All Forum Posts by: Max James

I have equipped my buildings with CO detectors here in Ohio.  After brushing up my leases and thinking more about I am wondering if this puts me liable if there were to be a CO leak and it were due to detector malfunction from the residents.  

It is not required in Ohio to have them in your buildings and as a former tenant, I do not recall any of my old places of living ever having a CO detector when I was renting. 

Should I remove the CO detectors?

Welcome!  Good luck and start educating yourself to the maximum!  Read books and listen to podcasts religiously.  Before you know it your mindset will be changing drastically.

I'm looking to systematize EVERYTHING involved with managing my properties.  I only have 6 units now, but want to treat them like I have 600...  This way, once I scale, my business model will be in place and I will not need to hire a PM company.  I am looking for a Manual in relation to PM and owning buy-and-holds.  If I fail to find one, I will eventually write my own, but I thought I'd hunt for one and leverage that instead of reinventing the wheel.  I am talking about a very beefy manual with extreme details on how to handle a certain situation.

Here is an example of what I mean by Standard Operating Procedure, this example is one I wrote for a Maintenance Request:

1.0  Maintenance Requests

1.1  Clogged Toilet

1.1.1  When the resident informs the Maintenance Manager (MM) of a clogged toilet, perform the following:

1.1.2  Inform resident to first utilize the plunger and remind them to not ever use drain-o or any chemical product. If plunger fails, move to 1.1.1.2.

1.1.3  Call the plumber, _________ at phone number ___________, and inform him of the issue. Explain to the plumber the toilet was running fine and has recently become an issue. Ask the plumber to write up what he thinks the cause was of the clog. Be clear with him to write in the report if he found tree roots or anything that was unrelated to something being flushed down the toilet.

1.1.3.1  Inform resident when the plumber will be at the property and approximately how long the job may take. Resident must be present when plumber is unclogging the toilet to let him in and out of the building.

1.1.3.2  When the plumber is completed with the work the resident will let the plumber out of the building and the plumber will email the MM the receipt with the description of what the clog was from. MM will then pay for the repair.

1.1.3.3  Immediately inform resident and notify them the amount they will be billed on their next rent cycle.

I agree with @Brent Chauvin , home warranties are a joke.. I got one for my first property which was a duplex through HMS.  Awful customer support, charge you a $100 service call fee, and then sometimes they can't even fix it due to the language in the contract.  Save your $800-$1000/property/year on the home warranties and then just bite the bullet for when something does go.  

I am starting to develop systems for EVERYTHING and have a specific contact for each item.  This way, when someone calls for a clogged toilet, I reference my excel spreadsheet with my go to plumber and they head out to fix it.  

For a minor item like tightening an outlet, that is a good question.  I was going to say have the tenant fix it, but that's probably a bad idea.  Hmm... This is a good question.  Like you said, sounds like having a handy man on call is the next best option.  Or how about you find a young handy person who is willing to be a member of your team in regard to PM... You could hire him or her to be in charge of 10 properties (or whatever the number may be) and pay them $X/month to be in charge of:

-Leasing the property (showing, creating Postlets.com ad, handle applications, etc.)

-Responding to maintenance requests and handling maintenance requests

The question is, how much is the right price. I have in mind that once I scale up more and more, I'd like to try and stay below 5% of the total rental income to pay someone to help me. The time commit would be less than 20 hours per week and could get someone new and young involved in the REI business.

It would be great to hear others ideas and what some people have already done.

Welcome, get your podcasts lined up! I also find not only Rich Dad Poor Dad to be very helpful, but also (if not more) Rich Dad's Cash Flow Quadrant. I personally like the Cash Flow Quadrant better than Rich dad poor dad. Also, check out the E-Myth, which can be highly transparent to the REI biz. Good Luck!

 Good point Marrio, that's a really good point.  Making that note in my Standard Operating Procedure now!

I think this is a fantastic idea and as I moved from my duplex into a 4 family I quickly realized why you need to treat 2 units as 200.  I would implement a mandatory reoccurring direct deposit payment method in your lease.  This way you are not dealing with checks or trips to the bank with cash.  

Flushable wipes are a joke!

Do you guys get push back from your tenants demanding that they did not cause the clog?

 Great point Nathan, more reasoning to bill them ASAP.  I think the big portion of it I want to think about more is not what I bill them but how I bill them.  This can go for any bill, not just a toilet clog.  I want to communicate the bill in a way to not create tension and adversity.  Just another way to not make yourself look like the mean landlord, but a partner in this housing relationship.