I need an advice. We started rental business and during 2 years our portfolio jumped from one rental to 20 doors. I am managing it myself and trying to optimize the process. I am at this point right now:
Tenants make a direct deposits into my business account (I have them direct deposit coupons without full account number and without my home address). Some tenants use direct transfer or online automatic transfer.
I hired general contractor to manage maintenance and I have a list of contractors for different kind of projects.
For some units I find tenants myself, for remote units I have an agent.
I am thinking what else I could do to save my time and energy.
Please tell me what I could do better.
Sounds good to me. Is there anything specific you're having issues with, that you'd like help with?
You didn't mention bookkeeping, so I'll mention that. I know some people really like QuickBooks. I personally don't like having to deal with a lot of data entry. I used an Excel spreadsheet (I managed 25 units) where I entered in their monthly payments and other info that was handy to have on the spreadsheet - like the amount of their security deposit, move in date, a list of the date and amount of each rent increase, and a section for notes. It would be handy to have their phone numbers on the spreadsheet, too. I had all of their phone numbers programmed into my phone.
I would send a mass text the day before rent is due to any tenant who hadn't paid rent yet (on the 4th, as the grace period was to the 5th). Sending this text reminder cut down on late payments. Some tenants just need a reminder, and doing that made my life easier, so I got over being annoyed over it.
Communicating via text saves a lot of time. If you can avoid getting stuck on the phone with tenants, it will save time and grief. Or at least always let it go to voicemail first, so you can work out your plan of attack (or your response ha ha) before you call them back.
Do inspections every 6 months, but just put on the notice of entry that you will be entering to check smoke detector batteries and check for any plumbing leaks, and to please let you know ahead of time if there are any other maintenance issues you should look at while you're there. If you don't call them an "inspection," tenants are more open to it.
I didn't handle the owners' bills, but if I owned it, I'd just have a folder for each month of the year, and I'd let a bookkeeper deal with it, and the taxes, etc. That cost would be worth it to me since I don't like bookkeeping. Plus, it's a tax deduction.
What would you like to work better for you? Or are you simply amazed at how well it's all going and you can't believe it? :-)
Thank you :))) I do not do excellent work on book keeping :((( during the year I am collecting all docs in different folders. One folder for each door and one for common expenses. During tax season I calculate everything. This is a once in a year disaster :))) I am thinking to ask somebody to do data entry once a year :)))
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