All Forum Posts by: Kenny Dahill

I don't think it would be necessary.  

Do you mean you'd like to run additional credit checks and background screenings while they occupy your rental?  I have never done that, unless a new tenant moves in.  Which they would be required to go through the process as well.

My first tenants utilized a portion of trust fund to meet our rent:income ratio.  They were moving from another state and one of them didn't have a job so it made it difficult for that qualification.

I asked for proof of funds and documentation with verification showing that party is indeed on the trust fund and able to pull cash as needed.  Worked out fantastic!  I love rich tenants. Haha.

Hi @Jason Stephens.

What does your agreement with the current property manager say in regards to termination?  If you terminate your agreement, assuming there's one in place, you might be responsible for the remainder of her fees.  It's tricky since she hasn't placed a tenant yet, but she could argue it's still her listing.

Have you tried listing the property yourself?  Is she the realtor acting as PM or a full-time exclusively-PM only?  Curious why you don't trust what she's telling you.

Hi @JT Crownover,

Each software company offers something a little different.  What are your priorities?

• Rent collection: almost all offer this
• Lease Agreements:
• Listing your rentals:  Each company has a different quantity.  Most cover the same 4-8 sites (Zillows) at minimum.  Some offer up to 40+.
• Maintenance Requests
• Connection to local vendors

@Eric Jones, there are a few options you could take.

Let Them Pay Late Fees:  Continue with what you're doing, you earn more money.  There is a risk because they appear to struggle financially and one best financial issue could result you missing rent completely.  Their car breaks down, lose a job, etc.

Bi-Weekly Rent:  If you want to help them that is great.  Work to establish a bi-weekly rent schedule.  Or Semi-Monthly, which is different.  The months with 5 Fridays can throw people for a loop.  Semi-monthly is equal half payments.  Bi-weekly would be 1/26th payments of the annual lease.  Especially if they're there for the long run, this would be the most benefit to them.

Extend Their Lease:  Huh?!  If they're good tenants and you already make a good spread, then offer a slight discount on lease if they sign a 2-year lease.  That gives you assurance there won't be any vacancy the next 2 years, which is where landlords can lose a lot of income.  There's been debates on BP about those who have an annual bump vs those who keep rent stable to minimize vacancy.  Take that theory to the next level, if you know they're great tenants and making it a home then take the minimal financial hit to have greater stability moving forward.  I offer a $50 monthly discount for 2-year leases, you could offer $25.  That shows you respect them and they'll continue to treat your place great.

The key to real estate are tenants!  If you've got great tenants that take care of your property then you should sacrifice to keep them longer.  This doesn't mean free rent.  This means helping them without you losing.

I had tenants with a newborn so she was out of work and not making money for several weeks.  I know it's a business but there's still a human element to business.  I worked out semi-monthly payments for 3 months with late fees being assessed on the 5th and 20th.  They're good tenants and hopefully when they move out they remember that.

Hi @Allen Lopez, here are a few ideas.  It's also important to be honest with yourself and see if there might be other issues causing the vacancy, rather than the PM.

Other reasons:

• Rent Amount:  How does your rent amount compare with its surrounding?  Too high will cause vacancy
• Quality  How would you compare the quality of your property to its surrounding?  You're competing against all of them, so if it's less quality but same rental amount then you'll be last in queue for desirability.

Ideas to see how hard your PM is working:

• Listing Links:  Ask the landlord to share all the links for your property's marketing.  Zillow, Trulia, RadPad, etc.  Make sure they are presenting your property in the best way.
• Applicants:  Ask them how many applicants they have received.  They won't share the specific applications, but ask them the reasoning they were rejected.
• Cold Call:  Call the PM to apply for the rental, see how they handle the process and hear what they say about the unit.  Submit an application as well and see their response times!

If you believe the unit is rent-ready and is suffering from a lack of effort by the PM, then inform them.  Are their management fees based on rent collect or rent expected?  And lastly, this is your top concern so take action!  If they're not delivering then go list the property yourself and handle all the tenant screening, execute the lease.  Every missed rent check impacts you significantly more than the PM, make it your top concern!  

Chances are they will still require you to pay them their leasing fee, handle that issue later.  There's no need to have a headache with that issue because the more you delay finding a tenant the more you'll end up paying anyways.  So assume you have to pay that leasing fee, and if they're unreasonable then it's time to address the issue of who manages your property.

Hi @Sami Gren, great question.

As address above, any check you write will have your routing and account number on it.  So it's quasi-public info anytime you write a check.

If you have hesitations then there are other ways to resolve this.  3rd party providers will utilize ACH which allows tenants to directly deposit rent into your bank account, without sharing each others information.  Plus it's an easier process for both parties!

@Charlie Moore, real estate is extremely local.  Every state and city will have unique laws applied to their real estate operations.  I believe in 47 states you need to be licensed.  Depending on the state it could be licensed as a property manager, realtor, or broker.

Hi @Rahul Dutt,

How many units are you managing?  There are two different classes of management software, small vs. large.  Each have their own benefits but identifying which group you belong too would be beneficial.  Large would be 50+ units.

Hi @Tuvia Goldstein, congrats on the property.

There are several management software companies for the screening tenants.  They all have slightly different niches.  We all vary depending what you need.  Their priorities range from helping you lease, collecting rent, receiving messages from tenants and finding local vendors.  I would advise you to do some research to find whom the best fit is, they all work with the same 2-3 partners whether it's tenant screening, rental estimates or renter's insurance.

Regarding your lease, it's best to pay for a local lease.  You can hire an attorney or buy a template from a legal source website.  Typically the management software companies have an affiliate partner as well.

Best of luck and congrats!