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Building Management companies

rico304

New member
I couldn't deal with it anymore! I had to get a management company to take over my apartment buildings. Got a call from the city codes guy telling me to clean up my yard. He told me the tenant that was moving out left there furniture there ........................"Tenant moving out????" Nobody mentioned this to me. Oh yes, the tenant that owes me money!
Anyone out there manage their own apartment buildings???? I have two three units. Managed them for over 2 years. I'm "DUN"!:1062:
 

Doc

Bottoms Up
Staff member
GOLD Site Supporter
I've considered it, but have never found the right buy. Plus I was worried about the maint. and troublesome tenants.
In your profession I would think that would work to your advantage and folks would think twice before not paying.
 

Dargo

Like a bad penny...
GOLD Site Supporter
I did it for my uncle for 4 years making 5% of the rent money. Never again; not even for 20% would I be interested. I don't have the time nor desire to try to type what all crap I had to put up with from not only the tenants, but neighbors, utility companies, HVAC companies, well companies etc. etc. My uncle got me out of ever wanting to own rent houses or apartments.

One tenant had the nerve to call the police on me after he turned his pit bull loose on me and I pulled my Glock on his dog. I didn't even shoot his dog! I think the laser on the dog's face made it stop and just bark at me. The cops even asked me if I would have shot the dog if it didn't stop!! Of course, I told them I certainly would have because there was no way I could have gotten back in my truck before it got me. Believe it or not, even though I had a permit, didn't shoot bla, bla, bla, the cops told me that it would be best to not ever come on the property again. Duh!! It's rental property and I am acting as the landlord!! Never again!!!!!
 

REDDOGTWO

Unemployed Veg. Peddler
SUPER Site Supporter
Had a duplex and a three unit. Managed both my self. It can be a real pain unless you have the right tenants. Had tenants move out without paying the rent and various other calls. No confrontations with them, most were pretty good. The worst call was at midnight on a Saturday night saying that the ceiling had fallen down it the living room. Guess that call could have waited until morning but that are tenants for you.

Now I have commercial rentals and on the shop units it can be almost as big of pain to handle. Late rents, etc, they want to make their problems yours.

Finally went to a real estate agent to handle the rentals, as we are not there in the winter and I have a couple of empty units. That is not all it is cracked up to be either, when signing the contract they went on on how they check out the tenants etc. We stuck around to sign the lease before heading out and a everything was supposed to be taken care of. A week ago, received the utility billing as the tenant did not switch that over to his name. After a call to the utility company to confirm this and found out that he has not paid them for the previous unit that he had rented. After several calls to him, he went in and paid up and got the billing to his name. Now only if I could get this months rent from him, but with mail forwarding it can add up to a week to get the check and he had until the 10th to pay it.
 

California

Charter Member
Site Supporter
Running rentals is hard work just like any job.

That's what gave me a start. I graduated college with a $175 pickup truck and about 3 changes of clothes, no debt, no prospects.

4 years working as a carpenter plus buying and fixing rentals when I was unemployed, got me to where my rentals paid for me to go back to grad school full time on the rental income.

I cashed out the largest place (5 units) as I finished grad school and put the stake from that into the stockmarket, and started a white-collar job. (and sold the other two duplexes over the next few years.) I haven't worried about money since. From that day on, income has always exceeded living expense. Retired at 54.

I'd do it again if I had to, since I know how.

Hope I never have to!
 

rico304

New member
California said:
Running rentals is hard work just like any job.

That's what gave me a start. I graduated college with a $175 pickup truck and about 3 changes of clothes, no debt, no prospects.

4 years working as a carpenter plus buying and fixing rentals when I was unemployed, got me to where my rentals paid for me to go back to grad school full time on the rental income.

I cashed out the largest place (5 units) as I finished grad school and put the stake from that into the stockmarket, and started a white-collar job. (and sold the other two duplexes over the next few years.) I haven't worried about money since. From that day on, income has always exceeded living expense. Retired at 54.

I'd do it again if I had to, since I know how.

Hope I never have to!

I was hoping to have my purchases work out similiar to your story. However.....I seem to be following Dargo's path! haha
If this management company works out it should make a HUGE difference. (I'm hoping)
I bought them at a fairly good time. If they pay for themselves for a few more years I would be very pleased. (They are on the market now, but I'll review that decision later)
Thanks for replys!
 

rico304

New member
just a funny update.

I had to call the company I hired to manage my buildings. I told them I had a little issue I wanted to talk to them about. I confirmed that part of their job was to assist getting people that don't pay and people that skip out on me to pay up. They said it was.

I chuckled as I told them this part.
They guy they sent over to work on my building skipped out of his last months rent before he moved out last summer! hahahaha
I know there is no way for them to know this, but I thought it was pretty funny. They are going to speak to him and have him pay up. hahaha
I thought that was very funny! What are the odds?????:yum:
 

mtntopper

Back On Track
SUPER Site Supporter
Was there an attorney involved? Would an attorney be able to help you in this situation?

Many people that do rent apartments are like a turnip. You can not squeeze blood or money out of a turnip with the best of lawyers. My son whom I call "the slum lord" owns and manages his own 4 plex apartments. It is often a struggle to collect rents, maintain the buildings, and put up with the crap that comes with apartment rentals. He does fairly good by living in the buildings he rents to watch over the properties.

I have done commercial business property rentals and vacant land rentals which have been less stressful, lower maintenance, more profitable. The the renters normally pay their rents on time for commercial properties.

The high end home type property rentals never worked for us as the people that could afford them were the worst to work with. They expected for the higher rent dollars an on site property maintenance, and cleanup person. They can trash a place very quickly if you are not watching closely. We got stung by being 1000 miles away on a high dollar rental home. It took 2 weeks of repair work to put the home back together and get it ready to sell. Property management companies are not always the best to oversee and collect rents as we found out. As long as they are getting their cut of the rents they are happy.
 

Snowcat Operations

Active member
SUPER Site Supporter
I did it for my uncle for 4 years making 5% of the rent money. Never again; not even for 20% would I be interested. I don't have the time nor desire to try to type what all crap I had to put up with from not only the tenants, but neighbors, utility companies, HVAC companies, well companies etc. etc. My uncle got me out of ever wanting to own rent houses or apartments.

One tenant had the nerve to call the police on me after he turned his pit bull loose on me and I pulled my Glock on his dog. I didn't even shoot his dog! I think the laser on the dog's face made it stop and just bark at me. The cops even asked me if I would have shot the dog if it didn't stop!! Of course, I told them I certainly would have because there was no way I could have gotten back in my truck before it got me. Believe it or not, even though I had a permit, didn't shoot bla, bla, bla, the cops told me that it would be best to not ever come on the property again. Duh!! It's rental property and I am acting as the landlord!! Never again!!!!!














Yah I have dealt with that type of attitude myself. BUT from having been a Police Officer I know what I would have done in uniform and I know what they would do. So Ask them this. If someone sicked there DOG on YOU (Mr. Police Officer) what would you have done? Throw it right back at them. Then just wait for them to answer. I know of two cops personally who have shot dogs as they were being attacked. I have heard of many others. This mentality (I am the only one who should carry a gun) is absolutely bullshit! I would of had that tenant arrested for assualt with a deadly weapon. He was using his dog as a weapon.
 

rico304

New member
new update. Management company really didn't do as they promised either. I have a guy in the area that I can trust to take calls from tenants. He checks buildings regularly for me and collects rent in person from many tenants that are generally late payers. We've done a ton of work to the buildings and they are looking good. Only thing the Management company did was hire a lawyer to evict one, and they talked another into leaving. Things are still iffy, but looking up. I hope this works for a while. I'm leaving them on the market, but having a person around the corner is a big weight off my shoulders.
Now just waiting to see if I can start turning a profit again. haha
I'm thinking about putting gas heaters in each unit and shutting down the oil heat that I pay for. I'd lower the rent and let them pick up the gas bill. That way when they stop paying me, Northern utilities can fight with them instead of me having to pay for oil. Any other good thoughts??

Thanks!!
 

Dargo

Like a bad penny...
GOLD Site Supporter
Yeesh, I have an update as well. Since I quit being the fool for my uncle, he finally came back to the States a month or two ago to handle the issue. You see, ever since I quit, the tenent never paid him another dime in rent!!! :eek: Since my uncle lived out of the country, he kept believing that this guy would make up the back rent when he got another job (lost the one he had).

The bottom line was that it cost my uncle almost $500 in court costs to get the jerk thrown out and then he discovered massive damage!! The house was beat to hell. Holes in the wall, numerous items stolen; including a wood stove that weighed 800 pounds. When they stole the wood stove, they simply dragged it across about 30 feet of hard wood flooring, ruining the floor as well. The septic system was intentionally plugged up, the well pump was destroyed, several exterior doors were stolen, and they broke into a detached garage where my uncle had his possessions stored. Needless to say, anything of value there was stolen as well; including an LP collection of over 2000 albums! My uncle came up with a conservative estimate of $35,000 in damage besides 11 months of back rent at $700 per month. They have a court date in a week or so.

I'd say my uncle won't get a dime. First off, the asshole who stole and destroyed everything doesn't have a dime. Secondly, he already told my uncle to go ahead and sue him for a million dollars; he'd just file bankruptcy no matter what if the judge says he owes anything. Can you believe some people?!:toilet:
 

Cowboyjg

Country Club Member
Site Supporter
Like California, I bought ,sold and rented properties. I could tell you horror stories. I'm in the middle of cooking dinner so I can't stay long but in a bit I'll share a doozey with ya. When money became cheap, the good renters bought. That is the bottom line. Tennants require work....period! Sometimes more than you want to do.
 

rico304

New member
My damage wasn't nearly as bad as your uncles Dargo. I had stab marks throughout the hall and hall ceiling, holes in walls, broken doors and windows (that I had just replaced) Good thing the court system and legal system is there to protect renters from the evil landlords. :yum:
By the time we ended up cleaning out what two floors had left:
6 trips to dump (truck and trailer)and approx 40 bags of trash. Let us know how your uncle's deal turns out Dargo. I'll be interested in judgement and what happens after that.
 

Cityboy

Banned
Hey Rico - If you have not checked out this resource for landlords, I highly recommend it:

Mr. Landlord

Anyone considering becoming a landlord should spend several weeks reading every post about issues landlords face. The people there are very helpful and willing to help anyone, newbys to landlording especially. After you have read about 100 posts, then you are ready to decide if being a LL is for you.

I dabble in real estate investing, and right now I only hold one private mortgage for a couple who have faithfully made their payments for 9 years. That's the area of RI that I like because people tend to take care of property they own. Of course, you must screen people carefully, but due dilligence in the beginning prevents disaster in the end.

As far as property management companies go, I would avoid the ones who own rental properties because they will take care of their properties first and worry about yours later. Pick a PMC that exclusively manages properties for other investors.

Good luck with your rental business!
 

rico304

New member
Thanks Cityboy!!! What a great site!!!

You hit the nail on the head with the management company. I also made that mistake with my realtor. He has 2-4 buildings he is selling in the area of mine.
I have two three units. 1 building had the halls and 2 apartments trashed along with the basement before tenants left. The other had only one trashed apartment. I fixed the one apartment first and that building was in pretty nice shape. My realtor showed my trashed building to a potential buyer. Stab marks through the halls, trash everywhere, etc. etc. He knew the condition difference and still showed the bad one. (approx 1/4 mile between buildings)
I was working on the other building when he showed up again to show it. He said he was shocked as to how nice it was and that he had no idea I had done so much to it. He also said that he had only made arrangements to show that "one" again. Went on to say that mine will show better than his now.
Why would he only want to show my trashed building??? BECAUSE HE WANTS HIS TO LOOK GOOD. Boy were you right! Wish I had thought of that earlier. hahaha
Now both show very nicely. He probably won't show them at all. hahaha

Thanks again! I appreciate your help!
 
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