You are a capable person and can do many things well yourself. Because you can, does it mean you should?
We compiled a list of activities a self-managed rental property owner may encounter. How about as an investor with 4 or 5 or more units – care to do most or all this work a multiple of 4 or 5 times? Is it even possible with all your other constraints?
Wouldn’t you benefit more if you put the amount of effort shown below into acquiring additional investment property to further increase cash flow and net worth?
You could partner with a specialized professional company you (SouthCoast Properties) to do this for:
Inspect the property; check all appliances, plumbing fixtures, etc.
Identify needed repairs, painting, cleaning, yard work
Perhaps do some of the work yourself
Identify material needed for the job
Travel and purchase and/or order the material
Gather tools and equipment
Add this work to your schedule
Maybe travel again to hunt for additional items
Maybe 2 or 3 weekends of DIY work?
Hire qualified vendors
Verify insurance
Act as general manager to orchestrate the work
Make keys for vendors
Check the work
Pay the invoices, get the keys back
Turn on utilities
Research comparable units and set the proper rental rate
Photographs of the rental for advertising
Maybe make a video
Maybe install some staging
Advertise competitively
Determine helpful ad channels
Sign up for advertising, pay fees/subscriptions
Develop marketing narrative and description
Maybe put up a website of the property
Install for rent signage
Answer prospect inquiries, phone calls and email
Separate phone number for rentals?
Show and “sell” prospects on your rental
Get there early, turn on AC to good temp, turn on lights, spiff kit for cleanliness
Follow up with prospects
Handle unsolicited vendor contact (arising from advertising)
Generate a suitable rental application
Pictures or photocopy of prospect ID
Take a deposit to hold the unit
Determine hold refund policy
Take a credit application fee
Screen the prospects
Check rental history
Check employment/income
Check credit history
Check skip/evict
Other
Determine if pets are acceptable
Determine pet fees
Deal with complications like renter needs a cosigner
Deal with an ADA renter that wants to modify the unit
Identify a Lease that protects you
Perhaps have your lawyer write one
Collect the deposit and rent (possibly pro rated)
Provide lead paint information if needed
Execute the Lease
Document the deposit
Set up online payments for rent
Provide keys
Provide any HOA amenity items like gate or pool passes
Take down the advertising
Perform a move in inspection – document condition
Pick up the signage
Keep up with tenant law; anti-discrimination, disclosures, more
Have an attorney available
File the renter related documents
Keep books (such as Quickbooks)
Rent received
All expenses
Have a computer data backup system
Fax machine, printer, copy machine as needed
Generate P&L Statements
Evaluate P&L, work to improve bottom line
Generate end of year statement for taxes
Generate 1099’s for contractors
Pay the property expenses
Mortgage
Taxes
Insurance
Pest control/termite bond
HOA dues
Possibly lawn/grounds care, some utilities
Warranty policy
Inspect vendor billing, check for double billing and other errors
Ensure you are not paying utilities that are the renters responsibility
Verify/review insurance is adequate
Rental property insurance
General Liability
Umbrella policy, other
Review mortgages, determine if refinancing is beneficial
Review property taxes, perhaps dispute an increase
File/collect documents/information for tax processing
Possibly send rent due statements
Collect monthly rent
Add late rent fee
Make deposits
Possibly send rent received receipts
Make book entries
Handle bad checks
Add bad check fee
Make regular inspections
Provide renter notice
Check the roof, look for rot, AC filter, loose toilets, tub caulk, plumbing leaks, yard issues, etc.
Anticipate and budget for future work such as exterior painting, rotted decks/fences
Determine if issues are renter related, and if so resolve it with renter (who fixes, who pays)
Instruct renter to mow yard, weed beds, replace broken miniblinds, etc. if needed
Identify qualified vendors for items found
Ask for vendor opinion whether renter caused or not
Schedule repairs and maintenance
Coordinate with renter
Determine whether to repair or replace items such as appliances
Deal with home warranty company for certain repairs (often very difficult)
Follow up on work
Schedule pressure washing when needed
Schedule annual HVAC maintenance
Communicate with renter (good relations)
Anticipate lease renewal
Set renewal rent rate
Execute renewal with renter
Answer emergency calls 24/7
Identify emergency vendors
Handle emergency issues
Check the property after significant weather/storms
Back-up system for when you are out of town/on vacation
Handle renter complaints and issues
Handle HOA complaints/violations
Handle neighbor complaints; trees, fences, dogs barking, etc.
Handle predatory or frivolous claims
Handle late rent
File for eviction
Go to court
Meet the sheriff at the property
Move renter items to the road
Trash out the unit
Rekey the unit
Perform the move out inspection
Assess damages vs wear and tear
Possibly pest control for bugs/fleas
Make claim against deposit for damages
Handle repairs
Handle cleaning
Pay out deposit
Notify renter of money for damages due
Hire collections agency
Maybe set up a business for liability purposes
Maybe put the property in the business
Measure the time put into the rental
Determine the lost opportunity from working on the rental
List what you like to do and what you don’t like to do
Evaluate time/effort spent and lost opportunity vs hiring professional management
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