All Forum Posts by: Account Closed

QuickBooks Online isn't very good for Landlords.  I don't recommend it.

QuickBooks Pro will take care of flips.  

Nancy Neville

What was wrong with my post?  Why was it deleted?  I spent a lot of time uploading screenshots to have them be deleted?

Nancy Neville

Why too much work you are doing Chris.  

You don't need another software program to pay bills when QuickBooks is so easy to use in regards to paying your bills and everything else you need to do. 

Rent Collections should always be "hands on", no third party.  Time is of the essence.  One should have full control over their income, not trust it to another party to handle it. 

QuickBooks has a feature to where you can upload your leases and info in the clouds as well.

Rent Rolls are easy to print out in QuickBooks especially using QuickBooks Pro or Accountant 2016 and up. 

Nancy Neville

If you list each company (LLC's etc.) in their own separate company file, all you have to do is click on file, then click on "previous" company from the list, to go back and forth to each company. If you have QuickBooks Accountant version you can open up two companies at one time.

It shouldn't be a chore to just click and choose. 

Nancy Neville

John, as Landlords we are all "self-employed".  

QuickBooks will keep track of your income minus expenses per property by turning on the "Class Feature" in QuickBooks. 

QuickBooks Pro allows you to customize it to fit your Industry almost 100%.  Pretty close.  Has some things it has to do yet before that happens.  But all and all, it is a great software program.

In order for anything to show up as Income, you need to type up an Invoice.  Otherwise, income will show up as Accounts Receivable. 

Hope this helps.

Nancy Neville

When we are little we say to others….”When I grow up I want to be a….”

• Doctor
• Lawyer
• Banker
• President
• Etc.

Then when we grow up, we realize that in order to be all the above we need to have a plan. We just don’t happen to be a whatever- we- want to be just like that. It takes a plan.

• Do we attend College?
• How many years?
• What college?
• Do I need a college degree?
• Where will I get the money to fund my dream?

Yet in the Landlord Business (our Industry) people don’t view it as a business. The media, courts, tenants, family and friends, feel we are just money hungry people who care nothing about our tenants but only the money. Do they say that about Bankers, Grocery Store Owners, Doctors (well maybe doctors..bad example) plumbers, etc? Not so much. They view these industries as companies, businesses, but….. not us. And even some of us WE DO NOT VIEW OURSELVES AS A BUSINESS!!!

I have people contacting me all the time wanting me to help them solve all their problems because they didn't have a plan. And, I try to help them as much as I can, but there is only so much I can do. Which lead me to write this blog.

Many investors, see a sale, hear about the landlord business from others, and they get excited and so they buy a house. But they don’t know anything about being a landlord. And...most of us fit into this group when we first began as well.

So here is my tip for those who need, want it, and glad they have it. ( I wish I could have this posted someplace where I wouldn't have to hunt and find it every time someone asks this questions on here, but perhaps the owners of this site might tag it, we will see)

So...here it is.

THIS IS THE PLAN

1.Location, Location, Location.

2. Check out the neighborhood before you buy. Is it a money maker neighborhood, or a bad one?

3. Check the area to see how much rent you can charge for this home in this particular area.

4. As a Realtor, when I sold properties to investors, I would tell them, from my own experience, how much money they could get in rent for this home. In return, they would ask me….”Well what if I did this to the house and that to the house (spending thousands of dollars in extra’s to the house), how much could I get in rent then”, and it never ceased to amaze me, how they looked at me when I told them that they would still get $750.00 a month. They wondered how they could still only get $750.00 a month when they spent so much money on extra’s to make the house super special! The answer is this. Location, location, location. What is the market value in that area and neighborhood! It is just like buying a house. What is the market value in that area? What are they selling for?

5. Check your Landlord/Tenant Laws before you even buy a home! Very Important

6. Sit in some Landlord/Tenant Court Sessions to see what goes on.

7. Study the City Ordinances of where your properties are located. If you don’t …..be prepared to receive several tickets for things you didn't know your tenants were supposed to (you really since you are the landlord) do.

8. Get your OFFICE ORGANIZED!! I can’t believe how many investors are so focused on buying and not how to KEEP THEIR PROPERTIES or KEEP TRACK OF THEIR PROFIT AND LOSS. You can't possibly do that if you are not Organized or have an Organized Office!

9. Therefore setup a good filing system

Get a good answering system…Vonage Phone is one good example

Stamps.com is great for keeping track of letters you send your tenants.

QuickBooks is a Landlords best friend. Buy it and learn how to use it.

10. Keep in mind that this is a business of people management. You must get a feel for people and their personalities.

11. Learn what words are Legal to use in advertisements. There are many no-no words. (See my blog on What you can say and not say) to avoid discrimination lawsuits.

12. Learn how to setup your properties to have good curb appeal

13. Learn how to do open houses. Plan for them. Makes applicants excited. Competitive

14. Prepare a legal and good application form. Set criteria for qualifying applicants.

15. Prepare a legal and good Lease Agreement. Take pictures of the home prior to renting it out and have that day's paper somewhere int he pictures to depict that the photos are current.

16. Setup a website Wordpress.com is free to advertise your rentals- generates interest.

17. Learn now to screen your applicants.

18. Learn how to do a credit report and read them

19. Learn how to choose a tenant. Beware of Testers How you speak, words you use, how you choose an applicant will make you or break you. There are testers. Do things right and you won't have to worry.

20. Don’t allow applicants to pay their application fee by check or money order. They can cancel the checks or money order if they don’t get the place.

21. How much money do you charge for an application fee (Credit Check) $25 per person is what I charged. If they qualified I applied it to their move in fees. If they didn't qualify, it was non-refundable. Have that on your application form.

22. Only accept cash or a Cashier’s Check for credit checks and if you choose them as a tenant, make sure only cash or Cashiers Checks are acceptable, Otherwise, they can stop payment on checks and money orders once they move in. PACIFIC HEIGHTS!!!!

23. Don’t allow tenants to move into the property unless they have rent and security deposits PAID IN FULL!! NEVER give anyone the keys until you have all move in fees, money due you in your hands and utilities (if they are to pay them) placed in their names.

24. How much Security Deposit can you charge? Believe it or not, your State has a law for that. Michigan is one month and a half plus first-month rent. What does your state say?

25. If tenants pay for utilities. make sure they have them placed in their names on the day or prior to the day you sign the lease. Call the day you sign the lease to verify that has been done. If not, DON'T RENT TO THEM, they do not follow instructions.

26. If you are a Property Manager, make sure you are a Broker or work for a Broker who does Property Management. About 3 states say you can be a Property Manager and not work for a Broker if you a Licensed Property Manager, not a licensed Realtor or Salesperson.

27. If you are a Landlord and have a Property Manager, either let them be a Property Manager 100% or you handle everything yourself, but not do both

28. IMPORTANT: Learn the forms of your STATE!

• How long do you keep your paperwork, your leases? Tenant files?
• What is a Notice to Quit?
• What is a Demand for Possession?
• How many days does your state law require you to send that Notice to Quit?
• What is a Termination of Tenancy?
• How many days does your State law require you to send that Termination of Tenancy?
• What is the difference between a Notice to Quit and a Termination of Tenancy?
• How do you fill them out?
• How many copies do you need?
• How much do they cost?
• What is a Health Hazard Eviction?
• When can one be sent?
• What is a Writ of Restitution
• How do you fill out all these forms
• How many days are required for the process
• How do you handle an eviction in general?
• Do you change the locks on the tenants…ABSOLUTELY NO!
• How do you handle a tenant who hasn't paid their rent?
• How do you handle a tenant whose lease has expired?
• How do you handle a tenant who won't move out
• How do you handle tenants doing damages?
• What type of Pets are legal rental pets?
• How many people can live in a house
• What to do with too many Guests in the rental home?
• Unknown people on the lease?
• How do you evict someone, not on the lease?
• How do you handle tenants doing drugs
• How do you handle noise complaints
• How do you handle vehicle violations
• How do you keep a tenant long term? See my blog on The Tenant Phase

To be a successful landlord, and maintain that excitement that you had when you first began, before you knew the ropes, you have to have all this in place, and you MUST AT ALL TIMES STICK TO THE RULES OF YOUR CONTRACT, YOUR LEASE AGREEMENT. Stick to the rules, and you will keep that excitement. You will keep not only your tenants happy, but you will be happy, making your family happy, and that’s what makes landlords still be landlords after 30 years in the business.

Nancy Neville

There were a lot of answers, and I apologize if I will be giving you my two cents, and someone else may have said this, but let me say this.  Being a landlord can be pretty lonely.  We're busy 24/7, friends and family don't understand us, and some think we are mean because we have to evict.  

Sometimes we have to take care of things during a holiday, be up late at night due to emergencies, give up family time to fix up a place and get it ready to rent out again.

If you don't have each other to talk to, to rant and rave with about this or that, that happened that day, then it's a pretty lonely place to be.  

Without each other, during some very stressful times, you may wish you had someone to lean on. 

Nancy Neville

It is understandable that people would think one doesn't need a robust software program when we first start out in this Industry.  But, why not start now, when you're new and fresh, and with only one house or two; to start learning how to use QuickBooks or any other robust software program?   

Why wait until you are so busy and overwhelmed with data, and find out you need the information now when you could have had it all done for you as you went along the way.  

Why put yourself in such a situation, filled with lots of stress of having to learn how to use a professional software program, when you don't have the time to learn it because you have now grown in your investments?  

Why?

Nancy Neville

QUICKEN

Uses terminology related to anyone who uses a checkbook, e.g. Money in – Money Out

QUICKBOOKS

Uses Bookkeeping Terminology

• Customers
• Vendors
• Items
• Accounts

ACCOUNTS

• Checking Accounts
• Income Accounts
• Expense Accounts
• Fixed Assets- Computers, properties.
• Other Current Liability – Security Deposits
• Long Term Liability Account - Mortgage Loans
• Credit Cards

All accounts are listed in your Chart of Accounts

Profit and Loss Reports

A video of your net worth (Income minus expenses = bottom line) any time of the day, week, month or year.

Balance Sheet:

A Snapshot of what you are worth today. Enter the date and voila

QUICKBOOKS DESKTOP vs QUICKBOOKS ONLINE

Both versions have or do the following:

• Accepts Credit Card Payments
• Has an Audit Trail
• Bank Reconciliation
• Company Snapshot
• Custom Fields
• Express Setup
• Multi User
• Multiple Windows
• Online Banking
• Payroll
• Print Bills
• Recurring Billing/Memorized Transactions
• Document Management
• Budgets (not in QuickBooks Online Essential)
• Class Tracking (not in QuickBooks Online Essential)
• Creates Estimates ((not in QuickBooks Online Essential)
• Invoices
• Time Tracking
• Reversing Journal entries
• Memorized Reports

FEATURES ONLY IN THE DESKTOP VERSION that would interest you as a Landlord

• Balance Sheet by Class
• Batch Invoicing
• Billable Time and Expense – reimbursable billing
• Business Planer
• Forecasting
• Calendar
• Change orders on Estimates
• Collections Center
• Condense Data File
• Customer Snapshot ((My pick)
• Advanced Excel Export that can update existing exported reports. My pick
• Industry Specific Reporting
• Lead Center
• Fixed Asset Manager – keeps track of your property data (My pick)
• Mileage Tracking (My pick)
• Progress Invoicing/Billing

FEATURES FOUND ONLY IN QUICKBOOKS ONLINE

• Remote Access
• Auto Send Reports
• Automatic Upgrades

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 for eviction 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.

As I’ve said earlier, for me the screening process begins the moment that an applicant walks through the doorway 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 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 ALL OCCUPANTS. By adding the words ALL OCCUPANTS to all my legal papers, it assures me that I am evicting everyone who is in possession of my home, including the dog!