All Forum Posts by: Kenny Dahill

Hi @Shannon Brill, 

If you currently have a property manager, what features are you needing?  Typically the software PM's use have a landlord portal.  Do you know which software they use?

There are several options for landlords: Burbz, Cozy, Tenant Cloud, Turbo Tenant, etc.  Since your PM already had software I would definitely go with a free one, which all the previous listed are.  You will have features you might not use but if you ever decide to self-manage, you'll at least have a process ready.

@Andrei Zamfir,

There are a lot of variables to this questions and scenario.  Things to consider:

• Utilities:  Who's paying the utilities: landlord or tenant?  I don't think there would be any value added for the tenants to save a few dollars month.  If landlord pays, perhaps over the long run it will pay off.
• Market:  What does the market dictate?  If you want market rents then you need to meet market conditions.
• Alternatives:  Are there more affordable solutions than Quartz that will still give off a rich appearance?

Here are some points to consider financially:

• Cost:Lifespan:  What is the cost to replace this item and over what period?  Quartz is going to hold up a lot longer than p-lam counters.  You might have to replace p-lam every 3-4 years to maintain a nice appearance.
• Absorb Utilities:  If you invest in an asset that reduces expenses, make sure you benefit from that reduction!  If it's solar, then raise rents and include electricity.
• Replacement/Maintenance Costs:  Will higher-end or special equipment require more preventative maintenance?  That's additional time and money.
  

Hi @Leslie Mangrum,

There are a few ways you can collect rent.  Starting out with your first rental allows you more flexibility, the more units you scale it would be wise to have a more thorough and consistent process.

• Cash:  Most people will advise against cash because it's hard to track and inconvenient.  11% of American's don't have bank accounts though, sometimes this might be your only option.  If so, create a receipt for EVERY transaction that both parties sign.  Be smart and safe when you pick up cash too.
• Bank Deposit:  There are tenants who will make a direct deposit into the landlords bank account.  You will need to provide them the bank and your account number.  This does create a receipt which is nice and avoids the face-to-face interaction.
• Apps:  When you only have a couple of units you can get away with using apps and multiple sources.  Zelle, Venmo, PayPal all allow you to be paid electronically.  I typically advise you to pick whichever the tenants prefer, make collecting rent easy!  Again, this works when you only have a couple of units to check.
• Rent Collection Sites:  There are several management software sites like Burbz, Cozy, Tenant Cloud, Turbo Tenant that have integrated rent collection.  They work exactly like the apps.  Some sites are free and others charge.  The positive utilizing one of these websites is it allows you to scale your portfolio on a single platform.  Plus there are additional features you can access for free to help make managing easier.
  
  

Let me know if you have any questions!  Best of luck!

Real estate is just like any other investment: learn and execute.

There are a lot of different ways to get into real estate.   I would suggest you start listening to podcasts to learn the different methods, then start to read more specific content that that interested topic.

There are people with minimal knowledge of real estate who invest and then those with a lot of knowledge but don't invest.  The difference is typically those with little knowledge view real estate as a commodity for diversification.  It is best to always learn and keep learning because real estate laws and regulations change over time.

@Denise P., I was going to suggest a CRE broker. I am curious about your previous experience, was the broker a tenant rep or landlord rep?

I would still advise you to go through a broker unless you wanted to list on CRE sites like LoopNet. You should always have your lawyer review commercial leases since they are more complicated then residential.

If you divide your existing space then each will need their own utilities and meters.  Unless you cover all their expenses.  At that point they will only need access to their own panels.

@Jeff Fountain, credit/debit card should not be an issue at all.  Practically every rent collection software offers this service: Burbz, Cozy, Tenant Cloud, Turbo Tenant, etc.  The tenant will pay the service charge which is typically 2.50-3.50% depending.

In fact, the nice part about tenants paying by card is the faster payout.  Standard ACH takes 4-5 business days because both sides most clear the ACH before payments are fully transferred.  With card, it's immediate on the tenants side which saves you a few days of money sitting in limbo.

Best of luck!

Hi @Lex Phumirat.  It's important to read and understand the existing lease.  The lease should state their requirements for notice as well as yours but if nothing occurs then almost every lease transitions to a month-to-month.

Have you consider bumping their rents?  People hate to move.  I would have that conversation with them first because if they're willing to accept then you just eliminated vacancy risk.  Which is huge.

I would simply send a letter notifying you are the new landlord, their lease expiration date and then state the new rent.  Let them decide to accept or reject.

Hi @Charlotte Chew,

You have several options, I'll do my best to explain the pro's and con's.

• Free Apps:  I typically advise fellow landlords to make it easiest on the tenants to pay rent.  This could include Zelle, PayPal, Venmo, etc.  It is fairly straightforward and only PayPal will cost you.  The downside is when you start to get several rentals, then it becomes confusing about which tenants are paying which way.  Plus you will need to provide certain personal information like your email or account name.  For a single unit landlord, it's not bad.
• Landlord Software:  There are several software companies out there who provide rent collection; some free and others charge memberships.  These would include Burbz, Cozy, Tenant Cloud, Turbo Tenant, etc.  They all essentially do the same functions and charge for the same 'side features' like background screenings, rental estimates, legal documents.  The positive is you have a centralized place for all your rentals and it is one additional layer between you and your tenants.  There are more benefits as well besides just rent collection, helps you optimize your management systems.  The downside is tenants have to pay online whether it's through ACH or credit/debit card; no money orders or cash.

If you let the tenants pay by cash make sure you are protecting yourself.  Physically and financially.  Physically should be obvious since you'll be face-to-face with the tenants, most PM/landlords advise against picking up in person.  Regarding financially, you need proof they did or did not pay you in the events you ever go to court.  It's important you use a receipt system to hold for your records.

Hi @Edward Brewington, sounds like you got plenty of responses relaying a similar message.

I would have a conversation with the PM to learn from this.  I agree it was excessive but that is the downside of relaying on a PM.  They work off sunk time since driving to/from have no correlation to the work.  Here are some thoughts:

• Tenant Turnover Process:  Ask them to share their tenant turnover process and confirm that checking the pilot light is included.  Have them consider all utility or livable items as part of their process.  You should request that turnover check list because it could protect you from these types of missed trips.
• Unnecessary Trips: Ask them how they handle any maintenance issues that come from the tenants.  It can take a lot of coordination to have different vendors show up at times that work for all parties.  Often it's easier to talk the tenant through common issues.  Personally I feel that is part of PM fiduciary responsibilities since it has a direct correlation to your profits.
  Maximize Trips:  There's a sunk cost to sending out labor, make sure to maximize your expense by having them address any other items.  If it's $99 for a 2-hour window, take advantage of that!  You paid for 2-hours whether it's a 5min or 2hr job. 
  

I would assume each local regulation is different. Although I am sure it's not enforacble if the tenant refuses the idea.