First property closing soon....what am I missing?

Question

Hello!

I'm getting ready to close on my first SFH at the end of the month. I want to make sure I've got my ducks in a row but I'm sure there's something I'm missing. The good news is I've already got a 12 mth lease signed for it. The bad news is I only have two days after closing until they move in to get the house ready. It's pretty turnkey with some minor fixes, and luckily I know the tenants. They've agreed to let me fix a few things while they're moving in.

Of course I'm going to clean it up really good and fix the major things before they start the move in process. I'll also do a condition walk through with my broker and document any issues.

To do's:

- Clean

- Fix all I can within two days

- Document current condition

I'm sure I'm missing something when it comes to the first steps in getting the tenant in.

What do you guys do beforehand in the final steps of leasing?

Ray Harrell · Answer

It sounds like these might be friends of yours. You will have to learn when to turn off friendship and turn on business.

Account Closed · Answer

You need a good source for local landlord tenant laws, a  reserve account for the unexpected, setup a payment tracking system, find a handyman, set expectations with your tenant about what constitutes a valid emergency, have the tenants sign a "walk through" list with photos of the condition of the house, make sure they have renter's insurance,

Taylor Roeling · Answer

@Clint G. Congrats on the property! People have had some good advice on here. I think, depending on the type of repairs you are doing, that you shouldn't worry about pushing the move-in date back. This could potentially make your tenants mad and if they already agreed that it was okay if you were around doing repairs then you should be fine. I think in return you could provide a welcome gift and thank you for letting you get things ready - this could be something simple like a thank you card and a gift card, welcome mat, or hand soap - something people would need when they are first moving in! If you have the funds, you could save time and hire a professional cleaning service to do a thorough and nice job for you. Best of luck!

Matt Pastier · Answer

@Clint G. I agree with what others have said about repairs. I would push back the move-in if needed to get the house ready. Once they move-in, you now have to work around schedules to get work done and it could get complicated.

I wouldn’t give them the keys until you’ve received all rent/deposits, you’ve received proof of renters insurance, and you’ve verified they put the utilities in their names.

Ray Harrell · Answer

In general it's not a good idea to mix business with close relationships. Many here will agree, some will say it's ok. But everyone will agree to not make friends with your tenants. It's all because of the same reasons...once you become too familiar, expectations will change, regardless of a written lease. It's hard to enforce rules when there is an additional emotional connection.

James Wise · Answer

Don't fix anything while they are moving in. If need be, push their move in back. You do not want anything left open ended. Get the house in it's final condition then release possession to them. Anything left open ended will just be a mess down the road.

Clint G. · Answer

@Ryan Mahoney

All good stuff! Love it, thanks!

Ryan Mahoney · Answer

@Clint G. - Congrats on the purchase.  Without knowing your property it is difficult exactly what needs to be done.  Documenting the condition of the home is very important.  Have a move in condition check sheet for your tenants.  www.biggerpockets.com/llforms has some good stuff.

I would first make sure anything that involves safety is fully fixed and tenant ready.  This includes all electrical, anything sharp, heavy, or which could cause any type of injury.

Secondly, I would make sure anything that could cause damage to your property if left unfixed is taken care of.  Plumbing comes to mind here.

Next, I would fix/finish anything that will be more difficult to fix/finish once tenants are moved in.  Painting, flooring, etc.

I would also make a list to hand to tenants of you plan to repair and when once they move in.  Otherwise you open yourself up to them expecting you to perhaps fix everything under the sun for weeks and months and risking some conflicts.  Make everything very clear upfront so everyone is on the same page.

I would try to leave exterior, landscaping, and yard work and the final steps.  It is way easier to go back and do those things later.

Good luck.

Clint G. · Answer

@Taylor Roeling

Great advice Taylor! A small gesture goes a long way.

Clint G. · Answer

@Ray Harrell

I cant disagree with that. Point taken. Thanks Ray.

This is my first lease so hopefully it'll go smooth this time, and I'll learn for the next one.

First property closing soon....what am I missing?

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