Diving into my 1st rental (DFW)- Input your Advice & Guidance
Daniel MendezPro Member
Investor · Dallas, TX · Member since 2018 · 254 posts · 47 votesDiving into my 1st rental (DFW)- Input your Advice & Guidance
Most Popular Reply
Attorney · Pensacola, FL · Member since 2023 · 178 posts · 106 votes
2yHere are some important things to consider as a landlord.
- 1. Lease agreement. You need a lease agreement drafted by a landlord and property management attorney to fit your business model. Sure, you can download lease agreements online, and some of them are even drafted by an attorney. But most of them are generic in nature and do not fit the specifics of your business model. Granted, if this is your first time as a landlord, you may not realize what your model looks like, which is why you should consult with a property management attorney who can steer you in the right direction and give you things to think about as a landlord.
- 2. Landlord Forms. You need a library of landlord forms that you will or may use during the tenancy, such as notices, communication templates, etc.
- 3. Inspections. There are inspection apps that will help you to keep track and record your inspections. You will want to, at a minimum, conduct pre-move-in, mid-term, and move-out inspections. With sufficient photographs and notes reflecting the results of your inspections.
- 4. Understand Obligations. This goes back to the lease agreement but also includes your state’s landlord-tenant act. You need to know what your and the tenant obligations are and what the legal processes are to enforce the tenant's obligatlions. This will help you to communicate with the tenant regarding maintenance requests, demands for service, handling maintenance and repairs during the tenancy, what the tenant may owe during the tenancy, handling security deposits and claims, etc.
- 4. Rent Payment Ledger. Ensure that you are using a rent payment software program that records and categories rent and money charges and payments, including dates, payment amounts, and balance owed contemporaneously with the transaction. Whether you use a management software program or use commonly-used computer programs, just be sure to keep accurate records.
- 5. Rent Payment Methods. Choose what type of rent payment method you want the tenant to use (e.g. online portal, ACH, checks, etc.). Choose the method that works best for how you want to do business. This will need to be addressed in the lease agreement, because you need to be able to enforce rent payment methods during the lease.
- 6. Move-in Inspection. In the lease, obligate the tenant to conduct a move-in inspection within a certain timeframe after move-in and to provide you with a move-in inspection report with supporting documents or photos.
- 7. Communication methods. Choose the method of communication the tenant needs to communicate with you so you can keep track of tenant communications. If you want to use email, identify your and the tenant’s email addresses. Depending on your state’s laws, emails could constitute legal notice (assuming the contents of the notice meets legal requirements of the particular notice given), as compared to having to hand-deliver, post, or mail notice.
- 8. Vendors. Try to establish relationships with common services needed for your property, such as, plumber, electrician, handyman, septic, lawn, locks, etc.
- 9. Tenant Violation Fees. Your lease should address tenant lease violations and what fees may be owed to cover your administrative burdens of having to deal with tenant violations. For example,
Late Rent |
- 10. Minor Maintenance. Consider obligating the tenant for minor repairs. For example:
General | -Filters (furnace, air conditioning, oven exhaust, refrigerator, and water) |
HVAC | -Monthly A/C filter and drain line maintenance |
Electrical | -Reset “tripped” GFI breakers |
Plumbing | -Unclog drains or toilets |
Exterior | -Routine lawn (and pool) maintenance |
There’s a lot to consider as a landlord. @Nathan Gesner is correct: getting good landlord education resources is helpful to educate yourself on the variety of legal and practical considerations of property management. Experience will also help to inform your practices and procedures.
Best wishes.
5 Replies
- Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes2y
Quote from @Daniel Mendez:
Do yourself a favor: buy "Every Landlord's Legal Guide" by NOLO. Written by attorney investors, it's full of practical advice about the management of investment property, has sample forms that can be edited, and - most importantly - tells you what your primary state laws are and where you can read them. It's updated yearly and is the best $40 you'll spend as a Landlord. There is one book for 49 states and a separate book for California.
The DIY Landlord Book4.7248 Reviews - Attorney · Pensacola, FL · Member since 2023 · 178 posts · 106 votes2y
Here are some important things to consider as a landlord.
- 1. Lease agreement. You need a lease agreement drafted by a landlord and property management attorney to fit your business model. Sure, you can download lease agreements online, and some of them are even drafted by an attorney. But most of them are generic in nature and do not fit the specifics of your business model. Granted, if this is your first time as a landlord, you may not realize what your model looks like, which is why you should consult with a property management attorney who can steer you in the right direction and give you things to think about as a landlord.
- 2. Landlord Forms. You need a library of landlord forms that you will or may use during the tenancy, such as notices, communication templates, etc.
- 3. Inspections. There are inspection apps that will help you to keep track and record your inspections. You will want to, at a minimum, conduct pre-move-in, mid-term, and move-out inspections. With sufficient photographs and notes reflecting the results of your inspections.
- 4. Understand Obligations. This goes back to the lease agreement but also includes your state’s landlord-tenant act. You need to know what your and the tenant obligations are and what the legal processes are to enforce the tenant's obligatlions. This will help you to communicate with the tenant regarding maintenance requests, demands for service, handling maintenance and repairs during the tenancy, what the tenant may owe during the tenancy, handling security deposits and claims, etc.
- 4. Rent Payment Ledger. Ensure that you are using a rent payment software program that records and categories rent and money charges and payments, including dates, payment amounts, and balance owed contemporaneously with the transaction. Whether you use a management software program or use commonly-used computer programs, just be sure to keep accurate records.
- 5. Rent Payment Methods. Choose what type of rent payment method you want the tenant to use (e.g. online portal, ACH, checks, etc.). Choose the method that works best for how you want to do business. This will need to be addressed in the lease agreement, because you need to be able to enforce rent payment methods during the lease.
- 6. Move-in Inspection. In the lease, obligate the tenant to conduct a move-in inspection within a certain timeframe after move-in and to provide you with a move-in inspection report with supporting documents or photos.
- 7. Communication methods. Choose the method of communication the tenant needs to communicate with you so you can keep track of tenant communications. If you want to use email, identify your and the tenant’s email addresses. Depending on your state’s laws, emails could constitute legal notice (assuming the contents of the notice meets legal requirements of the particular notice given), as compared to having to hand-deliver, post, or mail notice.
- 8. Vendors. Try to establish relationships with common services needed for your property, such as, plumber, electrician, handyman, septic, lawn, locks, etc.
- 9. Tenant Violation Fees. Your lease should address tenant lease violations and what fees may be owed to cover your administrative burdens of having to deal with tenant violations. For example,
Late Rent
Insufficient Funds
Utility Reconnection
Reissue Check
A/C Clean Violation
Pest Control
Renewal
Move-Out Administration
Unlock Request
Key Request
Failure to Return Key
Pilot Lighting
Grilling Violation
Garbage Violation
Clogged Drain / Tub / Toilet
Window Screen
Hurricane Shutter Violation
Smoking Violation
Lease Amendment Amendment
Pet Application
Unauthorized Pet
Guest Violation
Unauthorized Occupant
Inspection (due to tenant violation)
Yard Remediation
Pool Remediation
Smart Home Device Tamper
Exterior Maintenance Violation
Parking Violation
Community Amenity Violation
Marketing (tenant early termination)
Notice (due to tenant violation) Preparation
Notice Delivery
Lien Violation
Sublease
Association Violation
Eviction (not including attorney’s fees and eviction costs)
Rent Verification- 10. Minor Maintenance. Consider obligating the tenant for minor repairs. For example:
General
-Filters (furnace, air conditioning, oven exhaust, refrigerator, and water)
-Stove burner when the “eye” needs simple replacement
-Batteries and remotes that service the premises
-Fan and light pull strings
-Smoke and carbon alarms testing and batteries
-Ensuring appliances are properly plugged in, hooked up, and used
-Removing dirt, debris, and lint in and from connection pipes (e.g. clothes dryer)
-Tighten loose screws on all home functions (e.g. doors, hinges, handles, socket
-Balancing off-balance appliances
-Cable, internet, and phone jacks
-Fire extinguishers
-Systems operation (e.g. security, irrigation, HVAC)HVAC
-Monthly A/C filter and drain line maintenance
Electrical
-Reset “tripped” GFI breakers
-Light bulbs (throughout and at the end of the tenancy)
-Blown fuses
-Reset breakers in the outside and inside breaker boxes
-Socket and plug outlet coversPlumbing
-Unclog drains or toilets
-Caulking around tubs and showers as needed
-Gas pilot lighting
-Leaky faucets and shower heads
-Toilet flappers, handles, seats and seat lids, tank lid, and flush kit
-Sink and tub stoppers
-If septic tank present, use RID-X as directed on consumer box
-Proper cleaning of garbage disposal
-Loose faucets and sprayer heads and hoses
-Faucet filters (i.e. aerator)
-Open exterior plumbing clean out when necessary (e.g. sewage backup)Exterior
-Routine lawn (and pool) maintenance
-Adjusting sprinkler heads as necessary
-On the last month of tenancy, tenant must perform required lawn maintenance no sooner than 2 days prior to vacate dateThere’s a lot to consider as a landlord. @Nathan Gesner is correct: getting good landlord education resources is helpful to educate yourself on the variety of legal and practical considerations of property management. Experience will also help to inform your practices and procedures.
Best wishes.
- 2yDiego AlvaradoBusiness MemberReal Estate Agent · Flower Mound, TX · Member since 2016 · 298 posts · 139 votes
I am in Dallas two and I am managing my own investments myself too since 2017. I have a couple of other investors doing this too and we meet often to share knowledge, you may join us if close.
By the way, I will follow all recommendations as described by other.
Alvarado Realty Group522 Reviews - Real Estate Agent · Arlington, TX · Member since 2016 · 151 posts · 54 votes2y
I have been self managing for years now, and I started out creating my own leases- I wasn't a realtor at the time. You really want to be confident about who you place in the property, I would rather wait for the right tenant than placing a bad one. You can post on Zillow yourself and you will have to show it or you can hire a realtor and they will show the property for you as well as do further marketing. The agent will also provide a solid TEXAS lease that will hold up in court.
- Flipper/Rehabber · Dallas, TX · Member since 2018 · 9 posts · 3 votes2y
Congratulations on making the decision to turn your primary residence into a rental! Managing your own property can be rewarding but also challenging. Here are a few tips for managing a rental in the DFW area:
- Screen Tenants Thoroughly: Conduct background and credit checks to ensure reliable tenants.
- Understand Local Laws: Familiarize yourself with Texas landlord-tenant laws to avoid legal issues.
- Maintain Good Communication: Establish clear communication channels with your tenants.
- Keep Up with Maintenance: Regular maintenance can prevent larger, more costly issues.
- Consider Eviction Procedures: Be prepared for potential evictions. Knowing the process can save you time and stress.
Good luck with your new venture! If you ever need professional assistance, don’t hesitate to reach out.
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