D & K Property Management Services

I work with investors who mostly live out of state.  They own properties in all areas of the greater Cleveland area.  A trend I continue to see is investors who are unaware of the areas where they are purchasing properties.  This is NOT an attempt to tell you where you should or should not invest.  Rather, I'm advocating about educating yourselves as to the who, what, where, when, why, & how of buying that investment. While I understand it's not always practical, I highly recommend visiting in person to see the properties (plural) you're interested in.  You are not just buying the property, you're buying the neighborhood.  Are you aware of the condition of the properties around the target property look like.  Property pictures are great but does it really show the full picture of the condition of the property?  Is the 4plex you just spent 300k on located in the worst part of the city next to a property obviously falling apart with drug activit...

I know I'm preaching to the choir.  But, somehow I feel this still needs to be said. Buying an investment property has financial implications in many ways. More than the obvious ROI and property appreciation, my big question is did you get an appraisal?  I cringe when I saw a recent out of state investor pay $300k on a 4 plex on the east side.  The person she bought it from had just recently (within the prior 6 months) paid 1/2 that amount to get it himself.  In a matter of months, he doubled his $ selling it.  It certainly wasn't an issue of the seller buying, flipping it, then selling; he did NOTHING to the property.  AND...the state of the property was beyond disrepair.  I'm of the belief the out of state investor didn't know about the seller's quick profit but also the buyer had no real clue as to the fair market value of that property.  Can I tell you how valuable an appraisal would have been.  A retorical question, but what if this buye...

More importantly, know how you're being represented by. 1 of the investors I represent as property manager reached out to me because the city scheduled a hearing for a code violation.  This is for the city of Cleveland. Context:  in late summer (it's early Oct when he got the notice), he had 2 representatives who helped him buy the single family house also helped him rent it out.  The tenant was wanting to use it as a residential treatment facility.  She presented her business plan, bank statements, etc as part of her application process.  From what I saw after the fact, I don't know how much more info she could have been given and what she did give was obvious what her intent was.  These 2 representatives signed her a 2 year lease. Apparently there's been a complaint by a neighbor or someone in the area as to this being a code violation because there's another residential facility near by...too close to this newly set up facility. The owner asked what he s...

There are a sub group of investors who mandate only going Sec 8 for their properties.  I get it...it's guaranteed income every month.  No excuses of why it's paid late.  No chasing down tenants for rent money that never showes up. There are others who refuse to deal with Sec 8 given their initial inspections and their annual inspections.  The thought being there will always be maintenance work to be done. As a property manager, if an owner tells me they want to go Sec 8, I will comply.  But can I illustrate perhaps reasons why you might be better off using private pay tenants? 1)  Section 8 tenants put a lot more wear and tear on their units than private pay.  Sec 8 tenants are home a greater amount of time than a private payer who has to work to keep a roof over their head and put food on the table.  Starting as early as month 4 of occupancy, I've seen significant more wear & tear with a Sec 8 tenant than a private pay.  Every.  Sin...

I'm a big proponent of having good quality features in a rental unit.  I've said multiple times, less is more.  You don't need high end on a rental.  Your basic Glacial Bay at Home Depot for instance is a great quality product.  You're not spending an arm & a leg, you're able to keep costs reasonable, and it often can take the use from tenants. I've had a couple of investors who I've managed their properties insist on using granite countertops.  They then worry the entire lease if it'll be damaged at any point.  I have yet to see a rental NEED a granite countertop.  It's also often a cost that shows no incremental increase in the asked rental rate. The other double standard I've seen is where granite countertops are provided but all the appliances (including dish washer, washer, dryer) is all refurbished.  Don't think tenants don't see this.  You're sending the wrong message.  Every.  Time. For appliances, I always recommend to ...

You can't ask high end rent but allow the unit to look hillbilly because you refuse to put any $ into it.  Any investment purchase you make, over the years you will always need to be putting money back into the unit.  Windows don't get any newer as time goes on.  Paint peals if not scraped & painted.  Door hinges wear out over normal wear & tear. If you're mandating a higher than market rent ONLY because it fits your proforma, you will never get it rented out.  Ever. Nor can you mandate higher than market rent because it's dictated by your mortgage payment (because you over paid for the property). There is a direct inverse correlation between amount of interest in the unit and the rent ask price.  If you're mandating over market rate for rent, fewer people will be interested.  AND...those that ARE interested will nit pick.  Every.  Little.  Thing. Don't complain it's been a 2 month process to get a unit rented out when you only g...