Houston Apartment and General Real Estate Update
January 18th, 2008 by KenricOur first 125 complex apartment in Houston is going well. In fact, there really isn’t alot to mention. Our cost of repairing the parking lot came in less than budgeted. Landscaping is being done. Things are on schedule.
The potential 2nd 300+ apartment complex acquisition is coming along also. I hope to have more to reveal in the next 2 weeks.
My PMs in SLC decided that instead of sending us our rent checks by the 15th of the month, that they will now be sent by the 30th of the month. Also, I noticed that my tenants had a late fee a few months back and the PM company took it as their income. I have to call them about back and I have to check my contract. I think they owe me $30!
Cashflow continues to decrease in 2008 on my other rentals as HOAs increase, taxes increase and escrow impounds required by lender go up. That just sucks but I guess its part of the business. I’m just glad that my most of my loan payments are fixed and my Option ARM is actually coming down.
Posted in Apartments, Real Estate | 2 Comments »
Stumble it!
Good luck getting the late fee. My property management company keeps late fees as payment for their effort in collecting the rent. I called a couple other management companies and that seems like standard procedure. I’d like to know if your company is different. No excuse on waiting a month to send you the rent though.
By Shaun on Jan 18, 2008
Congrats on your business!! You should be greatful that your loans are fixed, far better than most but try researching a “simple interest” loan. It’s probably not time to refinance but it’s for future reference. Find a company who charges a flat fee rather than points and have them researched by the BBB.
If tenents are going to be late, you need to let them know that they can be upfront and tell you in person. That way you can have an estimated time of payment. It must be done in person because it not ony shows your firm kindness, it reiterates the late fee should be made out to you. Face to face is also more commitment based. Maybe have a cash policy for late fee? (If 125 units are filled, each tenant might be late 1 month per year, and if you don’t get that once per year late fee that’s over $3700)
Also, consider a firmer authority and more effective writing when your policy changes. If I knew my management office was stern, I would make it my duty to do as they say, when they say it. Apologies for my ramblings.
By Emily on Jan 18, 2008