BTD Ep. 09 A Warning Message to Protect Foreign Investors using Resident Agent Services & Property Managers
Over the last week I had one of our clients come into our office just to catch up and talk about how their assets are performing. This particular investor and his wife (we will call them Jerry and Jody) flew all the way from Australia to visit their rental properties in Atlanta and Texas. Sadly, when they viewed the homes in Atlanta, the property manager (PM) was not able to get them into the homes (sad because by law as an owner you have the right to enter the home for annual inspections). They reported to me that there have been numerous issues that have had them losing sleep over their investments. Here are the issues they were having that I am addressing in this episode. 1. Their response time to hear back from their PM was 4-5 days 2. They were not receiving itemized invoices showing actual charges broken down for repairs 3. They were not receiving pictures of the repairs being completed 4. The repairs were being completed by an unqualified handy man and were done incorrectly and never finished 5. They could not get the PM to go out and inspect the repairs to verify they were done correctly 6. Their resident agent service was charging them $99 transaction fees for unnecessary paperwork 7. The property manager was not adjusting the rents between leases so the rate kept up with the market appreciation causing them to lose thousands in potential income on each property every year 8. They had to many points of contact and felt that they had purchased themselves a second job that was not even profitable Don’t let this happen to you guys. I feel very strongly about making sure people are not taken advantage of when investing in turnkey real estate. I feel it is my duty to educate investors on ways to protect themselves so they can enjoy a passive income investment like they were promised.