Managing first rental

[Stephen Anderson]

Just purchased my first single family rental. Any tips on how to manage it effectively without over complicating things?

Is a software such as RentRedi worth it? Or would it be best to keep it simple with my own spreadsheet (at least for the first couple of rentals)?

Would also appreciate any recommendations on how to screen tenants. I see a lot of tips and tricks on these forums but some seem to contradict one another.

...Thanks!

[Brad Hammond]

Hey @Stephen Anderson, congrats on purchasing your first rental!  You can totally do this yourself.  I have been managing my properties for years and the trick is to set up systems.  Here are a few thoughts.

1. I use Cozy.co for rent payments and tenant screening.  It is all free for you.  For screening, I have a minimum credit score of 620 (but this could be different for you), no previous evictions, and no violent or financial felonies.  Everyone on the lease needs to make 3X the monthly rent combined.  

2. I created a spreadsheet P&L for each property.  Ask your CPA or look up what the IRS likes to see for different categories put the expenses under.  

3. I like to do all my communication via email so there is documentation and I have a reminder system.  I created a Gmail account and that's all I use it for.  With that, I also have a google voice number if I need to give that out.  I'm not sure how much that has helped but it's not a bad idea.  

4. Obtain a sold lease for your area and fill in the blanks that pertain to your property.

5. The hardest part is going to be releasing your property so do whatever you can to get current tenants to stay if they are good tenants.