A lot of crappy landlords out there. How do you be one of the good ones? Well
today, on Limitless Wealth TV me and Steven Michael Miller are going to break it
down for you and show you what it looks like to be a rock star landlord.
Friends, we are back and today we're talking about how to be a good landlord.
Because Steven are there bad landlords out there? There are bad landlords, and
there are good landlords. Well, and you know think about a property management
company it has a thousand homes. Like they got it figured out, systematized, but
you know who the bad landlords are? They're people like you and I that are
brand-new we're mom-and-pop shops and we don't know how to do real estate as a
business. So we got bleeding hearts and we're paying attention to people's
stories and sometimes we're the ones actually getting taken advantage of.
Unless, you learn how to do it appropriately, so today Steven and I are
going to break down the three most important things that you need to be a
good landlord. Alright, number one, you need to set the proper expectations. Now
it really all comes down to the very beginning. As you're getting into this
whole new scenario, this whole new world of landlording, it's from day one you set
the proper expectations. And those proper expectations aren't to be set verbally.
Just let me say that one more time. These proper expectations should not
only, be set verbally. In other words, if you have an expectation of what you want
from the people that are renting your house, make sure it's in writing. Please
if it's not in the contract, it's not in contract. Okay, so put it all in the
contract. If you expect them to clean up the yard and to maintain the yard, they
are put it in the contract. If you expect them to pay on time and if they don't,
there will be a penalty. Put it in the contract. If you expect that they can't
bring all their friends over and have... you know, to live in the home for
months and months and months. And if you don't want them to have cars in the
front lawn, on blocks you know or whatever, put it in the contract. And so
all those things, your expectations, what you have in your mind, needs to be put in
the contract, yes, verbalize it as well. But make sure
it's in the contract. Steven, this is where I think a lot of mom-and-pop shop.
Mom and pop shop means, you're brand new, you've got less than ten properties and
you're just trying to figure it out. And right now, you've got at times really
expensive learning curve because you just haven't done it before. And so
here's one of the things I want to share with you. When you're brand new, you're
brand new landlord, you've got a property. If your tenants have a personal
relationship with you, that can be a good thing but it can be a bad thing.
Because then it means, they might know where you live.
They might know that you're a human being, they're not dealing with the bank,
they're dealing with who? So the more you seem like a humanized human being, then
this is what you're going to find that some people do, especially if you have
entry-level housing. You're going to find that people, that real estate or their
rent, is their biggest expensive month. So when they're in a bind, are they going to
delay paying their cellphone bill or is it going to be the rent. Did I tell you no
one wants their cell phone shut off. So it's weird it's even though it's their
roof over their house, it's amazing than what people will actually do and allow
themselves to do and it can become a pattern, but I just want to tell you
right now that if you are landlord and this has started happening to you, they
are not the problem. You're the problem. The only reason why they would prey upon
you, is if you seem weak or it seems like you don't have your stuff down or you
don't have a system and so like Steve and I will teach lease options, that's a
very humanizing business. So we're going to talk about, how you can be an amazing,
compassionate human being, but knowing how to hold the line. Yeah, it is a fine
line. I love that you said that there because it is a fine line. We teach this
all the time that you want to be as a landlord, especially in that compassion
of financing realm, you want to be personable and you want to be flexible.
And you even communicate that you're open-minded, yet, there is a hard line. You
can be...You're going to be that person and and you're going to give them options and
ideas, but when it comes down to it, you're also going to tow the line. Yeah, so
bottom line, number one, you need to set proper expectations. You do that out the
gate and it's in writing. There's nothing you want to be verbal in your agreement
trust me, it will come back and bite your heart of the behind more often than not.
Okay, people easily misinterpret. It's amazing,
we're both there, we have the same conversation and we walk away with two
different perceptions of what actually went down there. So put it in writing. The
second one is, you got to have communication and it's got to be
systematized. Listen, all you got to do is walk into a property management company,
get a little friendly with them and you're start finding out. "Oh yeah, we
send the notice out on the 15th through email and in the mail. Then we do this
thing on the 18th and then by this day we do this. If three days late, then we
actually sent out this letter. If that doesn't happen two days later, we go and
we serve him knock on the door, then we call this like it's just a machine.
There's never, it's like writing computer code software. It's like if this
then that, and every single that happens up in landlording, has an
if/then that and so if you're brand new to it, you're like, "whoa what are
those?" I would encourage you to get to know some people in property management
and then just ask them. They'll share it it's not like it's you know it's it's
crazy information. In fact, you know what Nate, let's write that down. I want to do
a video on that. You should actually, we should talk about what are the basic
systems, because I can tell you some of the main ones right now is there's going to
be a reminder before rents due, there's going to be a letter they get on
the day that it's due, there's going to be this something that happens under x days
late. When we actually start picking up late fees and then you need to know the
system of at what point do I actually serve them and tell them that they have
you know, 48 hours to make the payment or it's their final and then they're out.
And then how do I actually get them out and how do I serve them the proper
paperwork. You know, you're not going to have to do a whole lot of evictions if you
got a good system. But this leads us to point number three. This one's
important because you know, I think so often, we live in a passive-aggressive
society, where we even say one thing... do what Americans dude... yeah.
Europeans, you ask a German, how you doing today? "Oh I got the runs, so bad but
they're going to be honest with you. In America, we're just a bunch of liars.
Truly how are you doing today, we're so, "Oh I'm great! Yeah that's like, he's
suicidal, yeah right. So you're going to be understand that, if you're going to say
something, if you're going to put it in in writing. If you if it's in the
contract, then no empty threats here. Like this isn't about empty threats. Put it
down on the contract and then take action on it. If your contract says that
if they're one day late, they get charged a $15.00 late fee, charge it. Then for
goodness sake charged a $15 late fee. If you one time, decide, "oh you know what, you
had a hard day, that's okay, I'll waive it this time." Just I'm telling you right now,
be personable. Give them a pinkie. But don't give in to the sob stories, okay?
The sob stories are there and they may even be real and and very, they may even
be feeling it and they went through a hard time and that's okay, you can be
sympathetic but still, stick to your guns. Most people live paycheck to paycheck.
And as a result, we need flexibility from time to time. And they're going to find
the flexibility one way or the other, they should not be finding flexibility
on rent. If you do that, you're not a pro and you're going to get hurt.
Maybe they're going to get her and it's going to turn out to be a bad
deal. So this is one of those things where you want to grow up really fast,
because you're not always dealing with responsible adults. It looks like it on
the outside, but often it comes down to oh well this happened, well this happened.
And you need to let me know. And I want to throw something in here that's really
important. This isn't about being mean or about being nice. No. Guys, this is
information and it's a business and so run it responsibly or else it's going to
run you. So instead of getting the runaround, you just got to make sure just
like Steven said, if it's in the contract you know the rules, don't have
any leniency on when you serve them, when you communicate, how you communicate, what
you're charging, you've got to let it be what its going to be, because a lot of
people when they're in a new relationship, the first six months they
come into some struggle and they want to know if I push, do you push back or do
you fall over? We all do it. Your kids do it. You know, your people, they were no
boundaries. They're going to do it as well. They want to know the boundaries and by the
way, if they push and you all of a sudden, bend, then I promise
you, it's going to happen again. Yup. Because it's the thing about life. Anyone
that financially struggles once, is bound to financial struggle again. That's
called basic pattern recognition and it's one of the very very valuable
skills. Now Steven, before we on this video, I just want to throw a little
bonus right? Absolutely. Because we talked about expectations, we talked about
communications and then we talked about taking action on the contract. But one
thing that I think you really got to stop and really ask yourself is, "should I
be a landlord? Do I want that?" Because anyone can be one, but I want you
to ask yourself. "Are you going to enjoy it? Are you made for it? Like are you the
kind of person that likes justice and enforcing rules?", because this isn't a
mercy play. That's a different business. This is a justice play. This is
the way it's going to be. And do you like exacting justice? You
know, it's not about being mean or nice, it's actually neither. You're going to
get information in your business and if the information today is everyone's
paying on time, I feel great. If next month, the
information is two people are late on their rent, I feel great, but I have
actions to take and based on the information and the computer code now I
need to send out this letter, I'm going to do a phone call. Have someone jump in.
Steve, what could someone consider if they are not really up for being landlord?
What are their options? Well you know, we say this all the time, which is if you
want something done right, don't do it yourself and we'll say that over and
over and over again. And what we really mean by that, is if you're not the expert
in it, then it can be really useful to find an expert. Just because you're
getting into the game of real estate, doesn't mean that you have to do every
single aspect of it on your own. There are people that are in property
management, like Kris and I talked about. Who have been doing this now for 15, 20
years who are really good at it. Who although there's a little bit of an
investment for it, that investment will go such a long way because it gets you
out of the weeds and gets you doing what you do best, which might be finding the
property or getting on to your next deal or maybe it's getting your next partner
to help you do the next five or six deals, right? So if it's not your
cup of tea, if it's not in your mode of operation already then maybe being a
landlord, isn't your best bet. Maybe you need to find someone else to help you
out there. Now I got to say that before you decide to go hire a property manager
and cut your cash flow down, you can double down and do the opposite. You can
take our lease option systems, watch our videos, let us show you how to do a lease
option. Where you're going to put in a little bit of work, but once you get the
property, it really manages itself and it's a beautiful hybrid. It's smarter,
it's greater cash flow, it's greater benefit to people in the community. And
so, if you had a choice between you know, which party go first? I would do a lease
option, before I ever did a landlording. In fact, the only time I really ever go
landlording is what I've got out of state property and out of state people
may not know how to do a lease option. I can do it very easily in my backyard. So
those are two options and then the third option, Steven was talking about just a
little bit we'll leave you on this note. Which is and this probably one of most
powerful things. We know how to do in real estate. Steven said, he actually
dropped a massive gold nugget on you. I'm not sure if you picked it up or not. The
golden nugget is that, everyone should be in real estate, but that doesn't mean you
have to do the parts you don't like. Steve and I, we help people make tons of
money by only focusing on the parts worth being good at. I'm going to say it one
more time, Steve and I show people how to make a
lot of money in real estate by focusing on the parts, that they should be good at.
Meaning, you should know how to find other people's money and dump it in real
estate, so that you can do the magic equation if no money
infinite return, right? In fact Nate, let's shoot another video on that because I'm
telling you right now, you got to subscribe if you're not part of this
channel. Because hanging out with us for a little bit, coming to some of our live
events, this is something that can help you become wealthy here and then become
wealthy here. And so friends, those are our bonus tips for today.
That's what it looks like for you to be a rock star landlord and we'll see on
the next video. Being a landlord might be right up your alley,
now after watching this video, you might be like no way Jose, but never let that
keep you from rocking it out in real estate. Make sure you check out our
website. See all of our different goodies of how we can help you crush it in real
estate.