used his qualified handyman it should be a minimal cost. I am paraphrasing here, "minimal" might have a few too many syllables.
At any rate, I gave my blessing and told him to get it fixed. And what do you know! Flunky got back to me. The work was done in less than 24 hours. And, for the first time in Alabama property management history, the cost was under $100.
When I asked him for the scope of work, because "garage door isn't working properly and tenant changed batteries and can't figure it out," didn't exactly give me enough reassurances this wouldn't be a $10,000 cost to me. Flunky the Hat professionally and promptly returned my e-mail saying he didn't think it would cost much. And, (AND) if I used his qualified handyman it should be a minimal cost. I am paraphrasing here, "minimal" might have a few too many syllables.
At any rate, I gave my blessing and told him to get it fixed. And what do you know! Flunky got back to me. The work was done in less than 24 hours. And, for the first time in Alabama property management history, the cost was under $100.
Tuesday, December 01, 2015
A Gazillion Less One
This is the second home we bought. Mr and Mrs. C lived here. Then Mr. Noble. Then another family who had a sweet little girl named Natalie and a dog named Rocky. Then the cop with the 640+ credit score and his girlfriend and their two babies. They were the ones who destroyed it.
I heard this house was supposed to have been auctioned off yesterday. I thought about it on and off through the day, wondering if someone bought it. Wondering what happens if nobody does.
It certainly didn't look like this when I saw it in March. For one thing, in this picture there are windows.
I no longer mourn specifically loosing this house. I am still sad. I feel like a looser. I have been told I am not one. I understand logically why decisions were made. But I failed. I will get over it eventually. But it will be years before we recoup this damage. And there will be at least one more home to go back to the bank. Hopefully only one more.
I really want someone to love this home. I want someone to sit out front on that gorgeous porch, looking out into the hills, sipping tea thinking about how lucky they are to have landed that house--their home. I want kids to splash around in the pond, looking for frogs. I want a little boy to chase a puppy through the woods. But overall, I want whomever ends up with this home can make it a happy place. It is time for something positive to happen there.
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