EP172: Property Management Do's and Don'ts

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Hiring a property management team makes real estate investing simple and passive! A skilled property management team is an indispensible part of your success, and will make your business scalable.

On this episode of Investing in Real Estate, we’re tackling your questions about property management teams! You’ll learn about finding the right team for the job, how much you should expect to pay for their service, and more! Don’t miss episode 172!

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Finding the right property management team is a duty you should take very seriously. We like companies that develop strong relationships with our tenants. We also want them to communicate with us.

First of all, we ask how they tend to communicate. Some use email, while others use text messages, or snail mail. We want to know whom on the team we’ll hear from in each circumstance, and how they’ll reach out to us.

We also ask about their tenant screening process, as it’s one of the most important roles your property management team will hold. You’ll want to ensure they are able to place high quality tenants in your properties. Ask them to walk you through their screening process. An effective team will conduct criminal background checks, verify employment, perform credit checks, and confirm previous rental history.

When it comes to software, that isn’t the most important qualification. In fact, we even work with a team that sends a paper, handwritten check via email. Software can be helpful, and organization is important, but we prefer that our teams are more focused on cash flow than minor details like that.

On today’s show, we’ll answer your questions about working with property management teams. We’ll talk about building a strong relationship, how often you should communicate, 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 details are on a property management statement?
  • How much should you expect to pay for property management?
  • Should your property management team be licensed?
  • Is it common practice for a property management company to hold the security deposit throughout the life of the lease?
  • What is a lease up fee?
  • And much more!

Episode Resources
Live Stream Version: Property Management Do’s and Don’ts
EP048: What Are A, B, and C Neighborhoods?
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 Hiring a property management team makes real estate investing simple and passive. A skilled property management team is an indispensable part of your success, and will make your business scalable. This episode handles how to find the right team for the job, how much you should expect to pay for their service, 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!

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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.

EP162: How to Mitigate Risk in Real Estate Investing

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Any new venture can be intimidating, and that’s often the case with real estate investing. I hear questions constantly from new or prospective investors who are worried about the risks. Sure, there are horror stories about investors who lost it all, but if you play your cards right and put a few safeguards in place, you will be very unlikely to encounter issues.

On this episode of Investing in Real Estate, I’m sharing five things you can do to mitigate risk in real estate. I’ll discuss the importance of surrounding yourself with the right people, investing in the appropriate markets, and more. Don’t miss episode 162!

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  1. In order to mitigate risk in real estate investing, you should know that you can’t do it alone. It’s important to build a strong team that is well versed in the areas that you are not. Without the right team in place, you’re likely to make some mistakes.
  2. It’s also incredibly important to not overspend. Don’t overspend on the purchase of the property. Don’t go overboard with upgrades either. When you pour too much into your properties, you’re decreasing your overall return.
  3. Invest in the right areas. Personally, I like to invest in C class neighborhoods. The tenants are hardworking blue-collar Americans. If your tenants are stable, you’re more likely to have consistent rental income year-round.
  4. Work with an experienced property management team. Find a company that will thoroughly assess the applicants in order to find reliable tenants. Work with a team that is local to your property and knowledgeable about the market. This will ensure great tenants and fewer vacancies.
  5. Purchase your property in landlord friendly states. If you have to go through an eviction, you’ll want to be in states where the legislation is on your side. In states that favor tenants, it can be extremely difficult to remove a tenant who isn’t paying their rent.

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:

  • Why is real estate less risky than investing in the stock market?
  • How can you assemble a team to help you on your investing journey?
  • How should you handle appliances in your rental properties?
  • How does a property management team affect vacancies?
  • And much more!

Episode Resources
How to Renovate a Rental Property to Minimize Repairs
What Are A, B, and C Neighborhoods?
EP108: The Five Most Landlord Friendly States
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

 

 Sure, there are horror stories about real estate investors who lost it all, but if you play your cards right and put a few safeguards in place, you will be very unlikely to encounter issues.

EP161: All About Section 8 Tenants - Interview with Al Rotiroti Sr.

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One important aspect landlords should consider is whether or not they intend to rent their properties to Section 8 tenants. Unfortunately, there are a lot of myths and misconceptions out there about what it means to offer Section 8 housing.

Here to clear the air about Section 8 housing is Al Rotiroti Sr. Al is a nationally recognized author and expert in the niche of government assisted Section 8 rentals. On today’s show, Al is sharing how the Section 8 approval process works, the truth behind common myths about Section 8 tenants, and much more! Don’t miss episode 161 of Investing in Real Estate! 

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Section 8 is a government assistance program that was developed to provide quality housing for low-income individuals and families. Section 8 is qualified on a case-by-case basis. Al explains that in two identical homes that rent for $1700, one Section 8 tenant might pay $0, while another might pay $1500.

As a landlord, if you choose to provide Section 8 housing, you will be held to a higher standard than the average landlord. Each year, the government will inspect your rental property to ensure it is up to standards. You will be supplied with a list of deficiencies that you will have to address in a timely manner in order to qualify as a Section 8 housing provider.

Al explains that instead of viewing these extra steps as an annoyance, he embraces the extra requirements. He explains that if he were to pay an inspector to visit each of his properties on an annual basis, the cost would be enormous. But as a Section 8 housing provider, he receives free inspections, which keep his properties in a preventative maintenance situation.

In terms of tenants, Al offers that Section 8 tenants are no different than any other tenant; they’re just people. The only differences are that with Section 8 tenants, the landlord has to fill out additional paperwork, and the government pays a portion of the monthly rent.

On today’s show, Al is sharing even more about the world of Section 8 housing for landlords. We’ll talk about the inspection process, rent determination, and how to procure the perfect tenant. We’ll also discuss what you’ll learn in Al’s book, The Smart Section 8 Landlord!

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 can you expect from a Section 8 inspection?
  • What happens to your rent if a Section 8 tenant loses their job?
  • Why does Al say you shouldn’t consider a tenant who doesn’t have their moving papers?
  • How can you find great Section 8 tenants?
  • And much more!

Episode Resources
The Smart Section 8 Landlord by Al Rotiroti Sr.
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Like Morris Invest on Facebook

Contact Al Rotiroti Sr. 
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 There are a lot of myths and misconceptions out there about what it means to offer Section 8 housing. Here's what you should know about it as a landlord considering renting to section 8 tenants.

EP159: Five Ways to Not Annoy Your Property Management Company

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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.

Working with an experienced, qualified property management team is paramount to a real estate investor’s success. A property management company finds the right tenants, collects the rent, and does all the legwork so you don’t have to! It’s important to remember how valuable your property management team is, and to treat them with respect.

For today’s episode, I asked my property management teams what investors can do to be helpful and easy to work with. I’m sharing the top five things you can do to not annoy your property management team. Don't miss this episode of Investing in Real Estate! 

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Occasionally, it seems that certain investors get a big head when it comes to dealing with property management. They fall prey to the mindset that they are in charge, and the team works for them. This is not good business practice, and it’s certainly no way to treat people.

It’s important to be kind, and remember that the property management team is comprised of human beings. We as landlords should treat our property management companies as team members. Without their hard work and dedication, we would not be able to do what we do. With the help of my property management teams, I’ve compiled a list of five things you can do to collaborate with your team and make their job as easy as possible:

  1. Fix the things they ask you to fix. This one is really simple—when they contact you regarding a leaky faucet, rattling heat vent, or a broken toilet, give them the green light to fix those issues. It might seem like some of these complaints are small to you, but to your tenant, the little things compile. When you anger your tenants, you make your property management team’s job harder.
  2. Let them do their job. You hired this team because they’re qualified to screen the tenants, and collect rent. Don’t try to micromanage them. Don’t come to them with a list of additional demands or tasks. They know what to do, and how to do it!
  3. Don’t be greedy with pricing. Your team is already established in the market, and they know what price is appropriate. Trust their judgment and experience.
  4. Get your account numbers right, and don’t change them last minute. Most property management companies will pay your rent via ACH. If you decide you need to change the account where your rent is deposited, give plenty of notice.
  5. Take care of all paperwork. When you onboard with a property management company, they’ll send you a packet of paperwork to complete. This stuff is important! It’s how you receive your payments and important tax documents.

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:

  • Should you compete with other investors on rent prices?
  • How much notice should you give before changing your account numbers?
  • What is the harm in trying to collect a higher monthly rent?
  • How can you get on the same page as your property management team?
  • And much more!

Episode Resources
Harry’s
EP126: Are You a Hands-On or a Hands-Off Investor?
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

 A property management company finds the right tenants, collects the rent, and does all the legwork so you don’t have to! You want them on your side, so here's how to be helpful & easy to work with as a real estate investor.

EP135: Is Your Property Management Company Flashy or Focused on Cash Flow?

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This episode of Investing in Real Estate is brought to you by Blue Apron. Blue Apron’s mission is to make incredible home cooking accessible to everyone. Get your first three meals free, plus free shipping by visiting blueapron.com/investing.

Hiring a property management company is crucial to your success as a real estate investor. However, not just any company will do! It’s important that you identify a team whose goals align with yours.

On this episode, I’m explaining the two different types of property management companies. I’ll share the importance of focusing on cash flow, and much more! Don’t miss episode 135 of Investing in Real Estate!

More About This Show
A property management company is an indispensable part of your team. Especially when you’re thousands of miles away from your property, you’ll need someone on site to take care of things. Managing a property, especially multiple properties, is a full time job!

I highly suggest putting this important job into the hands of professionals. Assign this role to someone who knows what they’re doing. A professional holds expertise about vacancies, rental prices, finding the right tenant, and more.

Specifically, I like my property management companies to be focused on cash flow. My property management teams might not have the newest software. They might not have the best, most up-to-date websites, or convenient portals for me to view my information.

In fact, one company that I work with doesn’t even do direct deposit! They send me a paper check via snail mail every single month. But that’s okay with me, because that check is always on time. My teams are focused on collecting rent in a timely matter, and that’s what is important.

On today’s show, I’ll speak in depth about finding the right property management team. I’ll share experiences I’ve heard about flashy property management teams, and what I expect from my teams.  

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 does a great property management team evaluate tenants?
  • What is one of the biggest ways investors lose money?
  • Why shouldn’t you lower rent prices?
  • Do you need high-tech software?
  • And much more! 

Episode Resources
Blue Apron
EP001: The Future of Real Estate Investing
EP003: How to Find Your Financial Freedom Number
EP006: The Best Properties Are Not in Your Backyard
EP012: The Two Ways to Make Money
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

 A property management company is an indispensible part of your real estate investing team. Is your property management company flashy or focused on cash flow?

EP124: Best Practices for Managing Real Estate Cash Flow

Book a call with our team: https://goo.gl/dezwHT

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!

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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