Yaniv Berliner - Post 4 - Management companies: # Entrepreneur this week is right. Lots of talk about companies ...
Yaniv Berliner - Post 4 - Management companies: # Initiated week
Right. There is a lot of talk about management companies, but Cleveland management companies seem to have a particularly bad name and probably quite rightly so.
At the same time, if you fell and didn't succeed first, check what you can do better before running and blaming others.
It is easiest to blame others, but to us it does not promote.
Following yesterday's post and communicating with the management company, my situation was still relatively good. The management company presented me with data on the tenant and gave me the option to choose whether to rent or not.
But how can one choose when you do not understand the material?
The answer is impossible. This is why I opened my and Or's real estate school but about that later.
The management company wants:
- First of all industrial quiet if possible but if there is no quiet and there are not terrible problems it is a livelihood for them
- Tenant turnover - this is a great thing. Every exit needs a little update like paint, carpet cleaning and more priest and priestess things that are sometimes necessary and sometimes not. Plus, a free first month goes into your pocket. how fun!
- Do not mess too much with any property - it is a headache to approach the property every time and show to a new tenant. It is best to rent as soon as possible. Were we successful with a good tenant? magnificent. There is industrial quiet. we did not succeed? Not bad. There is livelihood and work and ringers come in.
If so, we see that we are not necessarily being done on purpose. Simply act according to what is convenient and suitable for the management company.
The stories of people who fall solely because of mismanagement are incredible. Not so much heard about them because the same people do not always give a stage to failures. It's not pleasant.
Let me ignite a dear friend - Omri Ben Yaish: “It doesn't matter where you work and what you buy. As long as you have good management, you will succeed. ”
This is of course true but in order for us to have proper management we must give our luck to help and direct the management company or at least make an impact.
In order for us to make an impact, the property must be in a good area for a good tenant to rent.
Of course there are exceptions like aggressive management in bad areas and of course everything is statistics. You can succeed in bad areas but the chance of falling is greater.
What to do?
Make sure the management company doesn't rent the property to a bad tenant.
The criteria for a good tenant must be defined in advance:
High credit score (above 600),
A salary that is at least 3 times the salary as well
A tenant who has a light conversation with you can see that he can be reasonably communicated with.
These are my criteria in the areas I work in and they work great for me. I am a solid investor focusing on good areas and good tenants.
It is not certain that the management company will listen to you and your "high" requirements at all, but at least they will understand that there is a "slightly crazy" landlord here and that it is not worth messing with because it causes a headache.
A headache is not suitable for the management company, so the chances of a good tenant finding a good tenant rise to avoid having a conflict with the landlord.
So in summary:
First thing is to understand what property we have in hand - location of the property as well as its physical condition and attractiveness (kitchen, bath, etc.).
Then we will understand what kind of tenant you can expect. Once we realize this, we will influence the management company as much as we can in choosing the right tenant for us.
It is very useful to talk to the management company before signing a contract between us and the company and try and see if there is cooperation on the matter. This is far more important than paying 8% or 10% management fees.
Good luck, Yaniv Berliner.
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Yotam Rozenbaum
If you didn't bring in a good tenant, isn't that bad? really?
Beyond the rental loss in the period the tenant does not pay and all the expenses involved in evicting the tenant, what about the potential damages a rubbish tenant will do before his eviction?
It could easily reach tens of thousands of dollars.
Why not just use a management company that has a license to also conduct background checks of candidates to become tenants?
It's cheap and saves lots of money and headaches.
Professional and waiting!