All Forum Posts by: Aaron Wyssmann

@Jerry W. I appreciate the kind words about this thread.  I also love it that people out here can be honest enough to share how they really feel.  Ultimately, what I thought was a great idea has changed in my mind to being less than great and will change how I do things in the future.

I have done individual and group showings and I feel that it is a waste of my time, which is very valuable.  What I love about @Thomas Williamson 's idea is that it clears out tire kickers who will see the video and realize they don't like the floor plan or something else about the property.  Those that do can then go through the application process.  At that point I can meet them face-to-face and determine whether they are someone that I would want to put into my property.

@Thomas Williamson I really appreciate your comments and concern.  That's why I love BP, having the opportunity to think about what I do.  While I have liked it and thought it was a good way to do things I now see how it is probably not the best and could really burn me in the future.

I watched the video you made and I think this is a great idea.  I can see how your process of having them watch the video, apply and then meet them at the property is a great system.  Thanks so much for sharing.

@Chris K. Yes our owners all know of our system.  We are very transparent with them.  We take what we do for our owners very seriously and would never put their investments in jeopardy.  Ultimately, this system and several other things we do keep more money in our owners pocket who then turn around and buy more property.  

The things that have happened to properties while silver keys have been checked out is very minimal.  Things like people going #2 in the toilet and not flushing it.  This isn't something we've been doing for a week but for many years.  

I understand the thought that people might be casing out the place but if they know the home is vacant is a lock on the door really going to stop them...I think not.

@Chris Martin I'd never thought about having them text me a copy of their driver's license...I like that idea.

I personally like this method and use it for the three units I currently have.  Now I will be the first to admit that in life I'm too trusting, my wife would 100% agree with that statement.  It typically takes me getting burned before I change my ways.  

Here's another method though that works on a much larger scale.  The method I wrote about in the original post is what I use just for my three units.  But for those of you who say you meet people at the property to physically show them...what about when you have say five units open at once.  How will you handle that?

We currently manage over 200 units of which 90% of them are single family homes.  We have anywhere from 1-10 people come each day wanting to view our available properties.  The time it would take to show these homes all over town physically to them would be ridiculous.  So the systems we have devised is called our "Silver Lock System".

All out homes have GOLD lock sets on them when they are occupied with tenants.  So when they move out we put a SILVER lock set on the front door.  Every silver lock that we own is all keyed exactly alike.  That way one key will open any house that has a silver lock.  So our policy is that they must come into the office between the hours of 8:30 am-3 pm.  We get a copy of their driver's license and a $20 cash deposit.  We then check out a SILVER KEY to them.  As long as they return the key by 4:30 they will receive their $20 back.  The reason our stop time for check out is 3 pm is because that gives them enough time to view a property and have the key back by 4:30.  This is the only way we show property.  We don't show in the evenings or on the weekends.

So when we rent a home, we change out the silver lock for the original gold lock.  That way even if someone did make a copy of our silver key they could only get into a vacant property and never an occupied one.

This system saves our company tons of hours, thus also tons of money.

@Bruce L. I was worried about this at first but honestly I've never had an issue.  There have been a couple folks that applied for the property and then I turned them down for whatever reason.  Typically what I do in those instances because I don't know if they are mad about me rejecting their application, is change the combo to a different number so they can't get back in.

When I got my first couple rental homes I set up a time to meet them over at the property.  Not only did it take so much time but I would get so pissed when I had no shows.  I could even call them while I was at the property and they wouldn't answer.

So I met a local investor and he shared with me something that works great.  Buy a Master Lock box from any retailer like Lowe's, Home Depot or even online.  I buy the ones where they open by entering a four digit combo.  In good neighborhoods I put them on the front door and in bad or questionable neighborhoods I put them on the back door.  The reason I put them on the back door is because if the low-lifes of this world see a lockbox on a door it is a tell-tale sign that the property is vacant and they will come steal or vandalize the property.

As people call about the property I vet them a bit.  Ask things like where they work, how long they've worked there, where they currently live and why they are moving.  If I get a good feel from each of these questions and they are interested and want to see inside, I then share with them the code to get in.  

This is the important part though...ask them to call you back when they are done viewing the property so that I know that it is locked back up.  Everyone always is understanding of this and everyone always calls back.  This also gives me the opportunity to ask them how they liked the property and if they are interested in filling out an application. In the seven or so years that I've used this trick, I've never had anyone do any damage to my property.

So what tips/tricks do you have in saving time, money or energy with your investment properties?

I use TenantVerificationServices.com. It is ok. It gives you a grade, similar to what a student gets on a report card. The guy I work for now just looks things up through our court system and bases lots on previous landlord references. If we can't get those we typically don't rent to them. We also verify income and make sure it is a stable job. That way you can garnish their wages if you have to.

Bryan L. Man this is some post. What is said here is so true. I love that you said you are a numbers guy so you love to and are good at analyzing. I'm much the same way. I bought a property with the full intention of raking in the equity that would come a couple years later because that's what the "gurus" taught and I stupidly believed. The one thing that I can say is none of us can ever predict the market. When a market crashes not only do homes values go down but also rents. That's what we all experienced in 2007. I finally refinanced my two losing properties last year and for the first time have cash flow, although it is small. It is way better than feeding the stupid things. What I don't know now is should my plan be to keep them forever. In 30 years I will own them free and clear or do I sell them in about 5 years and move on to something that's a better investment? Any thoughts?

@Nicole A. I really appreciate your perspective on pit bulls.  I completely agree that a pit bull is not necessarily any more destructive than any other dog.  I've had two dachshunds in a property that peed throughout the entire house and had to pull and replace the carpeting.

For us, our insurance will not allow pit bulls or other breeds they deem to be "vicious".  The city we live in also has an ordinance against having them in the city.

@Joel Owens So Joel, how do you handle your pet fees or deposits? 

Our company has a $250 pet fee and then we typically collet a refundable pet deposit as well.  Normally in the range of $100-200.  Just curious as to what you do that might be different.