All Forum Posts by: Keri Win

@Keri Win how much time do you think you'll have to invest to learn how to properly manage your rental?

What do you make per hour at your day job?

Do the math, it's rarely worth an owner's time to DIY manage - and that's before the costly mistakes!

Of course, you won't listen to this common sense because you know more than everyone else here on BP and will have to learn the hard way.

So, recommend you find and attend some local investor meetings or commit to watching all the videos and reading all the material here on BP that you can.

Good luck:)

@Keri Win I self manage and use MySmartMove for my background/credit checks. Each adult tenant over the age of 18 must fill one out. You will need their names and email addresses.

I don’t use software to manage but have a few spreadsheets I have created.

If this is your first/only property I wouldn’t overthink it or overburden yourself trying to streamline everything while you’re just starting out.

I got my lease from a fellow landlord that had an attorney draw it up. I have added a few little things here and there that are specific to my situation.

Might I suggest a separate addendum with regards to the septic system that ALL adults sign and covers what you want them to know. I would also include in this addendum who is responsible for what. Such as Landlord will pay to pump and maintain system as needed.

Tenant will be responsible for all charges associated with malfunction of the system due to misuse. (Which can be documented by your septic company if there is a clog or backup).

I know a lot of investors who have had the same feelings as you.  Mostly without exception they have told me, the worst mistake they made was trying to do it on their own.  They all have property managers now.  Most were renting below the market.

Using a property manager can significantly benefit you in several ways:

1. Expertise and Experience: Property managers have specialized knowledge in managing properties, including understanding local market trends, legal requirements, and tenant relations. Their expertise helps in maximizing property value and minimizing risks.

2. Time Savings: Managing properties can be time-consuming, involving tasks like tenant screening, maintenance coordination, and rent collection. A property manager handles these responsibilities, freeing up your time for other ventures or personal pursuits.

3. Tenant Management: A property manager conducts thorough tenant screenings to find reliable tenants and handles lease agreements, renewals, and evictions if necessary. This results in lower vacancy rates and better tenant retention.

4. Maintenance and Repairs: Property managers have established relationships with contractors and vendors, ensuring timely and cost-effective maintenance and repairs. They can address issues quickly, which helps maintain tenant satisfaction and property condition.

5. Financial Management: Property managers provide detailed financial reports, handle rent collection, and manage operating expenses. This transparency will help track your investment performance and make informed decisions.

6. Legal Compliance: Navigating landlord-tenant laws can be complex. Property managers ensure compliance with local, state, and federal regulations, reducing the risk of legal disputes and penalties.

7. Marketing and Advertising: A property manager has the resources and knowledge to effectively market and advertise rental properties, attracting prospective tenants and reducing vacancy periods.

In summary, hiring a property manager can streamline operations, enhance profitability, and provide peace of mind for you, allowing you to enjoy your investments rather than being bogged down by day-to-day management tasks.

A property manager will give you more time to expand your investment portfolio.  That's where you should be.

I agree with @Nathan Gesner that property management software can sometimes be overkill at first and that you likely don't need to use a full blown software at first until you get more units. 

I do recommend something to collect rent that is NOT check, Venmo, CashApp, Zelle one day one. The automatic late fees and payment reminders are SUPER useful at any unit size. I'm recommending apartments.com as my top starter pick because it is the only one I've found that is truly free to both the landlord and the tenant with no fees (monthly or transaction fees) ! It also has some other limited property management features you can test and see how you like.

I actually just made a whole video about this over at my YouTube channel :) 

I think most others have already provided sound advice.

I wanted to emphasis having a conversation with your tenants about the septic tank, not just a clause in the lease that you assume they'll read and understand.

Many people are unaware of what they can be doing that causes issues to septic tanks (e.g., flushing the wrong items).

Also, make sure you do a walkthrough yourself prior to filling the unit. Document the condition of your property inside and out so you have that as a reference point later down the road.

You get a lease agreement from an attorney. You can also buy a Landlord Forms package from Biggerpockets, me, or find one online and hope it's sufficient and legal.

You don't need an app to manage your property. See my software guide below.

Here's a detailed guide on how to screen applicants: Application Screening Guide

My Landlord forms package includes a septic addendum, or you can try finding one online with a Google search.

Anything else I can help with?

Software is a common question on BiggerPockets. Here are some things to consider:

1. Most investors don't need software until they have 5-10 rentals. You only need a place to track tenant information, payment history, maintenance, etc. You can easily do this on a spreadsheet, and it will take less time to track than finding and learning new software. If the software is not simplifying your life or making you more accurate, you shouldn't use it. Go to Etsy and search for "rental property tracker," and you will find hundreds of nice spreadsheets to track 10-20 rentals, usually for under $10.
2. Software has extremely helpful features like online payments, marketing syndication (click a button, and your property is advertised on multiple sites), electronic document review/signing, maintenance tracking, and owner reports. Do you need all this for a couple of rentals?
3. There is no perfect software out there. Every system you try will have flaws, or you may salivate over a feature that appears in other software.

Some familiar names are mentioned frequently: Stessa, Apartments.com, RentRedi, TenantCloud, Innago, RentManager, Avail, Rentec Direct, Doorloop, etc.

I recommend conducting thorough research on each app online to understand their offerings, pricing, etc. Create a simple spreadsheet or written list to compare the features of each and identify the ones that align with your requirements. Try to narrow down your options to the top 3-4. Once you have a shortlist, sign up for an account with each one and test them extensively to see how they function. Perform the same task in each app to ensure a fair comparison.

• Load a property with pictures and details.
• Market that property.
• See what your marketing looks like from the public's perspective.
• Submit a fake application to see how easy the process is.
• Run a credit/screening report on yourself.
• Enter a maintenance request, assign a vendor, and attach a fake invoice.
• Enter charges to the tenant's ledger.
• Enter recurring charges and automatic late fees.
• Sign documents electronically.
• Run owner reports.

After testing a few apps, one should clearly stand out. It's important to choose that one and commit to using it. Remember, no system is perfect, so avoid the temptation of constantly chasing after the next shiny object. You should only consider switching when your current software has a significant flaw or lacks features that force you to spend excessive time on workarounds. At that point, it's worth researching and finding a solution that better meets your needs.

I pulled my lease from Bigger Pockets - they have state specific leases and all the addendums. I also just signed up for Rent Redi (thru BP). I am using this for applications, screening and rent payments. RR also offers rent reporting to all 4 credit bureaus which is really nice. Good luck!

@Keri Win - A complete kitchen with stove makes the suite a 'dwelling unit' -- a definition you'll find in the Code of Ordinances. Atlanta has the most forward thinking Code around ADUs (suites that may be attached or detached). You won't find any of them allow a permitted, legal basement ADU.

You'll find permitted guest suites with kitchenettes -- just no stove.  OR, permitted ADUs that are detached.  Guest suites have restrictions on length of stay.  

The most common issues limiting turning a basement into a good, liveable apartment are -- basements leak, limited room in the electric panel for another stove and/or HVAC, Code, Neighbors who would not put up with anything, and sometimes layout (private entry and egress).

I think it's a great idea.  Learn a bit more about these issues and be prepared to address them when you find a good house.