What Systems Work For YOU? I Offer You Some of My Favorites...

Question

What are the systems you put in place that have helped you streamline and automate the management of your investment properties?   I know, I know, hire a property manager.  That aside, I’m curious to hear specific practices, tools, staffing, operational changes, etc. that have worked for people who self-manage.  It could be something huge or a small change that was helpful.  I’m looking for the pearls!  Below are a few examples of systems improvements that made a difference for me.

- All my physical mail is forwarded to an online mailbox where I can review a scanned copy of every piece of mail. I don’t have to open the mail and scan it. I just save it to my dropbox folder and then forward it to whoever. Super convenient and well worth the $50/month I pay for the service. Downside: when I receive the occasional check or document where I need the physical copy, I then need to have those forwarded back to my living address for me to deal with. Regardless, it’s still worth it.

- Hiring a real bookkeeper. In my case, one of my good friends decided to become a bookkeeper and he is super detail oriented and on top of it. Over the years I have started relying on him more and more and letting go of the admin work. Before I was trying to outsource stuff to a VA that was super cheap, but inevitably he would make mistakes or miss something that would cause an issue. When I reluctantly bit the bullet to hire my bookkeeper at a considerable hourly rate I was pleased to discover that he was catching all sorts of issues (mortgage payments not getting updated with revised new escrow amounts, checks that didn't clear, tenants not paying the right amount, etc.) not to mention that at tax time I felt much more confident about my books when handing them to my CPA.

- Putting a reminder in my calendar 3 and 2 months ahead of time for when a tenant’s lease is expiring. I haven’t signed up for a property management software, which would probably address this. But until I get to that point, having a simple reminder rather than scrambling 30 days before the lease is up is a good start.

- Online lease forms from the California Association of Apartments. All the forms are updated every year per local laws, all my tenants info is already in there, and it’s super easy to copy templates and create new leases. Then I send the lease digitally for the tenants and myself to sign and for everyone to get a signed copy.

- Creating a real estate schedule in excel that has all the details about every property I own. Every time I go to get a commercial loan the banks ask for this and ask me to fill out their real estate schedule. Now, when I fill out their application I just reference and send my own real estate schedule which saves a ton of time.

- I use dropbox religiously. Every property has a folder and subfolders and absolutely everything goes in there. Unless it’s a deed or something I have to keep, I shred the paper file and only keep a digital copy. My bookkeeper has access to all those folders and can look for the information he needs rather than bugging me.

- When doing a rehab, I take a photo, or some kind of digital copy, of all the materials and appliances make/model I used in the rehab (all goes into the dropbox folder). Now I’m not scrambling to find out what model fridge I have in an apartment when I need to call for a repair. Or, even better, the paint code for whatever paint I used for the place.

- For a rehab, I buy extra LVP flooring and keep it onsite. It may become discontinued and I will never be able to match it when I need to make a floor repair.

Many more come to mind….but really I want to hear from other people.  What worked for you????

Ori Skloot · Answer

@Suzanne Player   Yes, the 60 day-notice is a good one!  I use standard forms, but add that language in an addendum.   Tracking contractor expenses is great.   I use Traveling Mailbox.  I live in Berkeley, CA but have all my mail forwarded to their postal address.

@Filipe Pereira  Thanks for sharing your previous post, super informative.  When dealing with such a high volume of applicants it makes a lot of sense to automate this part.

Filipe Pereira · Answer

We do a TON of tenant screening, so the best system we've implemented by far is one that allows us to screen tenants with no phone calls, back and forth emails, etc. I posted about it a while ago here on BP: https://www.biggerpockets.com/...

We've now had over 5,500 potential renters go through this process and it's saved us a unfathomable amount of time. When combined with form mule, we can respond to all tenants with about 5 clicks of the mouse. It's a heck of a system and I'm really proud of it. We've shared it to about another 100 BP members over the years. Well worth it!

Suzanne Player · Answer

Do you have a provision in your lease that within 60 days of its end, the tenant must give notice if they’re leaving and that, if you don’t have a signature on a new lease on that date then you can enter to inspect the property and have the right to show it to prospective tenants (if this is legal in your jurisdiction, always check with your attorney)?  This way you’re not left hanging wondering whether the tenant is staying & scrambling to find a new one.

To get to know contractor prices better in my area, I track what I paid for each service I received on an excel sheet.  This includes categories like plumbing, electrical, handyman services, appliance repair, garage door repair, locksmith, tree removal, absolutely anything for the repair and maintenance of a building.  I don’t necessarily need to see the exact same service twice for it to help me, but at least if gives a reference point on how big or involved a job is.  I include the name of the supplier and their hourly rate or base service charge.  I note when I received the service, because there may be some inflation in the future.

What’s the name of the service that scans your physical mail?

What Systems Work For YOU? I Offer You Some of My Favorites...

Most Popular Reply