Company Description
This Triplex is occupied, fully renovated, and has 5 bedrooms and 3 bathrooms.
The following renovations have been completed: New roof, new concrete, new carpet, new electric panel, new furnace, new hot water tank, renovated kitchens, renovated living room, renovated bathrooms, renovated bedrooms, repaired porches, new paint interior and exterior.
Unit 1: Tenant is on a 1 year lease until 7/31/2022 and is paying $665/month. A new 1 year lease for Unit 1 has been signed at $710/month ($45 increase) which starts on 7/31/2022.
Unit 2: Tenant was on a 1 year lease until 5/31/2022 and was paying $705/month. They are now on a month-to-month lease. The tenant is currently behind on rent and their balance owed as of today is $1,559.99. An eviction has been started. Lofty is providing a full rental credit for this unit until a new lease begins.
Unit 3: Tenant is on a month-to-month lease and is paying $800/month. Tenant is behind on rent payments and an eviction has been started. Lofty is providing a full rental credit for this unit until a new lease begins.
Updates:
Update 5/24/2022: The tenant living in Unit 3 of this property had been paying $800/month instead of $700/month since 11/01/2021. This is a communication error on the side of the Property Manager. This property is currently in the process of being switched over to the new Property Manager - B2B Realty - via the prior governance vote. You will be receiving back-pay for the additional rental income you should have received starting on 11/01/2021, and your daily rental payments will increase for this property starting today.
Update 6/9/2022: This property has officially migrated over to the new Property Manager, B2B Realty, based on the results of the prior governance vote. Because B2B Realty charges an 8% Property Management fee instead of the previous 10% fee, the Annual Cash Flow of this property has increased from $7,919 to $8,147.
Update 6/29/2022: The tenant in Unit 1 has a lease set to expire on 7/31/2022. The Property Manager will be offering a lease renewal at $710/month, a $45 increase from the current rate of $665/month. The PM will send over a signed lease if the tenant accepts the offer and you will be notified immediately.
Update 7/1/2022: A new 1 year lease for Unit 1 has been signed at $710/month ($45 increase) which starts on 7/31/2022.
Update 7/18/2022: The tenants in Unit 2 have been on a month-to-month lease since their long-term lease ended on 5/31. The tenant was taken aback by the Property Manager approaching with a renewal offer when they have just taken over management and there are pending maintenance items that the tenant wants to discuss. The PM has scheduled a meeting this week with the tenant to discuss their issue and a potential renewal offer.
Update 7/31/2022: A new 1 year lease for Unit 1 begins today at $710/month. This is a $45 increase over the previous lease of $665/month.
Update 8/1/2022: The tenants contacted the Property Manager to let them know that there were multiple lights and outlets throughout the property that were not functioning. They attempted to troubleshoot by flipping the breakers. However, this was unsuccessful. A vendor was brought in to get an estimate. The repair work requires replacing the wires that were damaged by rodents and redirecting wires to the correct panel, as they were mixed up. The cost of repairs is $3,758.55 which will be deducted from the Maintenance Reserve. The work is required for code compliance. The Maintenance Reserve will be replenished using 10% of the cash flow until it is full again.
Update 8/13/2022: Update 1: The tenant reported a leak in the home. The vendor assessed the leak and found that there was prior work done for the plumbing line, by the previous Property Manager, and there are PVC pipes connecting with iron piping for the bathroom and kitchen areas. The connecting pipes were sealed with silicone and the silicone has now failed, causing leaks in the home. The leaks also caused subfloor damage in the bathroom. The work will require re-piping the lines for both bathrooms in the upstairs and downstairs unit and the kitchen. The vendor will also replace and restore the damaged drywall in the bathroom, restore the drywall that was cut to complete the work, and restore the damaged boards under the kitchen sink. The total estimate for the work is $4,255. These funds will be deducted from the Maintenance Reserve which will be replenished via 10% of the cash flow until it is full again. Update 2: The tenant in Unit 2 has been withholding rent for the past two months citing power issues in the home. At the same time, the tenant has not allowed vendors access to the home to complete the work and has been acting erratic according to the Property Manager. The total balance owed as of today is $1,559.99. The electrical work has been completed and the tenant has now reported a leak in the home. The tenant has been calling the city every day to file code violation complaints. Three of the PM's vendors have refused to return to the property and complete the work due to the tenant's multiple incidents of not allowing access to the home. There has been one vendor who was able to work past the tenant's behavior and complete the electrical work for the home. The tenant also demanded a hotel for the family and a separate room for their two unauthorized pets during the work. The vendor confirmed that the scope of the work does not require the tenant to vacate the property. The PM recommends to terminate the lease and remove the tenant from the premises. The PM's legal team has advised to wait until the repairs are completed and passed by the city before issuing a 3-day notice. The PM will also cite default of lease contract for unauthorized animals and not allowing access for work orders.
Update 8/25/2022: The plumbing and electrical work has been completed for this property. However, there are additional city violations that must be completed as well. The tenants in units 2 and 3 both owe balances and are withholding rent in escrow for these maintenance issues. The vendors have been trying to complete the work, but the tenants have been acting erratic for reasons unbeknownst to the Property Manager and are, again, refusing entry to allow the vendors access to the home. The PM has responded immediately to any issues the tenants have had and sent out vendors right away to remedy them, but the tenants still do not seem to be cooperating for unknown reasons. The tenant in unit 3 has never been late before, and the PM believes that the tenant in unit 2 is influencing their behavior. Additionally, the PM's legal team cannot find the escrow account in the court systems. An eviction has already been started for the tenant in unit 2 based on the governance survey on how to handle delinquent tenants. An eviction has also started for the tenant in unit 3 because they are interfering with work orders and are also behind on their rent payments. Once the vendor is able to enter the property, they will be able to get the PM an estimate for the additional repairs.
Update 9/27/2022: The governance voting results are back for the vote on whether to renew landlord insurance with Actual Cash Value coverage or Replacement Cost coverage. The winning vote is: Replacement Cost Coverage. This decision was voted on by 906 out of 1,136 tokens which is equal to 79.8% of the total votes. This new insurance policy will go into effect on 9/31/2022, once the current insurance policy ends.
Update 10/5/2022: The property had a re-inspection and was cited for new violations for the porch. Repairs are required to cure the violations with the city. The scope of work includes: Remove rotten wood and replace with new wood on the porch. Scrape and paint porch floor, lattices, and spindles. Stain porch ceiling. Install basement banister and fill 2 large holes. Purchase and install 3 smoke detectors. The total cost for repairs is $1406.74. These funds will be deducted from the Maintenance Reserve.
