I am glad to see that real estate agents are now seeing the value of selling to investors who want the rental income and tax advantages of owning real estate.

Hiring a professional property manager is a MUST to make this happen.

I received an e-mail from a current resident who wants a roommate and wants to add her to his lease.  I made the point that if she is added to HIS lease, she has equal standing under the lease agreement.  If he still wants to CONTROL the rental townhouse that has been his home for the last year, he should make her an AUTHORIZED OCCUPANT......BIG DIFFERENCE!

Many agents and DIY landlords do not know the difference or HOW the first choice would impact their REAL lessee.

I don't need an additional TENANT to qualify for renting the property, I JUST want to know who is living at the property.  The TENANT wants to do things correctly with me and I appreciate that.


I just need an application form completed by her for my files.  I can change the contact/resident information in my property management software and contact management/GOOGLE contacts. Her residence at the property is determined and controlled by the TENANT.....and I do not get involved with doing an inspection MID-residence and separating resident damages.

Professional property management = PRICELESS!


 

Wallace S. Gibson, CPM * GIBSON MANAGEMENT GROUP, Ltd.

LandlordWhisperer

View our available Charlottesville, Albemarle and Lake Monticello rental homes online with photos and floor plans


"...to be a Virginian, either by Birth, Marriage, Adoption, or even on one's Mother's side, is an Introduction to any State in the Union, a Passport to any Foreign Country, and a Benediction from the Almighty God...." Anonymous

 

 
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20 Comments on Property Managers MAKE it LOOK EASY! Tenant v Authorized Occupant!

DEC
06
2011

I rent a lot of units in Boston and I had never heard the term "Authorised Occupant". Thanks Wallace, you just taught me something new!
6:26am • #1
669,479 Points 70 Featured Posts Outside Blog Attended Rain Camp

Me too Wallace.  I had not heard the term authorized occupant.  Thanks.
6:30am • #2
1,030,262 Points 67 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Occupant is AUTHORIZED by me as the landlord and my TENANT keeps control of the rental * I'm not the REFEREE 
6:32am • #3
990,311 Points 6 Featured Posts Outside Blog Attended Rain Camp Called Shot Master
Priceless...peace of mind for less $$$$ in the end. I learned a tip, too.
6:40am • #4
2 Featured Posts

Wallace, good points to pass along. I have friends who rent, and then add roommates. The new roommates are the ones who seem to cause the issues with the landlord, yet they have no liability in the lease.
7:28am • #5
585,271 Points 2 Featured Posts Outside Blog Attended Rain Camp Called Shot Master
Wallace, You certainly know what you are talking about. Do you just do property management, or do you sell real estate as well? Do you think one can do both well?
7:56am • #6
487,093 Points 12 Featured Posts Outside Blog Called Shot Master

Sadly we have no good property managers in this area that I feel comfortable enough to refer.  I wish someone would come here and show them how it's done - they would be successful.  Thanks for your post.
8:00am • #7
742,339 Points 16 Featured Posts Outside Blog Called Shot Master

Wallace, Thanks, I will pass this along to my brother-in-law. He owns several properties.
8:16am • #8
179,420 Points 9 Featured Posts Outside Blog Called Shot Master

Well written Wallace and I only wish that more folks took the advice that you share. Property Management is NOT just like real estate but is a distinct field with many bear traps waiting to catch the unwary. Hire a professional. 
8:19am • #9
118,607 Points 1 Featured Post

Another hard money lesson to learn is if you add another primary tenant at the top of the lease and not just a permitted occupant it costs additional fees at the court house to evict the primary tenants.  More paperwork for the agent and additional liability in disputes.  That is why I only place one primary tenant on the lease and everyone else additional permitted occupants. 
8:48am • #10
564,585 Points 152 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Excellent, Wallace.  That a simple yet effective way of dealing with add-on tenants.  Thanks for sharing your experience and wisdom!
8:49am • #11
4 Featured Posts

Excellent post.  HIring a professional property manager is the ticket to long term success for investment properties.  Everyone thinks that they can do it themselves, or some agents decide they will take care of the management because they really like this client and both of these usually turn out costing $$ money for the property owner. 
9:26am • #12
861,414 Points 70 Featured Posts Outside Blog Called Shot Master

A specialist is necessary for many categories in life...PM is essential in this day and age and finding out that this is true later rather than sooner can be devastating...good one W
10:11am • #13
284,383 Points 4 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master

Hello Wallace:

 

In all my years of practicing  real estate, I had never heard the term Authorized Occupant, and now thanks to you and Active Rain I have.  Big difference indeed.
12:45pm • #14
382,396 Points 5 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Wallace, 

Great plan.  Sometimes things don't work out and folks don't have an exit strategy in terms of leasing.  

All the best, Michelle
12:55pm • #15
286,550 Points 1 Featured Post Attended Rain Camp

Check your state law, anyone considering this. We used to allow "occupants", but we had a situation where the tenant gave up possession but the occupant did not. According to our state REALTOR® Association's lawyers, we could NOT evict her, the TENANT had to evict her. What a nightmare. No more "occupants"!
1:23pm • #16
103,338 Points

Hi Wallace,

Very informative post. Thanks to you I am now aware of authorized occupants and the importance for a tenant to maintain control of their lease by adding fellow room mates as authorized occupants.
1:49pm • #17
169,524 Points 1 Featured Post

Wallace,
We can count on you to provide excellent information about handling tenants.  We could use a top notch professional in the Florida Keys; wish you were here! 
Maya 
5:07pm • #18
DEC
08
2011
1,057,267 Points 27 Featured Posts Outside Blog Called Shot Master

I can provide testimony that when you own properties, regardless of how many, there's nothing like a professional property manager to oversee things, especially if the properties happen to be in a different state!
7:27pm • #19
DEC
14
2011
1,013,814 Points 4 Featured Posts

So true Wallace and the proof is in the numbers as in profit that we make our clients each and every month.
10:30pm • #20

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Wallace S. Gibson CPM *, LandlordWhisperer (Gibson Management Group, Ltd.) Rainmaker_large

Wallace S. Gibson CPM *

LandlordWhisperer

Charlottesville, VA

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Gibson Management Group, Ltd.

Office Phone: (434) 825-1933

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