Investor · Appleton, WI · Member since 2012 · 1k+ posts · 464 votes
13y
Landlording is all about customer service. You must be knowlegable on the laws and have the proper paperwork. Then provide a quality product and address any issues immediately. This is all accomplished with excellent communication skills. Wethdr with contractors, lawyers, accountants, and tenants themselves.
Rental Property Investor · Sacramento, CA · Member since 2011 · 2k+ posts · 1k+ votes
13y
I like what others have said. But let me add - connect and collaborate with neighboring landlords. You'll share the same mindset and can improve each other's cash flow if you operate as a business cluster.
Investor · Maui, HI · Member since 2009 · 13k+ posts · 3k+ votes
13y
Great stuff everyone. I'm going to add my favorite - don't be the owner, be the property manager. The owner is an LLC (or some legal entity), you are just the manager. This is especially helpful for those who don't like conflict.
Real Estate Investor · Dallas, TX · Member since 2010 · 449 posts · 173 votes
13y
Not specifically a tenant relations tip, but here's mine: Go into it financially prepared. Have at least 6 months PITI saved up and don't touch it. Sooner or later, something expensive will happen, and you never want to be forced into reactive mode due to shortage of money.
-Harry
Real Estate Investor · Buy & Hold Investor from Seacoast, NH · Member since 2013 · 63 posts · 15 votes
13y
Originally posted by Brandon Turner:
Great stuff everyone. I'm going to add my favorite - don't be the owner, be the property manager. The owner is an LLC (or some legal entity), you are just the manager. This is especially helpful for those who don't like conflict.
Hi Brandon, I just read this as your #1 tip from one of your blog posts and I was actually thinking about starting a whole new thread just to discuss this suggestion. I have read many of your articles and listened to the podcasts and I think you have a similar investing strategy as me for the most part (buy and hold multi-family).
But I find it a bit odd that your number one landlording tip is to lie to your tenants. It seems that having an honest and trusting relationships with tenants is important and that this strategy could damage that relationship.
I am in the process of buying a duplex and getting my first two tenants soon so I've been thinking about land lord a lot. Now I am no Pollyanna and certainly wouldn't tell a tenant the answer to any question, but pretending that I am a PM and don't own the property seems like a big lie and an easy one to get caught in.
In the town I am buying in all of the town tax and deed records are right on line. Anybody can pull up assessed values and the owner of record. My future tenants might not know that but if they found out I think they would lose a great amount of respect for me and for my property.
I do see the advantage of concealing my identity, but it doesn't seem worth the risk to me. I'm curious what others think about this tip.
Investor · Riverside, CA · Member since 2011 · 2k+ posts · 3k+ votes
13y
Joshua had a simular post a while back titled "the top 5 landlord mistakes." I don't know how to link it with my phone, but there are lots of good 'tips' on that thread.
Investor · Maui, HI · Member since 2009 · 13k+ posts · 3k+ votes
13y
Hey Adam K -that's a great question. I've talked about it a couple times here in the forums and I should probably clarify some.
I don't believe, at all, in lying to tenants. If I own a property- I would never tell them I don't. However, if I don't own any properties - if I am a part member in an LLC that owns property, then I don't believe is any of the tenants business to know what business I have part in. Both legally and ethically - I really don't own the property and that's why I'm okay saying that. Sure they could go to some lengths to find out I am on the LLC that owns their home, but 99.9% of tenants won't and if they ever did care to, I would just tell them I own a number of businesses that own property, along with a lot of other investors.
I know I've heard some landlords say they think this is just parsing and it's deceptive, but I honestly don't feel it's wrong because I really, honestly, truly don't own the property. I mean, if I took the money I was getting from rent and just pocketed it - I would be breaking the law because it's not my money. It's the company's money, which needs to then get channeled to me when the company pays me each month.
Hope that kinda clears it up. Thoughts? Agree or disagree?
Investor · Chicago, IL · Member since 2013 · 2k+ posts · 1k+ votes
13y
Get a check writer authorization from your tenant. This means you can write a check from the bank account of your tenant. This will save you time and aggravation chasing the tenant for his rent payment.
Investor · -, IL · Member since 2010 · 409 posts · 616 votes
13y
Originally posted by Wendell De Guzman:
Get a check writer authorization from your tenant. This means you can write a check from the bank account of your tenant. This will save you time and aggravation chasing the tenant for his rent payment.
Not being a smarta$$ at all when I say this......have you actually had a tenant allow this? If a landlord had asked me this when I rented I would have told them to kick rocks.
Investor · Fort Wayne, IN · Member since 2009 · 391 posts · 257 votes
13y
Hire a good property manager!
Landlording on a small scale is absolutely draining. In 2003, my wife and I owned 8 duplexes and never found a good property manager so we sold very quickly.
In 2008, I could not ignore the opportunity that the housing market presented. Before we ever looked at a single property, we interviewed property managers. Once we identified our property manager, we started buying SFR's.
We find good property management to be worth every penny.
Real Estate Investor · Buy & Hold Investor from Seacoast, NH · Member since 2013 · 63 posts · 15 votes
13y
Originally posted by Brandon Turner:
Hey Adam K -that's a great question. I've talked about it a couple times here in the forums and I should probably clarify some.
I don't believe, at all, in lying to tenants. If I own a property- I would never tell them I don't. However, if I don't own any properties - if I am a part member in an LLC that owns property, then I don't believe is any of the tenants business to know what business I have part in.
Hope that kinda clears it up. Thoughts? Agree or disagree?
Thanks, that actually is a completely different situation than what I thought you were saying. You really mean "don't be the owner" whereas I took it to mean "tell tenants that you aren't the owner" which is very different.
Since I wasn't able to obtain financing through an LLC my property is going to be in my name so I guess I'll probably skip this tip for now and save it for down the road when I hopefully have an LLC set up to hold my (future) properties.
Keep the tips coming! I hope to be screening tenants by mid July and will be doing plenty of reading between now and then.
Real Estate Investor · Redondo Beach · Member since 2012 · 37 posts · 18 votes
13y
Adam K even if you couldn't get financing through your LLC you can still put the property into a trust and use the same strategy, or quick claim it into your LLC after you get your financing in place.
Investor · Portland, OR · Member since 2012 · 266 posts · 128 votes
13y
Don't sweat the small stuff.
This is bad advice for a pro, but was HUGE for me as a rookie. My initial reaction was to over-manage and try and save on every single repair/upgrade/etc. Simply put - it wasn't worth it.
You will have expenses. You will make mistakes. You will learn, and you will improve. Just keep the rent fair, the place in good working condition. Be respectful. Be fair. Be firm. And for the love of all that is holy - do it! But don't sweat the small stuff.
Investor · Milford, CT · Member since 2012 · 592 posts · 285 votes
13y
Think outside the box when looking at revenue streams from property besides just per unit rent. Can you rent out garages? Can you install a billboard? Does the property have enough space to store a RV/Boat? etc...
To minimize costs, submeter, submeter, submeter. Try to put as much utility cost on the tenant. Let them pay for use not you.
To minimize repair and headaches. Don't band-aide fixes. If a water heater is on the way out replace the whole thing not just a heating element or repair a leak. Plumbing has got to be the biggest PITA and if you don't do it right "Harden" the first time you will be revisiting that fix for some time.
Lastly be a straight forward communicator by just listening and sticking to your policies. So many disputes I settled by just listening to the tenants.
Property Manager · Livonia, MI · Member since 2011 · 4k+ posts · 1k+ votes
13y
- keep good records
- have separate bank accounts
- be nice to them if they are good people
- dont rent to douches
- get to know your neighbors. as many as you can
- know how to fix the basics, it will save you so much money when you start.
- buy cheap. you can always beat the competition/bad times by renting it for less and still make money.