We are taking a hard position on the following: 2nd floor rent is $1,100. We may accommodate $1,000 if rent collection is at risk. We have advised 2nd floor to cancel utility services she is paying for on 3rd floor as that is their prerogative. We are not planning on paying for 3rd floor utilities so tent can (should) enroll for services. Finally, with $600 third floor rent and their expressed disinterest in paying utilities a notice to vacate for 4/1 was issued. Mid month tenants had communicated agreement to vacate 4/1. At the end of the month the unit 2 (previously owner occupied) did give notice that they will also vacate 4/1.
Oh Rats: Tenant sent a picture to property management of a rat in unit. RPM engaged with a pest control company for assessment. Remediation quote came back as three month program at a fee of $450. Additionally a recommendation for an ongoing prevention program is recommended at $100 a quarter. RPM works with this company so we agreed to the immediate remediation program. Booking expense as part of acquisition renovation needs (one time). Will determine prevention program after remediation is complete.
RPM notified of heat issues on the first floor. Some boiler repair was performed on "the beast". Though working, the steam boiler was included in repair estimates so we will proceed to get quotes for replacement. Service calls and repair to get the units working was $420. Two replacement quotes came in at $6,000 which was budgeted, however, we were not anticipating the need for an additional removal and disposal fee of the old unit which is reasonable due to the size and asbestos considerations. The boiler replacement was given the green light and approved to proceed. Shortly after this discussion the first floor tenant notified RPM that their were issues with the stove. There were known issues from the home inspection and this was an expected repair. Estimate and approval to proceed with a $400 ($477 actual) quote to replace. We did not expect it would fall into this section but apparently there was damage in the unit from rodents.
Discussed our standard job estimate approach with RPM. We expect two estimates for jobs over $5k and three quotes for jobs over $10k. There are no concerns with the approach and therefore we are waiting for a second estimate before proceeding with furnace. Regarding outstanding big budget items, the largest is clearly the roof. Repair budget included a target of $20k. RPM first quote came in at $25k which did raise some concerns of exceeding budget. We reconnected with Mark Parker who now provides general contractor (GC) services. He supplied a quote significantly less which is clearly preferred. Scheduling the roof replacement for 3/4. Additionally, they will inspect the siding situation to see if there are any functional problem areas and provide an estimate.
Tenant Update
- First floor: $1,100 collected
- Second Floor: $1,100 collected
- Third floor: $300 collected, $300 unpaid
Monthly Cost Summary
- Heat / HW: Service Call ($420)
- Boiler Replace ($6,000)
- Unit 1: R/R Stove ($477)
- Snow Removal: 3 storms ($205)
- Bills: Sewer / Electric ($80)
Activities / Milestones
- Refinance complete 2/18
- Roof replacement scheduled 3/4
- Initiated business structure with attorney 2/21
Next / Todo
- Verify water bill is directed to RPM
- Consider having RPM pay mortgage on a recurring basis
- Work with RPM to stabilize tenants and establish agreements
- Develop plan to organize into business entity and introduce partner
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