Using A Management Company
How do you guys managae your properties? Is anyone using a management company to collect rents? Personally, I hate having to collect rent from my tenants, I was thinking of getting a P.O box but couldn't the tenants claims "I mailed it, it must be late?" What do you do in situations like that.
I'm truly looking for an easier way.
quinn
Hey,
To use a Management Company (MC) or not, is a question that every landlord has asked at one time or another.
Basically it boils down to time or money. A management company costs money (6-8% on average of the monthly rent) but saves you time.
For me, a MC does NOT make sense.
I also think that for most newbies, managing one to ten properties is not a time problem.
As far as using a P.O.Box for the tenant to send rent checks, I think that is the best way.
The check most be in the YOUR hands on the 1st. So they need to mail it two days earlier.
Too costly to use M/C... get the PO box and your rental agreement should have the no exception clause that you rec. rent on or before the first....If it doesnt ...add it.
you can also make your rent due on the 25th of the prior month and late fees start on the 1st... But anyway..I still like to do my look/see and pick up rent when I can , Its a great excuse to check the place out and see if everything is alright.
Thanks I was struggling with the picking rent up issue. I'm going to open a P.O box this week.
Quinn
Hi quinn,
You will definately appreciate having all rents and correspondance from your tenants going to your new P.O. Box.
In the past I have had tenants tell me that they sent it "last week" and it comes in the mail the next day with a 1 day old post mark. We go ahead and make a copy of the envelope and send it to the tenant with a late fee. If they dont agree with it, they can take it up with the post office. They get the drift fast!
Best of Success!
BAMZ
I'm currently at 11 properties (31 units) and am thinking I'm at the end of my part-time management career. My plan is to hire a management company and add to my portfolio as fast as I can. This will give me more time for my family and more time for rehab projects.
Ron
You can also have them do ACH or direct deposit.
You can get set up to take credit card payments, but someone (you or them) has to pay or eat the 2.5% fee of using a CC.
Heavy late fees that are strictly enforced will also help.
The better the credit checks, the fewer problems you will encounter.
I dont rent...but what kind of late fees are involved here?
[addsig]
Other options I've heard of are to use a loan servicing company or have direct deposit set up from their account to yours. That way the money will be deposited automatically and you'll never have to worry about it. when it's not deposited, then you'll know which tenants to go after.