Chapter 106: Renting Conditions

Morning of 1st August…

At around 8 a.m., Michael received a call, which was from the agency that was in charge of managing this building.

The job was given to them by the previous owner of the building. But now, since the building had been sold, they had to contact the new owner.

Since Michael was currently at the building, the manager of the agency directly came to the building, meeting with Michael in his apartment.

When the manager realized that the new owner of the building was actually living within the same building, he was quite shocked.

In his life, he had never thought of a possibility of something like this happening. Someone living inside an apartment, only to decide to purchase an entire apartment building, that was totally unheard of.

Another thing that shocked him was the fact that Michael was young, too young. Previously, he had thought that the new owner would be in his thirties at the least.

But meeting with someone who had not yet even reached his twenties, how could the manager not be shocked?

Nevertheless, he had no other choice but to believe that Michael was the new owner of the building, when Michael presented him with the ownership transfer agreement.

“Mr Santos, about managing the building, I hope that you can allow our agency to continue managing this building. I promise that within this month, all the available units will be rented out entirely.” The manager said with a flattering smile.

The manager was a man with a beer belly, seemingly in his late 30s. He was wearing a suit and tie, and even though it was still early in the morning, the man was already sweating.

Looking at the man with a greasy appearance, Michael was silent for a moment before he responded, “I don’t have a problem on renting out the units available.

You can manage the building just like before, but, I have to make some things clear to you.”

“Please, go ahead Mr Santos.” Slightly excited, the manager responded. At the same time, he just hoped that the conditions being given by Michael would not be difficult to fulfill.

“It is like this, the apartments can be rented out, but not all of them. At least three of them have to remain vacant all the time.

In case those three end up being occupied by someone or people that I make arrangements for, you will have to find a way of evacuating tenants from three more apartments.

But before that, we can give them a month of preparation. During the month that they would be here, they would not be required to pay any rent, but are expected to leave the moment that the month ends.

I don’t know if you can fulfill those conditions?” Michael explained his conditions.

The reason why he purchased this building in the first place was to accommodate the bio humans.

So, if bio humans were bought from the system store, and lacked a place to stay, what would be the use of this building?

As for the rental income of the building, did Michael care about that little money? The profit that was brought in by Sky Technologies was way higher than this.

Additionally, with Adrian and the other three getting themselves involved in the stock market whenever they were free, the amount of money that Michael could make was quite high.

So, renting out the apartment was just a by the way. At least, this way, the building could be kind of active.

The manager on the other hand was left dumbfounded by Michael’s conditions.

During his career as an agent, until he was promoted to a manager of an agency, he had never encountered such a building owner.

Most of the owners of apartment buildings would usually try rushing the agency to rent out the apartments. But for this guy, it seemed that he did not really care that much about the money.

Additionally, what was the use of leaving three apartments empty? And, who were the people that he was planning to bring in?

In the end, this was not his building. So, he did not ask these questions, as he quickly nodded as he said, “Don’t worry about that Mr Santos. I can guarantee that I will inform all the tenants that are currently renting in this building, or will be renting it in the future.

This way, we can avoid them causing trouble, in case they are asked to vacate the houses.”

Michael nodded. At least, it would be better for the clients to know about this in advance. This way, they could avoid many things, especially those that liked causing trouble.

“Okay, make sure to add that clause to the agreement that the tenants have to sign before renting the house. Additionally, make sure that the clause is visible to anyone reading the agreement.” Michael nodded as he added.

“Sure. I will do that. Then, about the rent. The previous owner has already refunded the rent for this month and for the next few months for those that paid several months in advance, including the deposit.

So, let’s break down the cash flow for this 72-unit building. Right now, 63 units are rented out, and the rest remain vacant. Here’s how it looks by unit type and payment schedule.

First, the monthly payers: there are 25 units whose tenants pay month by month. Each one pays $1,650. Since it’s August 1st, there are five months left in the year, meaning from August to December, each of these units will bring in $8,250.

Multiply that across 25 units, and we’re looking at $206,250 for the rest of the year from these tenants.

Next, the quarterly payers, which include 13 units. They pay every three months, also at $1,650 per month. With two quarters remaining this year, August to October, and November to December. Each unit will contribute $9,900, totaling $128,700 from this group.

For the 6-month upfront payers, there are 13 units. These tenants have already paid part of their lease, so from now until the end of December, each will still owe for two months, which comes to $3,300 per unit, or $42,900 in total.

Then we have the 12-month upfront payers, which account for 6 units. Their leases started at different points in the year

Some just started, some are midway, and some are nearing the end of their prepaid term. Factoring the staggered timing, each unit is expected to generate between $2,200 and $7,920 for the remainder of this year.

Summed together, these six units will provide roughly $79,200 in remaining rent.

Finally, the irregular or other payers, 6 units. These tenants have variable schedules, but on average, they will bring in $4,950 for the remaining months, totaling $29,700.

Not forgetting the security deposits: each of the 63 rented units has already paid $1,650 as a deposit, giving an additional $103,950 in cash flow that’s technically on hand.

So, if we tally it all up, sir, for the rest of this year, from August through December, your building can realistically expect around $486,750 in rent, plus the $103,950 in deposits, giving a total cash flow of roughly $590,700.

That’s your expected income based on the current occupancy and staggered payment schedules. Of course, this assumes no defaults or early move-outs, but it gives you a solid overview of what to expect for the rest of the year.

Currently, the amount of money that we have on our hands, refunded by the previous owner is $402,600.

Our agency usually takes 5% of the rent, which sums up to approximately $14,933, considering the current available amount.

So, that leaves us with $387,667, an amount that can be transferred to you immediately.” The agent explained everything.

Michael looked at the guy who was speaking, not reading from anywhere while giving the figures.

He was quite shocked by the ability that this guy possessed. Did this guy cram everything before coming over?

After all, from the way that he was saying it, it was as though he could actually remember every detail on the current circumstances surrounding the building.

But of course, Michael thought that this was impossible. After all, the agency did not manage just a single building. If the guy had to remember all this information for each building, did that not imply that he had photographic memory?

Regardless, Michael nodded and said, “I will give you my account number, just transfer the money to the account from now on.”

“Okay sir. If there is anything that you need, you can just contact me, and I will come over if there is a need.” The manager said with a smile as he stood up.

The two of them then shook hands, and the manager left, after receiving the account number that was sent to his email.

Michael did not leave for the rest of the day, as he spent the entire day reading the information that had been compiled by Adrian, to gain new skills.

As for Lucas and Damian, the two of them came back from the hotel in the morning, and Michael did the arrangements for them to get into the vacant apartments that were located on the fourth floor.

They had to arrange the apartments for themselves, as they already had money, with the bank accounts already opened the previous day.

It seemed, they would also need to have their accounts upgraded in the future, considering that the amount of money that would be sent into their accounts would be quite high.

Regardless, Michael concentrated on something else, which was to acquire skills and earn SP.

It was just that, in the evening, there was an unexpected guest, who was none other than Kate.

“Hey, what brought you over?” Michael asked as he served Kate with a glass of orange juice.

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