All Forum Posts by: Account Closed

Most people don't know that a Security Deposit is based on their state requirement.  You just can't pick a figure or a method out of the air and think that's okay.  What a rude awakening when you go to court and find out you goofed!!!

In Michigan a landlord can charge one month and a half security deposit plus first months rent. 

Other states will allow you to charge first and last months rent and no security deposit. So check with your state laws.

Second....if an applicant is close to qualifying, (and let's face it there is lots of bad credit out there today) get a Co-signer.

When we choose an applicant or a co-signer we want to make sure they are COLLECTIBLE !  We need to be able to sue them and collect, so that is our number one criteria. 

Have all applicants be on the lease as well as the Co-Signer. 

After a year and the tenants have showed you that they pay on time and are reliable, then drop the Co-Signer. (But make sure the tenants are Collectible by running another credit check on them at that time)  Make sure that your lease agreements states that they are allowing you to run a credit check when it comes to renewing their lease or if problems do arise.  

Nancy Neville

Absolutely!  All persons should be on the lease including the Co-Signer.  

If a landlord truly wants this applicant bad enough, then get a Co-Signer.  The more people on the lease that is responsible and COLLECTIBLE the better.

Nancy Neville

Too many hands in the pot always leads to disaster.  Since a PM already accepted the terms, the contract has been altered and it's a done deal.  

In the future, all money is due, no pro-rating, holidays or not, a notice is a notice, a contract is a contract, landlording is a business.   (Panting here because I'm on a rant)  And we need to be firm, yet compassionate when it comes to implementing the rules.

Nancy Neville

If you just "have to"  GET A COSIGNER!!!!!

We always had a radio playing to make it sound like someone was living there.  Also we told our neighbors that they could park their car in the driveway until we got it rented out.  

Some times we had artificial security camera's put up on the premises with a sign saying, smile you are on a camera, and all these things seemed to help.  

Nancy Neville

A 30 day notice or 3 day notice, or how many day notice your state requires, means a FULL days notice!

Let's say the tenant moved in on July 1st of 2014.  The tenant is on a month to month rental agreement.  On December 1st, she tells you that December will be her last month and she will be moving out on January 1st.  Well this is not a true Notice.  In order for this to be a true notice on a 30 day notice, or month to month rental agreement, she would need to have given you a 30 day notice on November 30th that she would be moving out on January 1st.  Actually she has to move out on December 21st by 11:59 pm,  and no later!! It must be a full 30 day notice.  If she moves out on January 1, 2015, she owes you for January's rent!!!!!!

In Michigan  we must allow 2 full days for mailing and we can't include the day we mailed it, so actually our tenants get 3 extra days if you want to get technical. 

If a tenant moves in on the 15th of the month, let's say October 15th and wants to leave on December 15th, then they must give you their 30 day notice no later than November 14th.  Not November 15th, It must be a FULL 30 day or 3 day notice.

The tenant is responsible for the full months rent...no pro-rating.  They signed a contract for month to month, or annual, and they are obligated for the term of the contract. 

Nancy Neville

The rule of law is never rent to family or friends!!!

I never recommend out of state landlording unless you can find a great property manager, but half the time they aren't so great.

We as people, a human race, can like our co-worker, think our neighbor is a nice guy, have acquaintances and think they're great, but don't understand that once we rent to them they become TENANTS.  They no longer become your family and friends, or the nice guy next door, or the wonderful co-worker.  They are almost like Jekyll and Hyde.  (I wrote a blog about this called the Tenant Phase)

Nobody knows another individual as well as a Landlord and that is the problem.  Anyone other than a landlord cannot understand the reason why we could evict someone just because they don't have the money to pay their rent.  Or  refuse to let a pregnant woman live in our home without paying rent because she's pregnant, or evict someone around the Holidays!  (SCROOGE).  We are viewed as uncaring meanies who only want money.  Not too many people view our Industry as a job.  And that includes the media and the courts. 

So I say to you, I wouldn't do it if I were you.  You want to be happy while you are abroad right?  Being a landlord entails worry and responsibility, being on top of things, no matter if you live next door to your rental or live abroad.  I'd rather live close when trouble happens, not far away.   

I don't mean to dampen your hopes, but this is the truth, and because I want to help you I need to tell you the good the bad and the ugly.

Nancy Neville

When a tenant gives you the keys they have terminated their contract with you.

If they didn't turn over the keys, you have to play the game of stopping by to see if they are still there or by calling them in some way to get in touch with them.

If you stop by and play the "knock knock Landlord Here" game and nobody answers the door, you can peek in the windows but don't enter unless you see nothing in the house at all, no furniture or signs of life. 

If their lease has expired and they seem to still have their stuff in the house, then you will need to get a "Writ of Restitution from the court in order to have them (the tenants) be physically removed from your property and legally evicted. 

Usually we end up playing the Knock Knock game, and yelling landlord, before entering the premises, if it looks abandoned.  Sometimes just a peek inside the door, without entering.  Sometime we send a 24 hour notice saying that we need to enter the premises to inspect the furnace or some type of thing.

Contract over a sure thing when keys are handed over to you.

Contract over most likely if you peek inside the house and see their stuff gone. 

Contract over when the you receive a Judgment is also a sure thing.

Contract not over if there is anything in the house that looks like it may be of some value.

Some laws vary per state so make sure your check with your landlord/tenant laws in your area. 

Nancy Neville

Mortgage

Property Taxes

Property Insurance

Allow for Vacancies

$100 per month allowance for house repairs (at least)

Allow for non payment of rents

You should show at least a $100 profit per rental unit.

I also recommend investors purchasing at least 3 houses right off the bat to allow for vacancies and non payment of rent.  You need other houses to offset the houses that are not making you money during that month!

Nancy Neville

The reason why some people feel that QuickBooks isn't for Property Managers is because they don't realize that you need to setup two company files.  One for your Property Management Company, and the other as a "Worksheet" to keep track of your Owner's Profit and Loss and Properties.

In order to be a Property Manager you must be licensed, and a Broker in about 47 States. Therefore you need to have two company files.  One to bill your clients for your services, the other to keep track of your Owner's business.

When you try to mingle the two together it presents problems.

But I know many Property Managers, who I have taught and worked with that do use QuickBooks for Property Management and are quite happy.  No need for expensive "Add On's"  

Nancy Neville