- Joined
- Dec 16, 2008
- Messages
- 1,005
Hi REINation,
I have received many calls and emails on this subject. I thought I would give the low down on the forum so we can all share ideas. This is the breakdown of how we have set up managing our own properties and working with our PM`s.
This is not for everyone, so do your homework. Work with your PM`s and make sure that all the elements of this process are in writing and understood by all parties.
Rent
We collect and deposit the rent. Which means the rent goes into our bank account, either by cheque, direct deposit, visa or the tenant deposits cash. We never collect rent from the tenant direclty. This way you control the money. You don`t have to wait for the rent to come from your PM. When the rent bounces or isn`t paid, we simply notify our PM and they send out the proper notice. You will probably have to provide the PM with a rental payment history on the unit or home should you need to attend a hearing. We were able to get a couple of percentage points off our management fee as well since the PM didn`t have to collect rent.
24 hours coverage for repairs or rent
We have hired a 24 hour call centre out of Barrie, Ontario to take all of our tenant calls. We provide the call centre with a script with what to ask and what to do. The tenants are given direction on what defines an emergency. For example, in the winter, no heat is an emergency. The call centre will ask for their name, address and phone number and the nature of the call. The call centre then contacts my Heat and Vent guy and he goes out to take care of the problem. See below how to set this up with your plumber and HVAC people.
Maintenance and Repairs-Emergency
We deem only the following to be an emergency
Plumbing-toilet back up if they only have one toilet, or flood. All other calls wait till the next business day
No Heat-we deal with the heat issue but A/C is not an emergency. All other calls wait till the next business day
We set up a letter of understanding with our trades. It states what an emergency is, how much money they can spend IE up to $300.00 usually gets you a new toilet, and we if they deem it to be the tenants fault the tenant can either pay the trade directly or I will back charge the tenant for the cost of the repair. Such as a kids toy down the toilet. Usually the tenant decides it is better to pay our trade.
Therefore your HVAC company or plumber is on 24 hour call, not you.
All of this needs to be spelled out in your tenant binder. The call centre only costs us about $200.00 a month but we don`t carry a pager anymore and we have a life. Once and a while I test the system to make sure it works.
This system can take a bit to set up but once you do, it is fabulous.
Another trick is if you have more than one person on your team dealing with tenant issues, have one person be the heavy on rent and the other deal with repairs. This way non-payment of rent doesn`t become a reason things aren`t fixed. We use this method and our tenants are never afraid to call for repairs or maintenance and in Ontario, if you don`t fix things, it can bite you in the butt at the tribunal.
Hope this helps
Carol
I have received many calls and emails on this subject. I thought I would give the low down on the forum so we can all share ideas. This is the breakdown of how we have set up managing our own properties and working with our PM`s.
This is not for everyone, so do your homework. Work with your PM`s and make sure that all the elements of this process are in writing and understood by all parties.
Rent
We collect and deposit the rent. Which means the rent goes into our bank account, either by cheque, direct deposit, visa or the tenant deposits cash. We never collect rent from the tenant direclty. This way you control the money. You don`t have to wait for the rent to come from your PM. When the rent bounces or isn`t paid, we simply notify our PM and they send out the proper notice. You will probably have to provide the PM with a rental payment history on the unit or home should you need to attend a hearing. We were able to get a couple of percentage points off our management fee as well since the PM didn`t have to collect rent.
24 hours coverage for repairs or rent
We have hired a 24 hour call centre out of Barrie, Ontario to take all of our tenant calls. We provide the call centre with a script with what to ask and what to do. The tenants are given direction on what defines an emergency. For example, in the winter, no heat is an emergency. The call centre will ask for their name, address and phone number and the nature of the call. The call centre then contacts my Heat and Vent guy and he goes out to take care of the problem. See below how to set this up with your plumber and HVAC people.
Maintenance and Repairs-Emergency
We deem only the following to be an emergency
Plumbing-toilet back up if they only have one toilet, or flood. All other calls wait till the next business day
No Heat-we deal with the heat issue but A/C is not an emergency. All other calls wait till the next business day
We set up a letter of understanding with our trades. It states what an emergency is, how much money they can spend IE up to $300.00 usually gets you a new toilet, and we if they deem it to be the tenants fault the tenant can either pay the trade directly or I will back charge the tenant for the cost of the repair. Such as a kids toy down the toilet. Usually the tenant decides it is better to pay our trade.
Therefore your HVAC company or plumber is on 24 hour call, not you.
All of this needs to be spelled out in your tenant binder. The call centre only costs us about $200.00 a month but we don`t carry a pager anymore and we have a life. Once and a while I test the system to make sure it works.
This system can take a bit to set up but once you do, it is fabulous.
Another trick is if you have more than one person on your team dealing with tenant issues, have one person be the heavy on rent and the other deal with repairs. This way non-payment of rent doesn`t become a reason things aren`t fixed. We use this method and our tenants are never afraid to call for repairs or maintenance and in Ontario, if you don`t fix things, it can bite you in the butt at the tribunal.
Hope this helps
Carol
