Investor · Sandy, UT · Member since 2012 · 71 posts · 29 votes
Here are some of my current systems
I have a main website for all the properties I manage.
I set up a new website for each property with pictures and info on the property. These sites are referenced in each ad that I post online.
I have various ads already written up and ready to copy and paste along w/ a list of places to put my ads.
I use Google Docs for lots of stuff
I create an Income Statement for each Property in Google Docs/sheets
I have a google sheets list of all prospective tenants that inquire on the properties. I try to get their email so that I can contact them in the future if I find another room opening up and I thought they would be a good tenant to have.
I have my application set up online through the main website. Once the application is submitted I receive an email w/ all the application info.
Background and credit is all run online and the applicant pays for it.
Rent is collected electronically, automatically, online.
Leases are signed physically in person along with a fees sheet that includes some of the potential fees that can be charged. Their signed copy is immediately scanned and emailed to them for their record keeping.
I 3-hole-punch the lease and add it to a big binder. Each property has info in it that I need including the lease, mortgage info, utilities, property info, and tenant communications.
I have also created Google docs for certain notices that get used repeatedly so that I can change a couple things and print it out.
I continue to search for more ways to automate the business. I am in the process of creating an operations manual that can be used to train an administrative assistant as I expand the business.
I would love to hear of any other business systems that other are using in their rental property business.
What systems do you use? and Why? What would you add to my processes? I'd love to hear your input.
You've covered your bases well. I would only recommend one thing that will big a big plus:
eliminate paper storage. Every document we have is archived electronically and stored/backed up off-site. The paper is shredded. We removed a 50-foot wall of horizontal files once the archive was complete. I believe the building actually rose an inch! Our offices are neater, our desks lost the clutter, and my ScanSnap can do a 16-page lease into file storage in under a minute. Done!
You've covered your bases well. I would only recommend one thing that will big a big plus:
eliminate paper storage. Every document we have is archived electronically and stored/backed up off-site. The paper is shredded. We removed a 50-foot wall of horizontal files once the archive was complete. I believe the building actually rose an inch! Our offices are neater, our desks lost the clutter, and my ScanSnap can do a 16-page lease into file storage in under a minute. Done!
Investor · Cathedral City, CA · Member since 2014 · 481 posts · 170 votes
10y
The one thing you should master is the vacancy life cycle workflow. How to market/advertise , take applications, screen the good ones and make lease decisions (respecting your local law).
Investor · Skagit County, WA · Member since 2016 · 1k+ posts · 807 votes
10y
@Chris Bingham Great list of systems! I love systems and lists, so this is beautiful. How many units do you have, and what types? Do you have people apply and loosely screen them before showing units, or is that all after the meeting and showing?
What specifically do you use for your online application?
What about for the credit/background check? Do the applicants pay directly to the research company?
And what have you found to be the best ways to pay electronically?
How to you automate you tenant calls for maintenance issues?
Investor · Los Angeles, CA · Member since 2016 · 256 posts · 110 votes
10y
@Chris Bingham That is great stuff man!!! Absolutely great. I'm looking for a way to automate phone calls. Currently I'm doing a big no-no. Tenants are calling my personal line. I would like a way for them to call a voice mail box with options and if its an emergency, press 0 and it connects to my voice mail but still no direct contact but I'll get to their voice mail quicker. Any suggestions?
Residential Real Estate Broker · Chicago Suburbs, IL · Member since 2013 · 1k+ posts · 594 votes
10y
I am looking to upgrade my system. I have heard some things about Cozy and Show Mojo and would like to look into them.
What we don't have a good system for is keeping track of lease renewals, non-urgent maintenance needs, and general notes on each property, so if someone has a system they can recommend for that I would be interested. Right now that's in a big Word doc, excel file, and google calendar.
For getting places rented, we use Zillow Rental Manager and Craigslist. Google voice for calling/texting potential applicants. Want a better way to handle that so Showmojo is of interest to me for that reason.
Our company has a main website that has a Apply Now button that brings you to rentapplication.net for applications. It's a little pricey but worth the extra cost versus handling paper applications.
We offer electronic rent payment but don't force it because we have some excellent tenants who want no part of electronic payment. I'm sure when we get bigger we will try to encourage electronic payments. When I researched systems I liked erentpayment.com since they give you the option to not accept someone's payment which you need in case you are evicting someone. Not sure who else offers that kind of functionality.
We do paper application lease signing and scanning and emailing. I spend an hour going over the important terms of the lease at lease signing so automating that doesn't interest me.
If there was one big system that had everything I need plus the best of the other services I use that would be of interest. It would be awesome if someone had a big excel of the pros and cons of what is out there....
I am looking to upgrade my system. I have heard some things about Cozy and Show Mojo and would like to look into them.
What we don't have a good system for is keeping track of lease renewals, non-urgent maintenance needs, and general notes on each property, so if someone has a system they can recommend for that I would be interested. Right now that's in a big Word doc, excel file, and google calendar.
For getting places rented, we use Zillow Rental Manager and Craigslist. Google voice for calling/texting potential applicants. Want a better way to handle that so Showmojo is of interest to me for that reason.
Our company has a main website that has a Apply Now button that brings you to rentapplication.net for applications. It's a little pricey but worth the extra cost versus handling paper applications.
We offer electronic rent payment but don't force it because we have some excellent tenants who want no part of electronic payment. I'm sure when we get bigger we will try to encourage electronic payments. When I researched systems I liked erentpayment.com since they give you the option to not accept someone's payment which you need in case you are evicting someone. Not sure who else offers that kind of functionality.
We do paper application lease signing and scanning and emailing. I spend an hour going over the important terms of the lease at lease signing so automating that doesn't interest me.
If there was one big system that had everything I need plus the best of the other services I use that would be of interest. It would be awesome if someone had a big excel of the pros and cons of what is out there....
Thanks for the mention Kimberly as I just sent you a message to gather some more feedback on your requests!
Thanks Robert! I have been trying to organize and eliminate paper. ScanSnap, I'll have to check it out. Is it subscription based? a software package you can buy one time? etc? Why did you select ScanSnap over other options?
@Chris Bingham Great list of systems! I love systems and lists, so this is beautiful. How many units do you have, and what types? Do you have people apply and loosely screen them before showing units, or is that all after the meeting and showing?
What specifically do you use for your online application?
What about for the credit/background check? Do the applicants pay directly to the research company?
And what have you found to be the best ways to pay electronically?
How to you automate you tenant calls for maintenance issues?
Great questions. I have a duplex and 2 single family homes. I rent all of them out by the room to college students. I have a Google spreadsheet that I can pull up anywhere on my phone. I track all the calls I get on the vacancies. I have a few prescreening questions that I have outlined and should be better at systematically asking. Once I answer any of their questions I set up a showing. I try to cluster and stagger the showings in 10-15 min increments. If they see the place and like it I have them text me their email and I send them one of my prewritten emails with instructions on how and where to fill out the online application (it requires a username and password so I don't get junk applications coming through). I created the application myself with a form function I built into the website. Once I receive the application I take a day or two to review it and verify any info I need from it. If everything checks out I send them another email congratulating them on the application being approved and explaining the next step being the credit and background check. I use the TransUnion SmartMove that is accessible through a link on the biggerpockets.com/perks page. I make the applicants pay for it. SmartMove takes care of that.
I scoured BP last year looking for a good electronic payment system. I created a spreadsheet (can you tell I like spreadsheets...I use them to track everything) and listed the items I was interested in. I probably had 25+ options on there. I whittled it down to a handful. Ultimately I chose Cozy after testing it out for a couple months (moving my own money around). I also liked Intuit's payment solutions. Cozy is free, but takes a solid week to get to your account from when they initiate the transfer. If you can float the cash for a week, it sure beats having to track it down or picking it up. It has saved me some time and I appreciate that!
I don't have any automated system for maintenance issues. Maybe another form could be added to the website. Up until now, I've just fielded calls and texts.
What systems and lists do you use for each of these things? What things have saved you the most time?
Thanks Mel! I have dabbled ith Google Voice a little bit. I think it could be useful, especially for current tenants. And if you're in a meeting, the mediocre transcription of the messages can be helpful sometimes. Up until now, I've mostly just had them call my personal phone as well. What systems have you been researching to handle your calls? I don't know that a VA would be worth it. I could be wrong though.
ScanSnap is a desktop color/doublesided scanner from Fujitsu. It comes with a software suite for file management. On my Mac I have property files for work in progress, but the files are stored "in the cloud" when I'm done. Same for photos. I do use photo reduction (JPEG Mini) to keep the size manageable, and high speed internet is required. I also have a separate hard drive for periodic backup for the local stuff, my music, etc.
Investor · Skagit County, WA · Member since 2016 · 1k+ posts · 807 votes
10y
@Chris Bingham I help my dad with his 20 units, and he is way old school and does everything on paper and nothing electronically, and has a huge locked file cabinet full of paperwork. So I am just trying to learn better methods on top of his structure. It's nice that you have a younger crowd who expected automated and online processes.
I like Cozy.co and actually started an account with them for future use. Did you check out their screening application too? You should write a blog post with your spreadsheet of options and go through your thoughts of each one. I know people are always asking about that topic on these forums.
Good that you don't have that many maintenance issues yet, but a form or dedicated email address would be a good idea in the future.
No plans to save time on the processes for my dad yet. He enjoys picking up rent checks, making photos copies of each one, and driving down to the bank to deposit. I don't want to leave the old retired man with nothing to do. But in the future, I hope to have a well run, automated property management machine.
Investor · Spring, TX · Member since 2015 · 126 posts · 38 votes
10y
Chris Bingham we make three files for every house. We rent single-family residence. The first file is a permanent file which includes all of the information that specific to the home not a tenant. Examples include purchase and sale contract, the inspection reports associated with the purchase, title policies, all closing documents, insurance policies, mortgage information, property tax information, homeowners association documentation, manuals for each appliance in the home.
We have our own in-office leasing file for every tenant. That file includes a copy of all signed leases, forms and documentation. examples would include a signed copy of our tenant screening and qualification policy, our pet policy, move-in condition form, if they have pets copies of any documentation of veterinary information provided by the tenant related to their Pet, Proof of renters insurance, all information related to processing the application, any written correspondence whatsoever whether it's through email or hard copy, maintenance or repair requests, completed periodic inspection reports, etc. at the front of this file we have an excel spreadsheet that creates a list of action items required for the duration of each lease. The list of actions includes things like, collect security deposit, collect first months rent, provide move-in condition form, receive signed move-in condition form back, periodic home inspections, receive proof of renters insurance, provide tenant with move-out procedures and signed copy of move-in/move out condition form, send tenant renewal notice, send tenant notice of non-renewal, etc. at the top of the spreadsheet we have four dates - date application completed, date applicant was approved, lease commencement date and lease expiration date. These are the only inputs in the spreadsheet. Once these dates are entered, formulas calculate the due dates of all remaining action items for the lease based on our states laws and our own internal policies (which applicant signed their acknowledgement as a part of the application process. Next to that auto-calculated due date is a blank space where we will fill in the ACTUAL date the task/action item was completed and any notes we need to add related to that item. Examples of entries....we require that the applicant pay the security deposit and sign a written lease within 3 days of being notified of their approval. So if approved may 1, the formula will automatically calculate a due date of May 4 as the deadline for signing the lease and paying the deposit. We also require the move-in condition form to be returned within 7 days of the lease commencement. The spreadsheet would calculate may 8. We also require a 60 notice of non-renewal by the tenant to us or by us to the tenant. So we have an action of send tenant renewal notice (assuming we want to renew) and its calculated as 75 days before the lease expiration to give the tenant 15 days to sign the renewal. We have an action of sending tenant a non-renewal notice and the due date is 60 days before lease expiration. Anyway, I really like this schedule because it can constantly be updated as you think of things to add and it is a great "tickler" system to follow and systematize your leases.
The third file we provide to the tenant upon move-in. That file includes sign copies of all rental information including their application, our tenant screening and qualifications policy, pet policy, A list of all utilities available including their contact information for setting up utilities, a sheet that gives the name of the community manager and their contact information, a copy of the homeowners association rules, copies of the appliance manuals, etc.
We have checklists and indexes for each of these files so that we make sure we have capture everything we need to document each file.
Steven Anderson
Berkley Properties
Investor · Sandy, UT · Member since 2012 · 71 posts · 29 votes
10y
When I started out a decade ago I did everything paper as well, except some Craigslist ads. And it is nice to physically see the tenants each month and check in w/ them. I recognized this would become more tiresome as I continued to add tenants and units though. I still go to each unit to change out the furnace filter, that way I am in the unit and can see the condition periodically.
I haven't used Cozy's screening application. I have liked the option to add questions to my own online application as I realized I needed more info, etc. Cozy's might be customizable too...I just haven't checked.
I'll have to look at the blog idea. I ripped out an old ugly bathroom on Saturday night and I'm in the process of installing a new one. Boy it was a pain to get the 60 inch tub to fit the 60 inch wide bathroom, but after removing after removing the drywall and notching into a couple studs its in! I have wanted to tile this new shower, but don't have the time so I picked up a shower surround from Lowes. One corner was broken (its actually going to be hidden behind a seam) so I was able to get them to reduce it to $50. I'll work on the tiled shower after I convert the basement bath into at least a 3/4 bathroom. Its just really really small. Its 6.5 ft by 4.5ft....Currently its a half bath.
One thought to maybe help your Dad's processes....when I would deposit the checks I would ask the credit union to make a photocopy of each check for me. They were glad to do it and I would be writing down my mileage while they deposited the checks and brought back a photocopy. It was a little time saver.
Investor · Sandy, UT · Member since 2012 · 71 posts · 29 votes
10y
Awesome info! This is the kind of stuff I was hoping people would contribute...the systems used to manage your properties.
I love your spreadsheet idea. I recently started using a checklist when we sign the contract to be sure everything has been reviewed/signed/received..the signed lease, fees sheet, credit check w/ their credit score noted, income verification, background check, deposit received, double deposit for lack of credit (if applicable), and review the move out policy. Once we complete everything, I scan it and email it to the tenant so they have a soft copy as well.
Investor · Sandy, UT · Member since 2012 · 71 posts · 29 votes
10y
I think a scanner such as ScanSnap might be my next investment. I really want to reduce my paper collection...and scanning one page at a time w/ my current scanner is way too cumbersome.
Investor · Maryville, IL · Member since 2016 · 129 posts · 81 votes
10y
@Julie Marquez We process our application with a third party and require the applicant to pay us the money and we then pay to submit the application. We do ZERO pre-application screening for liability purposes. If they pay, we submit it and let our verifier make their suggestion.
@Steven Anderson, man your three file system is really advanced. We do keep a master hard copy file with all the original property documents, but I don't scan them - something to consider...you're inspiring me to create some checklists! We do most of our paperwork on paper. We do have a scanner/printer/copier and we do provide the tenant with a hard copy of the agreement and other important documents at the time we scan it into our filing system. We like the option of having both a hard copy filed in a 2-high and also a scanned copy in its own folder on our computer. @Robert Melcher I suppose we could shred down the line, but I really do like to be able to "touch" the contracts.
Instead of calculating due dates based on application dates or acceptance times, we prorate everything to the first of the month, period. All our dates are then synchronized and we have one "batch" to consider at the appropriate times for each of our tenants. Also, to simplify things, we only rent M2M. I have found through experience, it is a slightly better protection for me and it saves headaches for paperwork.
@Mel Hayes I have a home phone that has the ringer turned off. I let all calls go to voicemail and I have txt notification to my cell. Google voice is a nifty option and really a nice way to do it on the cheap. Those voice to text messages are funny sometimes!
@Kimberly H.@Luka Milicevic (yessir) I created a very simple excel spreadsheet with tabs for each month and all of our properties are on each sheet (5 SFH and soon to be a duplex!). Each address has several lines underneath for entries for payment of rent, our PITI payments (broken down), repairs and expenses (the lines are easily added to with the right-click insert option, and they have columns for the date of the entry, notes about the entry and the amount). I put some simple formulas in specific "floating cells" so they would calculate our cash flow for each property, total expenditures for each, and mortgage balances (just for fun!). Additionally, I made a summary 13th sheet for yearly totals (this has helped in our tax preparation like you wouldn't believe!).
I have toyed with the idea of electronic payment. I am not versed in all the options. At this time, we require all payments be delivered to our address no later than the first of the month (postmarked, mailed payments prior to the 1st are considered "on time" whether they arrive after or before and no check is deposited until the 1st regardless of when it is received). Any late rents are charged and noted on the spreadsheet as any debit/credit would be.
I try and keep the office work as streamlined as possible. I do see in the future once we break a certain property number threshold that we will probably need to modify our processes or consider a PM.
I'm leaning more toward the PM because I want our energies to go toward finding and preparing the properties for a tenant (this is the real rewarding side of the business for me). I love the hunt, the calculations, and then the managing of the rehab process. It's such a fun numbers game and a very "retirement securing" game at that!
All your (each commenter) systems are really neat to see, and I appreciate all the details you provided. Thank you!
If I could slightly hijack this (or add one additional element to the discussion)...at what point would you consider a PM? Never? At a dollar amount of monthly rent? At a number of properties to manage?
@Chris Bingham - thanks for starting a great discussion!
I have a main website for all the properties I manage.
I set up a new website for each property with pictures and info on the property. These sites are referenced in each ad that I post online.
I have various ads already written up and ready to copy and paste along w/ a list of places to put my ads.
I use Google Docs for lots of stuff
I create an Income Statement for each Property in Google Docs/sheets
I have a google sheets list of all prospective tenants that inquire on the properties. I try to get their email so that I can contact them in the future if I find another room opening up and I thought they would be a good tenant to have.
I have my application set up online through the main website. Once the application is submitted I receive an email w/ all the application info.
Background and credit is all run online and the applicant pays for it.
Rent is collected electronically, automatically, online.
Leases are signed physically in person along with a fees sheet that includes some of the potential fees that can be charged. Their signed copy is immediately scanned and emailed to them for their record keeping.
I 3-hole-punch the lease and add it to a big binder. Each property has info in it that I need including the lease, mortgage info, utilities, property info, and tenant communications.
I have also created Google docs for certain notices that get used repeatedly so that I can change a couple things and print it out.
I continue to search for more ways to automate the business. I am in the process of creating an operations manual that can be used to train an administrative assistant as I expand the business.
I would love to hear of any other business systems that other are using in their rental property business.
What systems do you use? and Why? What would you add to my processes? I'd love to hear your input.
Some of those systems, ie. #1-4 on your list, plus all the things which you do paper plus online (redundancy), are a lot of busy work. The question is, could get by and run an efficient business without doing 50% of what you listed (some including myself can and do)? I think you may find you can, at least for some of it. But, some people are super organized, which is never a bad thing. Just remember, being organized sometimes takes more time than doing less :) In any case, well done.
Specialist · Honolulu, HI · Member since 2014 · 1k+ posts · 1k+ votes
10y
Just noticed that you only have 3 units. That reiterates my points above. Although, if you ever do get 20+ units, then the things you would have to do later, you have already done. Josh Dorkin and BP seem to be big on letting your business grow organically, from what I hear on the podcasts.
The BiggerPockets crew have a nasty habit of deleting our posts, but hopefully as it is directly relevant to your post in this thread, they'll leave my post here.
Fix & Flip or Hold · San Luis Obispo, CA · Member since 2012 · 136 posts · 63 votes
10y
We use Google Drive extensively to keep things systematized while attempting to reduce work.
We have a Master procedures that link by reference sub procedures designed so someone off the street can probably do the work. These procedures will contain forms, pictures or video's. For example, the Master Procedure to fill the unit will cite sub procedures on how to "Advertise using Postlets", "Set-up auto reply", "Choose applicants", "Show the Unit" etc. The idea is to be able to step through necessary tasks efficiently while having all the tools readily retrievable.
Since @Chris Bingham you had all of the basics covered, here are a couple of tricks we use that I didn't see mentioned yet. When applicants make the initial email they receive an auto-reply email containing instructions for:
a Google Drive link that allows them to download our PDF application
a link to a Google Form that is a pre-screen questionnaire based off of Brandon Turners questionnaire in his Rental how to book. This will dump info into a spreadsheet making it easily retrieved/saved. The Spreadsheet is also configured to turn a cell red alerting us to an undesired answer to a question, i.e. how many people in the household smoke? (anything more than "0" will turn red). This questionnaire works so well I'm tempted to convert the formal application info a Google form.
a Link to a video walkthrough of the property
The result is that you quickly eliminate people who do not qualify without having to spend time with them.
Electronic Records
Everything is scanned. I highly recommend Epson Workforce cloud ready printers with their document feeders.
Trello
On top of Google Drive we use Trello to organize track and collaborate.
Thanks for posting about Google Forms! Been using Sheets to have my VA fill in prescreen question answers, but didn't know about forms where potential tenants could do it themselves. Although I wonder if I will lose out on the less computer savy who could make great tenants that way...
Fix & Flip or Hold · San Luis Obispo, CA · Member since 2012 · 136 posts · 63 votes
10y
@Kimberly H. Google forms can be completed on a smartphone too. I avoid "free form" answers whenever possible so it takes only a few minutes to complete. There are a couple of format tricks to make it work smooth. POM me if you want to see an example.