All Forum Posts by: Account Closed

No, you do not need a separate checking account for each property, unless you are an LLC and you have that property as an LLC, then yes you would. But if you are the landlord, and all these properties are yours, and not in an LLC individually, then only one checking account is all you need.

Nancy Neville

QuickBooks allows you to do whatever you want by using a feature called the "Class" Feature. 

Anytime you write a check out to someone they are a Vendor and the Vendor Center will allow you to type in business and personal data of the Vendor.  You can even setup "Define Fields" where you personally program QuickBooks to give you a blank field to enter whatever data you fill is important to have on them or remember.

Your chart of accounts, allows you to create sub-accounts, therefore, Owners, Investors, can be entered as "Sub Investors" etc., and when you need to pay them their percentage, just choose their names.  

Nancy Neville

QuickBooks Pro is all you need (desktop version).  (Premier is more expensive because it deals with inventory, which you don't need so why pay extra for something you don't need....right?)

As Landlords, it is crucial that we know how much money we spend not only on building repairs, but on unit repairs.  QuickBooks takes care of doing all this by simply linking the repair to the building or to the unit by using the Class Feature.  

If you can use a mouse and click on a button called "Class" when you type in an expense for your building or unit, then QuickBooks is for you!  Why it's so easy, even a caveman can do it?  No kidding.  

Nancy Neville

Yes!

Fire your Property Manager!  Parking on the law not only ruins your lawn, it makes it an eyesore in the neighborhood and makes your house look like trash.   Tenant's will always test you.  Therefore, here is an article I wrote called "The Tenant Phase".

THE TENANT PHASE

THE FIRST MONTH (THE HAPPY PHASE)

During the first month of a rental period, the tenant is happy. They wanted the home, they got the home and everything is fine. THEY ARE VERY HAPPY! You spent a lot of time at the signing of the lease telling them what you expect from them and what they can expect from you. They seemed to be happy and they nodded in understanding.

THE SECOND MONTH

Somehow during the Second Month, when the newness wears off and the happiness falls into a routine, the new Tenants become confused. They seem to forget what the rules are and when rent is due (even though they have a written lease agreement to refer to). If they are one of the few tenants who do not get confused during this time, this means they have jumped from the Second Month phase into the TESTING PHASE which may cause a few problems, but I will talk about that in a few minutes.

To help the Tenants not be confused during the 2ND MONTH PHASE, I always bill my Tenants their rent 10 days before it is due. It's during the 2ND MONTH PHASE that I will answer any questions they may have and not make them put it in writing.

TESTING PHASE (May begin as early as 2nd month):

The TESTING PHASE, is a very crucial phase. Whether the tenants and you get along is determined during the TESTING PHASE. More Tenants than not like to Test the Landlord. If they had gotten away with it with their previous landlord, chances are, they feel, they can get away with it with you.... so they will try. They will pay their rent when they want to, putting you last and live the way they want to regardless of your rules.

It is very important to nip this in the bud during the TESTING PHASE, because if you allow the tenant to get away with things such as paying their rent when they want to and doing what they want, then chances are you will never proceed past the TESTING PHASE.

THE THIRD MONTH:

If you make it to the third month, that is good. But it is also very crucial during this time as well to make sure the tenant stays on course. The Third Month, strengthens your position as to who runs what. During this time you want to make sure that the tenant keeps paying their rent on time and keeps obeying the rules. One little falter on your part can throw the tenant back into the TESTING PHASE. It is very important that you guide them during this time as to what you expect and want. And important that you gain their trust and respect during this time.

THE FOURTH MONTH - THE COMFORT PHASE:

The Fourth Month through the first year, is THE COMFORT PHASE: the tenant becomes accustomed to your rules and is starting to feel comfortable. If you have handled everything correctly, being strong when needed to be, and doing evictions when needed, the Tenant will feel secure because the Tenant will know what is expected of them and will feel comfortable and will want to stay. (Tenants usually feel comfortable with stability and sameness).

AFTER THE FIRST YEAR:

After the first year, the COMFORT PHASE, becomes more stable and each year thereafter. It's just a matter of keeping your Tenant happy, yet, making sure they don't slip into the Testing Phase from time to time. Even old time Tenants will want to go to the Testing Phase if they see their Landlord falter, get too over generous or too understanding.

When that happens the Tenant's stability changes because the rules are changing throwing the tenant into the Testing Phase again, so we don't ever want to falter but always stay strong and in control.

THE MOVING PHASE:

During the moving phase the Tenant, no matter how many years they have been with you, seems to forget everything again. They become babies and they revert back to the TESTING PHASE. Once again they never refer to the Lease and must depend on you for answers.

During the MOVING PHASE, the Tenant can change personalities quickly. It's like they drank a potion that changed them from Jekell into Hyde. They become this fiend, this villain that could destroy you and is probably the hardest phase of all the phases.

It is during the MOVING PHASE, that you must be cool, have all your wits about you and be prepared, yet still be cordial so as not to enraged the monster that seems to be lurking in your Tenant during the MOVING PHASE (as there is NO ANTIDOTE to calm the savage beast once it takes form). If by chance this happens, it is best to not confront the beast but to keep your distance until the courts can set it free!

With time everything will fall into place as long as you treat Landlording as a business!

Deanna, actually I'm a retired Landlord.  (13 years with 40 rental properties-husband 30 years in the business.  All properties were in the City of Detroit and outlining areas, so I have seen it all.  :)

Thanks for the "kudos"

Nancy Neville

Sending that NOTICE TO QUIT on the very first day rent is late. 

I feel very strongly about the eviction process and how it is handled. Because, if you handle the eviction process incorrectly and do it your own way, or take matters into your own hands, it could mean, a lawsuit against you. It could mean jail time. Or, it could mean having your case dismissed. Whenever we are involved in an eviction, emotions run high and it’s a very sad and dangerous time. 

When we are new in this business we have a tendency to make a lot of mistakes and that’s only natural. After all, that’s how we learn…. is by our mistakes. But the biggest mistake that I see new landlords make, as well as seasoned landlords, is their reluctance to file that NOTICE TO QUIT IMMEDIATELY and on the very first day rent is late. 

When I ask them why that is they tell me that they feel it is unreasonable. They say that it’s not right. They say that it’s not fair. They say that they would feel embarrassed to send out a Notice to Quit the very first day rent is late. They say they can’t do it, won’t do it. And if they did do it, they would feel guilty. So my mission today is to take away that guilt. 

Choosing the right Tenant can be very crucial as to how many evictions we may possible encounter. The better the Tenant, the fewer evictions we may possibly have, so it’s very important that we screen our applicants more thoroughly than we have ever screened them before. 

(For me the screening process begins the moment that an applicant walks through the door of my open house, because I take note of how they act, of what they say, of the questions they ask me, of their mannerisms and how their children behave. And after all the applicants have filled out an application, I take the applications home with me and I do a more thorough investigation.

I do a credit check to see how they pay their bills. If they pay their bills well, chances are they will pay me well. 

The next thing I do is I verify their employment. If they have been at their job at least a year or more, it tells me that they are stable and COLLECTIBLE! They must be COLLECTIBLE! If they are collectible you can sue them, garnish their wages, tax refunds or place a lien on their properties. It is the most important thing to check for… so make sure they are COLLECTIBLE! 

Not only choosing the right tenant for your home is important in how many evictions you may possibly encounter, but having a good landlord/tenant relationship helps as well. Because if a Tenant likes you and your property, chances are they’re going to do everything they can to stay. From paying their rent on time to putting you first when it comes to paying their bills. And I believe that good landlord/tenant relationship begins at the Open House as well. Because when the tenant applies for your home, they are actually saying that they like you and your house. When you pick that Tenant for your home, you are saying you like that Tenant and that family and so far a good landlord/tenant relationship has begun and that is good. 

At the signing of the lease, we get to know each other better. Allowing tenants to pay their rent anytime only hurts the landlord. We must remember that we cannot even begin the eviction process unless that NOTICE TO QUIT has been sent. 

When you allow your tenants to pay their rent anytime during a rental month you are allowing your tenant to rewrite the lease agreement and that could cause your case to be dismissed. 

It is very important when we set forth rules and regulations and rental due dates that we live by those rules. It’s not only beneficial to us but it also gives the Tenant some stability by knowing exactly when their rent is due and what will happen if it’s not received. 

Time is of the essence! Time means money! When we prepare our tenants to receive that Notice to Quit on the very first day rent is late, there shouldn’t be any reason to feel guilty about sending it or not to do it. IT’S JUST A NOTICE! 

Going through the eviction process affects us in many ways. Not only are we disappointed because the Tenant didn’t work out, but we’re pretty worried now to boot. 

Not only are we worried, but we’re pretty angry because it took a lot of work to get our rental units into shape again. It took a lot of time and money and we have a lot invested in our property. We’re worried now about having to go to court. We’re worried now about our financial status because we still have to pay our mortgage and taxes and our own bills. We’re worried about damages they may do to our place because of retaliation. We’re worried about being sued. What if we say or do something wrong? And by the time it is all over with, and the eviction process is long, we are absolutely exhausted! And yet, we worry about sending out that notice to quit on the very first day rent is late! Unbelievable! 

Some landlords don’t have a written rental or lease agreement. If it is not in writing the Lease is automatically a Month to Month Rental Agreement. When we evict someone we are actually evicting not just a tenant but anyone who is in POSSESSION of the house. 

I’m sure most of you have seen the movie Pacific Heights. Michael Keaton didn’t sign a lease. He took possession of the apartment without the landlord’s permission, yet the Landlord had to evict him just as though he were a normal tenant. If a bum off the street broke into your house and took possession of your home, you would have to evict them just like anyone else. 

It is very important to remember that a Notice to Quit is exactly that, A NOTICE. It is a notice notifying your tenant of an action that may be taken against them if they don’t comply with this or that. Remember we cannot begin the eviction process until that notice has been sent. 

Because an eviction is a legal process to evict everyone who is in POSSESSION of the home, we need to list the names of everyone who resides in the home. But most times, we don’t know everyone’s who is living in the home let alone their names, so what do we do? In my state, I am allowed to add the words, And ALL OCCUPANTS. 

By adding the words "and ALL OCCUPANT" after the original signee's names on the lease, to all my legal papers, it assures me that I am evicting everyone who is in possession of my home.......including the dog! 

The final stage of the Eviction Process means removing the tenant physically from the premises and this is truly a very sad and dangerous time. From the moment you turn that Notice to Quit over to the court house and file the Summons and Complaint, you NEVER EVER want to enter the rental unit or confront the tenant verbally or physically. 

The only way I communicate with my Tenant from this point forward (if I have to at all) is in writing! If you do otherwise and enter the premises and you see damages or don’t like what they have to say to you, and you take matters into your own hands, and try to do things your way, it could mean a lawsuit against you, jail time, or having your case dismissed. This is a very dangerous time. EMOTIONS RUN HIGH and this is why a court-appointed official called a Bailiff will go out to the home and remove the tenant from the premises and Not YOU! 

We must remember that being a Landlord is a business. It is a business of fixing up homes and renting them out and fixing them up again and again and again. It is a business of evictions, of lawsuits and court scenes and injustices.

If we can accept and expect all of these things, then we will be successful. But if we can’t, then we will fail. 

Remember…being a Landlord is not for everyone. If it was, everyone would be doing it.

Nancy Neville

Nobody can force a landlord to "renew" a lease once it is expiring.  If you find you want to list a reason why, you must be careful on how you word it, because then a court could take it to be discriminatory in some way, and you don't want that to happen.  

Since you have had issues with this tenant, and I do like to put a reason why I'm not renewing a tenants lease, I usually will simply say this, 

Dear Tenant

Please be advised that I will not be renewing our lease agreement when it expires  due to several issues we have had in the past. Because of those issues, I feel that it has interfered with our landlord/tenant relationship. Please know, however,  that I wish you much success.

Sincerely,

Nancy Neville

Is the trash set out  before trash pickup?  If so, can you not call the garbage place yourself for a special trash pickup. At least the tenant put their trash out on the curb, that's more than most tenants do.

You could get the cost to replace 12 missing slats on the sliding door to kitchen, but you should have before and after pictures in order to prove that they weren't missing when they moved in. 

Same with the Crack sink in downstairs bathroom (before and after pictures)

Make sure you have receipts to prove your repairs as well as the before pictures. 

The charges are so small that the court most likely will toss your case out.

Nancy Neville

I agree with Mike above.  In addition to that, is the utilities in their name on the day they plan to move their furniture in?  If so, then I too, see why not.  

Nancy Neville