⚰️ Managing Rentals

Todo List

• ☐ Set up Google Voice to be contacted only in the case of an emergency or leak. Enable call recording for any potential legal issues.
• ☐ Create a separate email address and inform them that most communication should be done through email, with a response expected within two days.
• ☐ Set up a separate bank account; Chase is a great option, but it's also a good opportunity to build a relationship with a local small lender.
• ☐ When it comes to getting paid rent, avoid cash. Onboard tenants, contractors, and inspectors to your Software.
• ☐ When dealing with tenants, contractors, and inspectors, you can present yourself as the property manager. If the property is in an LLC, you can truthfully say you manage it for the owner, which makes it easier to hold firm on rent increases. Don't claim someone else owns it if that isn't true; in Texas, tenants can ask for the owner's name and address and you have to give it. If you hold a real estate license, you also have to tell tenants in writing that you're licensed and own the property.

Getting New Tenants

💡 Automation Tip!

Have your tenants show the units themselves:

1. Put a Smart Locks on the unit
2. Quiz interested tenants on if they financially/credit wise qualify for your unit
3. Ask them to take and send a photo of their driver’s license + a selfie of them with your rental in the background
4. Send them the lockbox code so they can see the unit themselves
5. Follow up with an application

Smart locks

Allows tenants to show themselves

Ask them for general requirements and to send their id and photo of them standing in front of the building

Then send code

General requirements

You must list this in case you get sued for discrimination

• Income > 3x rent. Actually google their company, call the company and ask for HR to confirm
• Favorable rental history
• Favorable credit history
• Name, number, email

They don't have all requirements?

• pay more rent in advance
• use a cosigner

Applicants

• Deposit to hold property. If not approved, returned in 30 days. 50-85$ processing fee to return early. Otherwise applied to tenancy
• 24 hour to respond rule (they lose their spot if they don’t confirm)

Ask for

• 2 month of bank & income statements
• how they found the home (is your marketing working)
• expected move in date
• if smoker, they stink up the place

Actually call references and employer

Employer References

Google the company phone and call hr, don't just use number provided

Landlord References

Use call recording. Start with asking the person's first name. Ask if they have a house for rent at (tenant's former address).

Banned dogs list. Liability due to violence. Ask for rental insurance if they really want it. Don't forget to add pet fees

• Pit bulls
• Rottweilers
• German shepherd
• Husky
• Doberman pinscher
• Chow
• Great dane
• St. bernard
• Akita
• Wolf hybrids

• Social media check
• Sexual offender check

Rejections (avoid discrimination lawsuit)

• Pick on first come first serve or document why rejected
• Inform applicants with written notice

• Hide lockboxes so they don't know your building is vacant
• Batch showings

Screening Questions

ToDo:

• Phone Screen questions
  1. Pre-question, how did you find the listing? (You might not need to ask everyone this if you know it already).
  2. When are you available to move into the property?
  3. How many people will be living in the property?
     1. Echo that all adults must qualify with credit, but you can pool income to meet requirements
  4. Do you have any pets?
     1. Go over pet policy if needed. Remind them that any new pets will need to be reported.
  5. Are all adults employed? How long have they been at their jobs?
  6. What is your gross take home annual pay?
  7. "As the ad says, with every application, we will end up running a credit and background check. Do you know an estimate of your credit score? The owner is requiring a 650, and we do not want to waste your application fee"

Photography

Before you post anywhere make sure that you have nice photos. Aside from price, quality photos and description makes a HUGE difference with bringing people in. Remember its all about marketing, you want to showcase

It’s honestly worth hiring a professional photographer for quality photos if it means that you can rent faster

Families

• Suck but less likely to skip out
• Try to get kids channeled somewhere, better schools are important
• Craigslist

Young Couples

• Renters of one- or two-bedroom homes often vacate when they start a family or end a relationship.
• Facebook Marketplace is one way to find such tenants.

Other ways to find tenants

💡 Don’t cheap out on photographers. Good photos are the biggest bang for your buck marketing you could do.

• A postcard campaign to people in similar buildings could be problematic
• Reach out to HR of major employers in the area.
• Develop a tenant referral program.
• Offer discounts to military, police, and first responders.
• Hang for lease banners.
• Conduct corporate outreach.
• Design and place fliers at local establishments with foot traffic.
• Place ads in local newspapers.
• List properties online.
• Partner with agents for listings.
• Utilize Facebook Ads.
• Reach out to nearby colleges, military bases, and corporations.
• Provide excellent customer service.
• Ask the residents why they're leaving.
• Create marketing packages or gift baskets to send to surrounding employers.
• Follow up on old leads (more than 90 days).

Move in checklist

Acceptance. Congrats on approval!

• go over lease line by line
• utility transfer informaiton
• lead-based paint pamphlet if the old home
• Sign at attorney office in blue pen
• Money order or cashiers check, no checks for first-month rent

Move in Condition Report

• Give tenant document to sign and mark off when walking in
• Video of place before moving in
• Never let someone move in before signing lease and paying the rent

• Make your own keys

Pet Policy

No other animals

• They will smell worse
• Owner is likely to have many of them

Fish

• Limit aquariums to 20 gallons if you're going to allow them

Dogs/Cats

• Smaller than 20 lbs and no aggressive breeds
• Which ones are aggressive?

Managing Annoying Tenants

Noise issues

• Give the notice to comply forms
• Note in lease that they must pay for fines and add x2 admin penalty for your time

Tenant disputes

• Hear tenant point of view
• Try to bargain with money

The tenant wants an upgrade

"I'm a bit busy so how about I pay for material, you pay for install. For the investment, I'd like to ask to extend the lease". Make them feel like it's their home and property. That way they don't complain about how "new paint" might turn out.

Unapproved pets or people

• ask the new tenant to apply or else post an eviction notice
• ask for a pet license or fee
• no pets in multifamily scenario due to allergies
• dog bites are 1/3 of homeowner liability claims

"What if I just break the lease and let the landlord keep security deposit"

• stick to the lease. Small claims to get the rest back

Late Rent

• Notice to pay or vacate on front door of the property with 3 to 5 days. Make sure to list late fees
• Be understanding but don't allow this to happen often

• Involve cosigners when sending notices (parents of college students
• You can always not renew their lease

Move-out checklist (send at notice and 1 week prior to move out)

• Have one, you must give line items for taking money out of the security deposit.
• Notice of receipt to vacate and synopsis of what to expect + referral fee
• Moveout instructions and price list of most frequently charged items
• Set up a payment plan if they still owe money

When to have leases

• Market 8 weeks in advance of the lease ending

Example price list

Item	Charge
Deadbolts	45
Filling out forms fee	15
Missed work order fee	85
Late Fee	10% of rent
Daily late fee	5 per day
Diry air filter in sfh	25
Missing air filter	35
Code enforcement fines	125% charge if they get fine that is their fault
Cleaning gutters	35$ per hour
Moveout
Rerental charge	2 months rent
Electricity off	75
Water off	75
Floor tile	5 per
Cracked windows	80
Storm door chain	15
Storm door pneumatic closure	35
Electric cover plate	2
Car in yard	200
Trash piled	200
Smoke alarm	25
Air filter	30
Cleaning windows	10
Deadbolt locks	45

🦵Removing a tenant

• Casually bring up leaving
• Paying them to leave (attorney cost is 3000). Cash for keys is often better for protecting your property from tenant anger and avoiding legal fees associated with

Month to Month tenant.

In chicago you must give 90 days notice.