All Forum Posts by: Account Closed

Yes, keep all business transactions separate from your personal stuff.

You need to have a "business" bank account to deposit your rents.  (Separate from your personal checking account.

You need to have a separate checking account for Security Deposits.  In some states it needs to be an interest bearing account and should be called the Tenant Security Trust Fund Account.

It's best to manage the rental homes yourself.  However, you may not have time.  But if you choose to have a Property Manager, they must be a licensed Broker or work for someone that is a broker.  (There are about 3 states that say you don't need to be a broker but a PM must be licensed)

If you manage your homes yourself, then you will have the education you need to continue to be a landlord and know if this is for you.  There is a lot involved in being a landlord, then buying a home, renting it out and collecting the rent.

Nancy Neville

It depends on the state you live in as to how much money you can accept as a Security Deposit.

In Michigan we can only accept one month and a half rent as a  Security Deposit, so check your state laws for that.

I would never hold a home for 30 days.  3 Days no longer and they have to give me the half a months rent as a deposit.  On the Holding Deposit Form, it states they have three days to pay the balance of the  amount owed  or forfeit their deposit.  So half a months rent t hold  the place for 3 days isn't too bad, in case they don't come up with the rest of the money or decide they don't want it anymore.  At  least their deposit will pay for the advertising and the potential loss of other interested parties.  However, I still continue to show the home in case they don't take the place and I tell the other interested party that I will know if the home has been taken or not in a couple of day.

Nancy Neville

Having an Open House is the answer and a good voice mail box phone system.

Because I had a lot of properties, I received a ton of phone calls when I had several vacancies at one time.  I couldn't possibly answer every phone call that came into the office for every property that had a vacancy, so I purchased Vonage (an Internet Voice Message and phone service) that allowed for me to have several voice mail boxes.  (I still have it today. 

Let's say I had 3 vacancies going on.  Three different locations.  When someone called my office I would say the following.

Thank you for calling Maple Leaf Properties.  If you are calling regarding 1234 Lincoln Street press 1 now, if you are calling regarding the property located at 5678 Glendale Street, press 2 now.  If you are calling regarding 1010 Sunnydale Lane then press the 3 now.   (For each number they pressed, I gave a description of the home, where it was located, a brief summary of the qualifications, and what day and time the home would be shown.)

Foot Note:  At one time I answered every call, and it always amazed me at how many people would call and try to tell me their sob story about why they needed a place right now.  Even though they disqualified themselves most of the time when I took the phone call, due to their sob story of evictions...good grief), and saved time that way, it wasn't worth it to spend all day at the phone when I was a jack of all trades and just didn't have the time, nor want to hire a girl to just answer the phones. 

Open houses I found solved  the problem.   Realtors use it, and landlords should too.  If you just make appointments and take your time  to show just one interested applicant at a time, you waste your time, most of the time.  They rarely show up. Sometimes they do, but then they don't qualify.  By having an open house, you generate interest, competition between the group competing  for this home.  It's like a sale at the Department Store.

As far as software is concerned, of course I recommend QuickBooks.

Nancy Neville

Well...searching old files I found the Bonding Agency:

Doty Agency, Inc.

Box 158

Grand Ledge, MI 48837

http://www.dotyinsurance.com/

This was the bonding agency, but I took out this policy through my auto insurance policy through I believe was through either State Farm or with Farmers Insurance.  Just don't remember.  But to contact them directly, the above is the address 

Insurance Plans:

Oh, I use QuickBooks Pro.  Sometimes Accountant Version, but I'm using Pro right now. 

I have many versions in order to teach.   QuickBooks Pro would be fine for you. 

Nancy

William, the old days of doing rent rolls reports can still be done if you wish in QuickBooks, however, QuickBooks now shows you in the Customer Center exactly what tenants are late, how many days past due, and the further past due they are the redder the dot next to their name becomes. (It starts out yellow, turns orange and then red!!!! when very late!!! 

You can see who is late and how much they owe at one single glance at any time you wish.  Or you can do  a rent Roll by running an open Invoice Report and it will show you who is late and how much they owe you.  

Nancy

SCROLL DOWN TO SEE THE POWER OF QUICKBOOKS

Nancy Neville

I forget the name of the actual holder of the bond (tried to look up old records, but must have pitched them after I retired, but I believe I went through Farmers Insurance, and they contacted the bonding agency.  I use to have the actual bonding agency name  in my lease agreement too, but I just can't find it right now.  Don't really think I have any more.

Nancy

Obtaining Unpaid Rent Through an Eviction Lawsuit

In the lawsuit, the landlord typically asks for possession of the rental (an order from the judge, telling the tenant to move), plus a judgment for unpaid rent. If there’s a security deposit, the landlord can use this to cover the rent, but doesn’t have to. Instead, the landlord can treat the judgment for back rent just like any other judgment in any civil suit: If the defendant-tenant doesn’t pay it, the plaintiff-landlord can go after assets, such as bank accounts and wages.

Garnishing wages thus requires a court judgment, and it also requires a court order to the employer, directing the employer to withhold an amount of money from each paycheck, and send it to local law enforcement, who will see that it’s paid to the plaintiff. Individuals can’t garnish wages on their own. They must go through the courts, obtain a judgment, and obtain a garnishment order after that.

(I found this article on line just to make sure I was correct in my analysis.  I have had fellow landlord friends in my county who did garnish their wages, but wanted to double check before posting this article.

If you can't collect back rents, you can write it off (expense account) in QuickBooks

Nancy Neville