EP216: Back to Basics: What Is a Lease?

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Although you might think the topic of leases is rudimentary, having an accurate lease is an important part of any rental property investing business. If you want to create passive income and cash flow, there are certain mechanisms you'll want to have in place.

On this episode of Investing in Real Estate, I'm sharing what you need to know about leases. I'll talk about the importance of investing in landlord friendly states, how long your lease should be, and more! This episode is for you if you're a landlord who wants to ensure everything goes smoothly with your tenants in your buy and hold investment.

More About This Show
A lease a legally binding contract between the tenant and the landlord. Its purpose is to protect both parties. The lease lays out the obligations, including the length of time, rental amount, procedures for collecting rent and more. Be sure to check out our list of the 5 most landlord friendly states to learn about investing in states that have your back as an investor! 

It’s important to note that a lease and a rental agreement are two separate things. A lease is a one-year contract (or other specified amount of time). A lease cannot be changed by either party, and is legally set-in-stone until the lease expires. A rental agreement, on the other hand, is a 30-day agreement that renews at the end of each month, unless either the tenant or landlord cancels the agreement. 

Either the landlord or their property management company should sign the lease, as well as all tenants over the age of 18.  In my experience, my property management companies are able to create a fantastic lease agreement. You can also work with lawyers, or find loose guidelines to use as a starting point online.

On today’s show, I’ll share more important details about constructing a comprehensive lease. I’ll talk about how long your lease should be, and where you should start to craft the best lease possible. You’ll learn about tenants, pet policies, and more!

If you’re ready to begin building a passive income through rental real estate, book a FREE call with our team today. We’re ready to talk about your goals and want to help you learn more about earning legacy wealth for you and your family.

On this episode you’ll learn:

  • How many pages should a lease be?
  • What is the purpose of a lease?
  • What happens if one party does not adhere to the lease agreement?
  • Should you consult a lawyer when constructing your lease?
  • And much more!

Episode Resources
5 Most Landlord Friendly States
Should You Rent to People with Pets?
Subscribe to Investing in Real Estate on iTunes
Find Your Financial Freedom Number
Subscribe to the Morris Invest YouTube channel

Like Morris Invest on Facebook

 What you need to know about leases. (The importance of investing in landlord friendly states, how long your lease should be, and more!)

EP166: How to Treat Tenants in Your Rental Property

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This episode of Investing in Real Estate is brought to you by Harry’s. For $5 off any shave set, including the limited addition Father’s Day set, visit harrys.com/realestate.

Without tenants, a rental real estate business cannot cash flow. In our real estate business, our philosophy is to treat our tenants well. We do this not only because we believe in treating people well in general, but also because we understand the importance of having tenants stay in order to produce monthly income.

On this episode of Investing in Real Estate, Natali and I are sharing how we handle issues with our tenants. We’ll talk about power exchanges, dealing with gray areas in lease agreements, and much more. Don’t miss episode 166 of Investing in Real Estate!

More About This Show
Some landlords take a cavalier approach when it comes to their tenants. They know that their rental property is an asset that they own, and that their tenants simply rent from them. Personally, we believe that having a big ego like that is dangerous.

We like to remember that an important piece of our business structure is creating a great home for an individual of family to live in. We have to remember our main purpose: to provide a home for families. We want our tenants to feel at home in our properties. Because of that, our relationship with our tenants tends to be flexible—it’s a give and take.

We certainly set boundaries, and we don’t want to be taken advantage of. In order to make decisions about what our tenants can and cannot do, we ask ourselves if what the tenant is asking will help them feel more at home.

If a tenant feels at home, they are more likely to stay long-term. The longer the tenant stays, the longer we receive consistent rent from that rental property. It’s important to remember that a rental real estate business revolves around humans. Not everything is black and white.

On today’s show, we’ll give examples of some things our tenants have asked of us, and how we have generally responded. We’ll talk about the importance of saying yes as often as possible, how we try to be hospitable, and more!

If you’re ready to begin building a passive income through rental real estate, book a FREE call with our team today. We’re ready to talk about your goals and want to help you learn more about earning legacy wealth for you and your family.

On this episode you’ll learn:

  • What is the value in allowing tenants to have pets?
  • Why is having a third party property management company important for dealing with tenants?
  • How can you set clear expectations in regard to property maintenance?
  • How can you deal with a tenant’s financial hardship?
  • And much more! 

Episode Resources
Harry’s
Subscribe to Investing in Real Estate on iTunes
Find Your Financial Freedom Number
Subscribe to the Morris Invest YouTube channel

Like Morris Invest on Facebook

 

 Tenants are a key part of your success as a landlord. Here's how to treat tenants in your rental property.

EP124: Best Practices for Managing Real Estate Cash Flow

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This episode of Investing in Real Estate is sponsored by Thumbtack. Visit thumbtack.com to find help in your area with more than 1,100 services.

As your real estate portfolio grows, it becomes impossible to remember things like when you receive rent payments, when insurance is due, and other details about each individual property. That’s why it’s incredibly important to have a system in place to account for your cash flow.

On this episode of Investing in Real Estate, Natali and I are sharing our system for managing cash flow in our real estate business. This is something we wish we had implemented back when we just had one or two properties. The sooner you have a solid system in place, the better. You don’t want to miss episode 124!

More About This Show
Last year was a year of exponential growth in our real estate business. In fact, our portfolio doubled in one year! We were glad to have executed our goals beautifully, but we missed a few important steps in terms of managing those properties.

We didn’t know when our leases ended, when we collected rent payments, or when we had tax payments due. We were simply relying on bills coming in, and hoped that everything worked out. This is a terrible system! Without keeping track of these expenses and payments, it’s easy for things to spin out of control.

So we decided to put together a five-step system in order to keep track of our cash flow. The first tip is to set calendar notifications for insurance and tax payments. Especially since we moved to a new house, there was a huge margin for error. We could have easily forgotten to change our address, not received a bill, missed a payment, and suffered the consequences. When you have multiple properties, you simply have to have this kind of system in place. Any kind of calendar works, you can use Gmail, your phone, or an app.

The second tip is to set calendar alerts for payment days and lease expirations. This can easily fall through the cracks, unless you're proactive. Hopefully you’re working with a fantastic property management team who pays in a timely manner, and manages the leases, but you as a landlord still need to be cognizant about what is happening in your investment property.

Today on the show, we’re sharing the three other tips for managing the cash flow of your rental properties. We’ll talk about budgeting, spreadsheets, insurance, and more. You’ll also learn about the importance of tracking the details of your properties, and why you should implement a system early in your investing journey.

If you’re ready to begin building a passive income through rental real estate, book a FREE call with our team today. We’re ready to talk about your goals and want to help you learn more about earning legacy wealth for you and your family. 

 As your real estate portfolio grows, it becomes impossible to remember things like when you receive rent payments, when insurance is due, and other details about each individual property. That’s why it’s incredibly important to have a system in place to account for your cash flow.

On this episode you’ll learn:

  • How is a master spreadsheet helpful?
  • Why do you need to know when your leases end?
  • How can you plan your portfolio growth within your budget?
  • What is the importance of being the authority of this information?
  • And much more!

Episode Resources
Thumbtack

Due App
EP015: The Three Stages of Real Estate Investing
EP100: How to Organize Your Real Estate Investments
Subscribe to Investing in Real Estate on iTunes
Find Your Financial Freedom Number
Subscribe to the Morris Invest YouTube channel

Like Morris Invest on Facebook