Tuesday, November 23, 2010

Happy Thanksgiving! (Plus, a Quick Update About Working With Parks)

I just wanted to wish everyone here a "Happy Thanksgiving!" It's definitely been a madhouse on the road (as well as in the grocery stores!) And, not to mention the anticipated event afterwards - "Black Friday." Here we go again!

In any case, I also wanted to just give you all an update on this deal. Last I spoke of it, we were waiting on the park's approval. So, what's going on?

Well, basically the park has not heard back from the current landlord. And, this is the only thing holding us up. Before I even gave the park the "green light" on my end for these buyers, I attempted to contact the current landlord with no luck.

So, the week before last the park manager calls me up telling me she finally heard back from the current landlord. And, guess what? It turns out they are reluctant to confirm the buyers' payment history without a 30 day notice from the buyers. Now, the buyers did not want to give their 30 day notice until they knew for sure they would be approved. Very understandable.

Last week, the buyers dropped off their 30 day notice to the current landlord's office (as they are never in) and dropped off a copy to the park manager (per my advice). Afterwards, the park manager (and me as well) attempted to contact the current landlord with no luck. We both keep getting voicemail - no return phone calls.

Well, it's the end of the month and the buyers' lease is expiring. And, the buyers don't know what to do. They call me up for some advice. And, I tell them calmly "Let me give the park manager a call. We'll work this out."

Before even calling the park manager I already had a plan. Since I have a background in property management, I knew all the park needed to do was to confirm and verify the buyers' payment history. Usually, that is done (usually in writing) by the current and/or prior landlord.

Since the current landlord has been unresponsive, I knew another way to verify this information - get the buyers to submit copies of their lease, receipts, and bank records of all funds paid to their current landlord.

So, I called up the park manager and asked, "Would it help? Their ready to go and we're just waiting on this last piece of information." And, you know what the park manager said? She said, "That would be great. Anything they can provide to me would help. And, we'll get this through."

(Note: Since I have a very close relationship with the park managers, usually it's very easy for me to work with them when trying to go through the logistics of getting buyers approved. This is why it's so important to focus on building strong relationships).

In any case, so that's that. The buyers are getting the needed paperwork together to submit to the park manager. After that, we should be good to go.

So, one thing some here may wonder - why would a current landlord be reluctant to withhold information on a tenant? Well, the reason being is the economy - it's a tough market out there (especially for rentals). And, most of the buyers I work with are long term tenants. (In this case, 3 years). So, it's no wonder the current landlord was reluctant to verify their payment history.

(Note: With the economy the way it is, this will probably not be the last time I run into this issue. In fact, I had a difficult time with a similar situation on this deal).

Regarding any funds owed to the current landlord, I advised the buyers that's what their security deposit is for. (I guess having a background in property management helps!) They were concerned they would be charged another month by the current landlord.

But, I told them usually when doing move outs - the security deposit is supposed to cover any funds owed to the landlord. (That is why property managers usually collect at least 1 month's rent as a security deposit). If nothing is owed, then they are to receive the deposit back.

(Note: Of course, if there is any damage to the unit and/or other charges due - they would be charged additional funds to the tenants).

When screening and working with buyers, above all else - the quality I look for is honesty. If the people I'm working with are honest and upfront, then usually I don't have many issues with them.

(Note: Of course, I need to go through my usual process of verifying and confirming all information. But, even if there are people who tell me they can come up with a lot of money to put down - if they are not honest and I feel I cannot trust them, I WILL NOT work with them. That's just me).

In any case, I just wanted to give everyone all an update. Hope you all have a good and Happy Thanksgiving!

p.s. For those who are in the holiday spirit, check out my pal Steph's Thanksgiving contest. She's holding a contest to see what motivates others, it's really neat! :)


Rhonda said...

This is a very good and detailed blog entry. Thank you for explaining what you do. I really enjoy your blog and your writing style. I look forward to your book.

Carey_PA said...

I like your backup plan. Excellent idea!

Happy Thanksgiving to you and your family Rachel. Have a great day!


Mobile Home Gurl said...

(Rhonda) I'm glad you enjoyed it Rhonda, thanks for stopping by!

(Carey) Thanks, Carey! It's nice to hear from you. Hope you had a happy Thanksgiving too! :)