All Forum Posts by: Justin Klein

I guess I'm being misunderstood. We have a monthly lease and call out the basics in there. But if I were to create a list of random things like, please clean all dishes upon move out and place in drying rack, place dirty linens in XYZ location, take trash out upon leaving, etc. does that really go in a lease?? I've been doing LTR for years but never furnished rentals so I think of it more like an STR with that respect.

Anyone willing to share their template for house rules? I’m new into this space and looking for some rules to put on my coffee table for guests to review during their stay. I’d update as time goes on but a nice starting point would be appreciated!

I'm looking for a method to send automated reminders via text to my tenants for various seasonal tasks like changing air filters, spraying off A/C units, clean gutters, etc. I currently send these reminders with the season changes and setup reminders in my phone to do so, however, it would be nice if there was an automated services that could send these reminders using my phone number.

Let me know if anyone has come across anything!

Thanks

@Michael Gil did you end up finding a good one? I’m in the market now

Thank you @Linda Weygant and @Jana Cain!

As it relates to the money brought to closing on the investment house that are one time expenses like: Appraisal Fee, Origination Costs, other costs brought to close, and Real Estate Agent fees.  Are these expenses that would appear on the income statement and should be broken out on their own?

Accounting Question for you CPAs.

So I recently purchased a rental unit and am just starting out.  I have one asset (single family home).  I do not use any accounting software at the moment as it is just one unit.  It may be easier if someone had a basic example they could share but here is my Income Statement question.

Revenue is clear as that is just your rental income or other revenue generators but I don't have anything else.  

Expenses Example:  For simplistic purposes let's say the house cost $100K.  I put $25K as a down payment. The monthly mortgage payment is $500 a month.  $300 or repairs and maintenance.

My current assumptions: 

- The $25k down payment is not an income statement expense as that is capital investment and would hit the balance sheet.

- The $75k remaining on the house is also just a PP&E item in the balance sheet that gets reduced by depreciation over time.

- The $300 of repairs and maintenance should be expensed.

- The $500 should be split into 1) Principal ($300), 2) Mortgage Interest ($150), 3) Escrow/Taxes & Insurance ($50).

- I assume the $300 of principal would only impact the balance sheet and not the income statement.

- I think the Mortgage Interest $150 and Escrow/Taxes & Insurance of $50 would be on the Income Statement as they are expenses that are not capital in nature?

Am I missing something here? What other basic income statement items should I be considering as it relates to the house (asset) purchase?

Jordan - thank you this is great! We are still planning but really do need to pull the trigger here shortly. We are starting much smaller scale but I really like the idea of that software. We will need to figure out how many units we need before it's worth getting the software but definitely nice as that was a concern of mine going in for online payment options. We are currently getting quotes and pricing out each unit to build. So hopefully soon!

Does that management software link to where you do your accounting or does it just link to your bank and become a document repository? I'll research more but figured I'd ask how you utilize it.  

Where is your main source of advertising?

@Mark Byrge did you build or did you buy an already established storage complex. If you built did you do all the automation upfront? Or did you wait a few years and pay for it with profits from renters?

My plan was to slowly build as we fill up the units, but would love to get your thoughts on that. 

Hello all those with self storage investments.

I'm writing to get some feedback on a recent investment opportunity in the self storage space in Michigan. I am looking to startup a family business with my dad and sister. We plan to start with two buildings until full and add more after that. The property has been purchased and no financing would be needed for this initial startup. I have a few questions:

1) is starting this small on storage units too conservative? 2 buildings with about 30 units of varying sizes in each. 

2) 3 stakeholders - any feedback for dividing tasks amongst 3 individuals and then ultimately dividing profits. Do you pay an investor based on equity invested and divide based on share or if one person does the maintenance, website, booking keeping, etc, do you "pay" that person for the worth of the function and treat it as a business expense?

3) security for a small town storage - if the liability is with the customer, but not having a fence or security system or lighting, would it deter people from renting or does the cost of installing tend to pay itself off?

Sorry, lots to learn. Just trying to do a bit of research. 

Thanks,

Justin