All Forum Posts by: Nathan Gesner

My personal favorite is "Every Landlord's Legal Guide" by Nolo. It seems expensive but it's a big book and full of solid, practical information. It includes many common forms you can customize. It's written by attorneys so they reference your specific state laws, which is very important.

Why would the older couple require more renovations when they leave? Two people that age should be pretty mild on the home. I've taken on homes that have carpet 30 years old that looks brand new and I've taken on homes with new carpet that is trashed. Length of stay doesn't necessarily determine wear-and-tear.

What makes you think they will stick around for 10 years? Tenants tell me they'll stay somewhere for ten years and then they're moving out six months later. Others only want to rent for six months and stay for ten years. They can't predict their future and neither can you. Assume they'll stay for one year and hope for the best.

@Cathie Kovacs did you read the article I posted and check out the resources?

Terrible idea. Evict them. After they are out and you have control of the home, they are welcome to apply to rent it just like everyone else.

Your lease should specify when a guest becomes a resident.

Contact the other tenant and let him know that his "guest" needs to be out after 14 days or you will evict them both. They will probably comply. If not, you may have to come back and ask for more advice.

I don't think you're ready and need to educate yourself more. Then again, maybe you have a bunch of money and can absorb some amateurish mistakes.

1. Ask how many units they manage and how much experience they have. If it's a larger organization, feel free to inquire about their different staff qualifications.

2. Review their management agreement. Make sure it explicitly explains the process for termination if you are unhappy with their services, but especially if they violate the terms of your agreement.

3. Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers. It may sound nice to pay a 5% management fee but the extra fees can add up to be more than the other company that charges 10% with no add-on fees. Fees should be clearly stated, easy to understand, and justifiable. If you ask the manager to justify a fee and he starts hemming and hawing, move on or require them to remove the fee. Don't be afraid to negotiate!

4. Review their lease agreement and addendums. Think of all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.

5. Don't just read the lease! Ask the manager to explain their process for dealing with maintenance or problem tenants. If they are professional, they can explain this quickly and easily. If they are VERY professional, they will have their processes in writing as verification that it is enforced equally and fairly by their entire staff.

6. Ask to speak with some of their current owners and current/former tenants. You can also check their reviews online at Google, Facebook, or Yelp. Just remember: most negative reviews are written by problematic tenants. The fact they are complaining online might be an indication the property manager dealt with them properly so be sure to ask the manager for their side of the story.

I hope this basic guide helps. If you have specific questions about property management, I'll be happy to help!

Congratulations, Will! Try to find a local investors group in your area where you can network with like-minded investors.

www.realtor.com

www.zillow.com

www.loopnet.com

Biggerpockets forum: Reviews and Feedback > Real Estate Deal Analysis and Advice

Biggerpockets also has regular webinars you can view here or on YouTube where they take an actual property and walk through the process of analyzing the deal.

An "ultra safe" investment is one of good quality with very little leverage and professionally managed. In other words, you probably won't make much of a return on it.

Listen to the podcasts and you'll hear many reasons why investors never get started. At some point you will have to make the decision that you're not going to be that kind of person and take the leap. It may work out great. It may enroll you in the school of hard knocks. Keep pushing on and you'll figure it out.