Well there is something to be said for slumlords when it comes to collecting rent. I know an investor that owns a couple hundred houses, he and two other employees collect rent in person every month. He has very little issues with any tenants because they know he isn’t fooling around.
jayhinrichs wrote:
WI thanks for sharing,, thats about what I was figuring on your out lay for the props and such…And as you say you stay on them daily to weekly you will mitigate a lot of what goes on…. My point is for everyone that is up for the task like yourselves there are others that are sold this product with the mind set that the PM will just take care of everything and the rentals work like AUssie rentals. And nothing can be further from the truth, as you have shared with the group…AGain thanks for sharing your business with the group,,,, I refer to you as a business owner not an investor.. Your running a nice little business here in the states.
It's not different a mind set than they have in Aust. This is the reason that these type of 'investors' never go past 1 investment property because even with the PM 'taking care of everything' they can't cope with the unexpected.
The reality is that there is no difference between having investment properties in the US or Aust. In both cases the PM can be good or bad and the issues are much the same except that heating/cooling are suddenly emergency repairs in the states.
I am very much with WI that you need to run your RE like a business and to that end need to have sufficient numbers to ensure that you can cope with the financial variability that this sort of business with create.
We follow this model in Aust having substantial RE holdings here and are following the same model in the US with 10 and soon 11 SFH's
Regards
Eyeball and stare them down at application with a "don't even THINK of being late a SECOND"…… then day 5, hour 1, minute 1 and you are DEFINITELY filing eviction. Gone are my days of being nice…. I drive a Chevy 2002 pick up truck – which has one headlight tied up with my personal pyjama cord, I wear mostly paint splattered clothes with just enough of a hint of holes for no one to mess with me…lol..
Who has the tag line "walk softly and carry a big stick"? Always admire that one.
Check out this yahoo news article http://news.yahoo.com/property-management-us-industry-market-research-report-now-080201579.html about the US property management industry. As you all know, this is one of the biggest concerns for Aussies buying overseas property. This article really takes a good look at the industry and directly relates it to the real estate market.
video,
Do you know Doug at Debeers there in Detroit,
he runs a pretty tight ship… I learned a lot from him when I was lending money in Detroit… I got a PHD in how to handle those properties. and those tenants…
There is a Huge difference in the African american population in the south and in the North… I their demeanor and how they will treat houses and landlords.
In the south its the Bible belt and 75% of all people go to church on Sunday… Just try to buy a car on sunday in the South there is not one car lot open… that kind of thing… There basic beleifs revert back to childhood when their moma took them to church.
In the north not so much… so even though we have the same socio issues among the African American community, of which makes up probably 80% or more of the tenant base anywhere East of Denver… these are the tenants that 100% of Ozzies that are buying any kind of rental under 100k are dealing with…
so to your point of knocking on doors to collect rent this is how you get maximum payment every other method drops… And when you put a PM in there that expects rent to be delivered your going to have non paying tenants thats a given.
My other personal experinces are the tenants in Detroit man when they get pissed they will just tear the crap out of your home as a parting gift to the Landlord.. they have not one ounce of respect for another mans property period.
In the south, they by and large just leave… they won't pay you and will just do day to day damage, ( most caused by children) but I have not experinced the tenant that malicously trashed a house.. Plenty of non pay and other collection issues but not the hatred between races like you get in the North… Again just my personal perspective and experinces.
In the South its still Mr. Jay Ms. Lori please and thank you… In the north its get the %$ out of here you %$ white man.
JLH
Concur….so so concur.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
