All Forum Posts by: Shawn Davis

Hi Niki - Zillow and Craigslist will likely drive the most traffic to your posting.  If you live near a large employer, an e-mail to the HR department can't hurt as larger companies often have intranets for those types of things and can also let new hires know.  Probably the most important thing is to post great pictures.  Good luck!

I am hoping to hear from someone who has experience leasing their building on a NNN under a government contract/program (i.e., Department of Corrections, Department of Veterans Administration etc.,).

Anyone??

I am hoping to hear from someone who has experience leasing their building on a NNN under a government contract/program (i.e., Department of Corrections, Department of Veterans Administration etc.,).

Anyone??

Hi Damian - Since you are bound by the current lease, you wouldn't be able to force the tenant to get rid of the dog if it is allowed in their lease anyway.  Since your "no pet" policy can only be applied to new tenants, or tenants who wish to re-lease, you can simply explain (if you want) that the tenant with the dog was already there when you became the owner.  I also have a no pet policy but when I purchase a property that has tenants with pets I allow them to stay as long as they remain good tenants even if they want to re-lease.  It saves me the cost of a turnover and if they have lived there for any length of time the pet "damage" (odor, hair, scratched up doors etc.) has already been done.  Once I have gotten into a unit and cleaned it up with new carpet, repairs and new paint, then I don't allow pets in again if that is going to be my policy in a unit.

Pets are not a protected class so you needn't worry about discrimination so long as you aren't applying the rule in a discriminatory fashion (I.e., only telling candidates from a protected class that you don't allow pets but then allowing others to have them).  

I have one duplex that has a fenced yard and is close to a great dog park.  Several years ago I decided to allow pets in that building and I have great long term tenants in both sides.  I'm sure there will be damage upon turnover (I collected additional deposits)  and I will have to re-carpet and paint anew but then I haven't had the expense of a turnover in that building in 4 years.

Good luck!

Nikki - I wanted to add that you would be hard pressed to find a landlord on this site that would think you were "heartless and cruel" for enforcing a late fee on a renter that is chronically late in paying rent.   On the contrary, I would strongly encourage you to deal with late payments immediately by posting the appropriate notice as soon as permissible under the law and following up with the next steps to evict if rent is not forthcoming.  My guess is you will have an opportunity to put this into practice with this tenant for Nov. rent.

Hi Nikki - 

You should double check your local rules but I believe Texas allows for both a one time late fee and a daily late fee so long as they are "reasonable."  Of course, they don't define reasonable but depending on the overall rent, the $50.00 and $20 daily don't seem excessive.

Call the local rental owner's association in the area where your property is and pose the question.  I have always found them to be a great resource.   These associations usually have condensed versions of the local rules with helpful explanations available for members, as well as approved and updated local forms.   Looking at an approved lease outlining late fees charged might give you comfort if the numbers are similar to those contained in your lease.  The membership fee for these associations is usually very reasonable and is worth it in my opinion.

What leads you to believe she is leaving in a January?  Is her lease up or did she give notice.  You may want to check your local rules again because you may have notice requirements if you don't plan to renew her lease.   If you really don't want her to stay on, and she hasn't given you written notice of her departure, you may need to get it in writing or provide notice yourself that you don't intend to renew.

Hi Georgia - Most insurances I'm aware of will not cover a rental property if certain breeds of dogs will live there.  Pit bull is usually number 1 on the list of restricted animals.  If your insurance carrier has the same restriction and you allow the pitbull, you are risking coverage should you ever need it.  So be sure you know your carriers restrictions and if you decide to allow pets, write the restricted breeds into your written screening criteria.

For any tenant you should do a full screen (credit, background, rental history and references).  Do this on every prospective tenant.  Not only will it protect you (I have met many seemingly nice people with bad surprises in their credit history and background) but it establishes a system.  The credit report will also give you some basic address history verification and will paint a picture of how they handle their financial obligations.  If they don't pay their bills you can bet they won't pay you either.

A bad tenant can make being a landlord a nightmarish full time job often at a significant financial cost.  It is not worth it.  Better to have an empty unit while waiting for the right tenant than be shortsighted just to get someone in there.   I have found that having a solid credit score requirement will go a long way in having good tenants.

As far as being a new landlord, get a hold of your local landlord tenant rules and become familiar with them so you can conduct your business with confidence.  Join your local rental owners association as they will be a wealth of information for you.

Good luck!

Hi Jordan - You mentioned they were willing to pay 3 months up front "on a 6 month lease".  So, if they find a home to purchase, they are still on the hook for the full 6 months.  Although not ideal, a 6 month lease gets you through the deep winter months.  Be sure you collect a security deposit too.  Ask them up front what they plan to do if they find a home within the first few months of the 6 month lease.  

You also mentioned your previous renters moved out early and are aware they still owe rent.  Generally speaking, you have a duty to mitigate the damages so if you accept the new renters you cannot also collect rent from the prior renters unless their lease obligation extended beyond the term of the new lease, and even then you wouldn't be able to collect from both for the same months.

Hi Charlie - I am a huge believer in managing the properties yourself if it fits with your goals.  This is especially so at the beginning when you may have fewer properties and will benefit greatly from having seen "under the skirt" of property managing so that if you ever decide to turn your management over to a "professional" you will know what you should expect and what you won't tolerate.   

If you are just starting out with  a few units, I would use an excel spreadsheet or quick books which will force you to learn what goes where.  As you get bigger, having done this will help you choose a software program that works for you.  I like Appfolio but it does have some missing pieces.

There is a lot to know to really have your property management run smoothly.  If I were just starting out with a manageable number of properties here is what I would do:

1.  Join my local rental owners association.  Hopefully you will find one that can make the locally approved forms (applications, leases, pet agreements etc.,) available to you for a small fee.  Use these while you are getting started to be sure you are in compliance.  Don't just grab any old form off the Internet.  As you become more experienced, you can add additional provisions to your new leases if you find it necessary.

2.  If your local association offers a resource that compiles the applicable landlord/tenant laws and acceptable forms -buy it and make yourself and your wife VERY familiar with the rules on accepting and responding to applications, having written screening criteria, taking/holding/and refunding security deposits, move in checklists (don't get slack in this), and fair housing.  Always assume you are talking to an undercover housing authority person when you are interacting with tenants.  This is where your screening guidelines come in.  If you have the right guidelines and follow them you will have nothing to worry about and will by and large get good tenants.  It is absolutely worth it to educate yourself up front on these rules so you aren't at the mercy of a career tenant and can feel good about the decisions you will make along the way.

3.  Choose your tenants wisely and never fail to screen.  I make a point to meet any tenant I am seriously thinking of renting to but then again I am still small enough to do this.  When i am buying properties for rentals I am always asking myself "what kind of person will want to live here?".  If the best that I can realistically hope for is not a person I want to work with I pass on the property.  I also strive to keep my properties well maintained, safe, and clean in the hopes of getting the best tenant I can.  

4.  Pay very close attention and develop skills for lightening fast (that is the goal) turnovers.  One of the things you learn while managing for yourself is just how costly turnovers can be.  VACANCIES WILL KILL YOUR PROFITS AND CASH FLOW!!!!  Get really good at getting into units you know will be turning over ahead of time so you are prepared for all the maintenance items and have them scheduled for the moment the unit is vacant.  Solidify your renewals early and if you anticipate a vacancy or know you have one coming, get your ads up quickly and talk to your tenants about clusters of time when you can show the unit.   I incentivize my current tenants to cooperate with showings and keep the units looking nice for showings by offering them a gift card or cash when I get a tenant through a showing.  

5.  Set your rules and gently but firmly enforce them.   

6.  Spend the time at check-in to do a thorough job of documenting the condition of the unit.  Hopefully you have delivered it to them in a condition that will represent how you hope to receive it back.  Your rights to reimbursement for any damage is based on your documenting at move-in.

7.  Spend the time at check out to make your tenant aware ahead of time exactly how you expect the unit to be returned to you and even add a sheet indicating a range of what it will cost for each item left undone (there is a really good one in forms section  here at BP).

8.  My rent is due on the 1st and a late fee is incurred if not paid by the 5th.  On the 3rd or 4th, if I have not received rent from someone, I send them a text (my tenants all agree to be contacted this way) that says " Hi tenant, this is a friendly reminder that I have not yet received your rent.  If I don't have it by the 5th a $75 late fee will be added to your account."  I don't get tenants that pay late (past the grace period) but if I did, I would post a notice immediately so they know I'm serious and follow through if it didn't get cleared up.  

8.  Be fair.  Get good tenants.  Keep your places maintained.  Move quickly to deal with anyone that is breaking the rules or not paying.

Hi Eric - Well it's about time!  I have now taken my licensing courses in two states online.  It is definitely the way to go in my opinion.  When I became licensed in the state of Oregon, I paid extra for the online course that allowed me to attend live classes as well.  I went to two classes and found them to be inconvenient (offered only once a week in the evenings - a pace which would allow for a student to take the exam after 9 months worth of classes) and painfully slow.  You had to sit through all the stupid and inane questions people were asking and wait while the instructor explained something for the 100th time that you got the first time through.  Once I gave up on the live classes and went to the online course exclusively, I had my license within 3 1/2 weeks.

Then I took the Wisconsin online course and it was even improved over the Oregon course because they offered written material AND video instruction for each section so a person could learn in the manner that works best for them.  If you had questions, you simply submitted them by e-mail and the answer came back within a day.

If you are looking to get your license quickly and want the convenience of being able to study at your convenience, online instruction rocks!!