Landlord knowledge: How much do you need to know?

Question

Greetings!

I am excited to jump into REI! However, I wanted to know how much do I need to know about being a landlord before jumping into a multi-family property.

1. Best way to introduce myself to the tenants?

2. Are there free landlord contracts I can use for my tenants?

3. What’s the best program and bank account type for collecting rent?

Thank you all in advance!

Russell W. · Answer

Another good book for starting out is Landlording On Autopilot. It’s a bit dated but provides a lot of practical steps

Nathan Gesner · Answer

This question is way too generic. It's a little like asking, "How do I play sports?"

Get some books on investing and then managing the investment. There are good ones in the BP bookstore. For management, I personally recommend "Every Landlord's Legal Guide" by NOLO because it's full or practical advice and updated every year with current state laws. As for forms, you can buy the Landlord Package from BiggerPockets and save yourself a lot of time, money, and effort.

Read some books to get a foundational understanding. Then ask questions to fill in the gaps.

Bjorn Ahlblad · Answer

Brandon Turner's book 'Managing Rental Properties' is a good foundation.

Byron Anin · Answer

Hello Michelle,

Good questions, so to start with when introducing yourself to a respective tenant you can have a Zoom meeting or meet them at a place that convenient to everyone. It also good to send them a digital pamphlet of the property's amenities and neighborhood before hand to separate out the non-serious people. For the landlord leases if you click on tools -> lease agreement packages and scroll down to your state that where you will find them on BiggerPockets. There not free to download but there one for each state; another thing is leases are a landlords legal safety net for themselves and the tenant. Every state and local government has different landlord and tenant laws, you will want a lease that for your specific state. Lastly if you want to find the best bank in your local area I would suggest talking to someone from credit union. The best banks accounts are going to have the highest percent on "high yield checking account". Wish you luck

Jim Cummings · Answer

@Michelle Garcia. being a landlord can be very rewarding and / or very frustrating.

1. You are going to Make Mistakes - Own them, correct them and try not to make the same mistake more than twice.

2. Read & LEARN you State / County / City Landlord Tenant Laws. it's the Bible as to what you can & Can Not do.

3. Polish up on your Interpersonal Skills. Relationships and getting along with people will take you much further in life than a "Fancy Resume"! Getting people to like you & trust will go a long way.

4. Own your Word. If you promise or commit to do something - DO IT! Unless you find out it's illegal, immoral, or unsafe! Even if it costs you money.

5. Practical Advice: Set up some Screening Criteria, and pretty much stick to them. DM me off forum and I'll share my screening criteria.

6. Make it easy for Tenants to pay you. Checks, Money Order, Bank Transfer, Any of the new electronic banking ways to get paid.

7. Setup a Separate Business Checking Account with your bank. Deposit all monies received into the account, and pay all bills from the Account. Get a Credit Card for the property Account. Only use it for items pertaining to your properties.

Hopefully, others will add to this list.

Theresa Harris · Answer

there is the buying the property: costs, are there tenants (get leases, deposit, prorated rent), know what market value is for rents and all of the expenses

For managing it: how to screen tenants, who to call for repairs/how to fix things, and the local laws.