All Forum Posts by: Nate Smoyer

@Nicole Dechow - no need to apologize for being unable to have enough verification to move forward.

"Thanks for your application, unfortunately we were unable to verify enough information to proceed moving forward."

I also refund people their application fee if I turn them away. Up to you if you want to do that, but that's how I try to make the rejection as fast and as clean as possible.

Hey @Nicole Dechow! ahh, Ephrata! I miss PA!

OK, This is where I'd put on my internet sleuthing hat.

Check for all social media pages of the landlord first to try to determine if the person is a real person. Search by phone number, email, and name.

Next, start your communication with a paper trail. Email or something that can be tracked. One of the reasons to first do your search on social then email is you want to ideally find some information that corresponds to online information that they give you. (email & phone being good indicators)

And for the next level, I've heard of some companies who use this method. You can ask that landlord for references. They have no obligation to give them to you, but you can always ask to try to verify that landlord is who they say they are.

Of course, checking your tenant's background, credit, and eviction record is just as important. Be sure to have them fill out the complete application. There should be no red flags! (that's a hard and fast rule for me) If you're feeling not 100% and you see one red flag, then stop yourself from proceeding.

Best of luck on this!

That's awesome, @Maksim Easley!

I rented to my friends with my first purchase, too. 

No matter where you get a lease or agreement, just make sure you get a clear agreement. It's important, not from the perspective of "What if my friends don't pay?" so much, but more so that everyone is in agreement as to what's expected. You can use the free lease agreements on Avail, or pick one up from a local realtor or other online sites. 

The tax side can be a little tricky, but it's worth working with accountant. You're living in the property and renting it out, so that changes things slightly, but not too much. The BP book on taxes is a GREAT READ, btw. I highly recommend it. 

Collecting rent, just make sure you dictate how that's done and make sure it's done on time, each time. I highly recommend not accepting cash. If you're going to do check or Zelle or Venmo, make sure its the same each month. I specify in my lease agreements payment is done through Avail (for obvious reasons). I also set up a separate bank account for my rental, so cash flowing in and out is easily accounted for at the end of the year.

Cheers man! Good on you getting started early!

Congrats @Daniel Steeves!

I also inherited tenants on my first house hack. Slightly different though since my house hack was a SFR and I moved in with my new tenants/roommates.

As already mentioned, set expectations immediately. This was the smartest thing I did. Both of my tenant were month to month. We signed new leases immediately with my new rent rate. One of the two however was not willing to accept any rent increase (he actually wanted a reduction), so that helped make way for two friends of mine who wanted to move in with me. 

One common misconception with "setting expectations" is that you have to be mean or the bad guy. However, that's not true. Setting expectations is just establishing rent amounts, inspections, repairs, proper communication channels, times they can contact, what is and what is not an emergency, etc. Doing this removes an uncertainty and will help move things along. Once thing I've heard @Brandon Turner mention in BP podcasts is to shift the blame from "I make the rules and it works this way..." to "These are the rules I have to enforce because of my partner/associate/system...". This way you still set the rule, but align with the tenant at the same time.

Post an update in a month or two. I hope to read things are going well then!

@Asa Ifill - without repeating too much of what others have said screening is so important. But not just screening tenants, screening where and what you buy can be just as important.

You can run eviction, background, and credit check all day--but there are some areas that only certain types of tenants are likely to live for many different reasons.

BRRRR may not be right for everyone, just as flipping isn't right for everyone. I'm definitely not built for running a flipping business.

I will add on thing. It's always wise to stashing a portion of your rent aside for future damages and repairs. Whether its wear and tear or tenant negligence, you'll want to have a reserve to pull from to cover your damages. This is something that should be factored on the front end when you purchase a property.

Best of luck!

I'm looking a few deals that are in a C-class neighborhood. It's a rental heavy town with lower-middle class earners. You have to know your neighborhood in this town, but there's good areas and opportunities.

I know my risk of eviction is higher based on local stats, so I'm trying to mitigate the risk with eviction insurance.

I'm curious, who else is using this and has it been worth it to you?

I know this is an older thread, but it might help others.

I've been a Cozy user for a few years, but just switched to Avail.co.

What I like about Avail is their tenant screening process and digital lease creation is MUCH better (Cozy doesn't help you write your lease nor provide guidance on local/state laws to consider). Also, pretty sure Cozy doesn't list to Zillow, Zumber, and Hotpads all at once like Avail does.

Avail also has a free plan and assesses a small charge to the tenant for payments (though you get your payments in 3 days versus 8). 

I know there's a ton of options, and you could probably get away with just spreadsheets, but your investments are worth operating like a real business so it's worth using the best tools available.

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more to be announced...

Tech by:

RealKey - Get the right documentation and information the first time to close quickly. A web-based platform that automates documentation collection between all parties involved in the mortgage process.

Xspaced - The easiest way to process rental payments for landlords and tenants.

more to be announced...

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Join us for a full day of educational sessions, technology demos, food, drinks and networking with some of the top minds in Real Estate and Technology.

***Agenda and Speakers to be announced soon***

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***Tickets are non-refundable***

TET Conferences offer a safe environment to all attendees regardless of race, gender, skin color, sexual orientation, religion, etc. We will not tolerate any harassment, discriminatory, racist, language or behavior. Anyone who will act offensively will be removed from the premises.

For demo tables and sponsorship applications please fill out this form:

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TET Conference brings together Top Realtors, Brokers, Founders, Investors and Leaders to discover the latest in Real Estate Technology and Innovation.

Our speakers share their thoughts about what’s trending, what matters most and what’s next.

Here’s what to expect:

10+ Sessions: Delivered by the top 20+ real estate top producers, marketers, entrepreneurs and influencers.

- How technology is changing the Real Estate landscape

- Current and Upcoming Real Estate Trends

- Best Technology Tools and Services for Realtors and Brokers

- What’s Next for Realtors and Brokers—a Look Into the Future

- Social Impact and Responsibility

- Culture: Diversity and Inclusion

- Challenges facing the Industry

Latest RE Tech tools: See and try the tools that are powering billions in Real Estate Transactions in California.

Emerging technologies: Learn about how new technologies and tools are changing the RE industry.

Confirmed Speakers

Mark Choey (Co-founder @ Climb)

Dave Garland (Partner @ Second Century Ventures, NAR)

Anthemos Georgiades (Co-founder, CEO @ Zumper)

Alex Pelin (Founder @ TET)

Kenny Truong (Director of inside sales @ Climb)

Jessie Beaudoin (Founder @ Callaction)

Alexandra Tieu (Head Area Broker | Los Angeles @ Movoto)

Andrew Flachner (Co-Founder, CEO @RealScout)

Anthemous Georgiades (CEO of Zumper)

more to be announced...

Tech by:

RealKey - Get the right documentation and information the first time to close quickly. A web-based platform that automates documentation collection between all parties involved in the mortgage process.

Xspaced - The easiest way to process rental payments for landlords and tenants.

more to be announced...

__________________________

CLICK HERE TO REGISTER

__________________________

Join us for a full day of educational sessions, technology demos, food, drinks and networking with some of the top minds in Real Estate and Technology.

***Agenda and Speakers to be announced soon***

***This page is actively updated and is subject to changes***

***Tickets are non-refundable***

TET Conferences offer a safe environment to all attendees regardless of race, gender, skin color, sexual orientation, religion, etc. We will not tolerate any harassment, discriminatory, racist, language or behavior. Anyone who will act offensively will be removed from the premises.

For demo tables and sponsorship applications please fill out this form:

https://docs.google.com/forms/d/1gvMgcnL8B-qZX5ImkZlrv5nbIlkeGbF-MtRwwr0jCR4/

Volunteers can register here:

https://docs.google.com/forms/d/1UV2DwrMfOwIqPn4P-mTIOTXgRhwUwQsk7VJSIjNmNTA/

Register Today! 

@Patrick Britton - no problem.

BTW, I'm moving back to Bellingham late next week. Looking forward to joining the meetups again!