All Forum Posts by: Account Closed

There is something called the MAIL.  It amazes me how much we, as landlords, try to "cater" to our tenants.  

When I rent my homes out, I do a credit check and I screen the applicants inside and out.  And I chose people who are 'COLLECTIBLE', but also 'RESPONSIBLE ADULTS'.  Therefore, this entails, them being capable of stopping off at a post office or a mail box at their line of work, or somewhere, and mail their rent.

If a Tenant expects me to knock on the door and collect their rent, they aren't anyone I want as a tenant.  My time is too valuable, and I'm too busy, much busier then they are!  

If they don't have the rent in my office on or before the first of the month, their rent is late, and I send them that Notice To Quit on the very first day rent is late.

Am I too tough?  Nope, I just expect people to pay their bills on time, and since I chose applicants who paid their bills on time, I hold them to the same standards as anyone else.

Nancy Neville

This is just a couple of things to keep in mind.

I found the following items very useful in running my business. The more
you throw yourself into the business, the more you will receive. You will
receive respect from your tenants because you are professional, and you
will receive respect from the courts and the community as well.

In this business, it is very important to protect yourself from lawsuits in
every way. The more you are prepared the better your chances are of
winning. By being detailed and organized it stops a lot of lawsuits and
having to go to court because a tenant doesn’t pay rent or says you don’t
take care of the repairs.

In order to make you a “Winner” I suggest the following items.

1. Vonage Phone. This service has been a lifesaver for me. It has an
excellent Internet Phone Record that you can access at any time.
When a tenant calls (or anyone calls, for that matter) the call will go
directly to voice mail and the message is recorded on your phone and
also on your computer in Vonage’s online Voice Records.
It keeps track of the time and date the person called you and the
time and date you called them back or the time and date you call
anybody.
So when a tenant says that they called you for repairs and you never
called them back and you did, you just print out the phone record

OFFICE SETUP

from your computer and submit it with a letter to the tenant showing
them that you did indeed call, highlighting the date and time, and
that usually ends that problem right away. I also take the recording
to court with me in case the tenant tells the Judge that I said this or
that. By having the recording with me on a laptop or on a tape
recorder, shows the Judge exactly what transpired.

But as I’ve said above, once you prove to the tenant that you have
evidence to the contrary of what they are saying and you send them
a copy of the event with a letter, it usually ends the problem right
away. This is why……………. I always let my phone go to voice mail.
I also tell my tenants if it is an emergency and I don’t answer the
phone, to leave me a message and I will call them right away. And
because I check my voice messages every 15 minutes, I’ve always
been able to take care of their emergencies immediately and their
minor repairs in the order it is received. One thing for sure, I will
always acknowledge their phone calls, no matter what it may be, but
it will always be in writing, UNLESS it is an emergency.

2. STAMPS.COM
This is another great program I have. It keeps a record of the time and date
of everyone that I send mail to. So whenever I write a letter to anyone
and they say they never received the letter, (such as a notice to quit) I have
proof that it was sent and I print out the records to show the Tenant or the
Judge and that solves the problem right away.

Vonage and Stamps.com are tools that should be part of your everyday
business. They are great tools in nipping problems in the bud before they
get out of hand and in preventing those stressful trips to the courthouse
that you may have had to take if you had not had them at all.

3. COLOR PRINTER
It is very imperative that you take BEFORE and AFTER pictures when a
tenant moves in and moves out.

A Judge does not want to hear you say “He said, She said”. A Judge wants
proof.

You’ve worked hard to buy the right property. You’ve worked hard to fix it
up and get it ready for the market. You’ve worked hard to find the right
tenant. So…protect yourself. When you are ready to advertise the rental
and show it, take pictures of it and have the pictures in color just in case
you need to prove to a Judge what the rental place looked like if you should
have to go to court and the Tenant tells the Judge it was a dump.

4. FAX MACHINE
This is a great item to have in order to fax work orders to your workers or
Independent Contractors. They in turn can fax you a bill when they are
through with the job. It saves a lot of time and gets the job done quicker
by having a way to get the documents they need (and you too) over to
each other in seconds. The sooner you receive your workers invoices, the
sooner you can pay them, which makes them loyal to you and puts you top
of their lists of jobs to do.

It’s also a good thing to have in case a Tenant needs to fax over a document
from their case workers for you to sign. Never have them fax over their
“Lease Agreement” though as that needs an original signature.

5. INTERNET CONNECTION-E-MAIL
You will need an Internet Connection to have “Vonage” and “Stamps.com”.
I like to advertise my properties on my web page. Prospective tenants love
taking a tour of a landlord’s property online. It shows them that you are

professional. Also, by having the pictures of your rentals online, it shows a
Judge what the home looks like prior to you renting it out.

I usually print out the ad from my web page and take it with me to the
Open House. By having the photos and advertisement right there at the
Open House, it shows the “possible tenants” that you have proof of what
the house looks like as they are touring it. And if you have to go to court,
you will have evidence that this is what the house looked like! It just
doesn’t get any better than that!

6. E-Mail:
E-mail is good to have as well. When tenants e-mail you regarding
anything, you have it in writing. I always want things in writing. Whenever
the tenants need a repair, I tell them to put it in writing. However, if it is an
emergency, they need to call me immediately and I will take care of it

If you are a husband and wife partnership, or an investor with other
partners, you will need to designate who will do what. Remember, being a
Landlord is a business and you need to treat it as such.

Most husband and wife Investors, have the wife handling the office and the
tenants and the husband doing the repairs. If that is the case, each must
stick to their own job duties. My husband stays out of my office, and I stay
out of his tool box.

If you are in a Partnership, you need to designate who does what and stick
to it too. If you don’t develop job responsibility, you will have chaos and
someone is going to quit.

You want to have a smooth running business. Don’t tread on anyone’s toes
once you designate job responsibilities, even if you do not agree with the
decision the other person may make. (Of course it is different if the other
person is going to get you in trouble or cause you to go bankrupt). I’m
talking about normal every day transactions. It is imperative that you trust
their decision in regards to their job duties.

If you need to discuss a more serious matter, then have a meeting (whether
you are husband and wife, or in a partnership)

I’ve touched on some very disturbing things about this business at the
beginning of this book. And this business is tough! You’re excited about
being a landlord. You found the perfect house. You worked day and night
to fix it up. You have given up family time to get this home ready, not to
mention have spent a lot of money, and now the tenant won’t pay rent, or
are damaging your house!!!! You want to break their neck!

This and the Eviction process take a lot of self-control. Once you realize
that this house is just a tool of your trade and not your baby, you will be
able to adjust and handle it. It won’t take away the anger to see your home
being damaged, but it will help you to visualize it as a tool; an expensive
tool, but a tool.

You have already fixed it up once, therefore you can fix it up again. (Most
damages are cosmetic damages anyway, and not structural damages,
unless of course the damage is due to fire.)

Later on I will talk about “Training your Tenants”. This book will help you
cope with what you may face. It will give you a different outlook on things
in order to cope. (At least I’m hoping to accomplish this in this book).
Your house is not worth your life, jail time, or losing your savings over. It is
just a house that you can fix up again…..always keep that in mind!

These are just a few things to think about. 

Other things would include

• Screening your tenants
•  Open House 
• The Proper Application Form 
• Selecting a Tenant
•  Section 8 Tenants vs. Non Section 8 Tenants
• Tenant Phase- 
• Training Your Tenants
• The advantage of a Written Lease Agreement
• Signing the Lease – What you should bring
• Co-Signers 
• The Lease Agreement
• Landlord/Tenant Relationship
• The Emotional Aspect of an Eviction 
• What is it like going to court?

Nancy Neville

It's the right thing to do!

Nancy Neville

Yes, this article is pertinent to the above question:  Please read on:

The advantage of a written lease agreement is that it is a written record of the Rental Agreement.

A written record is a permanent record which may be used for reference if misunderstandings arise.

In absence of a written document signed by both parties (the Landlord and the tenant), it is advisable to keep a personal written record of mutual agreements.

SIGNING THE LEASE

Once you have chosen the best applicant, you are now ready to sign the lease. The very first thing that I establish with the tenant is that the utilities must be put into their name prior to us signing the lease. If it is not, then we do not sign the lease and they better have a good reason as to why this wasn’t done or I don’t rent to them at all.

I usually schedule the signing of the lease the same day the utilities are placed in their name. I have the Lease Agreement all typed out on my computer and when I confirm with the utility company that the utilities have been put into their name I print it out.

If the previous tenant left owing a bill, the utility companies will want to see the signed Lease/Rental Agreement first before they put the utilities into the new tenant’s name because they want to see if the tenant is really a new tenant or if the old tenant is just pretending to be someone else. In this case we will sign the Lease as agreed upon, but I will not turn over the keys to the new tenants until I confirm that the utilities have been taken care of. I usually put a lock box on the rental unit door with the keys inside it. When I confirm that the transfer of utilities has been done I give them the combination of the lock and the home is officially theirs. (If you live close by your rentals you can just stop by and give them the keys. Our office is 60 miles away from our rentals so we choose to do it this way).

The items I take with me when signing a lease are:

*The Lease Agreement:

a.Copy for me called “Office Copy”

b.Copy for them called “Tenant’s Copy”

*Pens

*Move in Move/ Out Sheet

*Keys

*Receipt

*Lead Paint Brochure

*Lead Paint Brochure Signature Page

*Move in Pictures (Photos of the home)

*Photo Signature Page

Prior to signing the lease (Rental Agreement) I prepare this new tenant that it will take about 20 minutes to go over it with them. As lawsuits become the “in thing”, it is important to cover every detail in your lease to protect yourself. My tenants love the way their lease looks. They feel protected as well and feel they are dealing with someone who is looking out for them!

When signing the lease, I do not read the entire Lease Agreement with them. I go over the basics....... when rent is due, what happens if they don’t pay their rent on time.... or not at all, and I go into great detail explaining to them the eviction process.

This is how my conversation goes. Using my business voice, I begin explaining the Lease. Right off the bat I begin explaining when their rent is due and go into great detail on how the eviction process is done.

I tell them that their rent is due on the 1st of every month. That all my rents are due on the 1st of every month and if their rent is not received in my office on or before the 1st of the month, then their rent is late and on the 2nd of the month I will send them a 7 Day Notice to Quit (my state). I tell them not to be offended if and when they receive one, (and I tell them that they will indeed receive one because all my tenants receive one at one point or another if not every month), because this notice is just that…… a NOTICE and nothing more at this point.

I tell them that this notice is just telling them that I have not received my rent yet and it is something that I have to legal do to protect myself just in case a tenant decides not to pay their rent.

I tell them that the only time to worry about receiving this 7 Day Notice to Quit is if they don’t plan to pay their rent, and I smile a little and add quickly, but I know that won’t happen with you because I’m very picky who I choose for my rentals and I picked you! (I say this happily).

I tell them that if rent is not received in my office on or before the 5th of the month than a late fee of $25.00 is charged to them. And if rent is not received in my office on or before the 10th of the month than on the 11th of the month, no matter what, I file for eviction and they are charged a $90 filing fee and it is recorded on their credit report as a suit for non-payment of rent.

I explain to them, still in my business voice, but now becoming softer, that their rent check is MY INCOME.

I tell them that they wouldn’t like it if their boss told them that he couldn’t pay them today because his car broke down or he was sick, and I am no different.

I remind them how much they look forward to their pay check because they have to pay bills, buy food, and need it to live on and I feel the same way.

I tell them that rent is the very first thing that they need to pay out of their paycheck, because without a roof over their heads they don’t have any private place to lay their head, to change their clothes, to take a bath, to go to sleep or any place to STORE THEIR STUFF!

By the time I’m through with this little speech they “get it”.

I then tell them that I always will bill them for rent that is due.

Because I have chosen tenants who are COLLECTIBLE and who pay their bills on time, I have found out over the years that if you treat rent as a bill, the tenants will pay on time. However, if you allow tenants to think of their rent as rent, they feel that rent can be paid anytime as long as it’s within a rental month. There Is just something about the word RENT!

Since I have implemented the billing system for my tenants, I hardly have any evictions anymore, and life is so much better.

After I tell them all about the eviction process and how I will bill them, I then tell them what they can expect from me as their landlord. This shows them that it’s not all one sided. That I am responsible for things to.

I tell them that I will take care of them. That they can call me any time, night or day, no matter what time it is, if there is an emergency, and that I will have someone out within 24 hours and no later than 48 hours, guaranteed! I tell them what I consider an emergency, no lights, water, gas or leaky toilets and pipes.

I tell them that if they have any repair requests that are non-emergency to put it in writing and I will take care of it in the order that it is received.

I expect a lot from my tenants but they also know that they can depend on me to take care of them in an emergency and they know they will have a nice home to live in not just for a few months but for the length of their tenancy. (The only exception to this rule is if the tenants do the damages themselves. I refuse to repair anything that is damaged by the tenant while they are living in the unit unless they pay for it themselves)!

If tenants forget all about my speech at the signing of the lease regarding their rent being late, I tell them, that I’m sorry they are having difficulties (and I mean it) and I am very sympathetic, but I stand my ground and tell them that the most time I can give them is what the law allows. (You must understand that the eviction process is very long and lengthy. You MUST start an eviction immediately if you wish to get your home back or your rent, and if you’re lucky, a money judgment). No matter how much you like the tenant or how sad their circumstances can be, you must file for eviction post haste! If you won’t do it, or can’t do it, then you’re heading for trouble. Whether it is then or later on down the road. It is very important for you to establish a policy and adhere to it without fail. I can’t stress this point enough! I also ask the tenants if there is any way they can borrow the money from someone? A family member? A bank? A friend? But once again. I never give in!

Next Please !  Tenant has already begun to "Negotiate" with you.  This is just the beginning of a constant "Negotiation Process".   Negotiate deposit now; negotiate rents in the future.  This person is already a problem from the start. 

Move on!

Nancy Neville

MAKE HER COMPLY WITH THE LEASE!   Send that Notice to Quit TODAY!

I feel very strongly about the eviction process and how it is handled. Because, if you handle the eviction process incorrectly and do it your own way, or take matters into your own hands, it could mean, a law suit against you. It could mean jail time. Or, it could mean having your case dismissed. Whenever we are involved in an eviction, emotions run high and it’s a very sad and dangerous time.

When we are new in this business we have a tendency to make a lot of mistakes and that’s only natural. After all, that’s how we learn…. is by our mistakes. But the biggest mistake that I see new landlords make, as well as seasoned landlords, is their reluctance to file for eviction (that Notice to Quit for Non Payment of Rent) IMMEDIATELY and on the very first day rent is late.

When I ask them why that is they tell me that they feel it is unreasonable. They say that it’s not right. They say that it’s not fair. They say that they would feel embarrassed to send out a Notice to Quit the very first day rent is late. They say they can’t do it, won’t do it. And if they did do it, they would feel guilty. So my mission today is to take away that guilt.

Choosing the right Tenant can be very crucial as to how many evictions we may possible encounter. The better the Tenant, the less evictions we may possibly have, so it’s very important that we screen our applicants more thoroughly than we have ever screened them before.

As I’ve said earlier, for me the screening process begins the moment that an applicant walks through the doorway of my open house, because I take note of how they act, of what they say, of the questions they ask me, of their mannerisms and how their children behave. And after all the applicants have filled out an application, I take the applications home with me and I do a more thorough investigation.

I do a credit check to see how they pay their bills. If they pay their bills well, chances are they will pay me well.

The next thing I do is I verify their employment. If they have been at their job at least a year or more, it tells me that they are stable and COLLECTIBLE! They must be COLLECTIBLE! If they are collectible you can sue them, garnish their wages, tax refunds or place a lien on their properties. It is the most important thing to check for… so make sure they are COLLECTIBLE!

Not only choosing the right tenant for your home is important in how many evictions you may possibly encounter, but having a good landlord/tenant relationship helps as well. Because if a Tenant likes you and your property, chances are they’re going to do everything they can to stay. From paying their rent on time, to putting you first when it comes to paying their bills. And I believe that good landlord/tenant relationship begins at the Open House as well. Because when the tenant applies for your home, they are actually saying that they like you and your house. When you pick that Tenant for your home, you are saying you like that Tenant and that family and so far a good landlord/tenant relationship has begun and that is good.

At the signing of the lease we get to know each other better.

Allowing tenants to pay their rent anytime only hurts the landlord. We must remember that we cannot even begin the eviction process unless that NOTICE TO QUIT has been sent. When you allow your tenants to pay their rent anytime during a rental month you are allowing your tenant to rewrite the lease agreement and that could cause your case to be dismissed.

It is very important when we set forth rules and regulations and rental due dates that we live by those rules. It’s not only beneficial to us but it also gives the Tenant some stability by knowing exactly when their rent is due and what will happen if it’s not received.

Time is of the essence! Time means money!

When we prepare our tenants to receive that Notice to Quit on the very first day rent is late, there shouldn’t be any reason to feel guilty about it or not to do it. IT’S JUST A NOTICE!

Going through the eviction process affects us in many ways.

Not only are we disappointed because the Tenant didn’t work out, but we’re pretty worried now to boot.

Not only are we worried, but we’re pretty angry because it took a lot of work to get our rental units into shape again. It took a lot of time and money and we have a lot invested in our property.

We’re worried now about having to go to court. We’re worried now about our financial status, because we still have to pay our mortgage and taxes and our own bills. We’re worried about damages they may do to our place because of retaliation. We’re worried about being sued. What if we say or do something wrong? And by the time it is all over with, and the eviction process is long, we are absolutely exhausted! And yet, we worry about sending out that notice to quit on the very first day rent is late! Unbelievable!

Some landlords don’t have a written rental or lease agreement. If it is not in writing the Lease is automatically a Month to Month Rental Agreement. When we evict someone we are actually evicting not just a tenant but anyone who is in POSSESSION of the house.

I’m sure most of you have seen the movie Pacific Heights. Michael Keaton didn’t sign a lease. He took possession of the apartment without the landlord’s permission, yet the Landlord had to evict him just as though he were a normal tenant.

If a bum off the street broke into your house and took possession of your home, you would have to evict them just like anyone else.

It is very important to remember that a Notice to Quit is exactly that, A NOTICE. It is a notice notifying your tenant of an action that may be taken against them if they don’t comply with this or that. Remember we cannot begin the eviction process until that notice has been sent.

Because an eviction is a legal process to evict everyone who is in POSSESSION of the home, we need to list the names of everyone who resides in the home. But most times, we don’t know everyone’s who is living in the home let alone their names, so what do we do?

In my state I am allowed to add the words ALL OCCUPANTS. By adding the words ALL OCCUPANTS to all my legal papers, it assures me that I am evicting everyone who is in possession of my home, including the dog!

The final stage of the Eviction Process means removing the tenant physically from the premises and this is truly a very sad and dangerous time.

From the moment you turn that Notice to Quit over to the court house and file the Summons and Complaint, you NEVER EVER want to enter the rental unit or confront the tenant verbally or physically.

The only way I communicate with my Tenant from this point forward (if I have to at all) is in writing! If you do otherwise, and enter the premises and you see damages, or don’t like what they have to say to you, and you take matters into your own hands, and try to do things your way, it could mean a law suit against you, jail time, or having your case dismissed. This is a very dangerous time. EMOTIONS RUN HIGH and this is why a court appointed official called a Bailiff will go out to the home and remove the tenant from the premises and Not YOU!

We must remember that being a Landlord is a business. It is a business of fixing up homes and renting them out and fixing them up again and again and again. It is a business of evictions, of lawsuits and court scenes and injustices. If we can accept and expect all of these things then we will be successful. But if we can’t, then we will fail.

Remember…being a Landlord is not for everyone. If it was, everyone would be doing it.

Why reward people for doing stuff they need to do?  It is IMPERATIVE that as landlords we TEACH them how to be responsible adults.  Therefore,   If my tenants didn't take care of the yard I'd write this letter.

Dear Tenant:

Please be advised that during my drive by inspections of our properties, I noticed that the grass where you live is high, and the yard is getting to be a mess.   Per our lease agreement, that  you are responsible for maintaining the yard and keeping it well groomed, you will need to cut the grass within 5 days and make sure the yard is  clean and neat.  If  this is not done within 5 days from the date of this letter, then I will have to send my work crew over to do it themselves, and you will be billed for their services.

Sincerely,

Nancy Neville, 

Foot Note:  Make sure this clause is in the Lease Agreement.  If not, then you will need to add it as an addendum.  If it's not in the Lease Agreement, it's hard to make them adhere to something they didn't sign for. 

Purchase QuickBooks Pro.

Turn on the Class Feature in the Preference Section. 

Setup your Properties as a Class and then when you write a check for expenses, you assign that expense to the that particular property.    You do the same for rents (income) by setting up your tenants in the Customer Center and assigning their rental unit to the correct property (Class)

Whenever you want to see your bottom line (Income less expenses per property) run a Profit and Loss Report by Class.

Nancy Neville

The answer to that questions is .....ARE THEY COLLECTIBLE?  

• When we are landlords we want to have good tenants.
• We want to have long term tenants as well.
• We want to have a tenant who will live in our home as we would want them to.
• And we want a tenant who takes care of the yard and is nice and gets along with the neighbors.  

Aaah what a dream.  And sometimes it does come true.

I prefer to meet my applicants, because one can tell a lot about someone in just a blink of an eye.  As a matter of fact there is a book out called "Blink" and it is based on first impressions we have upon meeting someone, which more times than not, turn out to be a correct opinion.  

But being a landlord means we can't judge people by a "blink of an eye".  We need to be fair and balanced, and if the applicants qualify we must rent to them.  So my main QUESTION that I say to myself  when I rent to anyone is..... ARE THEY COLLECTIBLE?  Are they someone you can sue in case they don't pay the rent or they do damages and collect on?

You run a credit check, criminal check, and all the above as you stated, but it all boils down to  ARE THEY COLLECTIBLE. 

So I would say they sound good. If thye both have good jobs.  Don't have more expenses then income.  I'd go for it, as long as they are what?  COLLECTIBLE !  And if you have any doubts always get a Co-Signer who is also...COLLECTIBLE!  The more you have on the Lease, the better your chances are in COLLECTING.

Nancy Neville

Many times people would stop by our homes while my husband and I were remodeling them to see if it was for rent and if so, could they look around. I would always say no for these reasons. 

#1 Because, they would ask, "Will you be installing a new stove?  Carpeting, Air Conditioning, a Butler, a Maid, (being sarcastic here), and the list would go on.  They seem to want the works seeing how we are remodeling anyway why not ask.  So we nipped that in the bud right away.

#2, Is the fact that people who are not landlords have a hard time visualizing what the place will look like once it has been repainted, new carpeting, and ready for show.  Showing them while it looks like a dump, makes them think it's a dump and they move on.  

#3 Also, when they see the place not ready, and looking shabby, the rent seems too high to them, verses when they see the home in all its splendor.

My philosophy is this..once the home is completed then it is good to show.  What the applicants now see during their tour is what they get.  No maid, no butler, but a house that truly is worth living in. 

Nancy Neville