Buying first rental property and would like some advice!
I am about o go see a property that is going to potentially be my first rental property and I was going to use the approach of portraying myself as a property manager rather than the actual owner/buyer of the property and was wondering if when i am seeing the property if i come into contact with any tenants not only what questions i should ask them but also how i should introduce myself. I am thinking of just saying that I am a property manager and am seeing the property for the "investor" or something along those lines. but mainly what questions would you ask the tenants that could probe well for info. thanks in advance!
They don't want to answer your questions, you can gain minor intel but the important stuff will be in the tenant estoppel form. Keep in mind that letting you walk through their living space is a fairly big inconvenience for them. You don't have to introduce yourself as anything.
I don't think that having a hide and seek mentality is the best way to run your business. If you are serious about owning a rental property business then take the time to create policies and procedures along with proper structure before you even think of buying a home. This is why so many investors get into legal trouble or lose all their money. They get so focused on buying the deal and never think about the business model of how to run the property as a profitable business along with all the laws and regulations and knowing all the rights afforded to your tenants. Do not make the mistake of buying something and not knowing what to do after you close. I can say this because I made this mistake and bought several dozen homes and almost went bankrupt. I would be happy to give you some ideas of things that you should think about before you buy, let alone what to say to a tenant. Also you want to make sure you are not violating any local or state laws on what you can and can not say to tenants.
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Property Manager
- Steve Rozenberg Consulting
- http://www.SteveRozenberg.com
- Real Estate Broker / Investor
- Austin, TX
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If you are not represented by an Agent/Broker you have more flexibility in what you can do. I would formulate a list of questions for the tenants officially to see if you can get them answered.
Also, ask for rent rolls, dates of rents paid, maint history, look at permit history on property, foundation, inspection, etc..
Terms of lease are important so review leases thoroughly. DO NOT over promise to make repairs for tenants that they do not request. It is costly and unnecessary if not requested. (paint, flooring, etc.)
Thank you all! I have been looking for a while and this property is something very strange that I did foresee me even being interested in but I have a gut feeling and I am interested in at least looking at the property and evaluating my options for not only improving the property but also the next steps of this land after a few years of saving and community improvements.
https://sar.paragonrels.com/publink/default.aspx?G...
this is the link to the property. I have talked with the owner and she is eager to answer questions but the answers are off her head and have not asked for any documentation or proof of anything yet.
the properties are being rented out for 750.00(2br 1bath), 850.00(3br 1 bath), 750.00 (2br 1bath) and 850.00 (2br, 1 bath)
the homes are in moderate condition but have def been lived in hard... Some windows are broken and the units are all owned by the property owner. I am just wondering if any of you have experience with trailer homes and what your input would be (even if you dont have experience) thank you all so much.
I should also say that each of these lots are zoned commercially and in this area a new north south highway is being constructed to link nothern communities to the larger metro area. Also this commercial property is main arterial access on one entire block.
I wouldn't say anything that I'm not. Being honest and sincere goes a long way in many regards. I think honesty is always the best policy :)
@Hank Austin, you can definitely portray yourself as the property manager if you'd like. If they are going to become your new tenants, it's up to you how you want to set up the relationship. Most tenants, given the opportunity to complain about things, will tell you everything you need to know. Simply ask them how they like living there, how the neighborhood is, what they like or dislike about their current landlord, what works and what doesn't, etc. People do not tend to be shy about those types of things. My neighbor at our last house was a renter and believe me, I knew everything that ever went wrong in that house. Best of luck to you!
All the questions about the leases, rent payments, late payments, etc--- everything should be provided by the seller-- not the tenant.
Regarding the tenants--- Just go in there and be polite and cordial, get a feel of their opinion of the prior owner-- did they request a faucet get fixed for years, and now there's a lot of water damage.. rat/roach problem that hasn't been dealt with? ask about if there's any outstanding maintenance issues that haven't been addressed? Long term, deferred maintenance is what I would be looking for most. Don't worry about fixing everything-- figure out what MUST be fixed now, and what can be fixed down the road.
@Hank Austin trailer homes can be much more difficult to obtain financing on because many times they are not on a permanent foundation especially as an investment property I would make sure your lender is on board with this before taking time out of everyone's day to look at the property