Setting up your first property

[Juliette Olsen]

Hi! 
Novice “future” landlords here—

Where did y’all start with getting your lease and even a property manager? 

Did you find a generic lease for State of Florida online? 
Did you hire an attorney to help script a lease?

Did you hire a management company?

If you hired a management company, what was your monthly cost and what did it include? Did they write a lease for you? Did they have their own handyman contractors or was that something you had to have on your own? 

How specific can you get in your lease when it comes to tenants responsibility for repairs of things to the house related to negligence, ie flushing sanitary products down toilets, appliances, hoa fines related to negligence of caring for the yard or following hoa rules etc? 

we’d be managing out of state and I’m not sure I’d be okay with doing that without a local property manager…

with gratitude,

Juliette

[Christian Styles]

Congrats on becoming a landlord!

For the lease, many people who self manage find a generic one for their state online, but it’s usually a good idea to have an attorney look it over or even draft one for you to make sure it’s solid and covers all the bases. If you end up getting a Property Management company, they will typically have a lease (would still be a good idea to take their lease to your attorney for review)

As for property management, hiring a company can make things a lot easier, especially if you’re managing from out of state. The cost can vary, but it’s typically around 8-12% of the monthly rent. They usually handle finding tenants, collecting rent, maintenance, and posting notices/evictions. Most good property management companies have their own network of handyman contractors, so you wouldn’t need to worry about that.

In your lease, you can get pretty specific about tenant responsibilities. You can include clauses for things like not flushing sanitary products, taking care of appliances, and covering any HOA fines related to their negligence. Just make sure everything is clearly written and legally enforceable.

Having a local property manager sounds like a smart move, especially since you’re managing from out of state. They can keep an eye on things and handle issues that come up quickly.

Hope this helps!

[Juliette Olsen]

Christian—

Thank you so much for the reply! This is great insight— and yes, about the benchmark we were expecting as far as costs for a PM. 
I think we’ll likely move that direction as tenant vetting, listing, showing property is going to be a challenge living out of state. 

Regards,

Juliette 

[Tiamo Wright]

If you get a BiggerPockets Pro subscription you get access to state specific landlord forms as well as things like pet addendums. I take the state specific lease, and add anything specific to my property. An attorney for a final peek is always a great idea just to ensure you are covered. 

Local and state laws are changing on the daily so I think that the right Property Manager really helps with that but hiring a PM or self managing is always a personal call. This page has some helpful resources. https://www.biggerpockets.com/blog/manage-your-rental-proper...

[Adam Bartomeo]

My first lease, almost 20 yrs ago, came from Staples, lol! I adapted that one over the next couple of years.

When I got to Florida I used the one provide by the board of realtors.

We now have an adaptation of many leases that has been changed to fit how we manage.

[Gregory Schwartz]

I'd recommend finding an investor agent. I dont know FL specifically but based on what @Adam Bartomeo has said I would assume your agent can provide you with a Florida Realtor's lease. 

Locally I help clients buy investments, and teach them to self-manage providing the tools and contact necessary to avoid pitfalls, headaches etc. I also help them lease vacancies. All that for just a little commission is way cheaper than the 10-12% per month PM charges. 

[Michael Smythe]

@Juliette Olsen

1) Start with generis state or RE Board lease and adapt as you learn from the school of hard knocks.

2) You may need an attorney to review lease changes to make sure you don't violate any laws and the clause is enforceable.

3) Given your lack of knowledge & that you are OOS, it may be wiser to hire a PMC

4) PMC's have their own leases and most handymen. Most will hire contractors as needed. Costs vary, but nationwide are in the 8-10% of collected rents.

5) You have to comply with state and local statutes.

[Mya Toohey]

Hello! I am a Realtor in the Clearwater/Tampa Florida area.  I myself will do full or part time property management.  I offer either 10% monthly and manage everything including accepting rent and paying owners, or on call management.  Both charge a fee for tenant screening but only if there is a problem would the owners call me to help get it fixed, they also accept the rent payments directly from tenant.  So, the question really is, do you want to have to manage the tenants yourself or pay to have some one do it?  Property management companies have their own standard lease they use and Realtors will use the owners specific or generic state lease depending on what the owner wants.   If you are looking for passive income then use a company or agent that does full time management.  Otherwise, you will take on calls and hunting down rent payments to your workload.