Short version:

I am LLC partners with my brothers on a few props we inherited.

One brother from 2000 miles away wanted to hire a PM because he found a guy with a cool website online. I thought we'll give it a try - seemed legit, happy to lighten my load and it's just a few props. Let brother feel important.

Brother was the PM's contact so I had not reports.

Wow! What a disaster!!

One prop has been vacant, not advertised since Jan 1. $8000 lost rent plus utility and mowing costs.

One prop was a disastrous move out - 7, count em 7! calls and letters from the city on trash, grass, etc. Vacant 2 months, still not advertised.

The final straw - one renter's last payment was March 14. No rent for April, May, June, July, August. Owes $5375 AND the PM told him he could stay!! Where were you PM (and Brother) back in April??

This is a single guy with a good factory job. He could have paid but he'll never be able to catch up.

I did have him sign that he agrees he owes this amount and a 53 week payment plan which I believe is overly optimistic.

I wonder how many of his other clients are losing this much money.

BRAD

PS

Yes I did tell his new job was to manage the manager - "Gotta watch him like a hawk" I said.

I feel like an idiot because part of that lost rent is my share in the LLC.

You’ll never find a proper manager that cares about your property as much as you do. If you can’t find a good manager, then somebody needs to manage the manager on a monthly basis.

You’ll never find a proper manager that cares about your property as much as you do. If you can’t find a good manager, then somebody needs to manage the manager on a monthly basis.

You’ll never find a proper manager that cares about your property as much as you do. If you can’t find a good manager, then somebody needs to manage the manager on a monthly basis.

While on active duty and being deployed to the gulf, I realized something. I wasn't getting water or sewer bill on three vacant properties that my manager said they were having a hard time filling.

When I called the town hall building, they told me three different people's names that were receiving these bills. HHHMmmmmmmm that was strange. Not realizing exactly what was going on I did something foolish, instead of calling the police, I called the manager, who suddenly decided to quit.

What Jim says bears repeating!

Yikes! So I guess you are managing them all now?

How did Brad not know he wasn't getting paid? I assume when you get so many properties it becomes impossible to keep up?

Maybe time for some additional wallet training for the brother?

His PM lost the money so it should come out of his share.

I am guessing that the money just gets rolled back into the LLC and not distributed directly to the members monthly? That would explain how one would not know what was happening.

I think Brad's lease is auto debit, ACH?

We distribute income at year end, not monthly.

The late renter pays by Venmo so he showed me his Venmo account on his phone. Nothing after 3/14. He agreed he owed so I do not suspect skimming.

The PM told me they only do 3, maybe 4 evictions per year out of 300+ doors. Seems WAY to low in the market and economy. Now I know why! He does not require rent.

I calculated $14,500 in lost rent and his fees, plus util, mowing expenses.

I also learned he took folks off our PayDayPlan weekly/biweekly rents and moved them to monthly - which means less income.

RayRay,

Yes I knew they were vacant, we were getting the bills, and I reminded Brother several times.

6man,

Yes. One reason I don't like software management is it's too easy for pieces of data to disappear into cyberspace or pushed down on a list - kinda of a thing like watching the forest but not seeing the tree.

With our paper rent ledgers we page thru the book every Friday because many homes are on weekly rent, checking each home. Problems don't live past Friday.

Somehow some utils to be paid by residents have been shifted to the LLC.

I am moving forward carefully, expecting to find more hidden problems.

BRAD

Brad, this is getting into your fuel costs for the Rolls.

Stop it, stop it now!

Have your peeps take over the PM side and charge accordingly. You make a little for your troubles and the LLC actually collects rents.

Brad,