@Julie Marquez We process our application with a third party and require the applicant to pay us the money and we then pay to submit the application. We do ZERO pre-application screening for liability purposes. If they pay, we submit it and let our verifier make their suggestion.
@Steven Anderson, man your three file system is really advanced. We do keep a master hard copy file with all the original property documents, but I don't scan them - something to consider...you're inspiring me to create some checklists! We do most of our paperwork on paper. We do have a scanner/printer/copier and we do provide the tenant with a hard copy of the agreement and other important documents at the time we scan it into our filing system. We like the option of having both a hard copy filed in a 2-high and also a scanned copy in its own folder on our computer. @Robert Melcher I suppose we could shred down the line, but I really do like to be able to "touch" the contracts.
Instead of calculating due dates based on application dates or acceptance times, we prorate everything to the first of the month, period. All our dates are then synchronized and we have one "batch" to consider at the appropriate times for each of our tenants. Also, to simplify things, we only rent M2M. I have found through experience, it is a slightly better protection for me and it saves headaches for paperwork.
@Mel Hayes I have a home phone that has the ringer turned off. I let all calls go to voicemail and I have txt notification to my cell. Google voice is a nifty option and really a nice way to do it on the cheap. Those voice to text messages are funny sometimes!
@Kimberly H. @Luka Milicevic (yessir) I created a very simple excel spreadsheet with tabs for each month and all of our properties are on each sheet (5 SFH and soon to be a duplex!). Each address has several lines underneath for entries for payment of rent, our PITI payments (broken down), repairs and expenses (the lines are easily added to with the right-click insert option, and they have columns for the date of the entry, notes about the entry and the amount). I put some simple formulas in specific "floating cells" so they would calculate our cash flow for each property, total expenditures for each, and mortgage balances (just for fun!). Additionally, I made a summary 13th sheet for yearly totals (this has helped in our tax preparation like you wouldn't believe!).
I have toyed with the idea of electronic payment. I am not versed in all the options. At this time, we require all payments be delivered to our address no later than the first of the month (postmarked, mailed payments prior to the 1st are considered "on time" whether they arrive after or before and no check is deposited until the 1st regardless of when it is received). Any late rents are charged and noted on the spreadsheet as any debit/credit would be.
I try and keep the office work as streamlined as possible. I do see in the future once we break a certain property number threshold that we will probably need to modify our processes or consider a PM.
I'm leaning more toward the PM because I want our energies to go toward finding and preparing the properties for a tenant (this is the real rewarding side of the business for me). I love the hunt, the calculations, and then the managing of the rehab process. It's such a fun numbers game and a very "retirement securing" game at that!
All your (each commenter) systems are really neat to see, and I appreciate all the details you provided. Thank you!
If I could slightly hijack this (or add one additional element to the discussion)...at what point would you consider a PM? Never? At a dollar amount of monthly rent? At a number of properties to manage?
@Chris Bingham - thanks for starting a great discussion!
