My name is Mindy Jensen, and I’m the Community Manager for BiggerPockets.com, the real estate
investing social network.
I spend a LOT of time in the forums, and while I have a lot of tips and tricks based on my
own experiences, I’ve picked up some pretty amazing tips from my fellow investors on the
site.
Here are 10 of my favorite not-so-obvious tips for real estate investing success.
Tip #1.
Inherited tenant refused to provide a key to the property.
This situation should not even be given an opportunity to happen.
Always get a copy of the key to the property - and verify that it works - before you close.
If the selling landlord doesn’t have a copy, they can get one from the tenant - it’s
a sure bet the tenant has one!
However, if this situation has already passed, and the tenant refuses to give you a copy
of the key, make your own.
First, give your tenant proper notice in compliance with your state’s landlord tenant laws,
then have the property rekeyed by a locksmith.
Leave one copy of the key in a real estate agent-style lockbox with code access.
Inform your tenant of the code, then retrieve the lockbox at a later date.
If you’ve got a combative tenant like this, you may want to consider not renewing his
lease.
Tip #2.
Your tenant wants to install cable/dish/satellite Have a move-in checklist that the tenant signs,
stating the condition of the property at the time they take possession.
Make a separate checklist that goes over every single important part of the lease, and includes
a space for tenant initials so, if necessary, you can prove at a later date they were informed.
Do not allow any installation of any service without your permission and make sure to specify
in the lease that it must be professional installation.
It is also good practice to give you a deposit to return the property back to its original
condition once they move out.
Tip #3.
If your Tenant Threatens a Lawsuit The very moment a tenant utters the word "attorney"
or “lawsuit”, cease verbal communication immediately.
Then notify them in writing that you will only communicate with their attorney.
Many times, this is the last you will hear from them.
And remember, text is currently NOT a legal method of notification in all 50 states.
But the US Postal Service is.
Tip #4.
Handling Late Rent Have a clause in your lease for Late Fees
and charge them as soon as your state laws allow.
Consider adding a phrase in your late fees clause that says something to the effect of,
“Regardless of tenant directives, any money collected will first be applied toward any
outstanding bills or late fees, then applied to rent.
Partial rent payments will NOT be accepted.”
Many states accepting partial rent payments stops or forces a restart in the eviction
process.
Tip #5.
Moving out or returning the security deposit.
In order to avoid confusion, spell out exactly what you expect the property to look like
when your tenant returns it to you.
Consider creating a checklist that dictates clean carpets, clean walls, clean appliances,
clean drawers, ceilings and corners free from cobwebs, toilets free from stains, window/sliding
door tracks free from debris/dirt.
You want to make sure that there are no surprises at the end of your relationship with your
tenant and you want to make sure you get a clean property back.
Tip #6.
How to return the security deposit.
Always get a forwarding address.
When the tenant returns the keys, ask for their new address so that you can return any
portion of the security deposit.
Now you don't want to tell them that they are getting their deposit back, word it in
such a way that they won't know for sure until you go through the unit, but you need to return
it within (insert state security law timeline here) and therefore you need their new address.
Tip #7.
Multiple Roommates.
In a multiple tenant situation, you want to make sure each tenant qualifies individually
for the entire rent, and that they know they are individually responsible for the rent
should all other roommates not pay or some roommates leave the property.
You'll save yourself an enormous amount of hassle by only accepting one check per unit
which forces the tenant to come up with the entire amount before they give it to you.
Remember, partial rent will never be accepted.
Tip #8.
Get multiple emergency contacts for prospective tenants on their initial application.
If your application has only one space for an emergency contact, consider an additional
sheet with a few more.
This will give you more numbers to call to track down that tenant who skipped out on
you.
It's a good practice at lease renewal to ask the resident to update some of their contact
information as most property management companies and owners don't do this.
If the resident leaves you with damages or unpaid rent, it gives you more numbers to
call to try to get 100% of your money versus sharing it with a collection agency....but
if you do use an outside agency, it gives them more numbers to call as well.
Tip #9.
Eviction Notice Once residency has been established - whether
you know about it or not - you must evict each person by name (or use the all encompassing
et al) in order to get the property back.
Tip #10.
Tenant Notification Carry a briefcase in your car that has all
your forms in it, so you can be ready at the drop of a hat to give notice, instead of having
to drive back to your office to get the forms.
Oh!
Bonus tip #11.
Lease Renewal Inspection Do a walk thru of apartments 2 weeks before
you offer a lease renewal, call it a lease renewal inspection.
This way if the tenant was not taking care of the unit you have the option of not offering
a renewal.
I want to give a HUGE thank you to everyone who provided those awesome tips from the forums.
For even more priceless information, visit www.biggerpockets.com/forums.
This is Mindy Jensen for BiggerPockets.
I'll see you around the site.