All Forum Posts by: Account Closed

Richard P.   If you are the owner and manage your own properties, of course you don't need a license.  

Landlords can have as many LLC's as they want to, but I recommend if you go that way that you put five properties per LLC.

Each LLC is a company and therefore, in QuickBooks, would need to be setup in QuickBooks as individual companies. (Company Files)

Nancy Neville

File a Summons and Complaint in the court for non payment based on the form they signed.  (Since they defaulted, the rent is late and all monies owed is still owed and needs to be filed as an eviction.  

 A court date will be set and most likely a Judgment awarded.  It is then that you can turn it over to a collection agency or put a lien on their drivers license or other assets.  

Nancy Neville

Richard, a Property Management Company needs to be licensed and they would become your VENDOR.

Nancy Neville

Carl what do you mean by "entity" for each property?  Do you mean a separate company file per property?  

If you desire to have an LLC, then usually you would umbrella about 5 properties per LLC.

You would list each property as a class for each LLC.

Is this what you do?

Nancy Nevill

As a former Detroit Investor for 13 years and my husband a Detroit Investor for 30 years we couldn't agree with you more.

Nancy Neville

It's very easy to setup "flips" in your Chart of Accounts in QuickBooks.  

Set them up as a Fixed Asset in the Chart of Accounts as a WIP (Work in Progress)

and link all expenses to that account.    When done do a Journal Entry to the COG (Cost of Goods) sold Account

Don't forget to setup these "flips" as a class as well and link the expenses to that property in order to run a P&L by Class Report. 

Summary:  Link expenses to your WIP Fixed Asset Account and link expenses to the Property in the Class Column

Nancy Neville

When a tenant pays by check and rent is due on the first and we receive the check on the first, we take the check for it's face value and we deposit it into the bank.  We have accepted the check as rent being paid the day we received it. Therefore, rent was paid on the First when it was due. 

Now if the check bounces, then the RENT IS LATE, and the late fee is charged to the tenant along with a NOTICE TO QUIT for NON-PAYMENT OF RENT. (Now, sometimes it can take 20 days for a bank to notify you of the check bouncing and that is problem, that is why I request my tenants to pay me by Money Order or Cashier's Check).  BTW, don't forget to charge them for the NSF fee you are charged in addition to that Late Fee along with the rent that is now due.  Many people don't think of charging the tenant for the NSF fee.  And when you do, don't link it as income.  That is a fee charged to you.  And when the tenant pays you back for this charge you will make it a REIMBURSABLE BILLING.  Therefore a wash.  Neither income or an expense.  

When you allow other entities to accept payment for you, such as a bank or an online "gimmick", you compromise the eviction process.  You have compromised your own lease agreement with the tenant.  You can't hold the tenant responsible for somebody else's slow time-line on depositing their money into your account.  You just can't. It won't hold up in court, because the tenant has no control over that entities time-line for getting the money into your bank account. 

This is why I encourage people to not try and make it easier on a tenant to pay their rent.  They are grown adults, right?  All they have to do is put it in the mail or hand deliver it to you, and they must do it on or before the day rent is due. Plain and Simple.  I have that in my Lease Agreement. 

You think by having automatic deposits or other places like cozy is helping you.  They are not helping you.  They are stalling the eviction process for you.  And time is of the Essence!  

Nancy Neville

Example of pro-rating rent:

Let’s say today is September 27th and the rent is $750.00 a month, and it is a month to month lease agreement, and they sign the lease today and move in.

Pro rated rent:

Rent from September 27, 2017 to September 30, 2017 $100.00  (4 days)

Rent from October 1, 2017 to October 31, 2017 $750.00 (Full month rent begins)

Nancy Neville

Just a few pages from my Lease Agreement

TERMS OF LEASE

The term of the Lease is a periodic tenancy commencing at _____Address of Property___________ on (Date and time) and continuing on a month to month basis until the  Landlord or the Tenant(s) terminates the tenancy.

Upon the greater of 7 Days notice and any notice required under the Act, the Landlord
may terminate the tenancy under this Lease if the Tenant(s) has defaulted in the payment
of any portion of the rent when due, and that amount is still due after any grace period
required by the Act.

OCCUPANTS

Subject to the provisions of this lease, apart from the Tenant(s), no other persons will live
in The Premises without the prior written permission of the Landlord, except for
_______________________________________________
Name of Occupant Relationship Age
________________________________________________________________________
Name of Occupant Relationship Age

The premises shall be used as a residence with no more than ______ Adult(s) and _____
Child(ren), and for no other purpose without the written consent of the Landlord.

Overnight Guests:

No guests of the Tenant(s) may occupy the Premises for longer than one week
without the prior written consent of the Landlord. If a guest stays longer than one
week (7 consecutive days) it shall be conclusively deemed an unapproved
subTenant(s) under the rental agreement and just cause for termination or a $50 per
day fee or both. 

RENT
Rent for this rental unit located at ______Rental address, city and state__________________________
is  $_________ per  month and will be due on or before the first of every month
of the term of this Lease, allowing for week-ends and Holidays.

Payments will be mailed to the following address or at such other place as the Landlord
may later designate.  (List your Post Office Box or your Business address)

Tenant(s) agrees that rent monies will not be considered paid until Landlord or
Landlord’s Agent receives the rent monies, either by mail or by delivery to the above address.

Tenant(s) placing rent monies in the mail is not sufficient for rent to be considered paid,

and rent will be considered unpaid until receipt thereof.

How Money is applied

Monies received in our office or in person, given to (Name of your company, or it’s
owner(s), employee(s) or agent(s) ) will be applied as follows and in this order:

1. Any outstanding bills brought forward from the previous month or months.
2. Any miscellaneous charges the Tenant(s) may have accrued.
3. Water Bills/Utility Bills
4. Rent

If any portion of the rent is still owing after all payments have been applied, then the
Tenant(s) recognizes that he/she is in violation of their Lease/Rental Agreement and is
subject to eviction and will be filed upon as “non-payment of rent”.

LATE FEES

The Tenant(s) will be charged an additional amount of $25.00 if rent is not received in the
Landlord’s office on or before the 5th of every month, for any Rent that is received after
the latter of the due date and the expiration of any grace period under the Act, if Any.

If there are multiple Tenant(s)s signed to this Lease/Rental Agreement, all such Tenant(s)s
are jointly, severally and individually bound by and liable under, the terms and conditions
of this Lease. A judgment entered against one Tenant(s) shall be no bar to an action
against other Tenant(s)s.

The landlord may increase the Rent for the Premises upon providing to the Tenant(s) the
greater of 30 days notice and any notice required by the Act.

Pro rated rent:

Rent from ________________________ to _________________________
Rent from ________________________ to _________________________
Rent from _________________________ to _________________________

Nancy Neville

Michael, if an investor doesn't have enough money to invest in their business on things they need to purchase in order to run their business, then they shouldn't be in this business.

This reminds me of a tenant, who wants to rent a property,  but doesn't have the Security Deposit, and says to me, "can I pay it in a few weeks, but move in now?"  What do you think my answer is?  Next Please !!

If the tenant doesn't have the full move in money in order to move in,  which includes the Security Deposit, then they will never have the money for the Security Deposit EVER.  

Part of your plan for being a Landlord (Investor) should entail, office equipment, phone, desks, computers, file cabinets, software you will use to keep track of your business investments, and a ton of other things.  Being a Landlord is more than buying a house !!!!!

You need to know your State Laws, Housing Codes, Tenant Laws.  

You need to know how to make your properties have curb appeal.

How to do an Open House

What forms to use, Like Lease Agreements, (What is the difference between a Lease Agreement and a Month to Month Agreement) Evictions Notice, when to send out an eviction notice, what to do and not to do.  What to say in an ad and what you can't say in an ad.

There is a lot to know before you become a Landlord.

Where can you go to get this information?  You need to SPEND MONEY.  You need to attend Landlord Associations.  Purchase every book on landlording that is known to man.  (Before I became  a Landlord I spent about $1,000 bucks on books and software programs, and believe me most of them weren't worth the money I spent on them; but each one had something that I benefited from.  Maybe one chapter.  Maybe one paragraph.  But most times I had to find the answers by experience and common sense).  

So there is no such thing as feeling sorry for a first time beginner in this business, having no money to spend on the proper equipment they need to have in order to make money.

I feel strongly about this topic.  So forgive me if I am a little harsh.

But I say it because it needs to be said.

Remember, you need to SPEND MONEY in order to MAKE MONEY !!!

Nancy Neville