All Forum Posts by: William J Anderson

Hello Ron,

We’re a small operation, but happy to share our experience—just don’t want to offend if you’re running on a larger scale. We used our BiggerPockets Pro membership to gain access to both RentRedi and Stessa, and we've been using them side by side.

We started with RentRedi and have been really satisfied with the tenant interface—especially for rent collection, maintenance tracking, and tenant applications. Most of our tenants were initially a bit hesitant with technology, but they caught on pretty quickly and have been using it without major issues.

We use Stessa mainly for its reporting, bookkeeping, and reconciliation tools. One of the features we really appreciate is how it connects directly to our mortgage accounts, banks, and credit cards—pulling everything into one space for easier tracking and management. We used to rely on a paid app called Dext to manage receipts, but that was before we had access to Stessa.

We haven’t tried out Stessa’s leasing or tenant application features yet, though we’ve seen that functionality is there. For now, RentRedi has handled that part of our workflow. However, we are considering moving to the paid version of Stessa later this year when our Dext subscription ends—we’d likely just transition everything over to streamline things further.

In a perfect world, we’d love to see the best of both platforms merged into one app. That would be ideal for a small business like ours, but honestly, even as separate tools, they complement each other well and give us room to grow.

Hope that helps!

Edd, great question—and you're absolutely right that month-to-month leases usually tilt in favor of the tenant unless you use them with timing and leverage in mind.

For context, I recently acquired a 5-unit building where I inherited several below-market leases. As each lease expired, I brought those tenants up to market rent—no issues. But now I’m dealing with the last three legacy leases, all of which happen to expire at the same time.

Of those three:

• Two are in large 2-bedroom units—one pays only 53% of market rent, the other 68%.
• The third is in a smaller 1-bedroom unit, paying about 72% of market.

Instead of offering across-the-board renewals, I made targeted decisions:

• I’ve offered new leases to the tenant in the 1-bedroom and to the tenant paying 53%.
• If they decline, they’ll receive 30-day non-renewal notices.
• The one paying 68% will simply roll into month-to-month—this gives me flexibility to end their tenancy with 30 days’ notice if needed, but also keeps some income flowing while I time my next move with the market.

This approach works well when multiple leases expire at once. It lets me control the turnover pace without blowing a hole in my cash flow or backing myself into a bad season.

You’re absolutely right—month-to-month should come at a premium when it’s offered as a choice. But when used as a strategic buffer, it can be a landlord’s tool, not just a tenant’s convenience.

Lucas,

I just wanted to take a moment to apologize if my previous response came across as too harsh or condescending. That was never my intent. I’m incredibly passionate about real estate and property management, and sometimes that passion makes me come off stronger than I mean to.

The last thing I want to do is discourage you from learning. In fact, I respect the hell out of the fact that you’re stepping up and trying to gain knowledge in this business. Property management isn’t easy, and anyone willing to take the time to figure it out deserves credit.

My concern was never about you personally—it’s about making sure you set yourself and your friend up for success. Mistakes in this business can be expensive, legally risky, and stressful, and I’ve seen too many people learn the hard way when they didn’t have the right knowledge or systems in place.

If I came across as talking down to you, I truly apologize. That wasn’t my goal. I just wanted to highlight the risks so that you (and your friend) can be better prepared. If you’re serious about property management, I’d actually love to help point you toward good resources—books, courses, or even personal experiences that can help you avoid some of the common pitfalls.

At the end of the day, we’re all here to learn and grow together. If you ever want to talk shop, swap stories, or discuss strategies, I’d be more than happy to. Again, my apologies for the way I came across—I only meant to be helpful, not discouraging.

Looking forward to hearing more about your journey, Lucas. Wishing you success in whatever path you take in real estate!

Best,

William J. Anderson 

Lucas, I respect your willingness to step up and take on property management, but I want to strongly caution you (and your friend) about the risks of managing a multifamily property without experience, certifications, or financial investment in the deal. While you're in Houston, Texas, and I’m not deeply familiar with local laws there, the core risks of putting an inexperienced manager in charge remain the same everywhere.

The Biggest Risks Your Friend is Facing by Letting You Manage the Property

• Texas has landlord-tenant laws on security deposits, repairs, evictions, and fair housing compliance.
• If you mishandle security deposits, maintenance requests, or notices, your friend could get sued or be forced to compensate tenants.
• Evictions require proper legal procedures. If you don’t serve notices correctly or follow the law, tenants could delay the process for months, costing your friend thousands.

• Professional property managers typically have Errors & Omissions insurance, liability coverage, and legal training to protect themselves and the owner.
• If a tenant sues for wrongful eviction, habitability issues, or a lease dispute, the owner is the one legally and financially exposed.
• You likely don’t have a property management license, which might be required for certain tasks.

• Good property management starts with tenant screening. Do you have a system to verify income, creditworthiness, eviction history, and rental references?
• A bad tenant can cause thousands in damages, months of unpaid rent, and expensive evictions. If screening isn’t done correctly, your friend will bear the consequences.

• Are you prepared to handle 24/7 emergency maintenance calls? What happens when the HVAC breaks down, plumbing leaks, or pests become an issue?
• Without a network of licensed contractors, you’re likely to overpay or hire unqualified handymen—leading to expensive fixes and possible city violations.
• Delaying repairs could mean code violations, tenant lawsuits, or loss of rent.

• Do you know how to legally enforce a lease, issue notices to comply/pay rent, and handle lease violations properly?
• If a tenant refuses to pay, one wrong move on an eviction notice can reset the process, causing your friend to lose months of rental income.
• Courts tend to favor tenants who can prove the landlord failed to follow legal procedures—and without experience, it’s easy to make costly mistakes.

The Harsh Reality: You Have No Skin in the Game

Your friend is putting up the money, the risk, and the liability. You don’t own the property, you don’t have legal or financial exposure, and you can walk away if things go south.

But if you mismanage the property, your friend is the one who:

• Loses money from unpaid rent and legal fees.
• Pays out-of-pocket for tenant damages.
• Faces lawsuits or fines for non-compliance.
• Deals with the fallout of a bad reputation.

What Your Friend Should Do Instead

• Hire a licensed, experienced property manager who knows Texas laws, tenant screening, and maintenance management.
• If you want to be a property manager, get trained. Look into certifications, legal compliance courses, and insurance before jumping in.
• Don’t treat this like a side gig. Property management is a legal and financial responsibility—not something you figure out as you go.

Final Thought

Lucas, I get that you want to help your friend, but this is a job, not a favor. Unless you get properly trained, insured, and structured as a real property manager, you’re likely to cost your friend more than you save. I highly recommend your friend hires a professional—because cutting corners on property management rarely ends well.

Hi Amanda,

I understand how frustrating and stressful this situation can be. Managing rental property is a business, and like any business, it must be run with a clear focus on financial sustainability. Here are a few key takeaways that may help as you move forward:

1️⃣ Investment property is a business. While we may extend kindness to tenants, rental income is not optional—it’s the foundation of our investments. Allowing a tenant to stay without payment for multiple months is not sustainable. Moving forward, consider enforcing late fees and ensuring that any extensions come with strict payment terms in writing.

2️⃣ The manner of our delivery is where we show respect. While firm action is necessary, how we communicate matters. Clear, professional, and documented communication ensures you maintain control of the situation while keeping interactions respectful and legally sound.

3️⃣ Know the law and act decisively. Your lease has ended, and the tenant is now overstaying without payment. If they do not leave by March 31st, you must act quickly. In most jurisdictions, that means immediately serving a formal written Notice to Quit and beginning the eviction process without delay. The longer you wait, the more losses you incur.

I encourage you to stay firm yet professional—this is your business, and it deserves to be treated as such. Wishing you a smooth resolution and all the best.

Ryan, If you're a BiggerPockets Pro member, consider using RentRedi or Stessa for property management. We self-manage our five-unit property with both—while RentRedi's reports can be clunky, Stessa offers much better reporting. RentRedi’s syndication marketing helped us secure a great tenant in under four days, including employment and landlord verification, as well as criminal, credit, banking, and eviction history checks. The platform allows simultaneous advertising on RentRedi, Realtor.com, Zillow, Trulia, and HotPads. While no system is perfect, RentRedi provides extensive written guides and YouTube videos to support users.

I am new in the relm of property ownership. However, in my short time I’ve found that tenant deception is by far the toughest part. Unfortunately, some renters will say anything—even things that make no sense in an alternate universe—to avoid responsibility or financial consequences. They often won’t tell you about problems until it affects their wallet, and they’ll flat-out lie if it suits their needs. This constant worry about honesty and transparency can really take a toll on the property owner. 

Hello Alec, 

 Thanks for sharing your approach to tenant screening—it’s great to see how others manage this important part of the process. I’m still learning the ropes of property management, so I really appreciate the opportunity to exchange ideas.

At our property, we have a structured screening policy influenced by the Federal Fair Housing Act since our location falls under its scope. We aim to balance thoroughness with fairness to ensure compliance. Here’s how we handle applications:

• Income Verification: We require proof of income that’s at least three times the monthly rent, verified through six recent pay stubs and a detailed employment verification process. This includes contacting the applicant’s employer and speaking with their supervisor to confirm job stability, income, and reliability​. if the person has not been employed at their place of employment they would require a guarantor
• Credit Score and Debts: Applicants need a minimum credit score of 620, and while we review debts, medical debts are generally not disqualifying unless they impact overall financial health.
• Criminal History: We do review criminal history to ensure safety and security for our tenants, while remaining mindful of state and federal guidelines.
• Rental History: Positive references from past landlords, with no evictions or significant lease violations in the past five years, are essential. and we can see into the court system if they have an eviction judgement.
• Release of Information: We include a release form allowing us to verify employment and rental history directly, which helps us get a clearer picture of an applicant’s background.

This process has worked well so far, but I’m always open to improving. I’d love to hear your thoughts on striking the right balance between being thorough and adhering to fair housing practices.

Thanks again for starting this conversation—it’s incredibly valuable to learn from experienced property managers like you!

Hello Tiffani Hollis, 

Congratulations on stepping into the realestate game. I am new in the arena too. I think that rehabbing a property is no small feat, especially if you're trying to maximize your budget. A question we faced was the exact same: Should we buy used appliances or go for new ones with warranties? 

When we rehabbed one of our units for the first time, We found good success buying from a secondhand shop. They tested the appliances thoroughly and offered a one-year guarantee. This was a cost-effective way to meet our requirement of providing just a stove and refrigerator (we don’t include washers or dryers), without breaking the bank further.

But here’s the twist: If we were upgrading appliances for a long-term tenant with a stellar payment history, we might invest in brand-new appliances. A warranty can bring peace of mind, especially if the tenant values quality and reliability.

Here’s our rule of thumb:

• For budget-friendly rehabs: Used appliances from a reputable source can be a smart choice. Look for shops that test and offer guarantees.
• For valued tenants or premium units: New appliances might be worth the investment for their reliability and long-term durability.

Ultimately, your decision depends on your goals. I would think about tenant expectations and how much maintenance you’re willing to manage down the road. Either way, weigh cost, quality, and peace of mind to make the best choice for your property. All the Best!

Thank you, Scott, for your thoughtful and detailed response! Your advice about understanding the underlying accounting and how the numbers are generated is an excellent point—I can see how that would help me identify any gaps or inaccuracies in the financials.

I also really appreciate the insight on how T-12s differ based on the number of units. That perspective will help me focus on developing and reviewing statements tailored to the scale of my property. Starting with three T-12s from properties of a similar size and market is a fantastic strategy, and I’ll definitely take your suggestion of setting aside time to really dig into the details.

Thank you for the encouragement and practical tips—it’s advice I’ll take to heart as I move forward. I appreciate you sharing your expertise!