All Forum Posts by: Chris Bingham

 Awesome info! This is the kind of stuff I was hoping people would contribute...the systems used to manage your properties.

I love your spreadsheet idea. I recently started using a checklist when we sign the contract to be sure everything has been reviewed/signed/received..the signed lease, fees sheet, credit check w/ their credit score noted, income verification, background check, deposit received, double deposit for lack of credit (if applicable), and review the move out policy. Once we complete everything, I scan it and email it to the tenant so they have a soft copy as well. 

 When I started out a decade ago I did everything paper as well, except some Craigslist ads. And it is nice to physically see the tenants each month and check in w/ them. I recognized this would become more tiresome as I continued to add tenants and units though. I still go to each unit to change out the furnace filter, that way I am in the unit and can see the condition periodically.

I haven't used Cozy's screening application. I have liked the option to add questions to my own online application as I realized I needed more info, etc. Cozy's might be customizable too...I just haven't checked.

I'll have to look at the blog idea. I ripped out an old ugly bathroom on Saturday night and I'm in the process of installing a new one. Boy it was a pain to get the 60 inch tub to fit the 60 inch wide bathroom, but after removing after removing the drywall and notching into a couple studs its in! I have wanted to tile this new shower, but don't have the time so I picked up a shower surround from Lowes. One corner was broken (its actually going to be hidden behind a seam) so I was able to get them to reduce it to $50. I'll work on the tiled shower after I convert the basement bath into at least a 3/4 bathroom. Its just really really small. Its 6.5 ft by 4.5ft....Currently its a half bath.

One thought to maybe help your Dad's processes....when I would deposit the checks I would ask the credit union to make a photocopy of each check for me. They were glad to do it and I would be writing down my mileage while they deposited the checks and brought back a photocopy. It was a little time saver. 

Thanks Mel! I have dabbled ith Google Voice a little bit. I think it could be useful, especially for current tenants. And if you're in a meeting, the mediocre transcription of the messages can be helpful sometimes. Up until now, I've mostly just had them call my personal phone as well. What systems have you been researching to handle your calls? I don't know that a VA would be worth it. I could be wrong though.

 Great questions. I have a duplex and 2 single family homes. I rent all of them out by the room to college students. I have a Google spreadsheet that I can pull up anywhere on my phone. I track all the calls I get on the vacancies. I have a few prescreening questions that I have outlined and should be better at systematically asking. Once I answer any of their questions I set up a showing. I try to cluster and stagger the showings in 10-15 min increments. If they see the place and like it I have them text me their email and I send them one of my prewritten emails with instructions on how and where to fill out the online application (it requires a username and password so I don't get junk applications coming through). I created the application myself with a form function I built into the website. Once I receive the application I take a day or two to review it and verify any info I need from it. If everything checks out I send them another email congratulating them on the application being approved and explaining the next step being the credit and background check. I use the TransUnion SmartMove that is accessible through a link on the biggerpockets.com/perks page. I make the applicants pay for it. SmartMove takes care of that. 

I scoured BP last year looking for a good electronic payment system. I created a spreadsheet (can you tell I like spreadsheets...I use them to track everything) and listed the items I was interested in. I probably had 25+ options on there. I whittled it down to a handful. Ultimately I chose Cozy after testing it out for a couple months (moving my own money around). I also liked Intuit's payment solutions. Cozy is free, but takes a solid week to get to your account from when they initiate the transfer. If you can float the cash for a week, it sure beats having to track it down or picking it up. It has saved me some time and I appreciate that! 

I don't have any automated system for maintenance issues. Maybe another form could be added to the website. Up until now, I've just fielded calls and texts. 

What systems and lists do you use for each of these things? What things have saved you the most time?

I would go w/ the heavy duty disposal. Women like that kind of thing....and it may sway a tenant your direction. Its not a huge expense (under $100 and will last a decade). You are blessed to live w/ your wife. She understands more than you or me how a woman thinks...nice kitchens and bathrooms sell properties (and attract tenants). In more than a decade I have never had a call from a clogged drain due to the disposal. I have one in each unit. Ice maker...eh, they can add ice cube trays. I think that would be more important for A class property. 

Here are some of my current systems

I have a main website for all the properties I manage.

I set up a new website for each property with pictures and info on the property. These sites are referenced in each ad that I post online.

I have various ads already written up and ready to copy and paste along w/ a list of places to put my ads.

I use Google Docs for lots of stuff

I create an Income Statement for each Property in Google Docs/sheets

I have a google sheets list of all prospective tenants that inquire on the properties. I try to get their email so that I can contact them in the future if I find another room opening up and I thought they would be a good tenant to have.

I have my application set up online through the main website. Once the application is submitted I receive an email w/ all the application info.

Background and credit is all run online and the applicant pays for it.

Rent is collected electronically, automatically, online.

Leases are signed physically in person along with a fees sheet that includes some of the potential fees that can be charged. Their signed copy is immediately scanned and emailed to them for their record keeping.

I 3-hole-punch the lease and add it to a big binder. Each property has info in it that I need including the lease, mortgage info, utilities, property info, and tenant communications.

I have also created Google docs for certain notices that get used repeatedly so that I can change a couple things and print it out.

I continue to search for more ways to automate the business. I am in the process of creating an operations manual that can be used to train an administrative assistant as I expand the business.

I would love to hear of any other business systems that other are using in their rental property business. 

What systems do you use? and Why? What would you add to my processes? I'd love to hear your input.

I always believed that the rule was that if I owned and lived in a property as my primary residence for 2 of the past 5 years that when I sell it I would not need to worry about paying federal taxes on the gains if it is below their specified threshold.  

However, if I live in the property as my primary residence AND rent out the extra rooms to roommates can I avoid federal taxes on the profit when i sell it if I've lived in it for at least 2 of the past 5 years? I have claimed the rental income on my taxes and depreciated the property along the way as well.

 Dave,

This is an awesome post! Looking forward to your follow up post on the monetary value of BP connections. Be sure to keep us in the loop when you post it.

 Hey Kadan, I look forward to hearing how the investing is going. Keep us posted!