All Forum Posts by: Tim Bartel

Originally posted by @Ty Kashmiry:

@Tim Bartel explain info on neighbors info living near the property

I try to get to know the neighbors to my properties, and find ways to work together for mutual benefit. I keep track of their contact info and anything else of interest in my property fact document. I do not live near the properties, so sometimes the neighbors contact me when something's going on. Sometimes there's something I can do to help them out. 

Basic financial management software (I use Quicken) is very helpful.

Developing forms for every process really helps me, as mentioned by other commenters. 

Other documents: 

1) Property Management Handbook, with info on banking procedures, tenant screening, dog breeds, you name it, that I would give to an assistant (if I had one) to run the business. I collect most rents by ACH, so some fairly specific rules to follow for that.

2) Admin Schedule document, showing weekly, monthly, quarterly, and annual activities.

3) Master spreadsheet, showing every tenant move-in and move-out date or rent change date, and balance of deposit funds on account by tenant, and monthly rent received. Also a list of all of my forms, which are numbered and dated, with an errata list for every change made to the forms along the way. Also an annual budget, multi-year plan for CapEx investments on the properties, personal mileage log, vacancy history, waiting list for applicants, etc.

4) A spreadsheet for each property with a maintenance log and other miscellany about ongoing rehabs at the property. Also local rent research info.

5) Word document with Property Fact Sheet for each property such as appliances, paint colors, local contractors, city utilities, and info on neighbors living near the properties.

I sometimes change cabinet handles/hinges and door latches/hinges to satin nickel if the old ones are rusty/grimy/outdated.

Quicken also works well for keeping properties separate. Just use the Tags, a different Tag for each property. You can produce reports for any combination of properties with the report filters.

Also see my response at this link:  Using multiple accounts in the Profit First system.

I recently switched from 2 bank accounts (General, Tenant Deposits) to 6 accounts, after listening to the BP Podcast interviewing Mike Michalowicz, author of Profit First. Then I read the book. Following Michalowicz's advice, I opened accounts covering, not different properties, but different aspects of the business: Revenue, Profit, CapEx, Operating, Insurance and Taxes, and Tenant Deposits. My banking app lets me see the balances in all of these accounts any time. The accounts are used just like the very basic envelope system of money management, with revenues being disbursed to the different accounts monthly, at pre-determined percentages. You gradually adjust the percentages towards something that makes sense for your business, perhaps quite different than the places you've put the money to-date.

The point is to keep a careful watch on where your money's going, and most important, to plan to make a profit, and to make spending decisions carefully. Michalowicz points out that many small businesses miss the point on making a profit, and ultimately fail. 

I started with rental property in 2014, and haven't made a profit in any of those years prior to 2020. My financial decisions were based more on emotional ties to the properties, and not so much on financial performance. In 2020, following Profit First principles, I am seeing a profit for the first time. 

The downside is some additional busy work managing and reconciling statements for the extra accounts. So far, given the better focus, I'm really liking the Profit First system. I encourage you to give it a try. 

My lease addendum for pets says that I won’t except pugnacious breeds, with a list of the typical ones. I wonder if I should also have a list of small barky breeds that I also won’t accept, e.g. Chihuahuas.

This is good education for me. Thanks. Most times I feel like I'm being TOO cautious, but on this point, it sounds like I've taken some extra risk. So far, all the tenants that I was concerned about turned out great. 

I sometimes accept multiple adults in an apartment, where only one of them is financially able (or has decent credit history) to make the rent payments. Should I still put all adults on the lease? My concern is that the primary payer will move out mid-lease and I have to finish out the lease with the other party if on the lease, but if only the primary payer is on the lease, I can make them finish out the lease, and when the primary payer leaves, everyone has to go. 

Right now I have an applicant who is a lady with an unemployed 22-yr old son. Do I want him on the lease? 

As far as meeting the pet, I have a "Lease Addendum for Pets" which has a statement:  "Tenant agrees to allow Landlord to meet the pet prior to approval." 

Probably the biggest concern for me is chewing or significant urine damage requiring changing out the entire carpet. In a few months, a dog could destroy cupboard corners or doors that require LOTS of repair $$, and a long vacancy, and the tenant will not understand what it will cost me, so there could be a big disagreement over the withheld deposit. In this case, the tenant thought paying "a little extra rent" would cover the costs.