Company Description
This property is a fully renovated 4 bedroom 2 bathroom single family home located in a trending neighborhood of Memphis. The following renovations have been completed: New kitchen cabinet hardware, new upper kitchen cabinets & door, new vent hood, refinished bathtub/shower in bathroom, new toilet, new wood laminate flooring, 8 new interior doors, new exterior door, new security door pump, new windows, new window blinds, new wall plates & light switches, new fire alarm, serviced HVAC, updated plumbing, repaired house roof, repaired soffit, landscaping, interior & exterior paint.
Updates:
Update 4/8/2022: The tenant living at 1677 Walker Ave is over 4 weeks behind on rent and the Property Manager has been unable to reach them after numerous attempts this past month. The tenant is Section 8 and had committed to settling their balance of $1,288 (their portion of monthly rent) by April 1st, and did not follow through. The Memphis Housing Authority (MHA) covers the other $212 of monthly rent. The collections department tried contacting the tenant as well but there was no response. A governance vote will take place to determine whether to give the tenant cash for keys or to proceed with an eviction.
Update 4/18/2022: The winning decision is: Offer the tenant $644 (50% of the monthly rent) to vacate the property immediately. If the tenant does not accept, offer $1,288 (100% of monthly rent). If the tenant does not accept, start the eviction process immediately.
Update 4/22/2022: Per the last governance vote, the Property Manager offered the resident Cash for Keys but they did not accept. The resident told the PM they would like to stay in the property and have applied for rental assistance. They just had heart surgery and do not have the funds to pay the full rental amount and back-pay. Because of this, the resident is requesting to get on a payment plan for their missed rental payments while waiting for the rental assistance which would start making payments on 05/01/2022 if the resident is accepted. The Property Manager is speaking with the Collections Department about the suggested payment plan and waiting to hear if the resident is accepted for rental assistance before moving forward with an eviction.
Update 6/2/2022: The Property Manager has informed us that the tenant has not been accepted for rental assistance and is still refusing to accept the Cash for Keys offer. Because of this, the PM has moved forward with an eviction. There are also a number of repairs that are being made & are almost completed, totaling $3,954,50. These include abating mold-like substances under the kitchen and bathroom cabinets. The cabinets will need to be torn out & new countertops will need to be installed. The sink and the faucet are also leaking. These repairs will be taken care of right away and the funds will be deducted from the maintenance reserve of $9,500. Once a new tenant moves in and starts paying rent again, the maintenance reserve will be replenished using 10% of the cash flow moving forward until it is full again.
Update 7/15/2022: There was an eviction filed for 1677 Walker Ave on 5/19. However, the Property Manager just received a Chapter 13 Bankruptcy notice for the tenant. The tenant was set up on a repayment plan for arrears rent and is still responsible to pay their monthly rent moving forward. Lofty will be providing a rental credit for this property to maintain the monthly rental income of $1,500. You will begin receiving daily rental income again starting today. We are providing this rental credit because the previous Property Manager for this property should have had higher tenant income requirements in place & should also have been checking credit scores for any prior bankruptcies. The new Property Manager for this property, HomeRiver Group, has these specific requirements in place which will hopefully prevent situations like this from occurring in the future.
Update 8/18/2022: The Property Management fees have been reduced to 5.7% due to a new National Partnership Agreement between Lofty and the Property Manager, HomeRiver Group.
