Understanding Bigfoot Management Group’s Scope of Work
At Bigfoot Management Group, we believe in transparency. Our monthly management fee covers all the essentials — leasing, maintenance, tenant relations, inspections, financial management, and compliance. But some services fall outside this scope, such as major repairs, legal actions, or premium marketing, and must be billed separately.
It is important for property owners using real estate to produce income, i.e. landlords, to understand what a property manager’s role is before hiring one to manage their property or properties. There are many misconceptions about what a property manager does and what’s included in a Property Management Agreement (PMA).
Every property manager operates differently, and every PMA outlines a unique scope of work. At Bigfoot Management Group (BMG), we believe it’s essential for our landlords to understand what’s included in the monthly management fee and what falls outside that scope, so there are no surprises when additional charges occur.
We strive for transparency about what we charge and why. That said, property management often involves “grey areas” requiring professional judgment about whether a task falls within our included services or must be billed separately.
What’s Included in Our Standard Scope
Our monthly management fee covers the core services needed to operate and maintain your rental property effectively:
Leasing & Tenant Placement – Marketing vacancies, screening tenants, drafting leases, and coordinating move-ins.
Routine Maintenance – Handling minor repairs and preventative upkeep (pre-approved up to an agreed limit, typically $300–$500).
Tenant Relations & Lease Enforcement – Serving as the primary contact for tenants, addressing issues, and enforcing lease terms.
Inspections – Move-in, move-out, annual resident-led, and annual physical inspections.
Financial Management – Rent collection, trust accounting, monthly statements, and year-end 1099s.
Legal & Regulatory Compliance – Ensuring adherence to housing laws, safety codes, and fair housing regulations.
What’s Outside the Standard Scope
Some services require additional time, coordination, or third-party involvement and are billed separately:
Major Repairs & Capital Projects – Roof replacements, remodel oversight, insurance claim coordination.
Extraordinary Owner Requests – Custom reporting, accelerated turnovers, or tasks outside BMG’s standard systems.
Evictions & Legal Actions – Court filings, attorney coordination, and hearing representation.
Non-Standard Inspections – Insurance-driven, pre-sale, or specialized safety audits.
Emergency Responses – After-hours property visits, crisis management, and tenant relocation logistics.
Premium Marketing – Paid advertising, staging, or professional videography beyond standard listings.
Why We Separate These Services
Separately billing for out-of-scope work allows us to:
Keep management fees predictable
Ensure owner control over major expenses
Act quickly when urgent issues arise
Our goal is always to be transparent, proactive, and fair when it comes to costs. If you ever have questions about our services do not hesitate to reach out to us.
You Get What You Pay For
When you go to the mechanics shop to get an oil change you don’t expect them to also change a head gasket for the price of an oil change. In a similar way the monthly management fee we collect covers defined areas of work. While we are happy to do additional work to make sure that your property is well cared for, just like the mechanic, we have to charge additional for time spent doing additional work.
Hiring a property manager who promises to do everything for one low price usually doesn't end well. You'll likely get someone unprofessional or messy, which will just cost you more money in the long run.
Final Thoughts
At Bigfoot Management Group, we pride ourselves on providing comprehensive property management while maintaining clear communication about what’s included and what isn’t. By understanding your PMA and our scope of work, you’ll know exactly what to expect — and when additional billing might apply.
If you’d like a detailed breakdown of our management agreement and separately billable services, we’re always happy to walk you through it.
2025 Helena Market Update: What Property Owners Need to Know
With more housing starts on the way, competition for qualified tenants will increase, creating pressure on both rental pricing and vacancy rates. As supply goes up and demand either base lines or goes down, existing rental owners are going to feel the impact.
As your property management team, our goal is to keep you informed about market changes that impact your investment. Montana’s housing market is entering a more balanced phase, and for owners, this means adapting strategies to protect profitability and minimize vacancy.
Population Growth Slows, Supply Ramps Up
Montana added about 6,000 new residents in 2024, bringing the state’s population to 1.14 million — a 0.5% growth rate, down from 0.9% in 2023. In Helena, population growth was modest at +360 residents year-over-year (1.0% increase).
At the same time, Helena’s housing supply is expanding quickly:
Habitat for Humanity’s Rose Hills Development plans up to 1,500 new homes, that will include 25-30 Habitat homes, 70 apartment homes, and another 84-90 market-rate homes.
Dick Anderson Construction is adding 300+ rental units, around 90 rental units will hit the market by the end of this year.
Summerville Flats brought 133 units online at the beginning of 2025.
Additional projects, not yet widely publicized, are also planned — meaning even more new inventory could hit the market in the coming years.
With more housing starts on the way, competition for qualified tenants will increase, creating pressure on both rental pricing and vacancy rates. As supply goes up and demand either base lines or goes down, existing rental owners are going to feel the impact.
Rental Rates & Vacancy: The Balancing Act
As new developments come online, we expect rental rates to flatten — and in some cases, decline. At the same time, vacancy rates are trending upward and could rise further as supply outpaces demand.
For owners, it’s important to remember:
Vacancy is one of the most expensive losses a property can incur.
While reducing rent to meet market pricing can feel counterintuitive, staying competitive often results in lower turnover and steadier cash flow. In this market, eliminating vacancy can protect your bottom line more effectively than holding out for top-dollar rents.
Example: If you push for $2,300/month but accept one month of vacancy, you’ll collect about $25,300/year — only $100 more than pricing at $2,100/month with no vacancy. However, that small gain comes with higher risks: extra carrying costs like utility charges, potential turnover expenses like depreciable maintenance costs (ex. New paint or carpets), and the chance the unit sits vacant even longer as sometimes units “grow stale” or go overlooked from a marketing perspective. In today’s market, pricing competitively to secure a tenant quickly typically maximizes cash flow and reduces financial risk.
How We’re Protecting Your Investment
As your property managers, we’re focused on keeping your units profitable by:
Closely monitoring local pricing trends
Adjusting rental strategies proactively to stay competitive
Maximizing tenant retention to reduce costly turnovers
Marketing aggressively to minimize days on market
Our goal is to help you navigate shifting market conditions while protecting your returns.
Bottom Line
Montana’s market is shifting from a pandemic-driven boom into a steadier, more competitive environment. Helena’s rental market is evolving: slower population growth, more housing starts, and rising vacancy risk mean property owners need to stay flexible. We’ll continue to analyze trends, adjust pricing strategies, and market your properties aggressively to keep your investment performing in 2025.
If you want to discuss this further, please reach out to us. One of the values we bring to our clients is strategizing on how to maximize return, whether that be with their existing property or through transitioning to something that may be more profitable. Specifically if your margins are razor thin, the next phase of Helena’s rental market may be challenging, so looking ahead now and making a plan for how to navigate negative cash flow would be a prudent next step and we are here to help.
🛠️ Why Staying on Top of Maintenance is Crucial for Rental Property Owners
Staying on top of maintenance isn’t optional—it’s essential. Whether you own one rental home or a portfolio of properties, consistent upkeep will help maximize your returns, protect your asset, and maintain tenant satisfaction.
Let Bigfoot Management take maintenance off your plate. We’ll handle the repairs, so you can enjoy the rewards of your investment.
Owning rental property can be a lucrative investment—but only if the property is properly maintained. From minor leaks to major system failures, maintenance issues that go unaddressed can quickly turn a profitable property into a costly liability. At Bigfoot Management, we believe that proactive maintenance is one of the smartest ways to protect your investment, keep tenants happy, and preserve property value.
Here’s why staying ahead of maintenance matters—and how our Maintenance Department makes it easier than ever.
🧱 1. Protecting Your Investment
Your rental property is a major asset. Just like a car needs regular oil changes to run well, your property needs routine care to avoid costly repairs. Small issues like a dripping faucet or cracked grout might seem insignificant, but left alone, they can lead to water damage, mold, and expensive structural problems.
At Bigfoot Management, our team proactively addresses maintenance concerns before they become emergencies, helping you avoid large repair bills and insurance claims.
😊 2. Improving Tenant Retention
Tenants notice when maintenance is handled quickly and professionally—and they notice when it’s not. In fact, tenants frustration over deferred or untimely maintenance is number the number one cited reason for moving from Tenants. Prompt repairs lead to higher tenant satisfaction, which in turn leads to longer lease renewals, fewer vacancies, and better reviews.
Our Maintenance Department operates with tenant communication in mind. We respond quickly, follow up with status updates, and complete repairs efficiently to make sure your residents feel heard and cared for.
🧰 3. Avoiding Legal & Habitability Issues
Neglecting repairs doesn’t just affect your bottom line—it could also land you in legal trouble. Property owners have a legal responsibility to provide safe, habitable living conditions. That includes working plumbing, heating, and electrical systems, as well as fixing hazardous conditions like mold or broken steps.
At Bigfoot, we make sure all maintenance is handled in compliance with local housing laws, protecting you from liability and ensuring your property remains a safe place to live.
🔧 4. Streamlining Repairs with Bigfoot Maintenance
One of the most common frustrations owners face is coordinating and following up on maintenance tasks. That’s why Bigfoot Management built a dedicated in-house Maintenance Department that combines responsiveness, efficiency, and professionalism.
What sets us apart:
Licensed & Insured Vendors: We work with trusted professionals who deliver quality results.
Transparent Communication: You and your tenants get regular updates through our online portal.
Emergency Services: We’re available 24/7 for urgent repairs.
Cost Control: Our team gets competitive pricing, saving you money while maintaining quality.
Learn more about our maintenance services here: Bigfoot Maintenance Services »
🏆 The Bottom Line
Staying on top of maintenance isn’t optional—it’s essential. Whether you own one rental home or a portfolio of properties, consistent upkeep will help maximize your returns, protect your asset, and maintain tenant satisfaction.
Let Bigfoot Management take maintenance off your plate. We’ll handle the repairs, so you can enjoy the rewards of your investment.
Interested in stress-free property ownership?
Reach out to our team today to learn how our maintenance solutions can support your rental goals.
📞 Call us or visit: www.bigfootmg.com
What to do if you can’t sell your house?
If you’re unable to sell your home but need to move, renting it out may be the best option. Homeowners in Helena who purchased between 2022-2024 may face challenges selling without a loss due to rising interest rates and housing prices. Unfortunately, this is a common scenario during shifting market conditions, requiring creative solutions like renting to cover monthly mortgage payments.
What to Do If You Can’t Sell Your Home
If you’re unable to sell your home but need to move, renting it out may be the best option. Homeowners in Helena who purchased between 2022-2024 may face challenges selling without a loss due to rising interest rates and housing prices. Unfortunately, this is a common scenario during shifting market conditions, requiring creative solutions like renting to cover monthly mortgage payments.
Market Conditions: What to Expect
Interest Rates in 2025: Rates are expected to decrease modestly, with the Federal Reserve projecting two quarter-point rate cuts, bringing the federal funds rate to 3.75%-4.00% by the end of 2025. However, persistent inflation and strong economic growth could keep rates higher for longer.
Mortgage Rates: Despite slight declines, mortgage rates are likely to remain above 6%, limiting refinancing opportunities and impacting home affordability. This means selling at a desired price may continue to be difficult for many homeowners.
Why Renting Might Work for You
Income Generation: Renting can help offset your mortgage payments. However, be aware that rental income might not fully cover costs. For example, a $3,200 mortgage might exceed local market rents of $2,800 for similar properties.
Tax Benefits: Renting turns your property into an income-generating asset, allowing deductions for mortgage interest, repairs, management fees, and more. Additionally, if you incur a monthly loss (e.g., rental income doesn’t fully cover your mortgage), this loss can often be deducted as a business expense. While a loss may seem negative, it can offset other taxable income, reducing your overall tax liability and making the financial hit less impactful in the long run.
Key Considerations for Renting
Responsibilities: Renting comes with obligations, including adherence to fair housing laws and providing a habitable space. This exchange of services for income comes with legal and practical responsibilities.
Liability and Costs: Factor in potential costs like tenant turnover, maintenance, and property management when evaluating your decision.
Next Steps
If you’re struggling to sell your home and want to explore the benefits of renting, fill out the “Free Rental Estimate Form.” We’ll help you evaluate your options and create a plan tailored to your needs.
How to track down a plumbing leak in a four plex
Tracking down a plumbing leak in a four-plex may seem overwhelming, but by taking a systematic approach, you can quickly identify the source of the problem and get it fixed before it causes extensive damage. Whether you do it yourself or call in a professional, addressing plumbing issues promptly will help protect your property, reduce costs, and ensure the comfort of your tenants.
At Bigfoot Management we come across the difficulties of managing plumbing leaks on a regular basis. We understand that dealing with these situations, especially in a larger building, can be frustrating. We aim to help educate on how to handle these situations. This is the kind of expertise you get when you hire a property manager. Let us give you peace of mind.
How to Track Down a Plumbing Leak in a Four-Plex: A Step-by-Step Guide
Plumbing issues are a common challenge for property owners, especially when it comes to locating and repairing leaks in multi-unit buildings like a four-plex. Left unchecked, leaks can cause water damage, mold growth, and costly repairs. Whether you’re a property manager or a DIY landlord, finding the source of a plumbing leak quickly and effectively is essential. This guide will walk you through the process of tracking down a plumbing leak in a four-plex.
1. Recognize the Signs of a Leak
Before searching for a leak, look for the common signs of a plumbing issue:
Increased Water Bills: A sudden spike in your water bill could indicate a hidden leak.
Water Stains or Dampness: Check for water stains on ceilings, walls, or floors, especially in shared spaces.
Low Water Pressure: If water pressure drops in certain areas or throughout the building, this could be due to a leak.
Standing Water: Puddles or damp spots, both inside and outside, may indicate a leak near the foundation.
2. Turn Off Water Fixtures
Start by turning off all water fixtures in the building, ensuring that no faucets or appliances are in use. You can begin with the main water shut-off valve, usually located near the water meter or at the property’s entrance. This stops water from flowing into the building and helps you isolate the problem to the plumbing system itself.
3. Check the Water Meter
To confirm whether there is a leak and gauge its severity, use the water meter:
Locate the Meter: Typically found near the main shut-off valve, the water meter records the building’s water usage.
Take an Initial Reading: Record the current meter reading.
Wait and Recheck: After waiting for 1-2 hours (while no water is used), check the meter again. If it has increased, there’s likely a leak.
4. Inspect the Plumbing System
Now it’s time to visually inspect the plumbing system:
Main Water Line: Check the area around the shut-off valve for obvious signs of water, such as pooled water, damp soil, or corrosion.
Common Areas: Inspect visible plumbing in shared spaces like crawl spaces, basements, or utility rooms. If the leak affects multiple units, the issue is likely in the shared pipes.
Individual Units: Next, examine each unit’s plumbing, starting with the one nearest the shut-off valve. Look for leaks under sinks, around water heaters, and near appliances.
Hidden Leaks: In older buildings, plumbing may be hidden inside walls or under floors. Consider using tools like infrared cameras or moisture meters to detect leaks behind walls or flooring.
5. Use Leak Detection Tools (If Needed)
If you can’t locate the leak using the above methods, you may need to use specialized tools:
Acoustic Leak Detectors: These devices listen for the sound of water moving through pipes and can pinpoint the leak's location.
Thermal Imaging Cameras: Thermal imaging identifies temperature differences, helping detect leaks in concealed areas like walls or floors.
Electronic Leak Detectors: These are used for underground pipes, measuring electrical resistance in water to find leaks.
Although these tools can be expensive, they can save you time and effort in locating more complex leaks.
6. Make the Necessary Repairs
Once the leak’s source is found, it’s time to make the repair. For small leaks, you may be able to perform the repair yourself. Common repairs include:
Replacing damaged pipes or fittings.
Repairing leaking faucets or showerheads.
Sealing leaks around water supply lines.
For larger or more complicated leaks, it's advisable to call a licensed plumber to ensure the repair is done correctly and safely.
7. Test the Repair
Once the repair is completed, turn the water back on and check the affected area for any signs of leakage. Make sure water pressure is back to normal, and inspect the unit or area where the leak was located to confirm that the problem is resolved.
8. Prevent Future Leaks
To avoid future leaks, consider the following preventative measures:
Regular Inspections: Conduct periodic plumbing inspections to identify wear and tear before problems arise.
Upgrade Plumbing: If your plumbing is old or corroded, consider replacing outdated pipes with more durable materials.
Install Leak Detection Systems: Installing water leak detection systems can help detect leaks early, potentially saving you from more extensive damage.
Conclusion
Tracking down a plumbing leak in a four-plex can seem overwhelming, but with a systematic approach, you can locate the source of the leak and make repairs quickly. Start by identifying the signs of a leak, turn off the water, and use your water meter to confirm if there is a leak. Conduct a thorough inspection of the plumbing system, and use specialized tools if needed. Once you find the leak, repair it promptly and test the system to ensure it’s fixed.
Taking preventative measures, like regular plumbing inspections and upgrading old pipes, will help minimize the risk of future leaks. If you’re ever unsure about the repair process, don’t hesitate to call a licensed plumber to ensure the issue is resolved safely and efficiently.
By staying proactive, you’ll protect your property and tenants from the long-term damage that plumbing leaks can cause, saving you time and money in the long run.
Newsletter on Helena’s Commercial Real Estate Market
“Residential construction within city limits also started the year strong at $14.2m permitted, which is higher than 6 of the 8 previous quarters”
-Mark Runde, Coldwell Banker Commercial
Bigfoot friend, Mark Runde, put this dynamic newsletter together covering Helena's commercial real estate market. There are some extremely valuable insights in this letter so take a look. Mark Runde is killing it and a great resource for anyone out there looking for commercial insight. He can be found over at Coldwell Banker Commercial Green & Green.
Beau Stumberg - CDO BIGFOOT Management Group
Where Helena sits in State Wide Rental Prices.
Coming in right behind Billings and slightly higher than Great Falls, Helena’s rental rates have gone up 36% since Covid began in 2021.
A statewide survey, comparing rental rates in the seven major markets in Montana is shown above. Coming in right behind Billings and slightly higher than Great Falls, Helena’s rental rates have gone up 36% since Covid began in 2021. Our average vacancy lasts less than 9 days. From the investors vantage point this is extremely desirable, especially if you bought residential investment properties prior to Covid. Interestingly, while most people think of Missoula's prices being much higher than Helenas, Helena is only $.33 behind Missoula in the price per square foot model. With new rental units being built regularly and demanding higher rental prices due to higher end finishes and amenities, Helena’s rents will likely continue to rise and get close to the statewide average of $1.84 per square foot.
As experts in Helena’s rental market it is our job to keep our figure on Helena’s pulse and advise our clients accordingly. Keeping up with market rents is extremely beneficial for real estate investors as driving factors for the rise in rental costs are directly correlated with property owners operational costs. Property values, taxes, operational costs are changing so rapidly it can be difficult to keep up which is why we are here to help ensure that our clients stay ahead of rising costs.
Whether you are an accidental or first time landlord or an experienced investor we are here to meet you needs!
Beau Stumberg - CDO BIGFOOT Management Group
Tips for Prospective Renters on How to Get Approved for an Apartment
Boost Your Credit Score: Before applying, check your credit score to ensure it meets the minimum requirement of 620. If your score is low, you can improve it by paying bills on time, reducing debt, and rectifying any inaccuracies on your credit report.
Prepare Your References: Contact your former landlords and ask if they are willing to provide positive references. Also, inform your professional references that they might be contacted. Ensure all contact information is current and accurate.
Detail Your Rental History: Provide clear and organized information about your previous rentals, including addresses, dates of tenancy, and landlord contact information. This will make it easier for your potential new landlord to confirm your rental history.
Be Honest About Your Background: If you have any blemishes in your background or credit history, be upfront about them. Explain any issues clearly and concisely, and detail the steps you’ve taken to rectify them. Honesty goes a long way and can sometimes mitigate potential red flags.
Professionalism Matters: When you meet with potential landlords or property managers, treat the interaction as you would a job interview. Be polite, dress neatly, and communicate clearly. First impressions can be a deciding factor in application approvals.
By following these tips and understanding the screening criteria, prospective renters can improve their chances of securing an apartment. It's all about preparation, honesty, and presenting oneself as a responsible and reliable tenant.
Dustin Rinker - CEO Bigfoot Management Group - May 10th 2024
Effective Tenant Screening Policies
In today's rental market, a property management company must implement rigorous screening policies to ensure they select qualified and reliable tenants. A key component of this process is the credit score requirement; our company sets a minimum credit score of 620 to qualify. This threshold helps in assessing a prospective tenant's financial reliability and payment history, indicating a lower risk of late payments or defaults.
In addition to credit checks, our screening process includes thorough background checks that cover eviction histories and watchlist screenings. This is crucial for identifying any past behaviors that could pose a risk to property safety or community security. We also require landlord references which provide insight into the tenant's previous rental experiences—whether they maintained the property well, respected lease terms, and their overall reliability. Professional references are equally important as they can vouch for the character and responsibility of the applicant in a professional setting.
Lastly, to assess the character of an applicant it is important to meet them in person if possible to evaluate them to see if they are a good fit for the landlord.
Good luck sorting through those applicants!
Dustin Rinker - CEO Bigfoot Management Group - May 10th 2024
Summer Leasing Strategies: Maximizing Rent and Minimizing Vacancies
Leasing properties during the summer in Montana can significantly enhance rental outcomes due to higher demand and increased mobility among renters. Summer months in Helena often attract more prospective tenants, including families looking to settle before the new school year and individuals relocating for work. By timing leases to coincide with this peak season, property managers can maximize rent, as the increased demand allows for competitive pricing.
Additionally, showing properties while they are still occupied helps to minimize vacancies between tenants. This practice not only demonstrates the property’s liveability but also reduces turnover time, ensuring a seamless transition and maintaining steady rental income. Efficiently managing these aspects is crucial in optimizing the performance and profitability of rental properties.
The best tenants are planning in advance, so landlords and managers should adopt policies to attract the best tenants!
Contact Bigfoot Management group for more information, advice, or book a call with our team to discuss property management services for the Helena area!
Dustin Rinker - May 2024 - dustin@bigfootmg.com
How to Rent an Apartment
Having trouble leasing an apartment in this market? Here’s some tips:
by Dustin Rinker & Josh Bibeau on May 12th, 2022
Finding a rental property is very difficult in this market. Properties are flying off the shelf sometimes in hours of being listed. Many prospective renters have indicated to our office how difficult it is to find a place to see, let alone apply and sign a lease on it. Here are some tips for renting an apartment if you’re having trouble -
Ask good questions - but don’t waste the landlords time. Know they have more applicants than they know what to do with.
Don’t tell your life’s story or share your hardships immediately. If there’s questions regarding application info please answer them, but have a poker face until then.
If you like a property, read the entire listing! There may be a disqualifying pet policy, utility information, or hidden fees. Managers dislike answering questions that are laid out clearly in the listing.
Give your references a heads up that they may receive a call from a manager. This goes the same for previous landlords, employers, etc. If you list someone on your application and they warmly answer a call from a manager giving you a glowing reference, your chances of getting offered a lease increase.
Stay cool & patient. Managers can’t make more housing units, and managers are human too! You can blow your chances of renting if you have an emotional outburst at management.
Happy leasing folks!
Thoughts: josh@bigfootmg.com
Inflation & Real Estate
I was speaking to a colleague the other day and he stated, “I feel bad for anyone who doesn’t own real estate in Montana now.” While this was said aniqudotelaly, I would concur that if you own MT RE, you are a lucky duck. There are many factors that carry this statement. Let’s explore a couple.
Inflation makes real estate more valuable, this is general & applicable to all markets. As the cost of goods increases, of course housing is included. If you have cash in the bank every day it is worth less (especially in times of high inflation), but with property ownership it has been growing in value everyday. Stable growth happens in housing throughout times of inflation.¹ One would think we are in a period of hyperinflation based on the increase in housing prices in Montana, in Helena we are seeing the median home up 26% from a year ago! This has little to do with inflation, but rather that the demand for Montana real estate is higher than ever!
Montana is a hot & attainable destination! The old adage “Montana’s full” doesn’t seem to deter folks from snatching their piece of the “last best place.” For a long time American’s dreamed of vacationing & retiring in Montana, but with remote-work options & an expansion of Montana’s economy that dream is becoming a reality & lifestyle. People are making the move now! Montana’s population grew by 1.6% during the pandemic.² You can’t blame new residents for wanting to live here, but let’s see what happens when we get a “real” winter.
Thoughts? Email us at josh@bigfootmg.com
2022 Market Outlooks
The continued housing crunch puts upward pressure on rental rates
By Dustin Rinker
The housing market in the Helena economic area continues to show a shortage. Rental rates continue to climb with a 21% annual increase from last spring alone for 2 bedroom units (with a $1150 median for 2 bedrooms). This only increases with larger housing products; with 29% and 28% annual increases on 3 bedroom and 4 bedroom units respectively.
This shows that the demand for housing has remained steady even on the tail end of the Covid-19 influenced housing boom over the last 2 years. In such a short time period, it remains to be seen whether this over the top demand will continue, or if building will catch up with the local demand. Overall it appears that both rentals and general housing will continue to be in high demand.
Our opinion based on the data we have available and our experience on the ground is that through the spring and summer rates will remain high and vacancy very low; barring unforeseen circumstances or economic issues.
Thoughts? Email us at dustin@bigfootmg.com
Property Winterization
A proactive approach to preparing for winter can save big down the line.
by Dustin Rinker on November 10th, 2021
Preparing investment properties for the challenges of Winter in Northern climates is critical to prevent potential damages, limit liabilities, and save on utility costs. A proactive approach will pay dividends and help make the properties look attractive throughout the year. Here is a checklist to consider in preparing for Winter:
Contract with vendors early for snow/ice removal; their client lists fill up fast.
Schedule sprinkler blowouts as applicable.
Schedule Fall Cleanups (leaf/debris removal & final mowing) before the snow falls.
Put out sand/gravel buckets for tenant use in appropriate multifamily locations.
Identify any areas that need heat tape - both plumbing and roofing to prevent freezing and ice dam formation.
Deliver furnace filters, or remind tenants to replace them as applicable.
Double check utility contracts to ensure the power/heat will go back into your name if a tenant is delinquent in their utility bills or if there is a vacancy.
This is a non-exhaustive list of our process to prepare for winter for our properties - we hope this helps you prepare for the coming change in the weather!
Thoughts?: dustin@bigfootmg.com
Demand for Short Term Rentals Increases
Consequences for the housing shortage compound, but create opportunities.
by Dustin Rinker on October 12th, 2021
The housing shortage in Western Montana continues to be pronounced into the Fall. Typically demand for rentals starts to wane as school starts, the weather changes and most people settle into for the coming fiscal year - but this year once again demand for housing continues to hold steady. The continued high demand for housing has created more opportunities for short term investors.
Normally short term rentals (defined as guests staying for less than 30 days) are used for exactly that - short term stays. But medium term rentals (30 days - 6 months) are in very scarce supply. When landlords can get their pick of tenants for long term leases - there is no reason to entertain shorter term leases. But desperate to find accommodations; many people are turning to AirBnb and VRBO to find rentals - and are leasing at high premiums.
AirBnb/Vrbo rates are somewhere between hotel rooms and unfurnished units - so for many renters it’s a more affordable option than a Hotel. Investors are recognizing the trend as well. There has been an increase in short term rental units by 20% in 2021 alone - and vacancy rates are very low.
Opportunities continue to grow for those who are paying attention to the market; which is why we expanded our management services to include short term rentals here at Bigfoot Management Group.
Thoughts?: dustin@bigfootmg.com
Maintenance vs. Capital Improvement
With rising material costs what should you do?
by Josh Bibeau on June 11th, 2021
Last year found many property managers working remotely, opening hours for appointment only, and limiting maintenance during the height of the COVID Pandemic. Private landlords also limited interaction with tenants to curb the spread of COVID. This could mean that after a year of deferred maintenance and more tenants staying at home we will see an increase in maintenance calls this summer. People are finally leaving their homes to travel and would love that issue resolved when they come back. The summer is a typical time to resolve non-emergency maintenance issues, and this summer will be similar. Two things are very different about this summer, literally every material cost & labor shortage.
Whirlpool announced an up to 12% increase in appliance costs¹. Lumber prices are up in some places 288%!² Copper is close to doubling cost since before the pandemic.³ Sherman Williams announced paint prices to increase across the board by 7%.⁴ The cost of maintenance work is more expensive than ever, but average rent in Montana is higher also! If you have not addressed rents since 2019, they may be in store for an increase. Rent in Lewis & Clark County saw an 11.32% increase in 2020.⁵ Typically we see 1% each year, a percentage lower than inflation! As you look at maintenance costs, I urge you to view them as capital improvements, and raise rent accordingly. People want to live in nice places, and only landlords have the ability to provide quality rentals. Tenants will pay what a place is worth! Let’s make the investment worthy of the rent collected!
Thoughts?: josh@bigfootmg.com
¹https://fortune.com/2021/06/10/lumber-prices-2021-chart-price-of-lumber-production-wood-supply-costs-update-june/ ²https://fortune.com/2021/06/10/lumber-prices-2021-chart-price-of-lumber-production-wood-supply-costs-update-june/ ³https://www.cnbc.com/2021/05/06/copper-is-the-new-oil-and-could-hit-20000-per-ton-analysts-say.html ⁴https://www.cnn.com/2021/06/09/business/paint-prices-sherwin-williams/index.html
Rise of Lifetime Renters
Is renting throwing away money or managing risk vs freedom?
by Josh Bibeau on May 12th, 2021
Many current renters are facing a crisis. They had planned to make a home purchase, saved for years, followed all the steps (lenders, realtors, offers, etc.), but were unable to purchase their first home. I am seeing this trend rise due to an extremely competitive market, influx of cash buyers, and low inventory. Does this mean these folks are destined to live a lower quality of life? Not at all, but with the barrier to entry into homeownership growing many renters are looking to make the most of their situations.
Renters take advantage of affordability, maintenance free living, and flexibility. A 2000 sq ft townhome in Helena, MT would likely cost over $1,600 for a monthly mortgage payment, but renting would likely be closer to $1,300. If that townhome is paid off, the owner may even ask as low as $1000. Renters also enjoy knowing if the oven breaks, it's not their problem. They enjoy the roof over their head without the fear it may fall down, and if it does, they move and someone else deals with it! Renters have unlimited flexibility, and can move without the hassle owners may face. No listings, showings, escrows, inspections - just give notice and go! In this unpredictable market and economy, the trade-off renters benefit from doesn’t seem bad at all!
Now, I still believe home ownership is the most stable and easiest entry to generational wealth building, but some are finding with the immediate trade-offs, renting is worth it. Time will tell where our market goes, but if you have a roof over your head and you live in Montana - you are doubly blessed!!
Thoughts?: josh@bigfootmg.com
Unconscionability & Leases
Our legislators have a new favorite word.
by Josh Bibeau on April 17th, 2021
House Bill 402 was signed into law on Friday, April 16th. It will affect how leasing & enforcement of leases happen in Montana. As I read the bill I couldn't help but notice the use of unconscionability, as it appears at least fifteen times in the bill.
Here is a copy of the bill: https://leg.mt.gov/bills/2021/billpdf/HB0402.pdf
Cornell Law’s Legal Information Institute describes it like this: “If a contract is unfair or oppressive to one party in a way that suggests abuses during its formation, a court may find it unconscionable and refuse to enforce it. A contract is most likely to be found unconscionable if both unfair bargaining and unfair substantive terms are shown. An absence of meaningful choice by the disadvantaged party is often used to prove unfair bargaining.”₁ Most of the bill seems common sense to me: put something unreasonable in your lease, don’t expect the courts to honor it. Does this mean that tenants should just sign any term in any lease and expect the courts to side with the tenant? Tenants should still use caution when signing a legal document, but I’m sure courts will find plenty of unconscionable terms in Montana leases. If you have a lease, might be time to look over those terms and filter it through a reasonability index. None of us have any justification for presenting unreasonable terms in our leases, even with the extremely competitive market we are all benefiting from now.
Is the legislature asking us to grow a conscience? I believe so.
Thoughts?: josh@bigfootmg.com
Renter & Owner Assistance
Options are available for those in need.
by Dustin Rinker on March 10th, 2021
There is a new Emergency Rental Assistance package coming through that will soon be available for renters and landlords who have been financially impacted by Covid-19. Renters may be eligible for both Utility and Rent assistance. Landlords can apply for the assistance on behalf of the tenants but will still need signatures and documentation from their tenants. To streamline the process it is recommended that tenants file their 2020 taxes and have their 2020 tax return on hand to submit with their application for assistance.
Here are some eligibility parameters for tenants:
- Household income is not to exceed 80% of area median income.
- Household must have experienced financial hardship due to Covid-19.
- Must be able to show they are at risk of homelessness or housing instability (Eviction notice, etc.)
To prepare to apply, tenants should gather the following documents:
- Lease agreement
- Demonstration of need (Eviction notice, late payment notice, etc.)
- Income Documentation (2020 Tax return or all forms of income for household for past 2 months)
Landlords will need a W9 and to prepare to get a tenant’s signature and documentation if applying on their behalf.
The program is not ready to receive applications yet but because of limited funds anyone needing assistance should prepare to apply now as well as check HOUSING.MT.GOV for program updates.
Real Estate Investing:
A Hedge Against Inflation.
There’s little doubt that inflationary pressures are building going into 2021. With current market manipulations by the FED through Quantitative Easing (Through QE, about 22% of all US Dollars were ‘printed’ in 2020), market bailouts, and the rapidly rising Federal Deficit all point towards inflation rising in the near term. Some claim that the real rates of inflation are much higher than reported through traditional measures like the Consumer Price Index (CPI). I am far from an expert in inflationary pressures – however this immediately brings my mind into what asset classes are the best hedges against rising inflation for my portfolio. For several reasons, Real Estate is one of the best historical asset classes to protect your money from inflation. Simply put – it is because of historical rates of appreciation that match or exceed inflation in addition to the additional rent income that RE Investing produces.
On their own commodities are considered to be a good hedge against inflation. Precious metals like Gold and Silver are popular as they in theory keep up with inflation as they increase in value over time. Real Estate shares this function through consistent appreciation over time. Commodities however do not produce consistent income that real estate produces through rents. Not only does the value of real estate increase over time and will hopefully outpace inflation – but the Rental Income produced will also proportionally rise (in most markets) along with inflation to protect the buying power that a month of rent can produce.
Real Estate remains an important part of a diversified investment portfolio and it may become even more important if inflation continues to rise.
Thoughts?: dustin@bigfootmg.com