First rental property... I am nervous!

Investor · Georgia - Loganville · Member since 2020 · 29 posts · 21 votes

I have property in Conyers, Georgia that I would like to rent out but I am nervous and it has overwhelmed me a little bit. I appreciate some advice and recommendations for properties managers in or near the Conyers area.

6 Reply

152 views

Most Popular Reply

Eliott Elias

Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes

Just know, these things have been stressfull and overwhelming because it's new to you. The more you see it the more you will be conditioned to handle it. Hiring a property manager is a good call

6 Reply

See this reply in the discussion

28 Replies

Jump to latestLatest

Sort by

Nate Sanow
Investor & Agent · Tulsa, OK · Member since 2016 · 1k+ posts · 1k+ votes
3y
Just so I follow. You already own it, correct? Is the debate on if you will sell it as a flip vs rent?
0 Reply
Demetrius Harrell
OP
Investor · Georgia - Loganville · Member since 2020 · 29 posts · 21 votes
3y
Quote from @Nate Sanow:

Just so I follow. You already own it, correct? Is the debate on if you will sell it as a flip vs rent?

It used to be my in-laws primary residence (4 bed, 2 and half bath) until the just recently moved and they are leaving the property to me and my wife to manage. After running the rental comps in the area and taking into account (mortgage + insurance, CapEx, Maintenance, Vacancy, property manager) expenses on the property on the low end should be about $400 per month in profit.
4 Reply
Galen Ikonomov
Member since 2021 · 256 posts · 213 votes
3y
$400 a month profit? So, what are you nervous about?
2 Reply
Eliott Elias
Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
3y
Just know, these things have been stressfull and overwhelming because it's new to you. The more you see it the more you will be conditioned to handle it. Hiring a property manager is a good call
6 Reply
John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
3y
No better way to learn than to manage it yourself.
Screen tenants and get highly qualified ones.
Find a great local handyman.
Find a great local HVAC guy.
Setup a way for the tenants to easy pay you rent every month. Zelle and PayPal are good options for a few properties.
Then sit back on auto pilot and watch the money come in.
If there is a repair that needs to be made you text it to your handyman and he handles it.
Easy Peazy.
4 Reply
Bob S.
Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
3y
Quote from @Demetrius Harrell:

I have property in Conyers, Georgia that I would like to rent out but I am nervous and it has overwhelmed me a little bit. I appreciate some advice and recommendations for properties managers in or near the Conyers area.

VERY VERY SIMPE, hire a PM co,
1 Reply
Michael Dumler
Real Estate Agent · Atlanta, GA · Member since 2020 · 1k+ posts · 1k+ votes
3y
@Demetrius Harrell, as others are pointing out, hiring a pm will diminish your worries. Send me an email and I'll connect you with several PMCs that service Conyers.
3 Reply
Demetrius Harrell
OP
Investor · Georgia - Loganville · Member since 2020 · 29 posts · 21 votes
3y
Quote from @John Underwood:

No better way to learn than to manage it yourself.
Screen tenants and get highly qualified ones.
Find a great local handyman.
Find a great local HVAC guy.
Setup a way for the tenants to easy pay you rent every month. Zelle and PayPal are good options for a few properties.
Then sit back on auto pilot and watch the money come in.
If there is a repair that needs to be made you text it to your handyman and he handles it.
Easy Peazy.

I would like to self manage to start so I can understand and know how to set my expectations of a property manager.

my father-in-law has is own HVAC company so I am covered there and between my father who has experience building homes and me being generally handy minor (non-electrical) repairs we can handle but I do have connections to licensed electricians because of my job.

I am just nervous about screening tenants myself since I have never done that I am not sure where to start, including well written rental contracts.

1 Reply
Demetrius Harrell
OP
Investor · Georgia - Loganville · Member since 2020 · 29 posts · 21 votes
3y
Quote from @Galen Ikonomov:

$400 a month profit? So, what are you nervous about?
Finding a good property manager (How to interview them/ what should I expect/ watch out for)

I would prefer to self manage to start but not knowing how to properly/legally screen tenants is a tad overwhelming.
0 Reply
Michael Dumler
Real Estate Agent · Atlanta, GA · Member since 2020 · 1k+ posts · 1k+ votes
3y
@Demetrius Harrell, in your analysis above, you included property management, the deal cash flows $400/per month. Why take on the additional stress? Real estate investing is not a hobby, if your goal is to build a portfolio, investing needs to be treated as a business. You said it yourself, "nervous about screening tenants myself" this is why you hire a resourceful PMC to do this. Interview several PMs and explicitly ask them how they service the property and tenants. Get clarity on all lease provisions and covenants. Hope this helps!
2 Reply
John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
3y
Quote from @Demetrius Harrell:

Quote from @John Underwood:

No better way to learn than to manage it yourself.
Screen tenants and get highly qualified ones.
Find a great local handyman.
Find a great local HVAC guy.
Setup a way for the tenants to easy pay you rent every month. Zelle and PayPal are good options for a few properties.
Then sit back on auto pilot and watch the money come in.
If there is a repair that needs to be made you text it to your handyman and he handles it.
Easy Peazy.
I would like to self manage to start so I can understand and know how to set my expectations of a property manager.

my father-in-law has is own HVAC company so I am covered there and between my father who has experience building homes from and me being generally handy minor (non-electrical) repairs we can handle but I do have connections to licensed electricians but of my job.

I am just nervous about screening tenants myself since I have never done that I am not sure where to start, including well written rental contracts.

I have switched over to taking Zillow applications. I can advertise on zillow and let people apply there too.
I compared the reports to the company I was using, and they were spot on, so I have confidence in them.
It makes screening tenants really easy.
Don't let anyone (especially PM's) scare you into thinking you need a PM. It will be a great learning experience.
I have Many LTR's and some STR's and I easily self-manage from my phone with little effort.
1 Reply
Henry T.
Member since 2022 · 1k+ posts · 1k+ votes
3y
Screening is where it matters most. Set high criteria and stick to it. For starters I set a credit rating of 750, 3x or 4x rent, one year at job, not self employed. List your requirements in your ad clearly and cut off the calls that obviously didn't read them. I like what Lucas Hall has to say. Clear and concise and is spot on, I think. , his YT interview is worth watching. Take notes.
1 Reply
Henry T.
Member since 2022 · 1k+ posts · 1k+ votes
3y
0 Reply
Greg M.
Rental Property Investor · Los Angeles, CA · Member since 2017 · 2k+ posts · 5k+ votes
3y
Quote from @Demetrius Harrell:

The fact that you are taking these into account puts you ahead of so many people just starting out. I do hope you are also including taxes.

The first thing you should do is read up on the laws. Even though Georgia and Atlanta are somewhat landlord friendly, learn what you can and can't ask of and from people. Learn how security deposits need to be handled and timelines for getting things done. Find out what is required of a landlord (i.e. do you have to provide A/C).

Consider joining an apartment owners association. They will likely have sample leases, they can answer a lot of your questions, and they can point you in the right directing in finding out any info you need. They may also be able to refer you to vendors.

Figure out average screening criteria for your area. Look online at close-by rentals and see what they require. Based on that, set your criteria and follow it. Don't waver from it especially for a sob story. Define your rules upfront for your potential renters: No smoking, pets OK, etc. Run their credit, don't take a report from them. Confirm who you are calling and then call their employer and two previous landlords. Don't jump at a tenant just to get the place rented. It's always better to have no tenant than a bad tenant. Follow the lease. Tenants are your customer, not your friend. Late rent = late fee. Not following the rules = eviction.

And if you do all of that, you will still nervously await the rent check arriving the first few months. That's natural.
2 Reply
Jaron WallingPro Member
Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
3y
@Demetrius Harrell You're post, responses, and strong cash-flow is refreshing to say the least. Your connections with HVAC, electricians, and ability to handle minor repairs yourself gives you a head start. Take advantage of it for a couple years. Maybe a PM company makes sense after you repeat this a few times.

PM isn't that hard if you stick to your screening requirements. Give yourself extra time to find quality people. Don't rush that step. Look for red flags. Most of them are right in front of you.
2 Reply
Bud Gaffney
Rental Property Investor · Boston, MA · Member since 2019 · 2k+ posts · 1k+ votes
3y
You can do it!!!!!! :)
0 Reply
Bud Gaffney
Rental Property Investor · Boston, MA · Member since 2019 · 2k+ posts · 1k+ votes
3y
Success is ALWAYS on the other side of FEAR :)
1 Reply
Bud Gaffney
Rental Property Investor · Boston, MA · Member since 2019 · 2k+ posts · 1k+ votes
3y
Plow through the fear and get really wealthy :)
1 Reply
Kevin Liu
Property Manager · Nationwide · Member since 2022 · 67 posts · 21 votes
3y
Hey Demetrius congrats on the milestone!
Your first rental can seem very daunting, but if you take the time to make the necessary preparations the pay off will be very rewarding. As a PM here are some tips that I give first time investment owners:
- Study the complete rental lifecycle (leasing, rent collection, maintenance, turnover)
- Spend the extra time during the screening process to understand who is applying and why
- Build a relationship with that tenant and not just play rent collector
- Keep your paperwork organized (keep a copy of everything!)
- Look for ways to streamline logistic tasks (collecting rent, leasing and advertising)
- Consider bi-annual property inspections
These are just some that come to the top of my head but there is so much to the rental ecosystem, thats why I recommend studying all the ins and outs (#1). If you are looking for a property manager, make sure they cover these points for you. Best of luck!
1 Reply
Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
3y
@Demetrius Harrell
In our experience, the #1 mistake owners make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.

It's often a case of not doing enough research, as they don't know what they don't know!

Owners mistakenly ASSUME all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY, so price is the only differentiator.

So, the first question they usually ask a PMC is about fees - instead of asking about services and HOW those services are executed.

EXAMPLE: PMC states they will handle tenant screening – what does that specifically mean? What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.? You’d be shocked by how little actual screening many PMC’s do!

This also leads owners to ASSUME simpler is better when it comes to management contracts.

The reality is the opposite - if it's not in writing then the PMC doesn't have to provide the service or can charge extra for it!

We have a 14-page management contract that we've added our real experiences to over the years, with the intent of protecting both us AND the landlord. Beyond the Monthly Management, Placement & Maintenance fees, all other fees in our contract are IF EVENT -> THEN fees.

We don’t know any PMCs to recommend in the area mentioned, but since selecting the wrong PMC is usually more harmful than selecting a bad tenant, you might want to read our series about “How to Screen a PMC Better than a Tenant”:

https://www.biggerpockets.com/member-blogs/3094/91877-how-to-screen-a-pmc-better-than-a-tenant-part-1-services-and-processes

We recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.

EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!

P.S. If you just hire the cheapest or first PMC you speak with and it turns into a bad experience, please don’t assume ALL PMC’s are bad and start trashing PMC’s in general. Take ownership of your mistake and learn to do the proper due diligence recommended above😊
[email protected]248-209-6824
Logical Property Management4.9459 Reviews
Website View Page
1 Reply
John Myers
Realtor · Albuquerque, NM · Member since 2014 · 109 posts · 79 votes
3y
You are getting lots of great advice. I manage all my own properties and it is pretty easy. The number one issue is to get great tenants. Great tenants = great life! Bad tenants = life sucks.

You are operating a business when owning rental properties. Take it seriously and operate it as a business. If tenants are late on rent, then inform them immediately (according to the laws in your state). Evict them if they don't pay, do not procrastinate. If they can't pay this month's rent, they will probably never catch up. This is true in most cases. You don't want to get stuck with a tenant that has not paid in several months.

Make sure your tenants have enough money to pay rent. Credit scores are important, income is important. However, how much money do they have after they pay all their monthly bills? I make sure they have a debt to income ratio of 50%. Many people make a ton of money, however they spend 1.5 tons of money. There are plenty of ways to screen tenants online. Fine one that works for you.

Having good contractors is a must, sounds like you got that covered.
0 Reply
Douglas Gratz
Rental Property Investor · Philadelphia, PA · Member since 2018 · 260 posts · 145 votes
3y
Th@Demetrius Harrell Thats awesome man! congratulations on the start of your journey! If you go a good deal, your rental is always a home run so long as you keep it occupied. I do section 8 over here in Philadelphia. People always have bad things to say about it, and I would say that for anything, sometimes , if your not careful and you get a bad tenant. But section 8 is recession proof, or booming at recession since people are low on money. What more can you ask for.
I buy mainly Multi-family like duplex's and triplex's mainly duplex's at the moment, each cash flows after mortgage and all expenses around $800-$1000 and the government sends me the check each month, your going to love having a rental and building on off of it, good stuff man! if you ever have any questions, don't hesitate.
0 Reply
Galen Ikonomov
Member since 2021 · 256 posts · 213 votes
3y
Quote from @Demetrius Harrell:

Quote from @Galen Ikonomov:

$400 a month profit? So, what are you nervous about?
Finding a good property manager (How to interview them/ what should I expect/ watch out for)

I would prefer to self manage to start but not knowing how to properly/legally screen tenants is a tad overwhelming.

Demetrius, for a first property that you conservatively underwrote and you have profit, you don't need a PM. You actually have an amazing opportunity to learn to be a landlord whilst being profitable. You will learn leases, you will learn tenant attitude, you will learn different software on how to collect rent, manage the property and a million more benefits.
How you are going to learn what to expect from Property Managers without first learning how to do it yourself?
0 Reply
Ryan KellyBusiness Member
Real Estate Broker · Austin, TX · Member since 2018 · 1k+ posts · 1k+ votes
3y
@Demetrius Harrell if you aren’t uncomfortable, you aren’t growing. This is a sign you definitely need to keep taking action and get it rented. The quicker you start moving forward the more you will learn and grow. Take action!
[email protected]512-674-5478
Ryan Kelly Group - Keller Williams5112 Reviews
Website View Page
1 Reply
Cayden Standlee
Real Estate Agent · Milwaukee · Member since 2022 · 57 posts · 25 votes
3y
As you may have heard, the first property is the hardest. Everything after that becomes smoother. I think you are on the right track by finding yourself a good PM and a team that will be there for when you need it.
Good luck and I wish you the best!
0 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.