First House Hacking Tips

[Dustin Montaie]

Hi BP Family, I have a question regarding House Hacking. I will be house Hacking my first property coming up in the next 2 months, and wanted to ask all the successful house hackers out there for any tips to success? I will be inheriting 2 units of tenants in a triplex. Thanks all for any pointers.

[Natalie Schanne]

Dustin Montaie - Read everything about landlording now so you know how act professional so your tenants will treat you professionally.

Get the inherited tenants to sign new leases with you (if initially possible, or when theirs expires). Always have leases expiring during the peak rental season so you don't have to find tenants in January at 20% below peak rent. Write in automatic 3-5% rent escalation clauses that kick in every 12 mo.

Train your tenants to behave how you want.

Rent is due X (1st or 1st with free grace period to 5th, etc.). Rent has a late fee of $20-50 immediately then $10-20 per day late. (So they should pay on time.) Any Fees are paid first before rent out of any following payments.

Rent is due by depositing into X local bank account or by sending PayPal/Venmo (if you want to offer it). It's better if they're not dropping off checks / cash to your unit. If they miss payments, SEND late notices immediately. File for eviction. Ask them when they are moving out and when you can re rent their unit.

Maintenance requests can be sent by email to x address and you will respond asap. Urgent maintenance like floods they will call and or text you at x number. Fix stuff quickly when requested - either yourself or calling a pro.

Decide if you're planning to encourage them to move out then upgrade their units to get more rent, or you're just going to keep them there until they decide to leave (then upgrade). Ask them if there's anything reasonable you can do to make their apartments better, especially if you may be asking for more rent in the near future.

When getting new tenants, SCREEN!!!!! Ensure a good source of income (3x rent) and good prior landlord relationships.

You are a landlord, not a friend.

Good luck. Let us know how it goes.