Latest / Own More Doors / #46 Property Management: Hidden Fees, Rent Drops & Insurance Headaches (Tyler Mehl, Belmont Shore Land Co.)

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#46 Property Management: Hidden Fees, Rent Drops & Insurance Headaches (Tyler Mehl, Belmont Shore Land Co.) · Own More Doors

• 0:00
  SPEAKER_00: What's up, everyone?
• 0:01
  SPEAKER_00: It's another Own More Doors podcast.
• 0:03
  SPEAKER_00: I'm Juan Weizar, and I'm honored to have our special guest, Tyler Mell, with uh Belmont Shore Land Co.
• 0:10
  SPEAKER_00: Uh, we've had Tyler on the on the show before.
• 0:13
  SPEAKER_00: Tyler and his father own a property management company here in Long Beach.
• 0:17
  SPEAKER_00: Tyler's a good friend of mine, and we're having him back on.
• 0:21
  SPEAKER_00: There's there's a lot of moving pieces in the world of housing, housing provider, landlord, property manager.
• 0:30
  SPEAKER_00: And Tyler's gonna fill us in with everything that he's seeing on his end.
• 0:33
  SPEAKER_00: Tyler, welcome back.
• 0:35
  SPEAKER_00: Happy to be here.
• 0:36
  SPEAKER_00: So, where should we get started?
• 0:37
  SPEAKER_00: You know, a lot of times, Tyler, like I wanna open this up with like, what are the main pain points right now with the folks that you're managing for?
• 0:45
  SPEAKER_00: Like, what are the major issues that you're tackling?
• 0:48
  SPEAKER_00: What are they worried about?
• 0:49
  SPEAKER_00: Let's start there.
• 0:50
  SPEAKER_01: I mean, the main main issue for the last three to six months has been the insurance, and and I believe we talked about that the last time.
• 0:58
  SPEAKER_01: Uh, it's just a continuation of that where you're having um people being dropped on a regular basis or people being asked to do stuff, and there's every every situation has been different.
• 1:13
  SPEAKER_01: Some of them it's figuring out what was done when.
• 1:16
  SPEAKER_01: Um, a lot of times you can go on the City of Long Beach website and find the permits for older stuff if they haven't been with us that long, because a lot of people have no idea when the last time electrical was upgraded, what type of plumbing they have, when their roof was last repaired.
• 1:33
  SPEAKER_01: And then you have the other side, the insurance companies coming back and saying, We flew a drone over and you've got puddling, or we've had it where they've called out uh spots on the roof that were just different color tile, but we still have to send somebody up, take a look at, take pictures, describe the quality of the roof, then send it off to the insurance company, and everybody's still paying more.
• 1:56
  SPEAKER_01: So that's been the biggest pain point.
• 2:00
  SPEAKER_01: Um, now we're through it.
• 2:01
  SPEAKER_01: It's pretty, there's not a lot of question marks there.
• 2:06
  SPEAKER_01: It's just a process you have to go through as you're getting new insurance.
• 2:10
  SPEAKER_00: Tyler, how many of the folks that you manage for, how many of them have just thrown up their hands and said, I'm done?
• 2:15
  SPEAKER_00: I'm like this this uh increase of 30, 40 percent on my insurance premiums, the fact that they want my roof to be done, uh, you know, they want me to upgrade the electrical.
• 2:26
  SPEAKER_00: I don't know about the plumbing.
• 2:27
  SPEAKER_00: I yeah, I haven't owned it 30.
• 2:29
  SPEAKER_00: You know, when I bought it, I didn't do anything.
• 2:31
  SPEAKER_00: Um, how many people are just throwing up their hands and saying we're done?
• 2:35
  SPEAKER_01: You know, I haven't had one specifically go because insurance, I'm out of this.
• 2:40
  SPEAKER_01: I've had one close.
• 2:42
  SPEAKER_01: Um, it's my longest client.
• 2:44
  SPEAKER_01: She's been with my dad since 1992.
• 2:47
  SPEAKER_01: So um she has two buildings here in the shore, and it's been a nightmare, and her and her property's been somewhat upgraded.
• 2:56
  SPEAKER_01: Both have three out of the four buildings have new roofs, actually, two out of three have new roofs.
• 3:01
  SPEAKER_01: Uh, two have new electrical, one of them has copper.
• 3:07
  SPEAKER_01: Um, and it's still been a nightmare to go through.
• 3:11
  SPEAKER_01: Uh, just and part of the problem is the carriers are overloaded, they're sending stuff to their underwriters, and my guess is their underwriters have never been busier, and so they're not getting quotes till the day before their insurance gets canceled.
• 3:26
  SPEAKER_01: So they're having to lock lock it in last minute transfer funds and get everything taken care of when they expect they've had they've hired us because they don't want to deal with this.
• 3:39
  SPEAKER_01: But insurance isn't something I could really do on my own, it needs to involve the owner, which I I don't want to involve them, I want to tell them what's going on and and solve their problems for them while keeping them informed.
• 3:52
  SPEAKER_01: But this is something they have to actively participate in, and a lot of them aren't prepared for it because they hired me to do this stuff.
• 3:59
  SPEAKER_01: So we've definitely had clients sell, but it's usually a litany of things, you know, the rent control laws, uh insurance, evictions, the general cost of stuff.
• 4:14
  SPEAKER_01: Uh, you sold the two buildings on 2nd Street because she didn't want to have to charge tenants market rate.
• 4:22
  SPEAKER_01: She was happy with the previous situation, which was I make some money, I put some money into the building, and the tenants have good rent.
• 4:32
  SPEAKER_01: Well, you can have all of those except the tenants have fantastically subsidized rent.
• 4:36
  SPEAKER_01: Right.
• 4:37
  SPEAKER_01: You can't have that situation anymore.
• 4:39
  SPEAKER_01: So we rented all the vacancies out at market and we're giving substantial rent raises to most of the people.
• 4:46
  SPEAKER_01: And as you know, even when the building sold, and after raising rents for three, four years, they were still under market by 25%.
• 4:54
  SPEAKER_01: And she didn't feel comfortable with the new arrangement, which is you can make really good money on rents, but all the repairs are going to cost a ton of money.
• 5:04
  SPEAKER_01: You have to do all these, all this work to appease the insurance companies.
• 5:09
  SPEAKER_01: You have no control over who's in your building after they're in.
• 5:13
  SPEAKER_00: Well, you know what's interesting is and I'm glad you point this out.
• 5:17
  SPEAKER_00: You're no one's able to just raise rents for the sake of raising rents.
• 5:21
  SPEAKER_00: It comes at a cost, it comes at a renovation cost.
• 5:23
  SPEAKER_00: Yep.
• 5:24
  SPEAKER_00: I mean, I remodeled one of my own uh properties.
• 5:29
  SPEAKER_00: Kitchen remodel, bathroom remodel, flooring, and I added washer dryer.
• 5:33
  SPEAKER_00: $30,000.
• 5:35
  unknown: Yeah.
• 5:36
  SPEAKER_00: So my motivation for investing$30,000 has to has to has to be offset by okay, I'm gonna be able to charge a higher rent.
• 5:45
  SPEAKER_00: Now I made the property better, it's more desirable.
• 5:47
  SPEAKER_00: I invested in it.
• 5:49
  SPEAKER_00: There should be some type of return with the higher rent.
• 5:54
  SPEAKER_01: Yeah, and there absolutely is and can be, but some of the owners who have owned their buildings for 30 years, they don't want to have to play that game.
• 6:04
  SPEAKER_01: They feel uncomfortable charging$1,900 for a one-bedroom.
• 6:09
  SPEAKER_01: They just don't want to do that.
• 6:11
  SPEAKER_01: Is that the going rate for a one-bedroom now?
• 6:12
  SPEAKER_01: I mean, I mean, in some areas, it there's always a widely varying price.
• 6:17
  SPEAKER_01: I mean, we see it mostly with two bedrooms when one down the street here is gonna rent for$2,400 for a two-bedroom, and the uh a property in the shore with the same footprint, it's a lot nicer, but it rents for$34.75.
• 6:32
  SPEAKER_01: So in a house, a two-bedroom house, you can get, if it's in really good condition, you can get four grand, maybe even more.
• 6:40
  SPEAKER_01: So there's always gonna be a wide price range for any unit based on its condition.
• 6:47
  SPEAKER_01: Um, but the owners feel uncomfortable getting that much money, but they also feel uncomfortable spending that much money.
• 6:54
  SPEAKER_01: So they'd rather go back to the old school, whereas I'm gonna keep the places nice and refreshed, I'm not gonna do a ton of work, and I'm gonna get a moderate rent.
• 7:04
  SPEAKER_01: But with taxes, insurance, everything going up, they can't play that game anymore.
• 7:09
  SPEAKER_00: Yeah.
• 7:10
  SPEAKER_00: A lot of the listings that I'm getting, Tyler, are the major thing now is insurance.
• 7:16
  SPEAKER_00: I mean, and like you said, and and maybe that's kind of the kind of the straw that broke the camel's back, is is all of these things um adding up for them.
• 7:25
  SPEAKER_00: But that, you know, I I think of two listings right now that I have, and probably the major consideration in that one was the our insurance companies dropping us, and yeah, and so then it makes it tough.
• 7:39
  SPEAKER_00: Tyler, let's hop over to uh kind of an interesting thing you had told me a couple weeks ago, and you're saying, hey, you've been seeing the rental market slow down.
• 7:47
  SPEAKER_00: Yeah, talk to us about that because I'm I heard it from you first.
• 7:51
  SPEAKER_00: Um, I saw it with one of my own vacancies, and it it did take longer, and I had it lower the rent.
• 7:58
  SPEAKER_00: Um, and I'm hearing it from other owners.
• 8:00
  SPEAKER_00: What is it you're seeing?
• 8:02
  SPEAKER_01: So, you know, it's hard to sometimes it's hard to see it.
• 8:06
  SPEAKER_01: We we have 260 units in Long Beach.
• 8:10
  SPEAKER_01: Um, they're all different.
• 8:12
  SPEAKER_01: So, and with the lack of vacancies, um, it can be some sometimes you're jumping into a one bedroom and you haven't rented a one bedroom out in two, three months.
• 8:22
  SPEAKER_01: So you don't have you don't see a continuation of the rents going in a certain direction because you haven't touched one bedrooms in a while.
• 8:30
  SPEAKER_01: So, what what I use is I look at specific buildings, um, what they rented out for a year ago and what they're renting out for today.
• 8:39
  SPEAKER_01: So it's not a we have two different price points, but I can tell one's lower than the other.
• 8:45
  SPEAKER_01: Um, we saw this specifically with two buildings we took over on Broadway, closer to downtown.
• 8:51
  SPEAKER_01: Um, we took them over and they all had high rents.
• 8:54
  SPEAKER_01: One bedrooms, anywhere from 2100,500.
• 8:58
  SPEAKER_01: Some with parking, some without, um, two different buildings.
• 9:02
  SPEAKER_01: And the one building we got fully occupied.
• 9:06
  SPEAKER_01: And the other building we got, they had just filled the vacancy.
• 9:09
  SPEAKER_01: And the owner had said I was upset with the previous management company because all my other units rent out for 2100, they only got 1875 for this one.
• 9:18
  SPEAKER_01: Well, two months later we get a vacancy in the other building, and we end up renting it out for uh 2075 with a parking space, so 150 less than any other unit in the building.
• 9:34
  SPEAKER_01: So, what that tells me is when all those units were rented out, prices were higher.
• 9:39
  SPEAKER_01: And what we noticed in the last few years is inventory has it has a lot to do with it, and that's why I think two bedrooms are always more affordable because there's always two bedrooms available.
• 9:50
  SPEAKER_00: Do you that um I want you to talk about that as well?
• 9:54
  SPEAKER_00: Um, a lot of times, Tyler, people will say different things to me.
• 9:57
  SPEAKER_00: They'll say, I don't want a building with all studios.
• 10:00
  SPEAKER_00: They'll say, I don't want a building with all two bedrooms.
• 10:03
  SPEAKER_00: No, they'll say, I don't want a building with studios, I don't want a building with one bedrooms.
• 10:07
  SPEAKER_00: Um, sometimes they'll say sometimes we sell buildings and someone before prior owners combined units.
• 10:17
  SPEAKER_00: And so sometimes we'll sell a building and then there's like large four-bedroom, three-bath, and then investors like depending on the investor, like there's no perfect setup because sometimes they'll say those units are too big.
• 10:28
  SPEAKER_00: Who's gonna rent it?
• 10:29
  SPEAKER_00: And everyone, and all these are just uh narratives that someone has made themselves believe.
• 10:35
  SPEAKER_00: Um, because I because then I have other clients who are who really like studios because um there's more turnover, which means they don't have to do the substantial renovation clause and all that kind of stuff, and then from a price per square foot, they get to charge more, which makes sense to me.
• 10:51
  SPEAKER_00: So do we have more two bedrooms?
• 10:55
  SPEAKER_00: And if someone is buying, like because I I I've heard you say before, hey, Juan, the one bedrooms actually make more than the two bedrooms in some cases.
• 11:04
  SPEAKER_00: Oh they rent quicker.
• 11:05
  SPEAKER_01: They they definitely rent quicker, they rent far more price per square foot.
• 11:10
  SPEAKER_01: Um, the the only difference I would say is if you had a high-end two-bedroom, those move for for really good money.
• 11:19
  SPEAKER_01: Where I feel that even a high-end one bedroom has a ceiling um that you you hit a lot sooner than the two bedrooms.
• 11:29
  SPEAKER_00: Well, when someone's listening and they're gonna say, everyone wants a two-bedroom over a one-bedroom, why is it you're seeing something else?
• 11:37
  SPEAKER_01: Like, what is it that's driving we see more couples in one bedrooms now than we ever did before?
• 11:43
  SPEAKER_01: Um, and that might be a byproduct of the rents going up, but now two people can afford a one-bedroom.
• 11:49
  SPEAKER_01: And and um, if you're if you're looking at costs, do you specifically need a second bedroom?
• 11:57
  SPEAKER_01: A lot of people don't.
• 11:59
  SPEAKER_01: Um, there's a lot of people out there who don't need the extra bedroom, and they're willing to sacrifice for a really nice one-bedroom place to live comfortably, live high on the hog, have a beautiful, beautiful home, and a two-bedroom's really fixed up is gonna cost you a lot more.
• 12:16
  SPEAKER_01: So they're getting more bang for their buck with the one bedroom in terms of quality.
• 12:20
  SPEAKER_01: Yeah, um, and if they want quality in the two-bedroom, they're gonna pay for it.
• 12:24
  SPEAKER_00: Got it.
• 12:25
  SPEAKER_01: So my my feeling is they rent quicker, there's more people looking for a one-bedroom.
• 12:31
  SPEAKER_00: Um, and would you say there's less inventory?
• 12:34
  SPEAKER_00: Are are there one uh which is kind of hard.
• 12:37
  SPEAKER_00: I mean, we have like 7,500 apartment buildings on Long Beach, okay.
• 12:40
  SPEAKER_00: But I've I've never broken it down on okay, how many one bedrooms, how many two bedrooms?
• 12:44
  SPEAKER_00: Like, is there more inventory with the two?
• 12:46
  SPEAKER_01: I would I would say in my portfolio, I have more one-bedroom apartments, more studio apartments than I do two bedroom apartments.
• 12:53
  SPEAKER_01: Um, in terms of Long Beach as a whole, I'm not sure.
• 12:57
  SPEAKER_01: But what's available?
• 12:59
  SPEAKER_01: Usually there's always two bedrooms available.
• 13:02
  SPEAKER_01: The question mark is, and I think to do with the fluctuating prices in the one-bedroom and studio market, is sometimes there doesn't seem to be many available.
• 13:11
  SPEAKER_01: And with the pricing issues people have had, um, which has generally been people have overpriced their units, they sit longer.
• 13:19
  SPEAKER_01: So you come in with a one bedroom that's appropriately priced, it's gonna move quickly.
• 13:26
  SPEAKER_00: You know, we we there was we just came out of a period where you know, we do have a lot of older housing stock in Long Beach.
• 13:34
  SPEAKER_00: You have developers who come in and renovate the units, new windows, new roofs.
• 13:39
  SPEAKER_00: I mean, things that the buildings need.
• 13:41
  SPEAKER_00: I mean, these are you know 50, 60, 70 year old buildings, they need these types of investments.
• 13:45
  SPEAKER_00: We we do applaud the efforts.
• 13:48
  SPEAKER_00: Um and and sometimes, you know, when they now have that new vacant unit, they've spent a lot of money in it, they start setting new rents.
• 13:55
  SPEAKER_00: Yeah.
• 13:57
  SPEAKER_00: The last 24 months, 18 months, we've you know, values have come down with the larger buildings, and the new investors coming in, what ends up happening is they don't need to get the same high rents that the last person got.
• 14:13
  SPEAKER_00: So, I mean, they would love to have the rents, but if they don't have to reach those numbers, and because of that, then you have this trickle-down effect where uh they start dropping the rents a little bit.
• 14:27
  SPEAKER_00: And I think that's why you're seeing an impact.
• 14:29
  SPEAKER_00: That's why um people are kind of forced to, including myself, to to lower rents because now you kind of see your competition is lowering the rents.
• 14:37
  SPEAKER_00: Would you say that's what you're you're experiencing?
• 14:40
  SPEAKER_01: Yeah, I mean I've noticed that on on both the ones and the twos is that uh they're not flying out the door in the same way they were, which tells me there's more inventory because the units aren't any different than they were a year and a half ago.
• 14:59
  SPEAKER_00: So there's you would say more inventory, or would you say there's less people looking?
• 15:05
  SPEAKER_01: Uh, my feeling is there's more inventory.
• 15:09
  SPEAKER_01: Um, and it's strange because in our portfolio, we don't have many people moving.
• 15:14
  SPEAKER_01: So I think that's also because you know, if you're gonna make the move, you've been in a property for five years, rents are lower than what the market rate is.
• 15:24
  SPEAKER_01: So you're making a big jump, even if you're doing a lateral move.
• 15:28
  SPEAKER_01: So nobody's gonna there's no inner community movement unless you have to get more space or there's something wrong with your property.
• 15:35
  SPEAKER_01: So what I find is that um, yeah, there seems to be a fluctuating amount of property available, and that's causing the fluctuating prices.
• 15:46
  SPEAKER_01: It's causing people to misprice their places because six months ago they were renting out for we're seeing this in the houses.
• 15:53
  SPEAKER_01: If you look online on what's available, a lot of it is sitting, and it's priced really high because everybody's seen the single family homes, single-family homes, everybody's seen the high prices.
• 16:05
  SPEAKER_01: And you think uh we had a really high-end home in Belmont Heights come available, and I was I was shocked we missed the the price by about five six hundred when we priced it.
• 16:18
  SPEAKER_01: So, what was the price you came in at?
• 16:20
  SPEAKER_01: We we came in at sixty-five large four four-bedroom, two-bath, beautiful inside with a pool in the heart of Belmont Heights, um, and almost nothing.
• 16:32
  SPEAKER_01: And we dropped it twice and got it rented at$59.50.
• 16:36
  SPEAKER_01: But you look at the the other stuff listed in that price range, which is not a lot, it's a special property.
• 16:44
  SPEAKER_01: Well, I mean, it's a special neighborhood too.
• 16:46
  SPEAKER_01: It is, but you see properties on there and and they're not even they shouldn't even be in the same ballpark yet.
• 16:54
  SPEAKER_01: People are still pricing them out at that rate.
• 16:56
  SPEAKER_00: Well, they're gonna start learning you know, listen, if you including myself, I mean, I'm not, you know, I do advise our clients, but we sat with this vacancy, too bad, too bath, for two months.
• 17:09
  SPEAKER_00: Yeah, trying to get the same rent we got last time.
• 17:12
  SPEAKER_00: And then we lot we dropped it just by$100.
• 17:14
  SPEAKER_00: It wasn't a lot.
• 17:15
  SPEAKER_00: Yeah.
• 17:16
  SPEAKER_00: Then it got rented.
• 17:17
  SPEAKER_00: So we we learned the hard way.
• 17:18
  SPEAKER_00: We lost two months.
• 17:19
  SPEAKER_00: That's over six thousand dollars.
• 17:21
  SPEAKER_01: I mean, the vacancy period, obviously, the nicer the unit, the less people you have looking.
• 17:27
  SPEAKER_01: Um, the nicer units are going to take longer to rent, the more expensive units are gonna take longer to rent because they're usually priced appropriately.
• 17:34
  SPEAKER_01: So you have less people looking for that specific unit who can afford that specific unit.
• 17:40
  SPEAKER_01: But what you should, I mean, if your property is priced right, no matter what type of property it is, it should move in two weeks.
• 17:48
  SPEAKER_01: You should have a good application on your desk within two weeks if you've hit the right price.
• 17:54
  SPEAKER_01: We don't all hit the right price.
• 17:56
  SPEAKER_01: So sometimes it takes you a while to figure that out because sometimes you get close, which means you're gonna get a lot of views on the property and a lot of people who want to see it, but no applications.
• 18:06
  SPEAKER_01: So that's usually takes a small price drop to get it rented or negotiating with somebody who's a who wants to apply, but not at that rate.
• 18:14
  SPEAKER_00: Tyler, where do you recommend people go to advertise their rentals?
• 18:18
  SPEAKER_01: Zillow.
• 18:19
  SPEAKER_01: I mean, that's where we've had the the best success.
• 18:24
  SPEAKER_01: Um, if you're just managing yourself, they have they have systems there that allow people to apply to your house.
• 18:32
  SPEAKER_01: Uh, we don't always use those systems because we have our our own um structure to that, but it's great for a mom and pop who owns a building or a house and wants to rent it out because they do have some of the services there that you would need to be a real estate professional to have access to, or somebody who's been doing it a long time because you do want to run credit.
• 18:55
  SPEAKER_01: And if you just have one house, you're not a part of an apartment association, you might not have the ability or know how to run credit.
• 19:03
  SPEAKER_00: Zilla provides all that, so yeah, you got to pay a little bit, but I think it's worth it.
• 19:07
  SPEAKER_00: I tell people, you know, when they just have a condo and something small and and you know they're buying a house and they're gonna keep the condo, which I recommend they do.
• 19:15
  SPEAKER_00: Um, I I tell them the same thing.
• 19:18
  SPEAKER_00: And I don't, you know, they're they're like, what about Craigslist?
• 19:21
  SPEAKER_00: I I said, I don't I said, no.
• 19:23
  SPEAKER_00: No, there is a there was a time and a place for Craigslist.
• 19:26
  SPEAKER_01: Yeah, we used Craigslist when it was we had Craigslist and the Grunyon Gazette.
• 19:31
  SPEAKER_01: So we'd advertise and and you'd have to pay to advertise in the paper.
• 19:35
  SPEAKER_01: And that was fine.
• 19:36
  SPEAKER_01: It was$125.92 to advertise in the Grunyon Gazette.
• 19:40
  SPEAKER_01: Just get a small, you know, five-line blurb, and that's how I rented out properties for the first six, seven years of of doing this.
• 19:49
  SPEAKER_01: And now Zillow was going to start charging, and they pulled that away.
• 19:55
  SPEAKER_01: So they did that maybe less than a year.
• 19:57
  SPEAKER_01: They were charging$9.99 a week.
• 19:59
  SPEAKER_00: Yeah, which which I I recommend.
• 20:03
  SPEAKER_00: Are they still doing that?
• 20:04
  SPEAKER_00: No, no, okay.
• 20:06
  SPEAKER_00: Okay, yeah, because they that was a fast way to get applicants.
• 20:11
  SPEAKER_00: And I think it's better to go that route.
• 20:13
  SPEAKER_00: Like uh, you know, before Zillow, you would show it to somebody, then you would have to send them an application or hand them one, or they had to pick one up, and then oh, let me drop off a check.
• 20:24
  SPEAKER_00: And now it just gets handled through Zillow.
• 20:26
  SPEAKER_00: You you get the breakdown, you get the application.
• 20:28
  SPEAKER_00: I think it's making it much easier.
• 20:31
  SPEAKER_01: Yeah, and if you own one or two or a few properties and don't have, you know, you're only, especially if you have one unit, you probably have to go find your application every time you re-rent it because this isn't a process you go through even every two, three years.
• 20:46
  SPEAKER_01: So that's where Zillow would provide great resources to somebody who doesn't have access to everything else.
• 20:52
  SPEAKER_01: We don't actually let people apply via Zillow.
• 20:55
  SPEAKER_00: Okay.
• 20:56
  SPEAKER_01: Because half the people apply before they've even seen the property.
• 20:59
  SPEAKER_01: I I don't like that.
• 21:00
  SPEAKER_01: I don't want to deal with somebody who hasn't seen the property because they could like it, they could hate it.
• 21:06
  SPEAKER_00: It's I don't know.
• 21:09
  SPEAKER_00: I agree.
• 21:09
  SPEAKER_00: So I think if someone hasn't done this before and they're like, wow, these people really want it, they don't care what it looks like.
• 21:15
  SPEAKER_00: That's not what that means.
• 21:16
  SPEAKER_01: Oh, and you don't want those people.
• 21:18
  SPEAKER_01: Correct.
• 21:19
  SPEAKER_01: Yeah, because sometimes they won't care, and that's fine.
• 21:23
  SPEAKER_01: And they get it, and they all they need was the place.
• 21:25
  SPEAKER_01: Other people go, Oh, this doesn't look like what it looked like in the pictures, or and now you have an unhappy tenant who you've signed a lease with who doesn't want to be there, which is not a good scenario.
• 21:37
  SPEAKER_01: So I never take applications via Zillow because that I lose some control in the process, and people go, Oh, I applied.
• 21:44
  SPEAKER_01: And I go, This is the first time we're speaking, you know.
• 21:48
  SPEAKER_01: Right.
• 21:49
  SPEAKER_01: I don't have you seen the property, I need to get you over there to review it first.
• 21:52
  SPEAKER_01: I'm not gonna look at your application because that's a waste of my time.
• 21:56
  SPEAKER_00: Right.
• 21:57
  SPEAKER_01: So Zillow's great.
• 22:00
  SPEAKER_01: Um, we use it for just the advertising.
• 22:03
  SPEAKER_01: Once they've seen the property, they have to get a hold of us, then we start the application process.
• 22:08
  SPEAKER_00: A lot of our clients who self-manage Tyler, they you know, they go old school, you know, they grew up they get the old for rent sign, yeah.
• 22:15
  SPEAKER_00: You know, with the with the phone number on it, they just put it outside.
• 22:18
  SPEAKER_00: Do you guys still do that?
• 22:19
  SPEAKER_00: Is that uh something you recommend?
• 22:21
  SPEAKER_01: You know, uh I recommend it.
• 22:23
  SPEAKER_01: It it has more value depending on where your property is located.
• 22:26
  SPEAKER_01: If it's a street that people are coming down all the time, great.
• 22:30
  SPEAKER_01: Sign is great.
• 22:31
  SPEAKER_01: If you're at the end of a cold-de-sac, probably not.
• 22:34
  SPEAKER_01: You're alerting your five neighbors that you're renting your house or apartment, and you're probably not going to get many views.
• 22:41
  SPEAKER_01: Now, because everything has moved online, um, that's where we've moved.
• 22:47
  SPEAKER_01: And it almost seems like an unnecessary step to go put a sign out front.
• 22:51
  SPEAKER_00: Okay.
• 22:52
  SPEAKER_00: Just because you're getting the traffic you need.
• 22:54
  SPEAKER_01: We're getting what we need.
• 22:55
  SPEAKER_01: Um, if sometimes you have a house in a really nice neighborhood, and it's fine to put a sign up there because the neighbors have friends and everybody wants to be in that neighborhood.
• 23:07
  SPEAKER_01: Belmont Heights is a great place, even the Los Altos area, you know, it's a great neighborhood.
• 23:13
  SPEAKER_01: You probably want somebody who's gonna fit into the neighborhood there.
• 23:17
  SPEAKER_01: Uh, so people people are gonna tell their friends about it.
• 23:21
  SPEAKER_01: Hey, you I want to be in your neighborhood.
• 23:22
  SPEAKER_01: So yeah, it it can have value.
• 23:25
  SPEAKER_01: There is a there is a worry about squatters.
• 23:29
  SPEAKER_02: Yeah.
• 23:30
  SPEAKER_01: And you and I have talked about this, which is we know people it's happened to, and it's terrible when it happens.
• 23:36
  SPEAKER_01: Just doesn't happen that often.
• 23:39
  SPEAKER_01: But it's a big enough worry to have scared a lot of my clients.
• 23:42
  SPEAKER_01: Where it's like the eviction.
• 23:44
  SPEAKER_01: Everybody who calls and asks about my services asks me what we do with evictions.
• 23:49
  SPEAKER_01: And I tell them, you're not gonna have one.
• 23:52
  SPEAKER_01: We don't have evictions, and that's not entirely true, but it's very rare.
• 23:58
  SPEAKER_01: So if that is top of mind, um that's uh a fallacy, it's a logical fallacy because again, one client a year has an eviction through us out of a hundred.
• 24:12
  SPEAKER_01: So most of my clients will never have an eviction, they'll never have a squatter.
• 24:16
  SPEAKER_00: Um well, that's because you're overseeing the property, you're hand selecting the tenant.
• 24:22
  SPEAKER_00: You know, I would I would say someone who doesn't know what they're doing would would probably have different figures than what you're giving me.
• 24:30
  SPEAKER_01: Yeah, and I I talked to uh uh a friend of mine who found out what I did, and she goes, My mom's having trouble in New York.
• 24:40
  SPEAKER_01: She rented to this lady because she felt bad for her, and I was like, Okay, that's your first mistake.
• 24:47
  SPEAKER_01: You should never, you know, it is it's not a charity.
• 24:51
  unknown: Right.
• 24:51
  SPEAKER_01: And with all the rights that tenants have, you know, you're gonna cost yourself money by putting somebody in the property who's not gonna treat it well and pay you on time.
• 25:00
  SPEAKER_01: Because it's not a charity, and if it is, just give your house away, give it to somebody who can use it, but you know, thinking that it's an investment and a charity, it's right, it's not gonna work out for you.
• 25:11
  SPEAKER_00: Tyler, when when is it time that someone when does someone know that it's time for a for a professional property manager?
• 25:22
  SPEAKER_01: Um I mean you you a lot of times don't find out you need one until it's too late.
• 25:29
  SPEAKER_01: You've already made the mistake.
• 25:32
  SPEAKER_01: So we do get I would say 30 to 40 percent of our properties, they're coming up to us with medium to large problems.
• 25:41
  SPEAKER_01: And sometimes the problem is the current management company.
• 25:45
  SPEAKER_01: Sometimes it's they've rented to jerks, sometimes it's buildings fallen into disrepair.
• 25:51
  SPEAKER_01: Um managing a single property or a single building, a certain amount of units, if it's causing you large amounts of stress, and you're not willing to go to school and learn what you need to be doing to manage the property correctly, because the property should not be causing you stress.
• 26:11
  SPEAKER_01: We have a hundred buildings, they don't cause me stress because we're doing all the right things, we're prepared.
• 26:18
  SPEAKER_01: Yes, things pop up that are difficult to deal with and huge problems to solve, but we have a process for that.
• 26:26
  SPEAKER_01: And yes, individual problems can cause you stress, but if you're constantly finding yourself worried about the property, keeping you up at night, not knowing what to do next, unless you really want an education on it and want to go learn about it and are willing to do so and take that time, fine.
• 26:42
  SPEAKER_01: You're the best person to manage the property, you can provide more care to that property than any property manager can.
• 26:49
  SPEAKER_01: And all the I mean, they could provide the care, most of them don't.
• 26:52
  SPEAKER_01: Most of them don't, and most of them run willing to learn how to or feel that they don't know where to start.
• 26:59
  SPEAKER_01: That's the time you should when you feel out of control with the property, you should give us a call.
• 27:04
  SPEAKER_01: Or if you feel like I don't want to deal with this, that's usually most people they know immediately, I don't want to deal with this.
• 27:11
  SPEAKER_01: I bought this property, I know I want a property manager, but the people who've been doing it themselves are constantly stressed out by a property.
• 27:18
  SPEAKER_01: No, that should not be the case, right?
• 27:21
  SPEAKER_00: If you could deal with all this, then you're the right person.
• 27:24
  SPEAKER_00: I I'm not to the point where I don't want to manage my units.
• 27:28
  SPEAKER_00: You know, I just I don't have time for it.
• 27:30
  SPEAKER_00: I'm running a business, you know, we're we're here doing interviews, and I just can't do it anymore.
• 27:35
  SPEAKER_00: Um, a lot of times, Tyler, people will call and say, uh, what's the cost?
• 27:39
  SPEAKER_00: So can you just give us kind of like a range for what they're gonna see?
• 27:43
  SPEAKER_00: First with a single family home, maybe next with a fourplex, and like, does it get cheaper if it's 10 units?
• 27:48
  SPEAKER_00: Just kind of walk us through either what both what you charge, what the market charges, and some of the sneaky fees where they try to get you.
• 27:56
  SPEAKER_01: Yeah, so we're very simple and we're almost unique in this.
• 28:01
  SPEAKER_01: The other thing is I don't spend a lot of time thinking or caring what other property management companies are charging because everybody does it differently.
• 28:10
  SPEAKER_01: So without knowing the finances of the building, I can't truly determine the cost because a 5.9% rate is a pretty good rate.
• 28:20
  SPEAKER_01: And a lot of companies offer, I've heard four, five, six, those are great rates.
• 28:26
  SPEAKER_01: Um, there are usually other revenue sources there, and that can make it difficult to ascertain the true cost of management because if you have a leaseup fee, uh the unit's vacant, you lease it up.
• 28:41
  SPEAKER_01: Sometimes I've seen half a month's rent, sometimes I've seen a thousand dollars, seven fifty, whatever it is.
• 28:47
  SPEAKER_01: That is now cost that should be spread over the lifetime of the lease.
• 28:51
  SPEAKER_01: And that can change radically if you're earning if they're staying for a year versus five years.
• 28:57
  SPEAKER_01: Because that cost$1,000 spread over the year is now costing you$80 a month.
• 29:02
  SPEAKER_01: Um, versus five years, it's cost$16 a month.
• 29:07
  SPEAKER_01: So prices can radically change.
• 29:10
  SPEAKER_01: Um, other things is they will charge, especially if they have an in-house repair company, and they have to do this, they have to maintain and make money off this.
• 29:20
  SPEAKER_01: It's not a charity, but you're paying a premium for them to run their repair network.
• 29:26
  SPEAKER_01: Um the newest thing we've seen, um which I think is wild, I don't know, I don't think it's unethical, but it's diverting more cost to the tenants.
• 29:40
  SPEAKER_01: And um, so what I've seen is we've taken over a few units where the owners are unaware of charges going to their tenants that are being paid directly to the management company.
• 29:52
  SPEAKER_01: And so we we just spoke with a tenant recently, took over the building after the owner found out that the tenant was paying an extra$120 in fees directly to the management company.
• 30:04
  SPEAKER_01: So they're paying$80 a month for their dog.
• 30:07
  SPEAKER_01: And the owner didn't know that.
• 30:09
  SPEAKER_01: Owner didn't know that.
• 30:11
  SPEAKER_01: Okay, yeah.
• 30:11
  SPEAKER_01: So that uh that seems unethical.
• 30:14
  SPEAKER_01: And they have a$40 technology fee.
• 30:16
  SPEAKER_01: We've seen this with multiple companies, they use property management software and they say as a convenience to the tenant, you know, if you want to use this, you got to pay us.
• 30:25
  SPEAKER_01: I've seen it as low as$11,$40.
• 30:28
  SPEAKER_01: Um we're seeing more and more of these extra fees.
• 30:32
  SPEAKER_01: And the reason I don't think some people have a pro don't have a problem with it is because the owners are going, oh, that fee's going to somebody else.
• 30:41
  SPEAKER_01: That's not coming.
• 30:42
  SPEAKER_01: I'm making more money because I'm only paying six six percent for this, and I'm getting the rest.
• 30:47
  SPEAKER_01: Yeah, they're making a little bit off the top, but I mean, I think if the owner is aware, then that's one thing.
• 30:54
  SPEAKER_00: But if the property manager is uh charging more and not aware, then yeah, I could see how that would be a problem.
• 30:59
  SPEAKER_01: Well, a lot of them seem to be unaware.
• 31:02
  SPEAKER_01: So I've started to audit, you know, people call me and ask me uh to take over their property or ask about my services.
• 31:10
  SPEAKER_01: Say they're with another management company.
• 31:12
  SPEAKER_01: I always ask them specifically, what are your problems?
• 31:15
  SPEAKER_01: Because I want to make sure there's no expectations of their management company that I can't fulfill either, because I'm not going to promise to do stuff on the property that I can't do.
• 31:24
  SPEAKER_01: And it could be the case where that client is the problem.
• 31:28
  SPEAKER_01: They have expectations and they haven't been told their expectations are ridiculous.
• 31:33
  SPEAKER_01: So I want to read the contracts or know the specific problems.
• 31:37
  SPEAKER_01: Um, so far I haven't seen a contract that says we're charging, here's a list of the fees we charge the tenant.
• 31:44
  SPEAKER_01: So I think they're unaware of that.
• 31:46
  SPEAKER_01: And the problem comes in when, let's say you have a house that's renting out for$3,000, and the owner hires a management company thinking, I'm only paying 6%.
• 31:57
  SPEAKER_01: The management company has an extra fee of let's say 100 to 150.
• 32:02
  SPEAKER_01: 20% of the people who are looking at that house, their max is going to be that rent.
• 32:09
  SPEAKER_01: And so you're going to lose 20% of those people as potential tenants.
• 32:14
  SPEAKER_01: Because of these add-ons.
• 32:16
  SPEAKER_01: Because of these add-ons.
• 32:17
  SPEAKER_01: And what's also going to happen is it's going to waste time in the process.
• 32:20
  SPEAKER_01: So they have a great application coming in and they come in, sit down, discuss, and then halfway through the process, they realize there's these extra fees that they can't afford.
• 32:29
  SPEAKER_01: They're out.
• 32:30
  SPEAKER_01: Now you've wasted time with those people.
• 32:32
  SPEAKER_01: So these vacancies sit longer.
• 32:34
  SPEAKER_01: Um, and even though these fees are not being charged to the owner and they think they're getting a great deal, you you and I know one of the biggest losses in in rent is the vacancy.
• 32:47
  SPEAKER_01: And a week in that property is$750.
• 32:51
  SPEAKER_01: And if you're looking at their management fee of 6% on a$3,000 home, they've lost$750 and their management fee is only$180.
• 33:03
  SPEAKER_01: So they've just paid a lot more because an extra week is lost trying to rent that property.
• 33:10
  SPEAKER_01: So it's hard for me to say, you know, here's the going rate because all of these variables add costs in different ways that are can be spread out over a certain amount of time.
• 33:21
  SPEAKER_00: So and I just want to point something out.
• 33:23
  SPEAKER_00: You know, one thing that Tyler has done to kind of separate himself from the competition is he has a flat fee.
• 33:29
  SPEAKER_01: Flat fee with a with a minimum.
• 33:31
  SPEAKER_01: Yeah.
• 33:31
  SPEAKER_01: Um, so what we do is we charge 8% to multifamily um and 10% on houses.
• 33:39
  SPEAKER_00: But then there's no lease up fee.
• 33:41
  SPEAKER_01: No lease up fee.
• 33:43
  SPEAKER_01: We do have a minimum when it's vacant.
• 33:44
  SPEAKER_00: No, I get it, but you don't have a convenience fee.
• 33:46
  SPEAKER_00: Yeah.
• 33:47
  SPEAKER_00: You don't have all these uh you know additional fees skimming off the tenants or no, or yeah, so it's just it's it's pretty flat.
• 33:56
  SPEAKER_01: Well, you could tell them what you told me my my application fee was too light.
• 34:01
  SPEAKER_00: I I it it was too light.
• 34:05
  SPEAKER_00: What was it again?
• 34:06
  SPEAKER_00: 25 bucks.
• 34:07
  SPEAKER_00: All right, so um a lot of people out there, they're I mean, any way that they could try to charge more, and and sometimes they do it off of the application fees.
• 34:15
  SPEAKER_00: Yeah.
• 34:16
  SPEAKER_00: And I I mean, check around, but I don't know any other company charging only$25 for an application fee.
• 34:23
  SPEAKER_01: I haven't raised my fee in 25 years.
• 34:25
  SPEAKER_00: So you're saying after I pointed out to you that it was too light, you didn't do anything about it.
• 34:29
  SPEAKER_01: No, what we did is we uh we did have to start using a a third-party company um to to run credit because the apartment association we were with stopped doing that.
• 34:41
  SPEAKER_01: Um so we don't make the money.
• 34:44
  SPEAKER_01: The fee's more now, but that's through a third-party company.
• 34:47
  SPEAKER_01: We don't catch any of that.
• 34:48
  SPEAKER_01: So they do it through the third, I think it's 40 bucks now.
• 34:51
  SPEAKER_01: That goes directly to this third party company.
• 34:54
  SPEAKER_01: Um, instead of it doesn't come to us at all.
• 34:57
  SPEAKER_01: But even when we were doing it, I think it costs$18 to run credit.
• 35:01
  SPEAKER_01: So we were making$7 per application.
• 35:04
  SPEAKER_01: Yes, maybe that's maybe I'm earning$32 if I raise my fee to$50, but it's a good selling point for me to say I only make my money one way.
• 35:15
  SPEAKER_01: And I make my money mostly when you make your money.
• 35:18
  SPEAKER_01: And there's no conflict of interest.
• 35:20
  SPEAKER_01: You can think I'm behaving with your interest because I make more money when you make more money.
• 35:26
  SPEAKER_01: And when the property's in nicer condition, when the tenants are happier, I continue to make money, you continue to make money.
• 35:33
  SPEAKER_01: Nobody's moving out of our units because repairs aren't being addressed, or they don't get along with us.
• 35:40
  SPEAKER_01: I I I mean, I can imagine there's a few people who are unhappy when dealing with that many tenants, but you want to remove all the externalities to losing a tenant.
• 35:52
  SPEAKER_01: You only want to lose tenants because life changes, you know, changing a job, getting married, having a family, uh one of those, you can't control that.
• 36:04
  SPEAKER_01: But you can control the quality of your property, the rent you charge, the way you deal with people.
• 36:10
  SPEAKER_01: Um, I think I've told you our saying in the office is the person who ruined my day is not the next person who calls.
• 36:17
  SPEAKER_01: So there's no reason to be rude to somebody on the phone who isn't rude to you.
• 36:22
  SPEAKER_00: So I I think people in general are used to property managers being being rude.
• 36:27
  SPEAKER_00: There's certain professions like I feel like escrow officers are rude, property managers are rude, like it just seems to go, I don't know, with the business or something, but well, we had we had an issue last week, and uh I ended up going over and having a conversation with this tenant because he treated one of my employees poorly on the phone.
• 36:48
  SPEAKER_01: And and he my employees stood up for themselves and said, Listen, we've been respectful, we expect you to be respectful back.
• 36:56
  SPEAKER_01: We can solve all these issues, but you can't talk to me that way.
• 36:59
  SPEAKER_01: That's not that's not appropriate.
• 37:02
  SPEAKER_01: And uh he said, Well, you're a property manager, like like we deserve this, or you know, this is what you signed up for.
• 37:13
  SPEAKER_01: Why are you complaining about it?
• 37:15
  SPEAKER_01: And it's like that's horrible.
• 37:16
  SPEAKER_01: No, but there is I understand what they're saying, not not that they get to treat property manager poorly, but I see a lot of the way of the structures these management companies are set up with, and you have people who are answering phones who probably aren't making much money, and you know what?
• 37:36
  SPEAKER_01: We're not victims in any of this.
• 37:38
  SPEAKER_01: We chose this profession, we know what it entails, we know that there are going to be people unhappy with us, and we know they're gonna be people unreasonable.
• 37:45
  SPEAKER_01: We feel that we're reasonable and usually uh on the up and up and how we deal with people, but we also are all making there's no there's no employee who's just clocking in from nine to five at our office.
• 38:00
  SPEAKER_01: They're all they're all in it to win it.
• 38:02
  SPEAKER_01: And if you are paying somebody not a lot of money and they're just receiving phone calls and complaints all every day, and especially if they have no power over the transactions, they're not scheduling the pair repair, they're not authorizing the repair, they're just kind of shuffling paper.
• 38:20
  SPEAKER_01: Yeah, they're gonna be unhappy, and they're not gonna like people talking to them that way, and they're gonna retaliate.
• 38:26
  SPEAKER_01: And that's it's one of the biggest problems in our industry is people get burnt out really quick.
• 38:32
  SPEAKER_01: I think they leave after two years.
• 38:34
  SPEAKER_01: I've been doing it 17 years, and I do know that there is a lifetime of how long I'll I'll I'll have in this industry, and it won't be another, it won't be another 30 years.
• 38:45
  SPEAKER_01: Right.
• 38:46
  SPEAKER_01: But when you have mostly nice relationships with your tenants and your clients, it's you're not a complaint taker.
• 38:54
  SPEAKER_01: You're you're a problem solver, and they appreciate that.
• 38:57
  SPEAKER_01: We don't get a lot of calls saying, hey, great job, guys, but we do get we do have nice relationships where people stop by and they pay rent and sit down and have a conversation with the with us for five minutes because we are people, we do know their names, we do know their families, right?
• 39:13
  SPEAKER_01: We do care.
• 39:14
  SPEAKER_00: Well, you've done a good job of keeping the company small, not where people can't get a hold of you.
• 39:20
  SPEAKER_00: They can, whether you're an owner or a tenant, you're you're accessible.
• 39:23
  SPEAKER_00: Yeah.
• 39:24
  SPEAKER_00: Um, Tyler, I did want to get to something important before we wrap up.
• 39:27
  SPEAKER_00: You have a um a special offer for those who currently have um kind of a property management agreement um in place with somebody else.
• 39:35
  SPEAKER_00: And tell us about that.
• 39:36
  SPEAKER_01: Yeah, so what I'm doing is, you know, with people who are uns, and a lot of it is because people are unsure with what their contracts mean and why they're being charged certain stuff, and it either isn't being explained to them the right way or they don't like what is being explained to them.
• 39:56
  SPEAKER_01: So I'm I'm reviewing other people's contracts and telling them, you know, what it means because a lot of them don't know and they've never gone through this process with their property manager.
• 40:06
  SPEAKER_01: I encourage people to do it, but uh sometimes there's a lack of trust and they feel that this is just the industry, and if they're gonna switch, they're gonna have the same thing somewhere else, so they're just gonna deal with it.
• 40:19
  SPEAKER_01: And it's not the case.
• 40:20
  SPEAKER_01: Um there are there are bad management companies who are who make us look bad, just like there's bad realtors who who get you a bad name.
• 40:31
  SPEAKER_01: So I'm I'm willing to read the contract of of somebody else, and especially if they're feeling that they're being, lack of better word, screwed, you know.
• 40:42
  SPEAKER_00: Got it.
• 40:42
  SPEAKER_00: So so you're willing to review a contract between a property manager and then the owner, yeah, to just see, hey, am I being charged correctly, or maybe I didn't think I was signing up for this, but I I I guess I did.
• 40:56
  SPEAKER_01: Um and the good part is if you have a good management company, I'll be able to say, yeah, there's no problem here.
• 41:03
  SPEAKER_01: I don't want to infringe upon a good relationship.
• 41:07
  SPEAKER_01: That doesn't benefit me because I can't outperform.
• 41:10
  SPEAKER_01: We have we have all these things we have to do, and we all do some a lot of companies do them fine.
• 41:18
  SPEAKER_01: You know, you can give better service here or there, but if you have a good company, you have a relationship, you want to stick with them.
• 41:24
  SPEAKER_01: It's tough to move management companies.
• 41:26
  SPEAKER_01: Um, so what you want to do is you want to have that trust.
• 41:31
  SPEAKER_01: And if that's all it is, I look at it and say, hey, this looks fine, and this is what this means, and you have trust in that company.
• 41:38
  SPEAKER_01: It's kind of like when somebody doesn't seem, oh, my husband really doesn't want to use a management company, but I do.
• 41:45
  SPEAKER_01: I don't want to work for somebody who doesn't want me.
• 41:47
  SPEAKER_01: Right.
• 41:48
  SPEAKER_01: And and I'm not gonna be ever able to make that person happy if they're not convinced that they have to use me and they have to end up trusting me.
• 41:58
  SPEAKER_01: I have to earn that trust, but they have to be willing to end up giving that to me.
• 42:02
  SPEAKER_00: Tyler, so for someone who says, hey, I'll I'll take you up on that uh audit.
• 42:07
  SPEAKER_00: You call it an audit, how should they go about getting a hold of you?
• 42:11
  SPEAKER_00: Like we're gonna have your information in the show notes, the website, that kind of stuff, but how should someone contact you to say, I heard you on the podcast and I'm interested in what you're saying?
• 42:19
  SPEAKER_00: And and Tyler, and by the way, I mean, are we only gonna keep this for California?
• 42:22
  SPEAKER_00: Because we got listeners in Texas and Idaho, and I doubt you want to review those.
• 42:27
  SPEAKER_01: Well, I mean, maybe maybe we're talking about a new business here where I'm just auditing other people's management contracts.
• 42:33
  SPEAKER_01: No, it would be a little bit more difficult for me to audit a contract in another state, except a lot of the stuff we're talking about isn't there's nothing you know about state laws that govern these.
• 42:48
  SPEAKER_01: These are agreements between two people.
• 42:50
  SPEAKER_01: So if they're asking me to review something with statutory implications, that would be tough.
• 42:55
  SPEAKER_01: Because I don't know the staff, the state laws in in Texas or Wyoming or Idaho.
• 43:02
  SPEAKER_01: Uh I'd like to learn.
• 43:04
  SPEAKER_01: Oh, I was gonna say time to go there.
• 43:05
  SPEAKER_00: You just named off all the places you want to move to.
• 43:07
  SPEAKER_01: Yeah, yeah.
• 43:08
  SPEAKER_01: So um, I'd be willing to learn, but yeah, most likely uh if the disagreements or the not disagreements, but the the question marks are about, you know, what are these charges?
• 43:20
  SPEAKER_01: What do they mean?
• 43:21
  SPEAKER_01: What are the implications of these charges?
• 43:23
  SPEAKER_01: What do they all have to be?
• 43:24
  SPEAKER_01: I can help somebody work through that process.
• 43:26
  SPEAKER_01: And all it takes, what I'd like to do is get an email or call and have a discussion first.
• 43:31
  SPEAKER_01: Got it.
• 43:32
  SPEAKER_01: I don't want to don't send me contracts.
• 43:34
  SPEAKER_01: I just we'll have a c we'll have a conversation, um, and we can talk about what's going on and and and the problems you're having, and then I'll take some time to review a contract.
• 43:45
  SPEAKER_01: Where can they call you?
• 43:46
  SPEAKER_01: Uh Belmont Shore Land Company, 562-438-6532.
• 43:52
  SPEAKER_00: And and we're just just so we know that it's coming from here, we'll say that they want an audit.
• 43:57
  SPEAKER_00: Hey, I want to request an audit.
• 43:58
  SPEAKER_00: Yeah.
• 43:59
  SPEAKER_00: Okay.
• 43:59
  SPEAKER_01: Yeah, if they want to request an audit, I'd be happy to have a conversation and then review.
• 44:03
  SPEAKER_01: And we do this for I've done this for tenants too.
• 44:07
  SPEAKER_01: Um I'm not establishing a service for tenants, so uh, but yeah, we you know, if somebody's got a question, we do this with our new tenants.
• 44:17
  SPEAKER_01: They come in and they they have problems with their previous management company and they feel they've been uh they've had deposit taken unjustly.
• 44:27
  SPEAKER_01: I'll review those cases, you know, especially if they're a tenant or a or a friend.
• 44:31
  SPEAKER_01: Yeah.
• 44:32
  SPEAKER_01: Um, because when we sat through when you had the seminar a few weeks ago, there was this idea that there's a lot of bad landlords out there, ruin it for the rest of us.
• 44:44
  SPEAKER_01: I don't think there's that many.
• 44:46
  SPEAKER_01: And what you've also done in this state is you set the tenants against the landowner or the property management company.
• 44:53
  SPEAKER_01: And that's the state's fault.
• 44:54
  SPEAKER_01: That's not the property manager's fault.
• 44:56
  SPEAKER_01: But there are bad property managers out there.
• 44:59
  SPEAKER_01: We you referred me somebody the other day.
• 45:02
  SPEAKER_01: No, it was a few months ago.
• 45:03
  SPEAKER_01: We took over the account.
• 45:05
  SPEAKER_01: His previous management company was doing a terrible job, and we got an email not only to us, but to the client with some information.
• 45:15
  SPEAKER_01: And he said, Would love to have you back one day.
• 45:18
  SPEAKER_01: You know, call us if you ever need management services again.
• 45:21
  SPEAKER_01: And we're on that email.
• 45:22
  SPEAKER_01: Oh, this is from the prior person.
• 45:24
  SPEAKER_01: The prior person who doesn't even know they were that terrible.
• 45:27
  SPEAKER_01: And we're still dealing with the aftermath of that some of those problems.
• 45:31
  SPEAKER_01: Got it.
• 45:32
  SPEAKER_01: So I want to say these aren't all just purely bad actors, they're just possibly incompetent.
• 45:41
  SPEAKER_01: And it's you have to stay on top of your work if you're doing property management.
• 45:46
  SPEAKER_01: You don't get to you don't get to take a break.
• 45:48
  SPEAKER_01: You need to be paying attention at all times.
• 45:52
  SPEAKER_01: We get calls 24-7.
• 45:54
  SPEAKER_01: Calls forward to both myself and Rodrigo.
• 45:57
  SPEAKER_01: Yeah.
• 45:57
  SPEAKER_01: 24-7.
• 45:58
  SPEAKER_01: So if you do it that way and you pay a lot of attention, spend a lot of time with these properties and and do give it the right service.
• 46:05
  SPEAKER_01: It's easy, it's cost effective, and you're gonna have happy tenants.
• 46:12
  SPEAKER_01: So doing the right job is is paramount.
• 46:16
  SPEAKER_01: That makes everything else easier.
• 46:17
  SPEAKER_00: Perfect.
• 46:18
  SPEAKER_00: Tyler Mell, thank you so much for being here today.
• 46:21
  SPEAKER_00: We're definitely gonna have you back.
• 46:23
  SPEAKER_00: And until next time, thank you.