All Forum Posts by: Account Closed

QuickBooks Online is more expensive than the Desktop Version because you have to pay a monthly fee.  Plus it really isn't for landlords.  

I wrote an article a couple of years ago as to why one needs a 'GOOD' Profit and Loss Report, that engulfs great detail and I have included it in this post to you.  Hope it helps you make your decision.

Your Profit and Loss Report is your Resume!

I know that when we are new to this business, we are hesitant to spend more money than we think is necessary, after all, we have spent a ton of money on the rental home and getting it ready to rent out, so to think of anything else like a financial software program, is just not on the list of things to do, at least for now. We only have a house or two, we say.

And just because we got away with not having a professional layout when we got the mortgage for our first rental or even second rental, we think it's okay just to present a mortgage company, bank or hard money lender, just some figures written down on a piece of paper or on an Excel Spread Sheet.

But what happens when the time comes when you want to really expand. A money lender is going to want more than just an excel spread sheet, sometimes even after your first house is purchased and you are on your second. They want to see that you are truly a professional. A real business that has a lot on the ball. Especially if you plan to expand. They want to see that you have grown as well by how well you run your company.

QuickBooks and CPA's are usually very best friends with each other and that says a lot to your money lender. It tells them that you are serious about your business and are interested in keeping track of every penny you spend, by keeping expert reporting on every aspect of your investment properties. And you have chosen a software program that is popular with CPA's.

If you are an employer and an applicant applies for a position with you and hands you their resume done via an Excel spreadsheet, verses someone who hands you a professional resume done through Microsoft Word or some Resume software program, which one would you think would be the best suited for the job, based on both applicants having the same qualifications? Looks do matter, especially to business people. Especially to someone you want to borrow money from.

QuickBooks is an expense account. Right off the bat you are able to list QuickBooks as an Office Expense. So there is no excuse for saying I can't afford it right now. If you can afford a house, you can afford QuickBooks, (or any financial software program that is professionally suited for businesses) a computer, a printer, and the equipment you need to run your company. It is a must, that you also include this as an investment.

Many mistakes new investors make is to skimp on their office equipment. It is just as important as the rental home you purchased.

This Industry has to do with legal issues, and many law suits, and if you don't have the best to protect your investment, then you won't be in this business very long.

I know, it seems silly to think that by investing in a financial software program verse Excel will make any difference at all, but it truly does to the person you want to borrow money from. It could make a difference between you getting that home or that other investor who also applied. 

A tenant can say anything they want regarding a Non-Renewal, but not renewing a lease is the last bit of free choice us landlords have left at this time.  

The tenant can sue for anything.  A tenant can say and accuse you of anything, but when it comes down to going to court, a Judge can't force you to renew a lease agreement when their contract is over with.  A lease agreement is a legal contract!  When it expires.....it's done!

If a judge could force you to renew a lease agreement, we'd be able to use a rental car longer than the contract allowed, tenants could rent from us forever and ever and ever, because a termination date would no longer be valid any more.  

Now a termination of tenancy is different.  The Judge will look at a landlord with an eagle eye as to why you want to terminate a tenant,  whether it is for non-payment of rent, or because they live filthy (no reason to evict) or you just don't like them.  But for non-renewal when a LEASE EXPIRES, no law in the land can make you renew that lease.  

Look, I've been through this  a hundred times, tenant tried everything under the sun with the Judge in order to stay.  The Judge looked at me and asked, "Do you want to renew his lease?"  I replied, "NO", and she turned to the tenant as said, "Your landlord doesn't wish to renew your lease.  You have 10 days to move".  This was a case I wrote about on my Blog on here a few years ago, called, "Dear Martin", the funniest and oddest case I had in my 13 years as a landlord. BTW I handled all my cases in court myself, and never lost a case :)  

Nancy Neville

A non-renewal of a lease is just that.  You don't wish to renew the lease.  No law broken there!  Give your tenant a proper notice stating that you will not be "renewing" their lease.  You don't need to give a reason since it is not an eviction.  It is a Non-renewal of a lease.  However, I always gave a reason because that is the decent thing to do.  In your case, in order to be kind, just say that you plan to upgrade the unit and raise the rent and you need the unit vacant in order to do it.  

Nancy Neville 

You have to follow his Lease.  But I don't understand....his rent is due before the 1st?   There isn't a due date on his lease?  So let's say his rent is due before the first, and July 1st is here and you receive no rent.  Until he actually hands over the keys to you, his rent is due, and therefore that Notice to Quit should be sent.   (It's best to protect yourself just in case.  If he pays his rent, you've just wasted your time and a stamp.  But, if there is one item left in that apartment or house on the first, he owes you rent and therefore you've covered yourself by sending that Notice to Quit)

I wrote this as you were posting Kelly.  

Nancy Neville

You have to follow his Lease.  But I don't understand....his rent is due before the 1st?   There isn't a due date on his lease?  So let's say his rent is due before the first, and July 1st is here and you receive no rent.  Until he actually hands over the keys to you, his rent is due, and therefore that Notice to Quit should be sent.   (It's best to protect yourself just in case.  If he pays his rent, you've just wasted your time and a stamp.  But, if there is one item left in that apartment or house on the first, he owes you rent and therefore you've covered yourself by sending that Notice to Quit)

Nancy Neville

Marcia gives very good advice and you can most likely find her articles by clicking on "Tools" on the upper task bar of this page, and then selecting File Place from the drop down list.  But until then here is an example of mine.

THE EVICTION PROCESS:

First of the month rent is due (No matter what crisis the Tenant(s) may be
going through. Rent will be due on or before the first of every month. (Allowing for weekends and Holidays) No excuses will be accepted as to why rent is late.

Second of the month 7 Day Notice to Quit is sent to the Tenant(s). If rent is not received in my office on or before the 1st of the month (allowing for week-ends
and Holidays) than rent is late and a 7 Day Notice to Quit will be sent to the Tenant(s) ..No exceptions.

5th of the month. THIS IS NOT A GRACE PERIOD. If rent is not received in my office on or before the 5th of the month, allowing for week-ends and Holidays, then a $25.00 late fee is charged in addition to all monies owed up to this date and a $3.00 per day late fee will be charged from the 5th of the month until all money is
received in my office.

If rent is received in my office after the 5th three times in a row, then the late fee will be charged on the very first day rent is late which will be the 2nd of the month and a $3.00 per day late fee will be charged until all rent is received in my office.

10th of the month If rent is not received in my office on or before the 10th of the month then on the 11th of the month I will be filing for eviction for non-payment of rent and all legal fees and administrations fees will be charged to the Tenant(s) in addition to all other monies owed.

11th of the Month I file for eviction and all legal fees, administration fees and late fees and all monies owed will be charged against the Tenant(s).

Check to see how they are paying their bills now via the Credit Check.  Also make sure you have these Co-Signers.  Get all of them if you can.  The more co-signers, the better your chance of collecting damages, past rents, etc. 

Four years is a long time.  It's time for them to have a chance, but only with a co-signer.  2009 through 2012 was a bad market for Real Estate.  People lost their homes, and landlords lost them as well.  Jobs are gone, lot's of lower pay for people.  

Get that Co-Signer and I think you're good to go.  BUT see what's on that Credit Report...that is a must !

Nancy Neville

So in other words you are rewarding bad behavior, and then when they come to us, we have to deal with it.  

You speak of no repairs?  Tenants who have done this to you, will leave damages.  Heck, good tenants leave damages. 

So you made $100 grand in 3 years.  You have $3,500.00 in unrecoverable rent.  And $2,000 in late rents.  But once again, what is your total expenses per month, for damages and repairs? You don't mention this. That will make a difference, and how many propertied do you own?

I realize you believe you are being the "Good guy".  But allowing people to live this way, not teaching them to be  responsible  adults is not helping them.  It really isn't a kind deed, even though you think so.  

Just my opinion. 

Nancy Neville

Here's my story.  It may encourage you and others.  I was a landlord in the City of Detroit for 13 years (my husband for 30 years)  and we owned properties in high falootin area's and we owned some in some area's that were good but had turned bad.  You know what I found out?  I had some pretty bad tenants in my high falootin area's and I had some pretty good tenants in my bad area's.  

We need to know that this is a business of "People Management", good contracts (lease agreements) and how well we implement the rules.  I treated everyone, no matter how wealthy they were or how poor,  in the same manner.  I chastised those who disobeyed the rules and read them the riot act when I needed too.  I took care of their emergency repairs immediately and the general repairs in the order they were received. They knew and trusted me (and that's a big thing...TRUST).

You can make a profit off this property if you know how to do what's morally right.  My tenants stayed with us for 20 years and hardly anyone less than 6 years, and we had 40 rental properties. 

The reason they stayed so long with us was because we had a good landlord/tenant relationship which entailed respect for each other, no matter what type of neighborhood they lived in or who they were.

Landlording was and still is in my blood.  I have a passion for it.  People seem to know when it's more than a business with you and my tenants always told me that.  So..... I hope this has inspired you! 

Nancy Neville

Your PM is EXACTLY RIGHT!   Listen to him or her. 

Nancy Neville