How Tenants can make Property Management Worse

Getting good tenants for any property is a good thing but what else needs to be looked at in the long term profit of a property.

I was with some investors last weekend and they informed me that they had read an article that said federal housing programs got consistent guaranteed rent.....does it?

When you are doing anything with a government entity there are always strings attached. The issue I have with the Federal Housing programs is the paperwork and inspections they require to keep paying a tenant's rent.

Inspections and Rent calculations for a property are almost always done and if something comes up in the inspection it needs to be addressed whether you like it or not.

Property Management will have to take the time to not only be at the inspections but also order them however many times that is needed. If your property does not have a tenant in it ASAP your bleeding money and so is the property manager.

If a federal subsidized tenant is not happy with something that they think should be fixed they can call their government representative and get their lease payments on hold until their issue is corrected. Then you start the whole process over with setting up and being at inspections.

My wife who runs 100+ properties with her company Avalon Group Realty inherited a Section 8 tenant during covid. As you may know the Federal Government said that you could not evict the tenant even if they did not pay their share of rent. If you tried to then you as an investor would not get the Federal part of the rent.

So you can guess what happened: the tenants quit paying their share of the rent.  The other tenants almost all paid their rent except 2 (out of over 150). The only Government paid lease we had just stopped paying rent. Imagine if all our tenants were government paid leases? That is a 20% or more loss on income.

Just FYI it took court and 5 months to get the rent from these tenants. Our other cash paying good credit tenants continue to pay rent and our investors continue getting their income.

Need good income real estate that generates consistent low maintenance tenants? 

 

Call me (Brett) 216-703-5740 Fathom Realty or Whatsapp me

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