Just closed on my first property "woohooo" Need advice asap

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Just closed on my first property "woohooo" Need advice asap

Denita Ozenne
RN · Houston, TX · Member since 2015 · 69 posts · 29 votes

I would like to formally introduce myself as a REAL ESTATE INVESTOR. After about 6 months of evaluating deals and reading TONS of information in books, forums and listening to podcasts, my fiancé and I just closed on our first duplex on 01/04/16. I cannot begin to explain the excitement of FINALLY closing. There were some minor hiccups but everything worked out and we are now HOME owners. Our first home is our first investment property and it feels darn good! We are house hacking this duplex so our tenants are also our neighbors , wish me luck. Details on the entire deal will follow on a later date, its pretty busy on my end.

But I do need advice ASAP. I am to give my new tenants the notice of change in management form today. We also want to request they pay via electronic payments and email maintenance request to us as opposed to calling or simply knocking on our door . If there is any push back we will allow them to continue payments via check and money orders as per their lease and give requests in writing BUT its worth a try as they have only paid rent once so the change shouldn't be a big deal.

My question is, what type of form should I get the tenants to sign for the request in payment method and maintenance request submissions. Is this something I can type up myself and get them to sign? Should the form be a legal document?

HELP!

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Marcia Maynard
Investor · Vancouver, WA · Member since 2013 · 3k+ posts · 4k+ votes
10y

Congratulations!

You are not only landlords, you are neighbors. Start with an informal introduction and conversation. If they are agreeable to your new terms, simply write an addendum to the current agreement and have all sign/date it. If they have objections, listen carefully to what they have to say. Be fair, firm, friendly, and flexible for the good of all.

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  • Marcia Maynard
    Investor · Vancouver, WA · Member since 2013 · 3k+ posts · 4k+ votes
    10y

    Congratulations!

    You are not only landlords, you are neighbors. Start with an informal introduction and conversation. If they are agreeable to your new terms, simply write an addendum to the current agreement and have all sign/date it. If they have objections, listen carefully to what they have to say. Be fair, firm, friendly, and flexible for the good of all.

    3Reply
  • Kevin Izquierdo
    Hillside, NJ · Member since 2015 · 148 posts · 27 votes
    10y

    Congrats on your purchase! Excited to hear people take that plunge into a brighter future :)

    I recommend to push for that electronic payment, Its so much more convenient for everybody, always tracked, and you cant get swindled by a lying tenant in case the check bounces. Brandon states some great points on this ask BP video about that: https://www.youtube.com/watch?v=rhdHZkERmpk&list=P...

    I unfortunately dont have much info to offer for the payment request form but if it was me, I wouldve put that on their lease, that rent will be accepted electronically. They initail and sign the page :)

    Best of luck to you and cant wait to hear the details

    0Reply
  • Denita Ozenne
    OP
    RN · Houston, TX · Member since 2015 · 69 posts · 29 votes
    10y

    @Marcia Maynard

    @Marcia MaynardThank you! I was able to introduce myself to them during the final walk through but now that I am owner Ill re-introduce myself as such. I do plan on explaining to them the benefits of electronic payment during a very "casual conversation" so I don't come off as demanding but you said it best "fair, firm and friendly"

    @Kevin IzquierdoThank you! I definitely  want to go the electronic route. In this day and age, most people prefer it.

    0Reply
  • Rasheema Abduls-Salaam
    Real Estate Investor · Hilo, HI · Member since 2015 · 134 posts · 14 votes
    10y

    Congrats! 2016 starting off with a bang. Hopefully they are open to your request and your first landlord experience is pleasant! 

    0Reply
  • Roger Rustad
    Investor · SSF, CA · Member since 2015 · 127 posts · 24 votes
    10y
    One buddy gives a discount if check is made on 1st day of each month electronically. If not then they pay extra. He says it's a great motivator.
    0Reply
  • Jeff Gates
    Investor · Cathedral City, CA · Member since 2014 · 481 posts · 170 votes
    10y

    Happy for you!

    0Reply
  • Denita Ozenne
    OP
    RN · Houston, TX · Member since 2015 · 69 posts · 29 votes
    10y

    @Rasheema Abduls-Salaam@Roger Rustad  The previous property manager expected them to drop off the check and/or mail it and they weren't comfortable doing either so they were thrilled when I told them I accept electronic payments as well as  maintenance requests via email, as any request had to be written and handed in or mailed, which could take days before they received the request. Needless to say we have started off on a good note. @Marcia Maynard@Kevin Izquierdo

    2Reply
  • Daniel Alexander
    Keller, TX · Member since 2015 · 28 posts · 4 votes
    10y

    Congrats! @Rasheema Abduls-Salaam I am also in the process of searching for a duplex for my first property in the DFW area so hopefully i find a deal soon!  Please keep up to date on the progress if you can, as i will be following since i will soon be in your shoes as well!  Thanks for Sharing!

    0Reply
  • Cordell M.
    Investor · Narvon, PA · Member since 2014 · 68 posts · 21 votes
    10y
    Congrats! Check on this site (biggerpockets, the one we're on!) under files there are templates and forms available for multiple landlord related issues. There maybe to help you out with this, if not it's still a great resource for future needs. Best of luck! Cordell
    0Reply
  • Denita Ozenne
    OP
    RN · Houston, TX · Member since 2015 · 69 posts · 29 votes
    10y

    @Daniel Alexander sure thing, I'm actually going to posting another forum today on some "problems" I've encountered thus far...stay tuned lol

    @Cordell M.Will do, thank you!

    1Reply
  • Melissa Gittens
    Real Estate Broker · Windsor, CT · Member since 2015 · 1k+ posts · 268 votes
    10y

    @Denita Ozenne Congrats on your new investment! That is so exciting. I would have a formal conversation with your tenant explaining the items you would like to change. And once agreed upon I would create an addendum to the lease agreement and have both parties signed and date the addendum.

    1Reply
  • Tom Ott
    Equity Raiser and Turnkey Provider · Cleveland, OH · Member since 2016 · 4k+ posts · 1k+ votes
    10y
    Originally posted by @Denita Ozenne:

    I would like to formally introduce myself as a REAL ESTATE INVESTOR. After about 6 months of evaluating deals and reading TONS of information in books, forums and listening to podcasts, my fiancé and I just closed on our first duplex on 01/04/16. I cannot begin to explain the excitement of FINALLY closing. There were some minor hiccups but everything worked out and we are now HOME owners. Our first home is our first investment property and it feels darn good! We are house hacking this duplex so our tenants are also our neighbors , wish me luck. Details on the entire deal will follow on a later date, its pretty busy on my end.

    But I do need advice ASAP. I am to give my new tenants the notice of change in management form today. We also want to request they pay via electronic payments and email maintenance request to us as opposed to calling or simply knocking on our door . If there is any push back we will allow them to continue payments via check and money orders as per their lease and give requests in writing BUT its worth a try as they have only paid rent once so the change shouldn't be a big deal.

    My question is, what type of form should I get the tenants to sign for the request in payment method and maintenance request submissions. Is this something I can type up myself and get them to sign? Should the form be a legal document?

    HELP!

    Hello Denita,

    First off I would like to say congratulations! I know leaping into the REI world is not an easy task. You did it! It only gets better from here.

    The first thing you need to do is of course inform the tenants that you will be taking over as LL/owner. If you would like to change the forms of payment you need to inform them. Since they have been tenants already and most likely have a lease that states what forms of payments they can use, you should still honor their agreement. If they were allowed to pay by personal check and/or certified funds, you should still offer to accept that. However, you can offer them electronic as an alternative. Have them sign a document saying they understand it is now an option. 

    Then, when it comes time to renew the lease, you can inform them of all the changes you would like to make. You may pick how they are going to pay you.

    In terms of push back, yes I have received some from tenants. Paying online can go either way for tenants. I have had some who are THRILLED to have online payments. They love the convenience (as do I.) On the other hand, I have had some who dislike the idea of paying online (for multiple reasons) and still want to pay by check.

    From experience, it is nice to give them options. Encourage online as much as possible, but still offer other methods for those who want to pay the old fashioned way. You'll find in the end this will guarantee less push back and you will get you rent with out hassle.

    I hope this helped! We see this sort of thing a lot with my company. Please let me know if you have any questions.

    0Reply
  • Denita Ozenne
    OP
    RN · Houston, TX · Member since 2015 · 69 posts · 29 votes
    10y

    @Tom Ott@Melissa Gittens Thanks guy, this was a big help

    1Reply
  • Tom Ott
    Equity Raiser and Turnkey Provider · Cleveland, OH · Member since 2016 · 4k+ posts · 1k+ votes
    10y
    Originally posted by @Denita Ozenne:

    @Tom Ott@Melissa Gittens Thanks guy, this was a big help

    I'm happy I was able to help! It sounds like you are moving in the right direction! Please let me know if I can help you in any other way.

    0Reply
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