His professional real estate management and investment credentials include CRE (Counselor of Real Estate), CPM (Certified Property Manager), ARM (Accredited Residential Manager), CCIM (Certified Commercial Investment Member), PCAM (Professional Community Association Manager), and GRI (Graduate, Realtor Institute). Robert is a National Faculty member of IREM and a National Apartment Association (NAA) and California Department of Real Estate Certified Realtor.
Introduction
I would certainly like you to read every word I have written in this book, but I understand that you are a busy man. You are one of those people who made a conscious decision to become a rental property owner.
So You Want to Be a Landlord?
You are an accidental property owner - someone who, through a series of circumstances, has suddenly and unexpectedly been given an opportunity to own property. Many property owners find themselves in the rental housing business almost by accident, so if you count yourself in this group, you are not alone.
Renting Your Property
The Brass Tacks of Managing Rentalsof Managing Rentals
Techniques and Tools for Managing the Propertyfor Managing the Property
Closing day has finally arrived on your escrow and the ink is dry, so turn here to find out what your immediate priorities are as you take possession of your new rental property. Finally, since landlords and property managers are sued more often than any other business entity, you definitely want to review crime, fire protection, environmental hazards, and the safety and security of your rentals—and I'm helping you do that here, too.
Money, Money, Money!
The Part of Tens
Property Management Kit for Dummies, 2nd Edition, is designed to be perfect for experienced or seasoned landlords, as well as newbies who still think all tenants are nice and quick with rent payments. Property Management Kit for Dummies, 2nd Edition, helps you protect your investment and maintain your sense of humor and sanity as you navigate one of life's most unpredictable professions: property management.
The chapters in this part walk you through the process of figuring out if you have what it takes to manage rental property or if you're better off leaving it to a professional—someone you hire to do the dirty work. to do for you. This is the part for you if you're just starting to think about buying a rental property but aren't quite sure what it entails.
Property Management 101
Property Management 101
When you manage rental properties, you gain the skills you need to become a successful real estate investor. However, I believe that any rental property owner should acquire this real estate investment expertise through years of active work as a property manager.
Renters drive rental property management
Often these properties are the first choice for real estate investors who plan to live in one of the units or want to take the next step by investing in a single-family home or apartment. Regardless of what type of residential real estate you are involved in, you need to understand the basics of property management.
Factors that influence real estate as an investment
Before you can rent your property, you need to make sure it is ready for a tenant to move in. Ultimately, the best technique to showcase your rental property is to showcase the property, as I explain in Chapter 9.
Do You Have What It Takes to Manage Your Own Rental
Property?
Do You Have What It Takes to Manage Your Own Rental Property?
One of the biggest deterrents to financial independence through real estate investing is fear of management. The first encounter with property ownership for many rental property owners is their personal residences.
Home business opportunity
Whether you're sure you have what it takes to be a good rental property manager or you're still not sure, test yourself and your skills by answering the following questions. Even if you didn't answer all the questions in this section with an enthusiastic "yes," you may still be a good rental property manager if you're willing to be flexible and learn from your experience managing a property.
Managing Your Property Yourself or Hiring a Pro
Managing Your Property Yourself or Hiring a Pro
Check that the property manager and management company have valid licenses that are in good standing. Many property managers use their owner contracts that are written solely in the best interest of the property management company.
Taking Over the Proper ty
Taking Over the Property
Most state laws require the seller and/or buyer of a rental property to advise tenants in writing of the status of their security deposit. One of the most important steps you tackle when getting your new rental property is securing insurance coverage.
A final walk-through can save you headaches
But if you are already at the rental property submitting your letter of introduction, you can schedule a convenient time to meet. And if you're looking for more rent, be willing to reinvest some of the rent increase into improving the rental property.
Buying unoccupied rental property
Of course, if you have a very good and stable tenant, you can consider more substantial improvements to the rental unit. Although tempting, be careful about making significant renovations or repairs to the rental property before closing the escrow.
Renting Your Property
The chapters in this part guide you through the process of actually renting a property - everything from preparing the rental unit to determining the rent and advertising. I also give you some great tips for showing your property to prospective tenants and the importance of good tenant screening policies.
Getting Your Rental Property Ready for Prospective Tenants
Get ting Your Rental Property Ready for Prospective Tenants
You want to be sure that your tenants' first impression of your rental property is a positive one. A prospective tenant's positive first impression of the exterior of your rental property quickly disappears if its interior is not as sharp and well maintained.
Curb appeal in a community association
- Select and purchase the paint you want to use
- Take everything off the surfaces you’re painting
- Strip all dirt from the painting surfaces
- Check that walls are properly patched
- Replace everything you removed from your painting surfaces, after the paint has dried
- Clean up any lingering mess
Cleaning the carpet or floor covering is the last step in preparing your rental unit for new tenants. Every day that your rental unit is vacant costs you rental income that you can never recover.
Rent, Security Deposits, and Rental Contracts: The Big Three of
Property Management
Rent, Security Deposits, and Rental Contracts
For example, if you feel that the comparable monthly rent for your rental property is $1,600, estimate your expected rental income based on a conservative asking rent of $1,500 per month. month. You can do this by formulating a marketing strategy to ensure that you get the best price for your rental property.
Dealing with potential rent control issues
Do not allow the tenant to miss or delay the payment of any subsequent deposit. Several states have laws that require rental property owners to pay interest on a tenant's security deposit.
Last month’s rent
A lease agreement, whether a lease or a month-to-month lease, is the primary document that sets out the terms of the agreement that binds the property owner and the tenant. Monthly leases give you much more freedom than rental contracts, as you can raise the rent or change other terms of the lease within 30 days.
Seeking the best of a lease and a rental agreement
FOR RENT: Generating Interest in Your Rental
Review the information from your marketing plan about the most marketable features and characteristics of your rental property and present it to rental prospects in your ads. Reach enough readers and you're bound to find a few looking for a rental property like yours on any given day.
Looking at your property through your prospective tenants’ eyes
Market conditions in your area dictate the appropriate referral fee level for your rental property. The condition of the sign reflects the image of your rental property - whether good or bad.
To address or not to address
It can be relatively easy to check the accuracy of your ad if you regularly subscribe to the newspaper. If your rental property e.g. non-landlord, after your ad has run for a week, a paper can give you up to an extra week of ads for free.
Executive Home for Rent
You may find that you are limited to a 3-x-5 card, but you can tailor your post to the people who will be most interested and attracted to your rental property. If your rental property has unique features like a garage or a large yard, you may have some additional promotional opportunities.
Handling Prospects When They Come A’Calling
Handling Prospects When They Come A’Calling
So you need to make sure that you can be easily reached at all times by prospective tenants - and current tenants. Using the phone isn't just about putting your phone number in your classified ad or on your rental board.
The telephone’s importance in property management
You can also use her number to confirm an appointment to view the rental property. You can also register detailed information about the rental property for your potential tenants; this tactic helps tenants pre-screen themselves.
Working vacation
Let the caller inquire about your rental unit and whether it’s still available
Greet the caller by name to develop a rapport
Ask the prospect for a return phone number
The whole purpose of the rental inquiry call is to get the qualified prospect to see your rental property. If your initial phone conversation goes well, the prospect will want to tour your rental property.
Creating a sense of urgency
Many internet sites can provide your prospects with personalized directions from her location to your rental property. Often the online directions do not offer the most scenic or time-efficient route to your rental property.
Strutting Your Property’s Stuff
Making Your Property Stick Out
Strutting Your Property’s Stuff: Making Your Property Stick Out
If you do, be very careful and only ask questions that are part of the rental application. By taking a rental unit off the market, you are giving up the ability to rent it to someone else.
Painting a clearer picture of lead-based paints
The concern with most rental properties is that asbestos-containing materials can be disturbed, releasing microscopic fibers that can be inhaled into the lungs. Even if the asbestos-containing material was originally intact, asbestos can be released into the air when the material is sawn, scraped, sanded into powder or subjected to certain mechanical processes.
The lowdown on asbestos
Almost every state has a version of Megan's Law, legislation that requires certain convicted sex offenders to register with local law enforcement. For specific information about Megan's Law requirements in your state, call your local law enforcement agency, contact Parents for Megan's Law (PFML) at 888-ASK-PFML, or visit www.parentsformeganslaw.com.
Eenie, Meenie, Miney, Mo
Selecting Your Tenants
Eenie, Meenie, Miney, Mo: Selecting Your Tenants
Be sure to tell your rental prospect that you may have a delay in providing him with the results of your tenant screening process. Your rental applicant must provide you with proof of his employment or other sources of income.
If it looks too good to be true, it probably is!
To obtain a consumer credit history, you should contact a tenant screening service in your area. With the wide selection of tenant screening services available, it can be difficult to decide exactly what you need.
Asking for a Social Security number or not?
If you join a tenant screening service, you can get discounts of 50 percent or more on any credit report. Charging an applicant for a tenant screening or a consumer credit report if you don't run one is illegal.
What’s in a name?
Unless otherwise approved in writing by the Owner, the Guarantor shall remain bound by the terms of this Warranty for the entire rental period as set forth in the rental or lease agreement and for any renewals pursuant thereto. One of the most difficult tasks you face as a rental property owner is informing a rental applicant that you have declined their application.
