New investor from Oregon

[Brent Kostner]

Hey everyone! I'm Brent and I am a new investor from Oregon. My wife and I just bought our first rental property, a fixer upper February 26 and today just signed papers for our first 4-plex. We wanted to start getting into real estate so we just jumped in. Our goal is to have enough passive income to not need to have a 9-5 job if we don't want to. I am currently a children's coordinator at a church and love my job but would love to have extra income to support our family so real estate it is! As I mentioned above we just signed papers today on a 4-plex. With that being said I am looking for advice on how to collect rent for the first time. All the units are currently rented out and rent is due on Friday April 1st. We have a business account set up in our LLC name and will be transferring all the rent into that account. What I am needing some advice on is how to collect the rent for the first time as there is one days notice that we took ownership and will be changing how things are handled. Should my wife go introduce with herself tomorrow (she is going to manage the properties) and let them know she will be coming back by the next day to collect rent checks? Is that professional? Or is it more professional to just show up on Friday and introduce herself while collecting rent checks at the same time? We won't normally be going to collect rent checks....but with not enough notice time to let the tenants know that we will be changing how they can pay us we are just trying to figure out what the best way to handle this first months rent would be. Any and all advice would be appreciated. Looking forward to meeting you all.

[Mindy Jensen]

Welcome to BiggerPockets, @Brent Kostner.

I have a friend who owns 6 4-plexes. He is 100% business, and I really like how he does things.

His philosophy is, "Make it easy for your tenants to pay you." This first month starts tomorrow, so get off on the right foot by being firm, yet fair. Rent is due on April 1. Rent is late on April 2.

My friend Eric texts all tenants a few days before the first. "Just a reminder, rent is due on the first. If you have already paid, thank you."

On the first, he sends another text. "Just a reminder, rent is due today. If you have already paid, thank you."

He has a PO Box, online accounts set up, a bank account where they can go deposit cash or checks, and a rent box at one of his 4-plexes, which are all located in the same complex.

He sends a text individually to anyone who is unpaid on the second.

He usually has 24/24 collected on the first. 

For your situation, have your tenants been notified of the change in management? That's the first step. Make sure the former owner notified them you are the new owner. The timing might make it a touch more difficult, and if someone says they paid the old owner, you have found a new fun thing to learn.

Did you get the security deposits from the former owner at closing? If so, make sure to put them into the account your landlord tenant laws dictate - and if you haven't read them yet, do so now.

When your wife goes to the site to collect rent, have a letter with her giving the proper address to send rent, or the web address, or however you have it set up. Make it easy for them to pay you.

Good luck, and let us know how it goes!