All Forum Posts by: Timmi Ryerson

I would suggest that you look into this right away.  You need to request reports for each repair and I would even ask for photos to be taken by the repair person and sent to the property management company who can then forward them to you.  I would ask for copies of the requests for  repair from the tenant.  I say this because when I had a property manager manage my mulitple duplexes, he was doing repairs on his own properties and charging them to me.  The other thing that happened was that he would replace damaged flooring with flooring that was a different color and type even if it was just a patch.  I would make a trip over to your property and arrange an in person meeting with the manager.  Have them take you through the property and point out where repairs were done.  This can be a serious breach of your contract if there are contractual descriptions of how repairs are to be handled.  And yes, I fired my property manager and managed them myself from then on.  (it was not worth it to sue for damages). As a result of this action, my vacancies almost vanished and the repairs that needed to be done were done quickly and well.  And yes all of my properties were out of state.

I see the same response to people who are looking for software and have only 1 or a few units.  They are constantly discouraged from using software. The fact is that software can very much improve your chances of success as a landlord no matter how much experience you have or do not have because it automates so much of the work and reminds you of important things. My thought is that everyone who has a rental deserves to look professional and reduce the work load through the automation.  One thing that should be automated is the accounting system.  When your tenant pays rent through a tenant portal, all accounting for that system should be done for you.  If you need tenant screening, it should be built in.  If you need to advertise your rental, you should have a free option and not have to put an expensive ad in the paper.  There are many other things software can do for you.  I use Smart Property Systems because it does all of this and is very affordable.  My tenants have never complained and like that they have transparency as to what is billed and paid etc.  Whether you use SPS or some other software, I recommend that all investors invest in a good software to help them be profitable.  

Your chart of accounts should be set up to collect data.  Your properties should be set up in portfolios.  I do not use Buildium.  I use a different software but if there is a portfolio available set your re up in one portfolio and your PM in the other.  Then pull reports based on the query you are looking for.  I am not an accountant but I cannot imagine having 3 each of the same account name.  It may break the system.

I have owned and managed properties for over 40 years.  I find that it is best to advertise for a handyman.  In the ad include experience with plumbing, carpentry, painting and electrical.  But usually unless it is changing out a socket or hanging a light fixture, something simple, I sub it out to a licensed electrician.  Get references from people he has done work for and interview him.  Actually it could be a her too.  I used a property manager one time.  Some are great and some are dismal. And there is everything in between.  With only one unit, I would recommend that you use software.  There are many software products out there.  You especially want one that will automate your rent collection, offers tenant screening built in and a way to advertise your unit when it is going to be vacant.  I say going to be vacant because you should advertise as soon as a tenant gives notice to vacate.  In this case start advertising in June for an August move in date.  There are software companies out there that charge little or nothing and using this software will organize you as a landlord.  It will make you look professional.  It will or should prepare your tax reports for you.  You can manage leases using the software and if you get one say in June, you can add all or your expenses for rehabbing to the ledger and they will show up in your tax reports.  

I have seen some tell newbies that if you have only a few properties using software does not make sense.  But frankly, I have found that it makes much more sense than using a property manager because you are in control of your investment.  Oh and be sure to screen any applicant who applies to rent your place.  Check credit, criminal history, eviction history and verify identity and then income with the employer.  Also call the previous landlord.  You may not always get the truth from the previous landlord but it is worth a shot.  On your application get the social in case you ever have to track them down for rent due.  Good luck to you!!!

Smart Property Systems. It is full service and priced for investors with only a few properties.

Quote from @Michael Hill:

Quote from @Timmi Ryerson:

The biggest mistake I see new landlords make is trying to be a friend to their tenant.  You are not their friend.  You should always be polite but this is strictly a business relationship.  They pay you rent and you let them use your property to live in.  No rent out they go.  If I have an issue with late rent, on the 3rd day I send them (through my software that links to their account portal) a 3 day notice to pay or vacate.  If they still do not pay, I file the paperwork for eviction. 

In my lease agreement I explain that if I am required to file for eviction, all costs will be born by the tenant.  That includes the cost of service and filing fees etc.  If they pay rent but it happens again, I give them a 30 day notice to vacate.  In this case, I would include the 30 day notice to vacate with the eviction papers so if they pay rent, they have already been told to move out  Now do NOT back down.  Kick them out!!  and in the mean time, (hopefully you are using software that has easy to use webfyers) advertise for a new tenant.  

You can expect that they will leave the property in poor repair.  So be prepared to do the work by scheduling the people you will need early so you can make the "turn" quickly.  If you can get in to do a preliminary inspection of the condition of the property, do so and take photos.  If there is any destruction by an angry tenant on move out, you will have proof.

 Be sure to use tenant screening for the new applicants.  That should also be easily available in the software you use for managing your property.  Just start with people who show enough income to easily pay your rent every month. (usually about 1/3 of their monthly income)

 What software are you using? I'm definitely interested. 

These tenants have decided that you are a pushover.  You were probably very kind to them when you met them.  Not all tenants take advantage of newbie landlords but you got one.  Rent is due and if it is late you do not have to listen to a sob story.  There is no tenant on earth that does not understand that rent is due on a date certain and if late they are out of compliance with the lease; especially when they have lived there for quite awhile and paid rent on time reportedly for years.  Issue a 3 day pay or vacate, a 30 day notice to vacate and on the 4th day after issuing the 3 day file eviction notice.  If they pay the rent it saves you the eviction, but your 30 day notice to vacate makes their lease terminate.  Hopefully you did not sign a new lease with them.  In your state that may pose some issues if the jurisdiction has temporary non eviction laws.  Be sure to check that out.  

Now about being a newby.  There are books you can read and organizations you can join that will help you learn what you need to know about being a successful landlord and liking your new position. Definitely look into your local NARPM club. I will also recommend that you test some property management software that has automatic rent collection and accounting automation.  I use Smart Property Systems.  It is very affordable and easy to use.  My tenants know that rent is due and pay it on time every month.  I don't have to talk to them on the phone or go to the property to try to collect rent.  I hope this helps you.  Get rid of your rude and disrespectful tenant.

You can use software like Smart Property Systems to track your flips and if you tenant and sell then you can also track that data.

Quote from @Abass Sheikh:

Just an update. The 2-week pay or quit notice is up, but the tenant has now made partial payment online (about a third) and promised the rest "very soon" but nothing yet. But with a new month starting tomorrow, we may be back to square one again. Does the partial payment mean the whole process (notices etc) have to be restarted or can eviction proceedings go ahead now? Yeah will get an attorneys in put too but wanted to get some general consensus here as well. Plus when is a good time to do cash for keys agreement (now or once the process starts rolling). Thanks in advance!

 Just give them a 30 day notice today.  Then they have to be out at the end of October.  You can collect the rent that is due that way.  If you use eviction, you should not collect any more rent.  The judge will assign the amount of rent to the tenant at the time of the eviction judgement. 

Abhishek Singhal  In my experience, it depends on what the contract says.  If there are terms for terminating the contract, read them carefully.  I cannot think of any reason not to share except that there may be a privacy issue in your state.  You at least need a history of the payments made if you do not have one and a copy of each tenant's lease and any other documents they may have sent to the tenant or visa versa.  If you are the owner of the property the lease is with you even though you had a property management company.  That company was your representative and does not have the right to withhold tenant information.  I would suggest that you go and patiently explain this fact and ask for what you need.  If that approach is not successful you will have to have a lawyer write a letter. Then find a place to write a review about the property management company and explain the issues.  I bet they will give you the information you want in return for removing the review.