Investor · Southeast, MI · Member since 2012 · 2k+ posts · 1k+ votes
13y
1. Keep a low profile. Blend in - don't drive a flashy car to your houses, don't wear a suit, etc.
2. Keep good records and manage your money right.
3. Learn how to defend your self - learn to fight and/or carry a gun. You never know when you will walk into the wrong property at the wrong time. You are also dealing with "the general public". Many of them are crazy - they are on Prozac, Zoloft, Paxil, Lithium, etc.
4. Train your tenants that you are not a surgeon, CIA agent, or a firefighter. You keep normal hours and, unless it's an extreme emergency, they need to call you during normal hours. I once had a tenant leave a voice mail at 11pm that he saw a mouse. I called him back at 6am, woke him up, and told him he was acting like a little girl. Try and have a life and keep the work at work.
Real Estate Investor · chicago, IL · Member since 2012 · 1k+ posts · 231 votes
13y
1. Get rid of anything that will break down. I just took out all the ceiling fans in a rental. Rob K taught me this. Saves me $ & aggrevation.
2. Water is the enemy. Get the water away from the house, put an extra large toilet ring on (or double it)
3. Screen the hell out of them.
4. Visit their place of residence. You won't have to worry about getting smoke out of a home or odor filled carpets if you do this.
5. Ask for $100-$300 over the 1-month deposit. They will be more inclined to clean the place if they have some "skin in the game."
Rental Property Investor · Oklahoma City, OK · Member since 2013 · 1k+ posts · 412 votes
13y
1) Screen appropriately
2) Say "No", politely but firmly. Practice in the mirror if you need to. Anything outside of our policies, the answer is "No."
3) Take your sail out of their wind. Meaning, keep business hours, don't tolerate nonsense or whining, if the toilet's clogged, they need to call a rooter. We didn't clog it.
Real Estate Investor · Fenton, MI · Member since 2008 · 946 posts · 153 votes
13y
Pay attention when purchasing the property. Look for problems and make sure it is reflected in your offer. I intend to take a home inspection class one of these days.
Real Estate Investor · Fort Wayne, IN · Member since 2013 · 168 posts · 78 votes
13y
There are lots of tips, from buying the house, filling the house and managing the house. My tip would be to get really good at land lording, continue to learn and meet new people who are doing it too. If you're nervous, move slowly. It's hard to make too many huge mistakes when you have time to evaluate what went wrong and change directions.
Real Estate Broker · Houston, TX · Member since 2013 · 187 posts · 111 votes
13y
Great thread!
1. Check out how potential tenants are keeping their current location when their still applicants.
2. Give our your business cards to surrounding neighbors. This has probably been my most valuable asset. I know when the brother in-law and his family tried to move in, when the new dog showed up, when the above ground pool was put in, when the cops were called...etc.
3. Give a discount and do a two-year lease. It saves on vacancy loss, annual make-ready and advertising, which more than makes up for the discount.
4. Include move-in condition pictures with the Move-In Condition Report. Attach them and the move-out pictures with the "Here is Why Your Deposit Won't be Returned Report"...if it comes to that.
5. Give a gift to great tenants. I've given gift certificates and even a weekend at my beach house to long-term tenants who maintain my properties well.
Residential Real Estate Broker · Bremerton, WA · Member since 2013 · 494 posts · 142 votes
13y
My area has low rents compared to property's purchase price - so I need to buy low and rehab to make CF. Hence:
1. buy properties with good bones in the best neighborhood you can. When I rehab, I fix it up slightly better than other rentals (but not cherried up) - it looks new, is as bullet-proof as possible (durable), and a timeless look so I'm not remodeling major items in 5-10 yrs. I'm able to rent easily b/c my properties are clean and in good condition compared to others in the area.
2. Screen. screen, screen. Call all references and if you can't get ahold of a reference - it's an incomplete application. I need to verify all references.
3. Get to know neighbors - be friendly with them. They report things to me and I like it.
4. Keep your property nice. Improve the community with your property. If needed, slowly improve the property to attract better tenants and retain those you get.
5. Utilities - put as much on the tenant as possible. When I need to pay for water and/or garbage (MFR or due to city laws), I charge a "utility fee" of $40-$50 per person per unit per month. No one blinks at this. It off sets the expense quite a bit.
6. I allow dogs (not cats - they spray). In my experience, dogs (that I've pre-approved) have caused less damage than kids. I also charge a $25/mo additional rent per dog, max 2 dogs. Many rentals don't allow dogs in my area, so I get a group of great applicants who have dogs that I get to choose from, plus extra rent per month. I look for properties I can add a fence to or that already has a fence for allowing dogs.
7. Observe during viewing - When I show the property before ppl apply, I observe them carefully. Do they smell like smoke and then lie about not smoking? (This happens - I call them on it on the spot). Are they respectful? Do they wipe their feet before walking in? (a bit over the top, but interesting to watch) Are the kids under control? Are they under control (couples yelling at each other, etc)? I ask them questions - do they have at least three prior LL references that will refer them? Is there any reason I shouldn't rent to them? Non-renewed lease, evictions, etc. (sometimes the people blurt stuff out and it's over. No need for them to apply. I tell them they don't qualify as nicely as possible - sometimes they figure it out and make it a short viewing). I try to do this over the phone before the viewing - but sometimes they slip through. In person, different things happen. People squirm when I'm looking them in eye and ask direct, yet valid questions.
8. Cut all bushes and trees away from house (protects your property from damage). Minimze landscaping. Tenant maintains grounds. Yes, they can have a garden (makes them feel at home and thye stay longer), but property needs to be returned in same condition as rented. If I ever write a book, it'll be the Landlords book to Landscaping and Yard Maintenance. (no watering, no weeding, tenant mows).
Residential Real Estate Broker · Bremerton, WA · Member since 2013 · 494 posts · 142 votes
13y
Originally posted by Ryan Logsdon:
Forget screening tenants. Screen PMs and hire good one.
I understand hiring PM. The primary reason being to save the little time I spend in LLing. It's called running a business. Makes more sense to screen PM's and manage PMs than tenants.
In my area, PMs and PM companies are charging 50% placement fee (and they delegate the screening out - makes me soooooooo nervous. No way!). The professional bad tenants in my area cannot be screened by an outside national company (evictions don't always show up on background checks) - the local LL association knows who these guys are, though. I always run names through the local association. It takes the PMs in my area an average of 3-5 months to place a tenant - come on! Most companies will only show properties between 8am-5p.m. Really? And then they charge 10% a month.
I'm not sure it's the fees I have a problem with (even though I quoted them). I think it's the lousy service/product combined with the fees. I'm in a smaller area and there's not much competition or quality in RE market. Otherwise, I'd be hiring a PM. They'd be on my team.
Investor · Houston, TX · Member since 2012 · 1 post · 2 votes
13y
* Fix EVERYTHING up front, avoid calls later about a/c, plumbing, roof problems, etc.
* Have the best product at the best price in the neighborhood (I price at approx. $25 under market). This means little or no vacancy. And during the marketing process I get a ton of interest which means I can pick the cream of the crop.
* Rigorously screen prospective tenants. Don't skip any steps.
* Have an iron-clad Lease Agreement and go through it in detail with your new tenant
* ENFORCE the Lease Agreement. Rent is due on the 1st, late on the 3rd. Late fees apply on the 3rd and the eviction process begins.
So far, I have 7 single-family homes and manage 3 others. I've never had to evict anybody and I rarely hear from my tenants. In the 2 years that I've been at this, only one tenant has not renewed and that was because his company was moving him.
I'm sure I'll encounter bumps in the road along the way. But so far, it's been great and following those landlord rules has been a life saver for me. It's so exciting to go to the mailbox on the first of the month!
Never bend the rules, especially not for only one person.
Give a tenant an inch and they'll try to take a mile.
Don't accept smokers.
Bad pet owners can cause a lot of damage.
Kids can cause just as much damage, but you're stuck with them.
Bad tenants don't go good.
Hateful, entitled, whiney tenants will never change. Get them out.
Go with instinct. If something feels wrong about a prospective tenant, it is. (Obviously don't violate fair housing in the process...)
Verify everything about the prospective tenant.
Never pay for tenants utilities. They will take advantage of this.
Never provide internet, phone, or swimming pools for tenants. They will all be a huge liability and a huge hassle. Not worth it.
Don't allow pools, firepits, outdoor fireplaces, trampolines. Those might not be covered by your insurance.
Have a good lease and a good lawyer.
Don't let them think you've got money. Even if you do.
Train tenants what's an emergency. For a trivial repair, I don't want to hear about it after business hours. If the house is on fire, call me (after running!).
Don't put up with whiney tenants. They'll get more and more whiney and more and more ungrateful.
Don't provide anything you don't have to. Garbage disposal, microwave, internet, pool, patio table, window blinds,..... anything that could break or become a hassle. Get rid of it if you can. In a higher end rental, you'll be stuck with these hassles and more.
Never accept a tenant out of desperation. It's better to have no tenant than a tenant who sucks, doesn't pay, whines, or destroys the place. Your time and headache isn't worth a month of rent.