We get it. One of your tenants just flooded the kitchen. You have a million other fires to fight. Surely that pile of admin can wait until next week?
Don’t fall prey to the trap! Here are five big reasons bookkeeping is essential to any rental property operation, and why a purpose-built, automated bookkeeping system beats Excel any day.
1. To manage the fundamentals.
Bookkeeping software will help you to pay your bills on time, accurately monitor revenue, and keep tabs on the bottom line. …
While surfing on Craigslist I see ads for paystubs. Someone or many are creating paystubs that are not real.
Pay Stubs — 1 for $35. 2 for $60. 3 or more $25 each
Landlord verification — Faxed $25. Verbal $30. Written $40
Employment offer letter — $25
Q: Why would someone want this?
A: To convince a landlord to rent them a home or apartment and use these fake paystubs as income verification.
This is very troublesome to read this blog article “8 Tips for How to Make Fake Pay Stubs“
Landlords must use more than one method…
The hassle of printing a paper application and waiting to get it back from your applicant delays the application process
Picking the right tenant can mean the difference between success and failure as a landlord. Dealing with rental applications is often a source of undue stress for real estate professionals, or property owners.
You just started representing a rental property and you’re getting tons of calls from people interested. Your obvious first step would be to send these prospective tenants a rental application by email. …
Some landlord portfolios are basic rentals either a 2bd , 2ba or a 3bd, 2ba that is just a simple unit. These are the unit types that can be the best rentals.
With the following steps landlords can make adjustments on basic rentals to improve profits:
Insurance for landlords and tenants are not like the “no-fault” car insurance concept but are based on proximate cause. Who is liable is the key question? If the situation was reversed (as it often is) and something happened (like a fire resulting from a malfunctioning electrical outlet in your rental unit or another unit) and a tenant’s personal property was destroyed, the tenant would submit a claim to their renter’s insurance carrier and they would pay the tenant and then subrogate (seek reimbursement) against the owner’s insurance policy since they are liable for the cause of the fire.
Just starting out as a landlord or worse being thrown into the position of being a landlord can be rather eye opening.
Often new landlords get lulled into the business by it’s apparent simplicity. At first glance it’s just collecting rent and reaping profits.
Which one are you?
Now you’re a new landlord — what do you need to know and do to protect yourself and your property? In all likelihood, you’ve had a look around the internet and found some good articles and tips about being a landlord. You will definitely come across some horror stories about nightmare tenants…
Recording expenses also helps small-property managers keep their maintenance costs in line. In fact, few respondents list maintenance as a problem, indicating that small-property managers and owners seem to have maintenance issues figured out — thanks in part to the ability to track expenses more consistently year to year with accounting and property management software.
Maintaining a rental property includes fixing the rental unit up over time. Some of these costs are repairs, and some are improvements. The basic definition of a repair is anything that puts the property back into the same condition it was in originally.
Every small landlord must start out with three crucial items.
Some people are super organized, which is never a bad thing. Just remember, being organized sometimes takes more time!
Start out using a checklist when you sign the contract to be sure everything has been reviewed/signed/received, the signed lease, fees sheet, credit check w/ their credit score noted, income verification, background check, deposit received, double deposit for lack of credit (if applicable), and review the move out policy.
Then tenants are calling your personal line, not good! If there is a way for…
Having a bank account should be a necessity for a renter you may approve. If a renter says they do not have a bank account and will only pay everything with cash, this request could be a big red flag for them performing illegal activities for making money. Illegal income activities could put your home at risk if you should rent to them.
A good rental property has a terrific rent to value ratio, minimal maintenance, very few vacancies and provides great cash flow. It is not easy to find properties that meet these criteria, but you can do it with hard work and patience. When you are looking for that perfect rental property you need to know the costs, the returns and the work needed to make sure you’re making a good investment. You should invest for cash flow and not depend on prices to appreciate on rentals.
Cash flow might seem really easy to calculate, a lot of people get it…