Five months after closing, we finally got the keys to our new place! We purchased the duplex back in August with plans to move into the larger unit. Unfortunately that unit had tenants, but their lease just ended and we moved in on February 2. We are slowly settling in, as we have to prep two other apartments for rental. I expect we will start work on this place later in the spring.
Our unit was rented and managed by a company called Bungalow. Their business model is to rent larger houses, then rent rooms individually to tenants. Bungalow furnishes the common space, pays utilities, and even has a cleaner come to take care of common areas. They cater to young, single people, and you can even select a room based on what your roommates are like (i.e. 20s, like to socialize, etc).
If you are a property manager considering Bungalow, I strongly encourage you to reconsider.
They renegotiated the lease with the prior owner, only a few months after signing up as the property management company (reason #48 why we should have had a lawyer review this transaction prior to offer). When we expressed interest in the property, the real estate agent shared the current leases, transaction statements, and the commitment packet from the property. Bungalow initially agreed to a flat rental rate, but a few months after managing the property, they renegotiated the lease to be based on occupancy with a minimum payment. This minimum was less than half of the original amount, and sadly we only received the minimum after we took ownership. I don’t know if this is something they do regularly, but be aware of it if you are considering Bungalow.
They also leased to a dangerous tenant. Bungalow’s target market is single 20-30 year olds. Although they claim to screen applicants, one of their tenants fired a 12-guage shotgun inside the house! He had apparently exhibited troubling behavior for a while, and some female occupants reported feeling uncomfortable around him. Bungalow had no idea. They did not even know there was an incident at the house that required police response… we had to tell them.
They will not treat your property with care. During move out, we arrived at the house to find all doors unlocked. All doors! There were no tenants at the time, just Bungalow going in and out of the property. They do not even treat their own property with care. Bungalow supplies common furniture and even beds for tenants. During their move out, they junked all of it. I was surprised that all the plates, utensils, furniture was all just going to the dump.
We are done with Bungalow… now we get to make this apartment our home!
