As a novice landlord, I was always advised to ask for tenant references when screening applicants. I joined different sites, received a couple of references, and grew as a landlord. Now, I no longer ask for or even bother with tenant references. 5 Reasons Not to Worry about Tenant References 1. Landlords are restricted by law on what they can say about their tenants - In some states and areas, landlords can only say certain … [Read more...]
How to Set Up Your Rental Accounts
Your rental is a business and it is important that you treat it as such. To start off on the right foot, it is important that you keep the rental accounts separate from your personal accounts. There are many ways that you can set up your accounts. Quickly and Easily Setting Up Your Rental Accounts Limited Properties In the beginning, I just create separate checking and savings accounts at our local bank. In our case, it was … [Read more...]
How to do Long Distance Leases Using the K.I.S.S. Principle
What is the K.I.S.S. Principle? K.I.S.S. stands for Keep It Simple, Stupid. There are simple ways to sign leases, even when long distance. Completing a lease while being a world away can be as simple as completing it locally. In the past two years, we have had six tenants sign remotely using two different methods -- scanning and United States Post Office. So there are methods to meet everyone's needs. Simple Steps for a Ratified … [Read more...]
Why I Like Receiving Rent by Direct Deposit
While cash is king, stress-free is god. I hate checks! They are annoying and drive me mad. If I were king of this world, money transfers would ONLY occur through direct deposits, automatic drafts, transfers, or honestly my preference would be my credit card. Using a credit card is the absolute best way because everything comes in one bill. American Express is awesome in the fact that each authorized user has their own account number. This … [Read more...]
How to Build Equity Through Roommates
Are you looking for a way to get your foot in the door in real estate without a lot of cash? Have you considered getting roommates for building equity? The best kept secret in real estate is buying a personal house and renting out all your spare rooms. This is a great way for those who have W2 income, qualification to FHA, VA, USDA loans, and a conventional 5% down payment to get started in real estate. For many of us, 2-4 units are not … [Read more...]
How to Keep Your Roommate Relationships on Track
Getting started off on the right foot with roommate relationships is the key to the rest of your success. Roommates are very similar to traditional rentals so treat them ACCORDINGLY! Keeping Your Roommate Relationships From Going Sour While roommates are a great source of extra income, make sure you start off right by having a written agreement of both of your expectations, especially yours, as the landlord. This is crucial if it is your … [Read more...]
How to Have a Good Landlord-Tenant Relationship
Your tenants are not your enemies. They are your assets, protectors of your property, and over all your customer. I often hear from different forums the tone "landlord versus tenants." That attitude and belief is guaranteeing the fact that you will have a horrible experience. Instead, you can have a good landlord-tenant relationship, and I can give you some tips on how to do that. Remember you catch more flies with honey than vinegar. … [Read more...]
How to Write an Incredible Lease
My entire success as a landlord has been through having an amazing lease that has allowed me to hold my tenant to their written word. The Quick and Dirty on Writing a Kick Booty Lease Legal Zoom Leases change depending on the state and local rules. Therefore, I always buy the local "real estate lease" from legal zoom. Then I add to and alter the lease based on my experience, keeping the local information. Tips: I keep the lease blank. … [Read more...]
Are Goblins Ruining Your Real Estate Cash Flow?
Goblins are things that ruin your real estate cash flow with nothing to show for it. Goblins can be things like landscaping and alarm systems. In my experience these "extras" do not offer more value. Contrary to popular opinion, landscaping, alarm systems, and HOA fees are not passed onto the tenant, they are actually cash flow goblins. More often than not, they add no extra value yet they cost you more money. 3 Goblins that Reduce Your … [Read more...]
Multi-Year Leases: The Good, the Bad, and the Ugly
Multi-Year leases: the gold standard or leaving money on the table while locking you into a long term lease? Let's discuss the pros and cons of multi-year leases. The Good Reduced Turnover - Loss of rent between tenants is expensive and advertising costs (flying out or hiring a manager if you are not local) Reduced Move in Wear and Tear - Housing is damaged more often during moves. The Bad Undermarket Rents - Rents … [Read more...]