Updated almost 8 years ago on . Most recent reply
Advice to New or Wannabe Be Landlords....
So many posts here involve new landlords seeking advice on common landlording problems. What to do when tenant does not pay rent? How do I handle unauthorized residents? My tenant is parking on the lawn! My tenant is smoking in my non-smoking property! How do I evict my tenant?
New landlords -- you ARE going to run into these common problems. You will have more self confidence, be a better manager, act sooner, and SAVE MONEY if you anticipate these common problems and know how to proceed BEFORE YOU PLACE YOUR FIRST TENANT.
1) Print out your local and state tenant/landlord laws and put them in a binder. READ the laws -- you do not need to memorize them, but have a working knowledge of what is legal or not. You want to be familiar enough with your laws that you can find the specific section to re-read WHEN an issue arises.
2) Know the legal timelines, proper forms, and legal means of service for your jurisdiction. My courts helpfully provide downloadable PDFs of legal forms for 3 Day POQ notices, affidavits of service, etc. I have these PDFs saved on my computer.
3) Spend a morning observing in eviction court. Look for one or two attorneys who are handling the majority of cases. These are usually the local flat fee eviction attorneys. Ask for their card out in the hallway. Now you have a legal team.
4) While you are at the courthouse, find out where the Clerk's office is. See if they have information on the eviction process in your locality. I have found court clerks to be very helpful people, and a wealth of knowledge.
5) Take a Fair Housing course, either on-line or through your Fair Housing office. Know what is legal and what is considered illegal discrimination. Most Fair Housing violations come from innocent actions on the part of the Landlord, not intentional discrimination. Have a written set of rental criteria, and follow the SAME process for all applicants.
6) Know the legal process for serving Cure or Quit notices for lease violations. Serve early -- learn to nip problems in the bud. Get that car off the lawn before the landscaping is ruined, or get that tenant out of your house.
7) Have a "landlord speech" ready to give to applicants or at lease signing. Let them know that paying rent and maintaining the property MUST be their first priority -- you do not "work with" tenants. Practice this speech until you can say it with confidence. Tell them at lease signing about your inspection schedule, and stick to it!
8) Have some monetary reserves. I know you want to acquire more property -- but this unit needs a cushion to cover vacancies and unanticipated repairs. Desperate LLs make poor decisions. You never want to be desperate.
9) You have a lease -- but what about your other move-in paperwork? Do you have your pre-rent move-in photos and property condition checklist ready?
When these items are done, you will be a much stronger, more confident, more profitable LL.
Most Popular Reply
@Bettina F. I love your advice and your story because it so closely mirrors my own. Our 4 unit buildings is completely empty of the inherited tenants. I can still remember coming home to my wife after meeting with some of them- I was literally shaking, it was the second building we took over in 2 months and these tenants were the pits. I felt like I was in way over my head- fortunately I had a mentor to re-assure me.
The only thing I would add by way of advice is "paper is your friend." I papered the crap out of those tenants- Each and every interaction was memorialized in a notice to cease or a notice to quit. Every follow-up text, every phone call was added to a "revised" Notice. If I was going to file for eviction it would have been well documented. I removed every one without stepping into court. One guy yelled at my contractor- I drafted and affidavit the next day that the contractor signed- detailing the "verbal harassment," and attached it to a notice to quit.
And while I was initially shaken by being challenged "you can't have me remove that non running car- the last landlord never could." Or "you can't make this building non-smoking!" I never let it show.
In the other building I immediately removed a tenant upon takeover - son was smoking weed when I did a walk through and they had 2 large dogs in breach of the lease- and every other tenant knew I meant business. Of the 3 out of 5 apartments we renovated, they rent for $700, $550 and $500 more and the 2 we are finishing now will rent for $700 and $800 more. And the added benefit is the rent control is phased out upon vacancy... I welcome my inherited tenants to leave- but they cash flowed when I bought and they all are good tenants- so no worries.