What all do you need for managing your own properties?
What tools what you need to do this on your own with no PM? Also, if you're not local.
Obviously finding a good handyman for maintenance issues.
Finding someone to rent the properties.
Anything else?
Nerves of steel, patients and a good way to track payments like quickbooks. Have you gotten any quotes from and property managers honestly it takes a special kind of person to deal with some of these tenants.
Some of the tools that you will need are as follows:
Responsibility: A clear understanding of your responsibilities as a landlord.
A thorough knowledge of local laws and regulations.
Technology: I started with an Excel spreadsheet and scaled up to Accounting software, Online ACH rent payment system, Property management software. Presently, I use QuickBooks (accounting) and Rentec Direct (property management, tenant portal, online ACH rent payment system, etc.) There are many other accounting and property management apps available.
Team: Attorney, Real estate agent, Insurance agent, General contractor, Plumber, Electrician, HVAC technician.
Lease: A Residential Lease that is appropriate to the State and locality in which the rental unit is located.
Good communication skills.
Time and patience.
#5 Multi-Family and Apartment Investing Contributor
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- Shelton, WA
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#5 Multi-Family and Apartment Investing Contributor
- Investor
- Shelton, WA
We have been managing our own properties for years. You need to select the tenant class you are OK dealing with. For me it people who live in B+ properties. The properties have to be less than an hours drive, traffic or not.
Your screening process must be uncompromising and thorough. I'd rather have an empty unit than a bad tenant. You can find PM classes at apartment owners associations and LL associations. You have to learn local tenant/LL laws; NOLO is a good source. It is a lot of work and there are no shortcuts if you want to succeed.
Most used resource-plumber, second most used, handyman or woman. I have a great handywoman; she does tile work, caulking, painting, light plumbing, she can do a complete turn. Get a good accountant, we use this resource fairly often. I have an attorney but I hardly ever call her and never to do with tenants.
Bigger Pockets is a wonderful resource. Make sure you know what all is available here. Join a local LL association get to know the folks who work there, and attend meetings. All the best!
#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
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- Austin, TX
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#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
- Investor
- Austin, TX
Knowing the local landlord and tenant laws trumps everything else. Pay the 8% and let the experts handle it.
Quote from @Eliott Elias:
Knowing the local landlord and tenant laws trumps everything else. Pay the 8% and let the experts handle it.
I wish that were the case. More like pay 10% and still have to manage it partially yourself, watch for accounting errors, watch them send handymen that upcharge double or triple and also take too long to find tenants.
Quote from @William Broxson:
Nerves of steel, patients and a good way to track payments like quickbooks. Have you gotten any quotes from and property managers honestly it takes a special kind of person to deal with some of these tenants.
Yes I have one. So far I'm paying them to collect payments online, pay utilities and answer phone calls that's about it. Their vendors double/triple charge so I have to send my own. They make accounting errors. and their agents are taking multiple months to find tenants when it should take about a week, 1 month max.
#2 Managing Your Property Contributor
- Property Manager
- Royal Oak, MI
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#2 Managing Your Property Contributor
- Property Manager
- Royal Oak, MI
@Terry Landon you'll need a LOT of knowledge!
Landlords are so short-sighted when it comes to hiring property management companies and always mention some variation of, "but 8% is a lot..." nearsightedness.
How much do you really know about the following:
1) Fair Housing laws
2) Fair Credit Reporting Act
3) Consumer Privacy Protection laws
4) Local rental ordinances
5) State eviction laws and procedures
6) Etc...
Everyone thinks property management is easy until something goes wrong...
Quote from @Terry Landon:
Quote from @Eliott Elias:
Knowing the local landlord and tenant laws trumps everything else. Pay the 8% and let the experts handle it.
I wish that were the case. More like pay 10% and still have to manage it partially yourself, watch for accounting errors, watch them send handymen that upcharge double or triple and also take too long to find tenants.
Terry, we self-manage 7 properties remotely. We've found that our standards and expectations of ourselves and others is far higher than most professionals have. Accordingly, we've found that most professionals we've attempted to use across all areas of real estate have frustrated us--slow returned calls, inconsistent follow up, conveying incomplete information, doing work that is just good enough, etc. We get it--they need to stay in business. We seek to operate to a higher standard.
@John T. offers a good list. We found that self-managing works best for us
Elliot and Drew nailed it. You need to know the laws well. You need a solid lease agreement that you know inside/out and are willing/capable of enforcing. You need to know how to study the market and keep up with rates, market the property to the right audience, screen applications, how to inspect and how often, move-in and move-out procedures, dealing with late rent, and about 172 other things.
Do yourself a favor: buy "Every Landlord's Legal Guide" by NOLO. Written by attorney investors, it's full of practical advice pertaining to management of investment property, has sample forms that can be edited, and - most importantly - they tell you what your primary state laws are and where you can read them. It's updated every year and is the best $40 you'll spend as a Landlord. There is one book for 49 states and a separate book for California.
@Terry Landon
1. A local Agent
2. A local handyman
3. Rent collection software
That's it.
Quote from @John T.:
Some of the tools that you will need are as follows:
Responsibility: A clear understanding of your responsibilities as a landlord.
A thorough knowledge of local laws and regulations.
Technology: I started with an Excel spreadsheet and scaled up to Accounting software, Online ACH rent payment system, Property management software. Presently, I use QuickBooks (accounting) and Rentec Direct (property management, tenant portal, online ACH rent payment system, etc.) There are many other accounting and property management apps available.
Team: Attorney, Real estate agent, Insurance agent, General contractor, Plumber, Electrician, HVAC technician.
Lease: A Residential Lease that is appropriate to the State and locality in which the rental unit is located.
Good communication skills.
Time and patience.
Cant emphasize enough how much a great team can help!
Lots of patience and creativity working with tenants is what you’ll need in this biz. Most of these people live paycheck to paycheck and will never have more than $100 in emergency funds in savings. So guess who gets paid last when they have their frequent financial issues? lol
Try to have at least 2 handymen. Ask other investors who they use and try out their guy. Go to local RE meetups to learn from other landlords.
It’s super easy to self manage. Don’t pay someone else 8% to do it. When things break, you just call or text someone to go fix it. Done.
PM me if you have any questions.
I self manage 2 units within 20 min of my home. I do 90% of the work/maintenance myself but hire out when its above my ability or time. I'm not paying someone 8-10% to collect a check every month and even more to place a tenant. If you do it right, you are on cruise control 80-90% of the time and I'm not paying 8-10% for all those months of doing nothing. If I have a legal issue I consult a lawyer. If I cant fix it, I hire someone that can.
For some a pro PM can be worth it..... but don't be fooled into thinking you don't have to manage them. You can get a rock star....or someone that will suck you dry and not answer your calls.