Dennis Swartz

So in the world on condo management, the large communities normally have a condo office and a full time maintenance staff to handle the duties of maintenance, rent collection, tenant disputes, supervision, etc. What about smaller communities? What do they do?

Well, they normally don't have the money or enough units to have a full time manager so the option for many is to self-manage. Self management is when the board of directors, who are nomally residents of the complex, elect one unlucky person to become president and then they get to manage, normally for free.

That person then normally gets to field all the calls from their neighbors and/or friends, such as someone's is not picking up after their pet, or they parked in the wrong spot, or the weeds are in the bushes again. Most of the time its not too bad, but it certainly changes the walk around the complex for you.

The difficult thing to do, however, is dues collection and enforcement. It is difficult to have to collect dues when they are delinquent from your friends and neighbors. It puts a resident in a bad spot, but it is essential to the condo owners that dues be paid, and someone is going to have to talk to the resident, post doors, and file court notices if needed.

So I have a suggestion. Why not hire a part-time manager? You would be surprised how reasonable they are in cost, many working for as low as $10 per unit per month. This will free you up from the phone calls, the maintenance issues that happen, and the unpleasant task of dues collection and policing your neighbors and friends.

For more details about condo management, give us a call. We specialize in all forms of management for condos, homeowner associations, and properties.

So now what? Ghosts!

So I have a 2 family and unit 1 was vacating because they found somewhere else to live, and they did not get along with the tenants in unit 2. So the week they moved out the tenants in unit 2, 2 college men who shared a place called and said they wanted to move early because they were not getting along. I said that they needed to honor their lease. So about a week later one of them shot themselves in the apartment and committed suicide. Wait-it gets better!

So a few weeks later I rented unit 1 to a family, and unit 2 has been cleaned and rent ready and is on the market. So yesterday the new tenant in unit 1 calls and wants to know if I rented unit 2. I said no, why do you ask? She said that they think someone is living there as they have heard voices talking in the bedrooms upstairs.

Checking the unit, there is no sign of entry, no unlocked doors or windows, and no signs of anyone getting inside. What do you think I should do now? Do you believe in haunted homes? They also told me they heard a woman singing a child to sleep. It's actually freaking me out. Any ideas?

Got a new place in with an anxious owner who wants his places rented about 2 weeks ago, sound like most of yours? So ran a special, had someone take an app, look at the place, and love it! They like the special on the rent, and would like to be in this weekend since they want in before the holiday. Sounds plausible, and my client is in love with the idea, and she seems nice enough-good income, decent dress, decent car.

So I pull her report. Nothing out of the ordinary shows until I hand run the eviction report, which shows a current eviction with a court hearing on the 14th. Hmmm.... So of course I ask the tenant what is up, and here is the story of the week:

There is no way that is me, I don't even know where those apartments are! Oh, wait...I helped my cousin get an apartment last year and signed for her and her friend and that may have been there. I had no idea that she was being evicted, wait till I get my hands on her. Is that eviction going to be on my record and not hers? How long? This is totally unbelievable!...

So my rental property owner friends and clients: What would you do? Without tailing her or following her and waiting in front of that ddress to se if she lives there, how would I know it is her or not. I suspect it is her, and I suspect this is a good story and hard to disprove, but my gut tells me this is her eviction.

So what would you do? Would you rent to her? Is she a dead deal or is there a workaround? I have already made a decision on her and am curious to see if your decision would be similar to mine, given the details of the story that you have.

It's probably the number 1 question I get asked all the time when I talk to new property owners venturing into real estate investing. So let me give you the "book" answer then my real answer!

1. We look for 3 things in a tenant:

1. The ability to pay is very important. Our guideline is rent is not greater than 31-35% of their gross monthly income. The standard rule of thumb for many is income is 3 times rent. If their income is non-taxable income then we can give a little on this since we compute based on gross taxable income and not take home pay and if they pay no tax their take home is a bit higher.

2. Rental history is checked and very important. They need to have no evictions in the past 5 years, and have at least one good landlord reference in the past 24 months. Word of caution: Check who owns the property that the tenant rented last as many bad tenants will have their friends pretend to be the landlord and give them a good reference. If they fake this, it is easy with a few questions to trip them up.

3. Last, and not least, we check credit. We are not looking for good credit, as we understand many times the difference between tenant and homeowners is credit history. What we are looking for is collections from landlords, collections recently, and recent good or bad pay to see if they are trending up or down.

So what really matters? Rental history! They can be great on paper but a really bad tenant, or they can be bad on paper and a really good tenant. I tell my clients the way they treat their landlord is the way they will treat you! So the key is to get an honest landlord evaluation and beware of the landlord who wants them gone and gives good recommendation. Figure out a reason to visit them at home, a form you want to drop off or something, and see how they live there. If its a mess, then yours will be a mess. If they live good and treat the landlord good, they will treat you well.

Good luck to you and let me know if I can help!

So I got a flyer from my Allstate Inurance agent offering me a "free membership" in their Roadside Assistance program. Sounds like a pretty good deal since I don't have one of those, and you never know when you need a jump or have a flat tire. So I called my agent and they said they would sign me up and there was no charge unless you use it. If you have a flat they charge you when they get there!

So I said "Excuse me?" I had a membership in a club that is free as long as i didn't use it? Kind of like having free membership to Wendy's as long as you don't eat there. It would be like having a lifetime membership with the woman that cuts my hair, and its free until I get my hair cut.

What a brilliant marketing idea! So I am offering each of you lifetime free property management service as long as you never own an investment property. If you do, then you simply pay for any services you use. Sign up today as this is a limited time offer.

Brilliant!