What are the most important systems?

Question

We have one property now and closing on a duplex next week. So far we have done everything old school—hand delivered leases, we pick up the rent, we keep spreadsheets for everything, etc. What do I need to focus on first as we scale? What software/programs can you not live without! Thanks!

Tim Bartel · Answer

Basic financial management software (I use Quicken) is very helpful.

Developing forms for every process really helps me, as mentioned by other commenters.

Other documents:

1) Property Management Handbook, with info on banking procedures, tenant screening, dog breeds, you name it, that I would give to an assistant (if I had one) to run the business. I collect most rents by ACH, so some fairly specific rules to follow for that.

2) Admin Schedule document, showing weekly, monthly, quarterly, and annual activities.

3) Master spreadsheet, showing every tenant move-in and move-out date or rent change date, and balance of deposit funds on account by tenant, and monthly rent received. Also a list of all of my forms, which are numbered and dated, with an errata list for every change made to the forms along the way. Also an annual budget, multi-year plan for CapEx investments on the properties, personal mileage log, vacancy history, waiting list for applicants, etc.

4) A spreadsheet for each property with a maintenance log and other miscellany about ongoing rehabs at the property. Also local rent research info.

5) Word document with Property Fact Sheet for each property such as appliances, paint colors, local contractors, city utilities, and info on neighbors living near the properties.

Chelsea Kline · Answer

Hi @Brett Arceneaux!

BiggerPockets has recommended companies on the landlord resources tab. You can find the landlord resources tab by hovering over the "tools" bar and clicking "Landlord Resources". Some of these companies also offer free forms and other resources for landlords.

I'd suggest checking out the list provided by BP and researching which company would best fit your needs as a landord.

Best of luck to you!

Abubakar Acheneje · Answer

@Alyssa Dyer this is awesome! I'm new at this, with just two properties right now, but as we look to add properties, I'm certain these tips will come very handy. Thanks

Alyssa Dyer · Answer

Basically just write down all the little things you do when a tenant moves in and/or moves out and create a checklist for it. When you build a bigger portfolio it's easy to forget to turn off the gas bill and get stuck with a $50 bill for 6 months before you catch it. I'll put a couple small examples below. - get a copy of the tenant ID- do a move in walkthrough - confirm paperwork is compliant - explain fees, paperwork, and relationship to tenant - collect deposit - turn off utilities and lawn care from your name - send tenant breakdown of deductions from security deposit - look up tenant criminal history - perform tenant creeping

Document Storage: I've used Google Drive for document storage forever.

Tasks: In the beginning I just had a basic Google Doc with the checklist on it. As we grew we evolved into systems like Asana to keep track of all outstanding tasks.

Appointments: we've always just used google calendar. We're just now getting to a place where we need automated scheduling options.

Hope this helps!

Alyssa Dyer · Answer

@Brett Arceneaux

Task management for move in, move out, and regular inspections! Even if you don’t pay for software and just follow a paper checklist.

Let me know if you’re looking for specifics on software or anything.

Account Closed · Answer

Using property management software was the best thing we ever did! There are quite a few online options that are free or nearly free to use. We use Innago, and it simplifies things so much. I'm a huge proponent of using property management software. Being able to have rent collection, online lease signing, screening, etc. all in one place is a lifesaver.

Timmi Ryerson · Answer

You should definitely find a software that supports your business and is affordable.  I use Smart Property Systems and it is what I need for my units.  I have both residential and commerical properties.  Software will automate most of your work load and free your time for expanding your business.  And it does everything I need now.  The most beneficial and time saving perk is that rents collection and that accounting is automated.  But when you have vacancies you will be able to market them using the webflyers and use the tenant screening that is built in.  Everything in one place really helps.

Ty Kashmiry · Answer

@Tim Bartel makes sense.  Thanks for the tip

Ty Kashmiry · Answer

@Tim Bartel explain info on neighbors info living near the property

What are the most important systems?

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