3 Things Investors Don't Want to Hear!

By
Managing Real Estate Broker with Full Circle Property Management

Own investment houses? Many times they are good investments, but there are three things investors hear that will make them cringe in their boots:

 

1.  Sir, this furnace has a cracked heat exchanger. And you never hear this mid-week, when its 70 degrees out, and have plenty of time to get estimates, quotes, and line up options. Nope-always on a weekend or 3 AM in freezing weather with tenants having nowhere to go.

 

2.  Sir, I am afraid this rent check you are depositing is written from an account with no money. Great right? Your mortgage payment is due, and may already have written the check that now you will have to scramble to find money to cover your check.

 

3.  Sir, I am from the city and your tenant called about the repairs that are not complete. And of course you intended to make the repairs, but you had to work over at your job and now the tenant is mad and complaining. So in addition to making repairs, you may lose a tenant.

 

So, will a professional property manager help in these situations? YES! A good manager has vendors that they already know who will install furnaces, at a discounted rate they have worked out in advance. Tenants are screened in advance, and while not a perfect policy, it weeds out a lot of the problem tenants. Finally, your manager probably has in-house maintenance team to take care of routine repairs and maintenance issues, keeping tenants happy.

 

So what are you waiting for? Hire a property manager and worry less and make more profit! Wasn't that the original plan?

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Topic:
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Rainmaker
388,094
Peter Mohylsky
BETTER HOMES AND GARDENS REAL ESTATE - Santa Rosa Beach, FL
Your Bucket List Broker along 30a

Investment properties can be problematic.  Two out of three renters can be bad news, historically speaking. 

Feb 07, 2016 07:36 PM #1
Rainmaker
2,346,102
Roger D. Mucci
Shaken...with a Twist 216.633.2092 - Euclid, OH
Lets shake things up at your home today!

Great post.....some investors think they can do it all on their own.  There are also those that shouldn't be investors.  Even when they have a Property Manager, they don't want to spend the money and do things the right way.

Feb 07, 2016 09:33 PM #2
Rainmaker
147,047
Kathryn J.
Rentec Direct - Grants Pass, OR
Rentec Direct

Thanks for sharing.  Sometimes it is best to for the investor to buy properties and let a PM handle it.   It will give them more time to do what they do best and let the PM do what they do best.  Cheers~

Feb 18, 2016 12:08 AM #3
Rainmaker
4,207,052
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Some great examples of potential headaches that all landlords must be ready to deal with, Dennis.  Or, be smarter and hire a professional property manager and not worry.

Feb 19, 2016 08:08 PM #4
Rainmaker
2,126,807
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

Good morning Dennis. All these issues are all fixable, as long as the property was purchased at the right price, but always not always for a new investor. 

Feb 23, 2016 12:54 AM #5
Rainmaker
1,696,489
Patricia Feager
DFW FINE PROPERTIES - Southlake, TX
Selling Homes Changing Lives

This is an amazing post! It should be featured! Too many people think investing in Real Estate and passing the cost of repairs onto tenants, collecting it from their rent is a good idea. You make such valid points to consider. Murphy's Law is always right, if somethings is bound to break, it will happen at the most inopportune, inconvenient time and it will cost you more than if you had known about it and did something about it before the breaking point!

Mar 12, 2016 06:28 AM #6
Ambassador
3,356,851
Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams fox cities - Stevens Point, WI
Forestland Experts! 715-204-9671

Been in all of these situations, we get through them with people and proceedures set up in advance.

Mar 13, 2016 11:48 AM #7
Rainmaker
4,560,852
Roy Kelley
Realty Group Referrals - Gaithersburg, MD
Roy and Dolores Kelley Photographs

This is good reading for prospective real estate investors.

Have a great day and an outstanding weekend!

Apr 21, 2016 10:00 PM #8
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Rainmaker
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Dennis Swartz

ABR, CRB, GRI, MBA...experience counts!
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