All Forum Posts by: Bettina F.

In addition to Nancy's excellent advice, I prepare a move-in packet for new tenants.  This packet helps me understand and operationalize the LL/tenant laws in my state.  I am a nurse by training and have spent lots of time doing patient education.  People will not do what you want them to do unless you TELL THEM WHAT TO DO.

My rental agreement (I only do M2M, but have written agreements and am strict on enforcement) lives on my computer. This allows to send out/print out read-only SAMPLE rental agreement (watermarked SAMPLE across each page) ahead of the actual lease signing. My rules are written right in the rental agreement. I always highlight this section and go over it with applicants. Sometimes they decide they want to "think about it" before they rent my apartment -- and I never hear back from them. That is fine, because it means they realized this sweet little old lady is no push over, and I do not "work with" tenants, or they realized they really could not afford the apartment. Remember, you have a target on your back. Professional tenants look for Mom and Pop LLs -- and you are now a Mom and Pop. Compensate for this by being 100% organized, professional and business-like, even if you have fake it at first. We set up an LLC from the beginning, but all your documents should have a logo and professional style headings with your business name, address, phone and email. Have business cards and a name badge made for showings. Get your business bank accounts set up. Set up your bookkeeping system.

If you get these documents in order, in accordance with your state laws, you will be 99% ahead of most self managed LLs.   In my move in packet consists of:

1) 2 typed rental agreements with tenant name, rent, term.  No fill in the blanks. One is mine, one for the tenant.  They should have already read the sample rental agreement.  Clarify any questions before signing. 

2) Receipt for Security deposit and first month's rent.  (2 copies)  We prorate the second month for mid-month move-ins, so this document tells them when the second month rent is due, and what that that rent will be.  Third month and thereafter is due on the 1st. 

3) Move-in condition checklist (completed, just have tenant sign)  I have already taken move-in condition photos.

4) Emergency contact information sheet.  We have added a section where the tenant gives authorization for the person they name to remove their belongings in the event of death or "unanticipated prolonged absence from the rental property" -- think incarceration.

5) Maintenance Request Forms (3 copies)  We only rent apartments that are in good shape and stress that we really want to know about problems when they occur, especially water dripping.

6) Mailing labels for tenants who will be mailing their rent.  Alternate payment methods should have a form that states agreed upon method signed and dated by the tenant/LL.   (ACH/ deposited by tenant in bank, etc)

7) Laundry Room entrance instructions

8) How to Get Your Security Deposit Refunded sheet.  This form tells tenants what the expectations are for a clean apartment upon move-out, and what our charges are for damages, dump runs, etc.  

9)Notice of Intent to Vacate form.  We require written 30 day notice on our apartments.

10)  Renter's Insurance brochure from the Insurance Information Institute.  Many tenants have never heard of Renter's Insurance.  Good opportunity to explain that they should get it and that your are not responsible for their losses if, for example, a break in happens.

These documents go in a folder with a business card in the slot, so packet is professional and presentable at signing.  LL keeps one copy of rental agreement, SD receipt, emergency contact and move-in checklist. Tenant keeps packet.

I give a little LL speech.  We expect three things from a tenant. We show the tenant where the electrical panel is and where the water turn off is.  Our business card is also on a magnet attached to the electrical panel.  Collect SD and first months rent, hand over keys and shake hands.  

I use Quickbooks, and email or mail invoices (retitled Rent Due) on the 25th of the month for the next month's rent.

We have had great success with this system.  Good luck.

How do you know it was a leasing agent?  If there is a leasing agent, why didn't you sign the lease, transfer funds and get the keys in person?  Sounds like a scam to me, but then I am old school and transact most important business in person.

Tenants are often  worried about what hapens to their security deposit when a building changes hands.  I would be drafting my New Owner Letter, introducing yourself and reassuring your tenants that their security deposits have been transferred, giving your contact information, and telling them how they should pay their rent.  I would add a paragraph in the letter going to the departing resident that it is your understanding they will be leaving by ____, and ask them to notify you when they are ready for the walkthrough,  Remind them that you will need a forwarding address for sending the security deposit accounting.  I would not mention that you are moving into the apartment.  If questioned, I would tell them it is needed for the resident manager.  Keep it business like, and the reminder about the security deposit should help. 

There are also intangible benefits to apartment building ownership.  For example, we bought a 6 unit in 2013.  That first month, 4 out six tenants were late with rent payments and we had to issue pay or quit notices.  This continued, with tenants paying late, until we issued one  notice to vacate.  Suddenly the remaining tenants became on-time with their rent.  It is easier to supervise and maintain one building than running all over town to keep an eye on things.

Except for the dishwasher and the range hood install, my husband and myself have done all of these things.  Towel bars, light switches, changing blinds, spreading landscape rock, dump runs -- you should at least attempt these things your self.  In fact, this is a pretty good list of needed property maintenance skills for any LL.  What do you do when your own home needs these things?

You are also buying expensive appliances.  Does your property justify a stainless steel dishwasher?  We just installed a $325 basic model from Lowes in our class B apartments.

I have heard that turnover costs are higher in Class A rentals because the tenants expect perfection, but I did not see anything about refinishing hardwoods or pool repairs.  

Nobody has added my favorite -- repair fist holes in walls and kicked in door jambs.

I must serve a different demographic than the rest of you folks!

And lay Allure floor.

<p>From Texas State Law:</p><p>Title 15 Fair Housing Practices</p><p>Chapter 301 - Texas Fair Housing Act</p><p>Section 301.025 (2)</p><p>Sec. 301.025. DISABILITY. (a) A person may not discriminate in the sale or rental of, or make unavailable or deny, a dwelling to any buyer or renter because of a disability of:</p><p>(1) the buyer or renter;</p><p>(2) a person residing in or intending to reside in that dwelling after it is sold, rented, or made available; or</p>

(3) any person associated with the buyer or renter.

If the OP offers his 11 inherited tenants a lease, and gives the sole notice to vacate  to his disabled tenant, without offering accommodations or going through the "due process" you need to with a hoarder, he runs the risk of violating this statute.

Fair Housing supersedes LL/ tenant laws with non-disabled tenants.  Yes, he may get away with issuing a notice to vacate  (which is what the previous discussion is about -- not lease terms versus month to month).   But that is an expensive gamble that I would not take with my business.  I stand by my original advice.  The OP poster should investigate hoarding as a disability and the Fair Housing rulings on this issue.  The fines for a Fair Housing violation can run north of $50K.   Legal consultation with an attorney experienced in Fair Housing law would be wise.

Originally posted by @Deanna McCormick:

 @Bettina F.Hoarding Disability, ( A point to be made aware of but maybe not for this owner's situation) 

As long as the landlord doesn't make the hoarding the means of why hes is giving the tenant the non-renewal.. 

He doesn't need a reason to non-renew a tenants lease, just like a tenant does not need a reason to give you a notice to vacate / move out.

Yes, I agree that he does not need to give a reason to issue a non-renewal on a month to month rental agreement, if you live in an area that allows "no fault evictions".  But in this situation the OP has 12 occupied units, and he is offering leases to all but one hoarder, and posted about it on a public forum.   The Fair Housing agencies send out testers all the time.  Don't you think they are monitoring sites like this one?

There is a high probability that someone (hoarders adult children, perhaps?  They don't want Mom moving in with them!) will figure it out. 

Hoarding is a disability as defined by Fair Housing.  Google Fair Housing + hoarding before you go any further.  It might be time to lawyer up.

To prevent any issues with Fair Housing, you have to adopt the attitude that ALL ARE WELCOME TO APPLY.   You want the obviously not qualified to screen themselves out.  You do this by charging an application fee, and be being open about your rental criteria.

Zillow is best for posting vacancies in my market.  With Zillow, you will get many who just click on the "send more information" button.  People also will not have read your ad -- they will have looked at price and photos.  I have a prewritten, detailed email with more photos and our rental criteria clearly spelled out.   In this email I ask for them to contact me again if they are interested in a showing, and what documents to bring to a showing.  Our response to this second email is only about 20%.  I also send a sample lease (watermarked SAMPLE) because I am very strict about enforcing lease provisions, and I want people to know what they are agreeing to if they rent my apartment.  I will check my Zillow inbox 4 times a day, and send out this second email.

I only consider those who respond to the second email to be serious candidates.  These are scheduled for an open house showing.  We show in teams,  We have a card table and chairs set up with apps, pens, and copy machine.  We copy ID, pay stubs, collect app fees and have applicants sign credit check consent.  

We filled our last vacancy in June.  We ended up doing 2 open house showings.  On the second showing, 13 applicants were supposed to show .  Out of 13, only 3 showed up, but we got apps from 2 strong applicants.  Unfortunately, I only had one vacancy!