Landlord Infrastructure

Whether you’re an Active Investor making new acquisitions regularly OR a Landlord who was unable to sell your primary residence before relocating, I’m sure that you never had extravagant visions about the vicissitudes of being a property manager.

 

Emergency-Plumbers-911-877-976-4242It’s called “the Basics”

If you don’t hire a property management company, then YOU are the property management company.

Your Landlord Infrastructure MUST be in place or your exposure can be immense. This may result in a failure in your business operations and much more – these simple Landlording truths are called “the Basics.”

 

Do you have an emergency maintenance policy and preparedness plan?

 

E

mploying the “Ostrich” strategy feels okay but it’s …Head-in-Sand
not sustainable. Business is about MANAGING and not IGNORING risks. Many Landlords believe they are in good shape employing “the Ostrich strategy” until something bad happens and then things move from bad to terrible really quickly. It is the opinion of the author that Landlords employ this strategy because proper guidance and bundled resources for Landlords were scarce or non-existent until now. 

 

F

ive Ways To Enhance Your Landlord Infrastructure …
without hiring a property management company.

  • SETUP ONLINE RENT PAYMENTS. Some tenant are from the old school and they do not prefer this method. There are options for them besides mailing that’s electronic that they trust more. For example, some online rent payment vendors allow tenants to pay their rent in cash at all 7-Elevens and ACE Check cashing locations.
  • HIRE A RECEPTIONIST. Landlords need a buffer. Who wants compulsive calls and text messages for non-emergency situations at the wrong time. Don’t forget about the unpleasant dialogue and tension that comes with it! Detach from the “day to day” tasks that can be outsourced. Don’t think that you have to hire a full-time receptionist. There are creative and cost-effective alternatives to getting your calls fielded.
  • ADOPT & DISTRIBUTE EMERGENCY MAINTENANCE POLICY. You will be surprised at how much smoother things go when everyone is reading from the same sheet of music – receptionist, tenants and landlord.
  • ESTABLISH VENDORS & BACKUP VENDORS FOR EACH REPAIR CATEGORY. It actually sounds harder than it actually is. You may already have preselected or go-to vendors all in your head and it just needs to get transferred to paper.
  • SIGN SERVICE LEVEL AGREEMENTS WITH VENDORS. Remember you’re in business. Those “understandings” that are not in writing between the Landlords and their Vendors (or “their guys”) fly out the window when things get thick.

About the author …

  1. Landlord for 16 years
  2. Real estate broker for 15 yearsFacebook image
  3. Former Vice Chairman of the Section 8’s DCHPA, DC Housing Provider’s Association for 5 years
  4. Founder and Chairman of DCLUM, DC Landlord Unity Movement for 4 years
  5. Managing Partner of Housing & Urban Management dba HUM, a property management company, for 8 years – offering Property Management Plans for $35, $55 and $75 per month
  6. Inventor of PUSSH Scoring criteria which makes fair housing accessible for subsidized housing recipients

Michael T. Kornegay

Cat and Mouse

In DC the tenant’s the cat and the landlord’s the mouse and …

what’s ironic is many landlords believe they are the cats until they have a rude awakening. Learn how one landlord lost over $100,000 in roughly 12 months! 

I

received a call from a distressed Landlord…
not long ago. He told me that one of his tenants at his 4-unit apartment building intentionally damaged his unit and refused to grant access to the Landlord or his vendors so the work could not be completed. He ultimately failed a Section 8 reinspection, his rents were abated meaning he was unable to get paid on that 3 bedroom apartment in NW at $1,800 per month!

You’re probably thinking “Why didn’t he just go in?” He tried. He contacted Section 8 for help. He even tried to get the police involved.

             The reality is that the average Landlord is no match against a professional Tenant.

Section 8 gave an emergency transfer voucher, Catholic Charities assisted with the security deposit and 1st month’s rent and then not only did the other three tenants copy the maneuver under the tutelage of their charismatic example, but all four of them obtained legal counsel and plopped a lawsuit on the landlord all at once.

S

even (7) pearls of wisdom for Landlords in DC:

  1. Set the ground rules with regards to periodic inspections  – review the periodic inspections addendum below with your attorney but remember it’s more entrepreneurial and psychological than anything else
  2. Learn the signs that let you know that you’re dealing with a professional tenant – if you have an inkling of suspicion then you might be right
  3. Understand their options and processes – and YES they have options and processes as well as resources and that’s why they’re professionals
  4. Render their options null before they consider going on the offensive – you have to beat them to 1st base in order to keep your losses to a minimum
  5. Remember that attorneys are better at legal advice and maybe not too awesome with business advice – in many instances Landlords hire attorneys because there was a business error or lack of vigilance that manifested itself
  6. Join the DC Landlord Unity Movement (DCLUM) and be in the company of fellow Landlords-United who are VERY experienced and scientific in their approach to managing tenants, attorneys, government agencies and vendors who will help you to circumvent unnecessary losses – click here to get on DC’s Landlords-United email list
  7. Attend the DCLUM’s quarterly “Lunch with Lawyers” event

 

About the author …

  1. Landlord for 16 years
  2. Real estate broker for 15 yearsFacebook image
  3. Vice chairman of the Section 8’s DC Housing Provider’s Association for 5 years
  4. Founder of DCLUM, DC Landlord Unity Movement and Chairmain for 3 years
  5. Managing Partner of Housing & Urban Management dba HUM, a property management company, for 8 years – offering Property Management Plans for $35, $55 and $75 per month
  6. Inventor of PUSSH Scoring criteria which makes fair housing accessible for subsidized housing recipients
Michael T. Kornegay

 

Landlord Criteria

fines_banner

Little Landlords, LARGE Penalties for Fair Housing Violations

A

few years ago I received a call from a distressed Landlord…
This Landlord was also a real estate broker who had been in the business of buying, selling, investing and property management for well over 20 years. He is clearly among the top 20% of savvy Landlords in the District of Columbia and he was in distress because the attorneys at the DC Office of Human Rights’ Fair Housing were pursuing him aggressively.

He wanted to call in a favor and asked me if I had any personal contacts there. He expressed that the fines the agency purposed to assess were exorbitant.

I

queried the Landlord because this was the 1st that I had …
heard of a small Landlord getting ensnared in fair housing violation cases with exorbitant penalties. It became apparent within minutes that he could have beat the case and avoided the excessive fines had a tenant selection criteria been in place.

           My job is to disabuse Landlords with only a few rentals who believe that they will not be held accountable because they are small.

The DC Office of Human Rights’ Fair Housing program was established in 1999 to eradicate discrimination in housing in the District of Columbia. In addition to enforcing local and federal fair housing laws, it conducts annual education campaigns and outreach events, including the annual Fair Housing Symposium in partnership with District government agencies and community partners. Read more.

About the author …

  1. Landlord for 16 years
  2. Real estate broker for 15 yearsFacebook image
  3. Vice chairman of the Section 8’s DC Housing Provider’s Association for 5 years
  4. Founder of DCLUM, DC Landlord Unity Movement and Chairmain for 3 years
  5. Managing Partner of Housing & Urban Management dba HUM, a property management company, for 8 years – offering Property Management Plans for $35, $55 and $75 per month
  6. Inventor of PUSSH Scoring criteria which makes fair housing accessible for subsidized housing recipients
Michael T. Kornegay