Owning rental property

[sdsurfer]

[quote=paramount][quote=sdsurfer]
I kind of went about my decision backwards in a way. Most people look at the cash flow first then the tenant…I wanted to go after a property that would attract a great tenant & cash flow. After I found the property I searched for a tenant that reminded me of myself 10 years ago because I do not remember any of my landlords or property managers having to chase me around for the rent. I learned the tenant first approach at an investment meeting with Ward Hannigan and it seemed to make sense although he does it a bit differently.

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I think most conscientiousness investors/landlords take the same (or nearly so) approach.

Anywho, as I had mentioned I received an email stating that my PM company had been sold to another company (a different rpm franchise). So I decided to do some digging, primarily because I want to decide who manages my property not someone else.

So the previous owner tells me that there was an assignment clause in the contract and that reassigning my contract was a provision in contract.

So I went back and read the contract and sure enough, the reassignment clause is there in black and white. Well, almost.

The clause stated that the contract could only be reassigned to another qualified PM company. The word ‘qualified’ could mean different things; so I went to the California Department of Real Estate and as far as I can tell, anyone who manages properties for compensation MUST possess a California RE Brokers license.

Since I had the names of the new owners, and I plugged their names in and wouldn’t you know it…neither has a license (of any type).[/quote]
I think this thread might be dead, but noticed this and wanted to respond.

They might be the owners, but someone over there must have a brokers license. I’m thinking you could reach out and ask who the broker of record is.

Coincidentally, I actually work with quite a few management companies in town and nationwide through a company I’m involved in and I think if you wanted to get out you could probably just let them know. Most of the management companies I know do not want to work with an owner that does not want to work with them for some reason clause or no clause. There are a bunch of companies/individuals I know of that grow management companies with the intention of selling it when they get to a certain number of units.

Feel free to PM me and I’ll give you a couple that I feel like do a good job, but you’d still want to do your own due diligence of course and there is the aspect that I do manage my property…maybe I’m just dumb, but so far so good.

[zk]

Thank you very much for the input, Jazzman.
My dad was in a Dixieland jazz band, and your handle always reminds me of another jazz band, “Night Blooming Jazzmen.” Great name for a band. Anyway:
[quote=Jazzman]Phoenix and Las Vegas have seen much bigger corrections. [/quote]
Phoenix and Vegas really did get slammed. Any other markets you think are good for owning rentals?
[quote=Jazzman]One of my properties is in Las Vegas, and was bought through a Redfin Partner (Remax) who had a property management company in their office, so the transition was smooth. Bear in mind vacancy rates, which will be higher, but if you find a good property it will rent. [/quote]
Any ideas on what makes a “good” property in Vegas, one that will rent?
[quote=Jazzman]The returns are acceptable. The only place I found comparable returns was Rialto. I couldn’t find anything in Riverside. Remember, it’s not just returns, but finding an established, reputable property manager. Let that lead your search. Geographical distance is not a problem with modern communications. [/quote]
Are you still using the property manager in Vegas that you mention above? What’s your opinion of them? Do you know any good managers in any markets?

[quote=Jazzman]You need to go out there and vet the agents, and see properties. Go armed with questions which will give you peace of mind on trust issues. I can give you some pointers. Most common surprise is costs are usually higher than you wish for. Anticipate 50% of income paid away on costs. I know of no property managers in SB (anyone…sdr, SDR?), but Realtors may recommend someone. Many advertise on craigslist. [/quote]
Other that a trusted opinion from someone I know, how can I tell if a property manager will be looking out for my best interests?
[quote=Jazzman]The first step is to educate yourself thoroughly on the housing market, and being a landlord. Books, blogs, forums and talking to other investors. Biggerpockets is a starting place. Give yourself six months to do this. Good luck![/quote]
Thanks for the tip on biggerpockets. A lot of good stuff there. I’ve been talking to other investors, listening to piggs, checking out some forums and blogs. Any books or other websites you could recommend would be greatly appreciated, as would anything else you can think of.
I am a beginner at this, and I don’t want to start buying properties uneducated. But I would like to accelerate the non-experience portion of my education as much as possible and then go out there and start actually buying. Thanks again for the tips.

[Diego Mamani]

[quote=zk]Any ideas on what makes a “good” property in Vegas, one that will rent?[/quote]
I’d say something close to schools, or employment centers, or freeways, or all of the above, and especially a property that rents slightly below market so that a smart tenant with good credit and references will find it and will want to stay long-term.

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