All Forum Posts by: Nathan Miller

I haven't used Innago specifically, but Hellosign (now named Dropbox Sign) is definitely comparable to Docusign.  We've used Hellosign (I'll keep calling them that because it's so much cooler of a name than Dropbox Sign) for 5+ years and it's a great service.

Innago is "free", but they will bill your tenant for services.  Be on the lookout as there are numerous programs that do the same.  It's a fine business model as long as you don't mind your tenants paying fees for your use of the software.  Other platforms that do the same are include RentRedi, Stessa, Avail, Innago, Apartments.com (formerly Cozy), and TenantCloud.

If you want to go a more traditional sense and work with a more mature platform that doesn't bill your tenants you might look into Rentec Direct, Buildium, Appfolio, Propertyware, or Rent Manager.

The best way for you to figure out which is going to work best for you is to explore their free trial (if offered). Run through some of the features you will need like setting up a property, moving in a tenant, receiving rent payments, and publishing online applications and see which one works the best for you.  Almost all these software have the features you'll need, so it may boil down to which feels the best for your processes and pocket book.

I don't know how credible it is, but a year ago somebody posted that Fannie Mae does allow this.

https://www.biggerpockets.com/forums/49/topics/1045626-trans... the snippet:

"Unless the previous borrower requests a release of liability, the servicer must process the following exempt transactions without reviewing or approving the terms of the transfer:

A transfer of the property (or, if the borrower is an inter vivos revocable trust, a transfer of a beneficial interest in the trust) to a limited liability company (LLC), provided that the mortgage loan was purchased or securitized by Fannie Mae on or after June 1, 2016, and the LLC is controlled by the original borrower or the original borrower owns a majority interest in the LLC, and if the transfer results in a permitted change of occupancy type to an investment property, such change does not violate the security instrument (for example, the 12 month occupancy requirement for a principal residence)."

Sadly, I've seen this happen where a company spends time and money to get a judgement, then files a garnishment on their paycheck, and the person just files bankruptcy.  Then it all goes away and the company has to eat both the past due amount plus their legal fees.  The system protects the criminals more than the law abiding business operators.

I agree with others though, turn it over to a local competent collection service.  They will take a percentage, but it's your best chance to recover it (assuming they don't file bankruptcy).

I'm sure there are books, but they are probably going to be outdated.  I feel like one of the founders of BP might have even written one.  But being a landlord today is different from how it would have been last year, especially in states that don't like landlords.

If you are currently managing 42 units already, you probably have a system in place that is working?  You might focus on pain points, what is costing you the most time or trouble and focus on improving those processes.

Also, most investors don't manage this many properties themselves, unless it's the only thing they do.  You might consider looking into property management to save you a lot of time and liability.  Remember, one bad move on just one of those units can cost you the profits from all of them.

If rent is unpaid you have to begin eviction immediately and you have to do it per the state laws, which every state has specific notices and dates that have to be adhered to.

I would highly recommend hiring a local property manager to handle this on your behalf if you can.  Remote property management is all fine and dandy until you have a problem, then it can cost you far more than you would have otherwise paid a property manager.  

Quote from @Valerie S.:

There are many many solutions for landlords to order screening from, including inside most property management software apps.  But when you do it be sure to do a complete, nationwide check of credit, criminal, and eviction on new tenants.  You should be able to order a package of all these reports for less than your application fee.

If you are not using property management software with tenant screening available, some solutions I've heard work well for smaller landlords with one or two properties are ApplyConnect or RentPrep.  I'm sure there's others, but those come to mind.

This is going to vary by area, but our landscapers would charge us about $150-200/month to mow small yards twice a month.  Keep in mind, you want your landscaper to be licensed and insured so you are not responsible for any injuries/damage.

It may not be OK with your state to restrict access to the thermostat.  Tenants have a right to a comfortable environment and their comfort level might not always match yours.  But you could get a thermostat where you can restrict the maximum highs and lows of the unit to make sure they don't exceed those thresholds.  A lot of thermostats do this, including the Nest stats I believe.

+1 to CPA recommendation.  They will know about tax breaks that will take you a long time to research.  If they find just one tax break you might have otherwise missed they should pay for themselves.

Not sure about Avail, but most property management software is going to provide the exact report about Schedule-E based expenses that your CPA needs to complete your taxes.  Software should also help you track all depreciable assets, although your CPA will also do this.

Quote from @Bob S.:

The PM has all the information, they know the exact dates of move in/move out and they know it as it happens.  That gives them the ability to manage utility bills far better than the owner who is a step removed.  It's normal for PM to handle both income and expenses for a property and utility bills are indeed a regular expense.  They shouldn't do it for free, but there are typical fees for handling these.  Also, if it's an extended vacancy, that could be an exception.

As we can see, different managers do things differently.  If you hire a PM, get one that will do what you need them to.  Some handle utilities, some may not.  I need them to handle the utility bills because I don't want to be shuffling and pro-rating utility bills for 30 some properties. :)