After you get the keys?

Question

Everyone is usually concerned about the process on buying their first rental. I’m worried about what happens AFTER closing! I plan on buying a Duplex in Indianapolis in the near future, renting one side and living in the other of course. Can anyone give some of the steps after getting the keys and trying to find a tenant?

Also:

What platform did you use to collect rent?

How did you advertise the available unit?

How did you acquire the leasing agreement?

Any bit of information will help me sleep tonight. Thank you!

Corby Goade · Answer

Great questions! I'd do a couple things- one, find a local real estate attorney and pay for a consult. It'll cost you a couple hundred bucks, but they'll answer whatever legal questions you have AND they will have a state specific lease that they will defend in court if necessary, that peace of mind will be worth well over whatever it costs you.

It seems counter intuitive, but I would highly recommend you interview some property managers and hire one to manage the other unit. If you search these boards, you'll find a litany of people house hacking that have problem tenants living with/next to them and they are stuck in a living nightmare with the tenants either taking advantage of them because they have become "friends," or worse, they are taking advantage of them because they know you own the property and they use that as leverage.

As for rent collection- if you just have a few units, Cozy is great- we used it very effectively up until 20 units or so.

Advertising- every market seems to have a different site that is a go-to for renters. My market uses Zillow, but if you google for rentals in your city, you'll quickly see which sites are getting the most action.

One item you didn't ask about, and it's the most important- tenant screening. You can use Cozy for this, but you need to study up on fair housing laws and follow them as part of your screening procedures. Technically for a house hack, fair housing doesn't apply to you, but those screening procedures are gold, they could save your bacon in more ways than one.

Best of luck!

Will Fraser · Answer

Hi @Marlin Chisolm, welcome to the BiggerPockets forums!  You're in good luck because there is a book about exactly those things (and a bit more).  Brandon and Heather Turner's Managing Rental Properties.

Cozy.co is a great platform for rent collection and I'd recommend it for you.  Otherwise, check out all the details in the book :)

Marlin Chisolm · Answer

@Corby Goade definitely don’t want to start off with tenant issues! I’m sure going with a property manager will be the best choice for me. I’ll be sure to check out Cozy, seems as if it’s a platform known by a lot of people. I appreciate all of the in depth information!

Marlin Chisolm · Answer

@Theresa Harris I will definitely have to read up on local law and it seems like I’ll be going with a property manager at first.

Marlin Chisolm · Answer

@Antonio Cucciniello I think that will be the best option, thank you!

Theresa Harris · Answer

Read your local laws, get a standard lease agreement for your area (check a govt website), look at existing rentals to see what sites tenants are looking at (it varies by location).  Know what market value is for the rental and do a good screening of the tenants.  Don't hand over keys until you have the deposit and first month's rent and checked that all utilities are in their name.

Antonio Cucciniello · Answer

@Marlin Chisolm What I did was get a property manager... this helps me sleep at night

Marlin Chisolm · Answer

@Will Fraser I appreciate the quick response! I’ll be sure to read your recommendation (already in the Amazon cart) and check out Cozy.co to become a bit more familiar with it.

After you get the keys?

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