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All Forum Posts by: Account Closed

Account Closed has started 30 posts and replied 853 times.

Post: Bookkeeping Methods for Small Investors

Account ClosedPosted
  • Retired Landlord/Author
  • Commerce Township, MI
  • Posts 1,252
  • Votes 1,038

I recommend QuickBooks Pro Desktop

Nancy Neville

Post: Tenant with no rental history

Account ClosedPosted
  • Retired Landlord/Author
  • Commerce Township, MI
  • Posts 1,252
  • Votes 1,038

CO-SIGNER !!!!

Nancy Neville

Post: Non renewal letter

Account ClosedPosted
  • Retired Landlord/Author
  • Commerce Township, MI
  • Posts 1,252
  • Votes 1,038

Usually you don't need a reason to NOT RENEW someone's lease.  Times have changed and there maybe States that say you need a reason. 

However, when I wished to not renew someone's lease, I told them why.  There always is a reason why because why would you want to get rid of them?

Dear Tenant (insert tenant's name)

Please be advised that I will not be renewing your lease  when it expires on (such and such a date).  I have decided to remodel this home and in order to do so I need to have it vacant.  Thank you so much for letting us serve your rental needs, and we wish you the best. 

Sign your name. 

The above is more or less a "Generic" letter to  politely not renew their lease.  

Nancy Neville

Post: PM Software

Account ClosedPosted
  • Retired Landlord/Author
  • Commerce Township, MI
  • Posts 1,252
  • Votes 1,038

Joe, what problems are you having with QuickBooks?  

Nancy Neville

Post: Setting up Bank Accounts

Account ClosedPosted
  • Retired Landlord/Author
  • Commerce Township, MI
  • Posts 1,252
  • Votes 1,038

Another thought to help you out.

Using the Class Feature of QuickBooks, helps you designate what repairs you do on what properties.  Also what rental property generated that income.  

You can do a Profit and Loss Report by Class to get your bottom line per property.

I had 40 rentals and some were multi-families.  This means I had 4 units inside an apartment building.

I would setup a class for the building, (because I would have repairs for the building, which the tenants are not responsible for) and then I would list the units inside that building as a sub class, (because units have their own repairs, and sometimes the tenants are responsible for those repairs)so by using the Class Feature of QuickBooks you are able to distinguish which expense belong to the tenant and what ones belong to you.

Just a little tip.

Nancy Neville

Post: Setting up Bank Accounts

Account ClosedPosted
  • Retired Landlord/Author
  • Commerce Township, MI
  • Posts 1,252
  • Votes 1,038

A lot of unnecessary work going on here!

You will have to set up a separate company file for each LLC. (As Andrew stated above) This is because each LLC has its own name and therefore will have it's own tax filing.

Once you setup each LLC in its own company file then you will be able to set up a bank account for that LLC and you will deposit all income to that bank and write checks for all properties under that LLC (expenses) and come up with an accurate Profit and Loss Report and Balance Sheet.

To account for all non-specific properties, in each LLC; let's say you purchased tools to work on all your properties, you will list that expense as an "Office Expense" and then you can sub-categorize these expenses as "tools" etc, since you will be using these tools for all properties no matter what house you are working on. However, if you buy a vanity, this will be for a specific house, that will be linked (via the class section of QuickBooks) to that particular LLC and that particular home that you are working on in that LLC.

I see so many people make too much work out of using QuickBooks, when really QuickBooks was developed to take the "Load off" of you so you have time to buy more properties and be successful.

Nancy Neville

Post: RE Accounting Software

Account ClosedPosted
  • Retired Landlord/Author
  • Commerce Township, MI
  • Posts 1,252
  • Votes 1,038

I recommend QuickBooks Pro for landlords.  

Nancy Neville

Post: NEEDED: Bookkeeping real estate software

Account ClosedPosted
  • Retired Landlord/Author
  • Commerce Township, MI
  • Posts 1,252
  • Votes 1,038

I owned 40 rentals which included apartments, duplexes, multi-families and single family homes. 

Any time I wanted to buy another house, I'd print out my P&L and my Balance Sheet, and Also My P&L by Class (Which is a Profit and Loss per property), giving me my bottom line and net worth, per house and per unit.  

You know how long it took me to give my hard money lenders these reports?  The amount of time it took my finger to click on the print key using QuickBooks, because it was already done the moment I clicked on the report.  

Nancy Neville

Post: Inherited Our First Problem Tenant, Please offer any suggestions!

Account ClosedPosted
  • Retired Landlord/Author
  • Commerce Township, MI
  • Posts 1,252
  • Votes 1,038

THE EMOTIONAL ASPECTS OF DOING AN EVICTION by Nancy Neville

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 law suit 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 (that Notice to Quit for Non Payment of Rent) 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 less 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!

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 law suit 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.

Post: My First Eviction! Help! I need some perspective.

Account ClosedPosted
  • Retired Landlord/Author
  • Commerce Township, MI
  • Posts 1,252
  • Votes 1,038

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