Tips for processes and software for minimizing work involved in self-managing rentals

[Nick Allen]

Hey all, I'm a relatively new investor and self-managing landlord. I've gotten my bearings and have a cash-flowing triplex banking a little over $1500 / month, and am starting to look at acquiring more properties once I can find another good deal. I'd like to continue self-managing and trying to run as lean as possible while trying to get the snowball growing, and am now looking at ways to eliminate as much of the week to week and annual management overhead as possible, while keeping my expenses low while my cashflow is low.

The lists below are off the top of my head, but I'm looking for input on processes or software or anything else that can help put this property on autopilot. I'm also looking for things I'm not thinking of as I look to add more properties while still trying to run things as cheaply as possible until I can afford to more formally offload management to someone else.

Things I've got down to minimal effort or fully automated:

* Rent, security deposit, and fee collection

* Basic accounting and tax packet creation

* Listing vacancies

* Lease signing

* Applications, credit, and background checks

Things I'm still dealing with directly ad-hoc or don't have a well defined process or solution in place for:

* Requests and communication with tenants

* Finding and coordinating service providers for maintenance and repair work

* Scheduling showings and getting prospective tenants to make their appointments

* Tenant turnover for move in and out

* Keeping up with legal changes and lease template updates

* Setting rent amounts

* Lease enforcement - tenants are responsible for things like yardwork, routinely get letters from the city about weeds / tall grass, etc.

Questions for the group:

* What am I missing if I were to make out a checklist of an "automated property"?

* What's worked for others here for the things I don't have already taken care of?

* What tools or software are invaluable for self-managing my first and next however many properties?

* When is it time to quit self-managing, how much cash flow is enough to justify it, or how else should I think about that decision?

* Where else can I get smarter? What other networks of people I should be asking these questions in or resources that you've found especially helpful?

[Don Konipol]

If you place this post in STR you'll receive many more responses

[Allen Duan]

Hey Nick! Systems and processes are my thing and I love talking about it. I own a MTR property management company in Los Angeles, currently managing 25 properties. I think I have the insights that you're looking for =)

I'm going to rapid fire some of my thoughts but I'm happy to answer more specific questions.

- Hire a VA for handling all guest/tenant communications

- Get referrals for service providers, then have your new VA contact them and schedule service needed. Eventually they'll be trained to receive requests from tenants and schedule necessary service without your involvement.

- Hire cleaners and a part time worker to handle turnovers so you don't need to show up at the property yourself.

- Continual market analysis to keep your prices neither too high or too low

- For software, you'll need a PMS, some system for tracking operations tasks (we use Breezeway), communications tools for internal and external (we use Slack and OpenPhone, respectively)

- The decision to self manage or outsource is a very personal one. Here's what I'll boil it down to: if you have a better use of your time than self-managing and can afford the expense, do it. For example, if the cost of your time to self manage is $50/hour but you have something else you can do that's valued at $100/hour, you should hire someone else to manage for you.

[Jamie Banks]

Some of the tasks you mentioned can't be automated. Instead, as Allen mentioned, I would hire a VA to handle tasks.

You'll need to define your process for setting rent, communicating with tenants, etc. to train that VA but my VA(s) ran my cohosting business of 30+ properties. Now, my VAs work on more high level tasks like pricing, market research etc. Get your SOPs in order before hiring someone saves a lot of time.