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Speaker 1: Welcome to How the Money. I'm Joel and I am Matt.

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Speaker 1: Today we're discussing managing rental properties effectively. That's right, Joel,

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Speaker 1: we're going to talk about rental properties. I've got maybe

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Speaker 1: about seven years worth of experience. Now you've been managing

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Speaker 1: your properties for about that same length of time, right,

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Speaker 1: I think it's almost nine years at this point. Yeah,

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Speaker 1: we've learned a couple extra years on me, sometimes learned

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Speaker 1: the hard way managing rental properties. But yeah, there's a

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Speaker 1: lot to share because I think that is one of

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Speaker 1: the reasons people avoid getting into rental properties is the

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Speaker 1: managing game. They're like, oh, it's gonna be it's gonna

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Speaker 1: be a big pain and tenant nightmare, tenant horror stories.

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Speaker 1: Those are the kind of things that make people say

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Speaker 1: that that's not for me. And so I think that

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Speaker 1: being able to manage a property effectively is so key.

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Speaker 1: It's so clutch to making it actually not a breeze necessarily,

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Speaker 1: but very very manageable, very very much more yeah, much

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Speaker 1: more approachable and a lot easier than people think it is.

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Speaker 1: And our goal is that with this episode, a lot

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Speaker 1: of individuals might consider real estate and even managing it

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Speaker 1: themselves based on what we have to say today. So

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Speaker 1: on that real estate and housing kind of conversation, let's

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Speaker 1: talk about neighbor dot com. Oh yeah, so this recently.

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Speaker 1: I don't know where it's been hiding or how I

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Speaker 1: haven't seen it before, but it's this really interesting website

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Speaker 1: where people can rent out a space in their home

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Speaker 1: or like a driveway or a garage or a shed anything. Um,

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Speaker 1: you can rent out just a portion of your home

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Speaker 1: for storage, not like Airbnb for someone to come and

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Speaker 1: like sleep there, but for someone to store their possessions

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Speaker 1: or a car or something like that. Right. Yeah, well

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Speaker 1: you said Airbnb. It really is like Airbnb, except for

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Speaker 1: for self storage, not for individuals looking for a little

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Speaker 1: getaway for the weekend. Right. Yeah, you don't want to

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Speaker 1: stay in my shed for the weekend, but you might

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Speaker 1: want to pack your stuff there. It just depends on

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Speaker 1: how nice your shed is. Man. I had a nice

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Speaker 1: shed after college when I was living up in North Carolina,

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Speaker 1: when I was living in the woods chopping my own

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Speaker 1: wood for heat, We had this little shed and we

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Speaker 1: got a couple of couches from the local good Will

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Speaker 1: put them in there, and we would sit out there

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Speaker 1: and smoke our pipes and cigars. It was a very

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Speaker 1: rustic and of the earth period of time for me.

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Speaker 1: I feel like when I saw this about neighbor dot com,

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Speaker 1: I was like a man for for our our audience.

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Speaker 1: There's like a twofold potential benefit. One is if you

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Speaker 1: have an extra room or spacing your attic or spacing

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Speaker 1: your shed whatever whatever that may be, or like your

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Speaker 1: basement or your driveway. Yeah, like I saw that you

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Speaker 1: could just run out space on your driveway. So if

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Speaker 1: you have an extra large driveway where and maybe you've

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Speaker 1: downsized cars recently, somebody can pay you to park their

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Speaker 1: own car in your drive or something, yeah, which is crazy. Yeah.

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Speaker 1: So so like there's that potential to make some money

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Speaker 1: off of extra space you have hanging out in your life. Um,

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Speaker 1: and then also there's the potential for storing own stuff

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Speaker 1: in a much cheaper way than then you would be

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Speaker 1: able to with like a self storage unit, by going

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Speaker 1: directly to to a neighbor, to someone around the corner

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Speaker 1: and using their space for for a fraction of the price.

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Speaker 1: So yeah, it could be a win win either way

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Speaker 1: you're looking at it. Yeah, this is another one of

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Speaker 1: those kind of fun gig economy ways that you can

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Speaker 1: make money. I mean, that's the end of it. That

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Speaker 1: I like is the the idea of individuals out there thinking, Okay,

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Speaker 1: what spaces can I right out? Like you can also

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Speaker 1: list a unpaved lot, which is basically like your backyard.

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Speaker 1: So I'm like, man, folks are going to get on

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Speaker 1: there and think through, like what am I not using?

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Speaker 1: What do I already have? You know, folks have resources

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Speaker 1: that they have at their disposal that aren't necessarily making money.

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Speaker 1: And that's one of the cool things about all these

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Speaker 1: apps and technologies is that they're able to shut down

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Speaker 1: these inefficiencies that exist. Why not use these resources that

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Speaker 1: you have and put them to work. I love that. Yeah,

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Speaker 1: you can make an extra fifty two hundred bucks a

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Speaker 1: month by running out something that you're you're not even

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Speaker 1: really using. So obviously on the on the home page,

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Speaker 1: there's like a lady and she's like, I make over

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Speaker 1: ten thousand dollars every single year. Maybe in her case,

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Speaker 1: she has like acres of parking lot. Maybe we're folks

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Speaker 1: gonna just rent that out from her forty two atticts

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Speaker 1: like a right, lady, good job. Yeah, So that's You're

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Speaker 1: probably not gonna get that rich doing it, but it

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Speaker 1: is a potential way to make some extra extra money. Yeah,

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Speaker 1: super cool, and we will link to that in our

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Speaker 1: show notes for folks who are interested. All right, Matt,

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Speaker 1: let's get to the beer we're having on this episode.

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Speaker 1: We're drinking today, we're drinking beer called pog Basement i

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Speaker 1: p A by scoff Law Brewing. They're just around the

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Speaker 1: corner from us in Atlanta. I love the name. I've

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Speaker 1: always loved that name, Scofflaw. They don't care exactly about anything.

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Speaker 1: They're gonna do whatever it is that they want to do,

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Speaker 1: including brewing a delicious I PA like this. So yeah,

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Speaker 1: looking forward to having this one on the show. Yeah,

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Speaker 1: it was actually super I looked at our our beer

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Speaker 1: backlog and all surprised to see we've never had a

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Speaker 1: scoff Law beer on the show. So it's time. It's

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Speaker 1: it is time. We're overdue, man. Yeah, alright, So we'll

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Speaker 1: give our thoughts on that one at the end of

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Speaker 1: the episode, but but for now, let's get onto the

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Speaker 1: topic at hand. We're talking about managing rental properties effectively.

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Speaker 1: And Matt, we have talked about rental properties a decent bit.

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Speaker 1: On this podcast, we've answered listener questions about buying rental properties.

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Speaker 1: We've talked about how to find the right rental property,

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Speaker 1: how to screen tenants, how to invest in real estate

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Speaker 1: when you don't want to physically own a single family

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Speaker 1: or multifamily home where you live, and more like we

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Speaker 1: we've earned the gam it in a lot of ways.

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Speaker 1: But what we haven't talked about, uh, is the day

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Speaker 1: to day of rental property management. So we're gonna tackle

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Speaker 1: that scintillating topic on today's episode. Everybody's been waiting, like

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Speaker 1: with bated breath for this episode, I think. But like

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Speaker 1: we said, if you are somebody who's thought they will

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Speaker 1: never own rental properties because they sound like too much work,

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Speaker 1: listen to this episode. There's a reasonable chance at least

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Speaker 1: it will change your mind. I can't promise you that

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Speaker 1: it will. But and then for other people, for current landlords,

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Speaker 1: I think there are a lot of ways that you

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Speaker 1: can change the way you're managing something, make it a

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Speaker 1: little bit of a lighter load and a little more

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Speaker 1: enjoyable at the same time. Yeah, and another reason too

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Speaker 1: that we want to pull our listeners into this conversation,

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Speaker 1: man is that, like you and I, we have seen

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Speaker 1: the impact of smart real estate investing in our own lives,

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Speaker 1: right in our own ability to have a little bit

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Speaker 1: more freedom when it comes to, you know, our our

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Speaker 1: day jobs and being able to earn a little bit

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Speaker 1: of passive income quote unquote, passive income is not truly passive,

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Speaker 1: but it's a big deal in our lives. So we

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Speaker 1: want our listeners to to at least hear us talk

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Speaker 1: about this a little bit because it's something that they

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Speaker 1: can implement in their own lives. And managing specifically is

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Speaker 1: the thing that people push back on, right it seems

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Speaker 1: like something that they don't want to do. I think

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Speaker 1: most people avoid rental properties in large part because they've

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Speaker 1: heard tenant horror stories, and that's something that most people

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Speaker 1: don't want to put up with. Right. I totally get it.

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Speaker 1: I understand that aversion, but it doesn't have to be

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Speaker 1: like that. There are systems that that you can put

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Speaker 1: in place to make it far more likely that you'll

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Speaker 1: have a positive experience with your tenants while simultaneously making

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Speaker 1: money every single month and building wealth. So we'll talk

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Speaker 1: about property managers, and you know, even when hiring one

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Speaker 1: might make sense for you, you don't even necessarily have

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Speaker 1: to manage our rental property yourself, even though that's going

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Speaker 1: to be the direction that we're gonna steer folks towards. Uh.

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Speaker 1: And we'll get to those reasons why later in this episode. Yeah,

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Speaker 1: so before we get to kind of managing a rental property,

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Speaker 1: map that there are a few things that change the

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Speaker 1: dynamics of managing and rental property. And and the biggest

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Speaker 1: one is getting good at finding great tenants. That's half

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Speaker 1: the battle. Really, when it kept one great tenants exactly,

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Speaker 1: that that's going to solve almost all of your problems. Exactly.

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Speaker 1: It really, it really is huge. And you know, we

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Speaker 1: we covered that a while back in episode forty four.

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Speaker 1: Let's quickly discussed again, because getting stellar tenants into your

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Speaker 1: property will make all the difference when it comes to

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Speaker 1: managing that property. Uh. Let's talk about listings and showings.

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Speaker 1: That's a huge part of whether people are or are

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Speaker 1: going to respond or not. I mean, just like if

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Speaker 1: you list a used item for sale on Facebook, Marketplace

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Speaker 1: or Craigslist, good pictures in a decent listing go a

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Speaker 1: long way towards whether people are actually going to reach

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Speaker 1: out to you or not. Uh, and be interested in

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Speaker 1: what you're selling and whether or not they're gonna be

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Speaker 1: willing to pay full price. I recently discussed the difference

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Speaker 1: between listing on Facebook Marketplace, which is free, and then

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Speaker 1: listing on Zillo, which costs ten dollars a week. And

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Speaker 1: I had plenty of times was like, all, I'm gonna

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Speaker 1: try this the free out and and go with Facebook.

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Speaker 1: But Zillo kicked its butt, Like I got zero replies

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Speaker 1: from Facebook and I got like thirty replies from Zillo

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Speaker 1: within a week. And so yeah, Facebook Marketplace is great

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Speaker 1: for unloading a fridge for a hundred bucks, right right,

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Speaker 1: Maybe not the best place to uh list rental. Yeah,

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Speaker 1: so yeah, put a sign in your your yard listed everywhere,

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Speaker 1: take good picks, give solid info about the property, and

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Speaker 1: make it professional and friendly while selling the features of

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Speaker 1: the home in the neighborhood. I think sometimes if you

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Speaker 1: skip that step or you you're like, oh yeah, to

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Speaker 1: one available next week, you have to like sell the

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Speaker 1: neighborhood a little bit, sell the home and and let

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Speaker 1: people know what a great place it is to live. Yeah,

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Speaker 1: you're talking about the neighborhood. Essentially, you want to paint

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Speaker 1: a picture of what it's like to live there. Uh.

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Speaker 1: In both of our cases, we've had properties that we've

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Speaker 1: moved out of that we then listed, and it's really

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Speaker 1: easy to get behind that property right because there's reasons

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Speaker 1: that you bought it in the first place. And so

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Speaker 1: explaining how close it is to say, like restaurants, you know,

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Speaker 1: like I mean, I've got a property nearby that's about

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Speaker 1: five blocks from some really great restaurants in Atlanta. That's

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Speaker 1: something that you want to include in the listing. So

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Speaker 1: it takes a little bit of creativity to to help

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Speaker 1: folks to understand what it's gonna be like and how

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Speaker 1: wonderful it truly is gonna be to to live in

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Speaker 1: a property like that. And another important step to finding

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Speaker 1: a great tenant is is making sure that you properly

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Speaker 1: run a background check. You want to check their credit

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Speaker 1: and their criminal history. My smart move dot com or

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Speaker 1: cozy dot ceo cozy co Uh, these are the websites

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Speaker 1: that we think are best for screening a potential tenant,

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Speaker 1: and that part of the process is crucial. You know,

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Speaker 1: it's really hard to to get to know someone in

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Speaker 1: five minutes when they swing by and take a look

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Speaker 1: at the place and they say, hey, I want to

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Speaker 1: apply for the place, right, and so make sure you

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Speaker 1: can find out more about them based on their background check.

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Speaker 1: And you also want to to call previous landlords and

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Speaker 1: verify their their income and their employment. You know, I

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Speaker 1: even call a couple of personal contacts as well. Uh,

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Speaker 1: if they include those, or better yet, if they include

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Speaker 1: like a little letter of recommendation maybe from the previous

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Speaker 1: landlord that always tells yeah, but always call. I feel

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Speaker 1: like this is an easy step that a lot of

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Speaker 1: individuals can overlook because, like, you meet somebody who starts talking,

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Speaker 1: even these days, even wearing a mask, it can be awkward,

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Speaker 1: but you start talking to him and you think, oh, man,

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Speaker 1: this is they seem so great. They're really friendly. They

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Speaker 1: mentioned the company where they work. It sounds like they

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Speaker 1: make enough and they qualify. However, just because they're friendly

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Speaker 1: do a good job socially doesn't mean they do a

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Speaker 1: good job financially, right, So you want to make sure

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Speaker 1: that you thoroughly vet your applicants. Yeah, really, it doesn't

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Speaker 1: take that much time, you know, running running these histories

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Speaker 1: and then making four or five phone calls. Um, It's

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Speaker 1: there's not a whole lot involved, and yet what it

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Speaker 1: can save you from the pain on the back end

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Speaker 1: of having someone who who doesn't pay rent on time

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Speaker 1: or or gets months behind. Even like those are the

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Speaker 1: kind of things that are gonna make you wish you

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Speaker 1: never took on managing our rental property in the first place.

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Speaker 1: And so we have we want to make sure you

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Speaker 1: don't get into that spot. So do the easy stuff

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Speaker 1: on the front end that takes a little bit of

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Speaker 1: time in order to ensure that you're getting a great tenant.

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Speaker 1: And also another important thing to consider is the lease agreement.

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Speaker 1: Getting a thorough lease agreement is incredibly important. You can

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Speaker 1: look to get one from a fellow real estate investor.

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Speaker 1: That's actually what I did when I got started out.

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Speaker 1: A friend across the street who had a few rental

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Speaker 1: properties was like, all right, hey, you know I've been

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Speaker 1: talking to you about this. Let me give you my lease.

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Speaker 1: And I looked it over and it was great. But

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Speaker 1: I would say for most people it makes sense to

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Speaker 1: actually pay for one that you can use over and over.

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Speaker 1: That works for the ways that the laws are set

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Speaker 1: up in your state, because sometimes you might get a

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Speaker 1: lease from a friend and you don't realize that it's

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Speaker 1: missing some important components that you need to have in

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Speaker 1: their bigger pockets. Sell state specific leases for nine no

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Speaker 1: low allows you to make unlimited leases for thirty nine

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Speaker 1: dollars a year. You can also check out other online

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Speaker 1: legal sites like legal Zoom. Be wary of going for

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Speaker 1: the freeforms though. You don't want to cheap out on

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Speaker 1: the lease because, like I said, you want to make

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Speaker 1: sure it's a state specific, thorough legal document and and

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Speaker 1: that's just really important also on the front end, and

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Speaker 1: it's worth that extra money in order to make sure

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Speaker 1: that your your legal obligations are are taken care of. Yeah,

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Speaker 1: this is definitely an instance where you'd want to be frugal,

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Speaker 1: but but not cheap because it can come back to

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Speaker 1: bite you. Man. This makes me think too of like,

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Speaker 1: have you had any horror stories when it's come to

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Speaker 1: your different properties As you're talking about Lisa's, I was

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Speaker 1: kind of thinking through maybe I wasn't listening to you,

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Speaker 1: and I was thinking through different instances, different occasions that

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Speaker 1: have arisen, and I can honestly say, man, we've I've

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Speaker 1: never really had a full on horror story where something

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Speaker 1: terrible has happened at a property like where I needed

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Speaker 1: to get up in the middle of the night. You know,

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Speaker 1: you hear these different stories neither Yeah, really so so

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Speaker 1: the worst thing I can think of, maybe as you

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Speaker 1: think of something to share, but at one of our properties,

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Speaker 1: we had a giant tree branch fall in. It landed

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Speaker 1: on the cartlanted on the tenant's car, but like, this

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Speaker 1: was a healthy tree and this was back I forget

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Speaker 1: what hurricane it was, but a few years ago. It

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Speaker 1: was a big hurricane in the fall. But it rocks

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Speaker 1: you know, the Atlanta area and a lot of trees

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Speaker 1: went down. And luckily our our tenants had comprehensive coverage.

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Speaker 1: You know, it covered those acts of god, uh, you know,

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Speaker 1: weather things that you can't really plan for. But you know,

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Speaker 1: that was something where I was just like, oh no,

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Speaker 1: what's gonna happen. But it's like, know, that's something that

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Speaker 1: that their insurance completely covers and it's not something that

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Speaker 1: that I need to worry about, you know. Um, but yeah,

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Speaker 1: that's the closest I feel like that we came to

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Speaker 1: kind of freaking out thinking. You know, when they send

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Speaker 1: us that picture of the tree like smashed into their car,

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Speaker 1: I was like, oh no, we're done. Or sunk. That's

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Speaker 1: how your emotions can kind of get the best of

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Speaker 1: you in the moment. Yeah, yeah, yeah, No, I've never

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Speaker 1: When I look back over nine years of managing properties

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Speaker 1: that I own and and you know, having tenants, I

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Speaker 1: don't have any major horror stories. I do remember, like

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Speaker 1: there's this one time where a couple wanted to get

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Speaker 1: out of at lease early and I remember them, and

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Speaker 1: you know, I'm typically completely willing to talk about that,

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Speaker 1: and I don't want to be punitive when when someone

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Speaker 1: wants to to leave and and and move somewhere else,

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Speaker 1: and the way they went about it was just was

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Speaker 1: just really difficult, uh. And it was a little combative,

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Speaker 1: um and and that's not my personality at all, to

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Speaker 1: to get combative. And so that was hard emotionally for me.

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Speaker 1: And I think, um, sometimes that can be at least

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Speaker 1: for my personality, and that that's like the hardest part

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Speaker 1: is just like the yeah, the interpersonal side of you

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Speaker 1: is really struggling in the moment. But you're totally fine,

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Speaker 1: yeah exactly, legally, you're totally good. But it was the

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Speaker 1: and there was a different expectation of what, uh, the

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Speaker 1: laws should look like. They were international and so where

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Speaker 1: they came from, UH, tenants had a whole lot more

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Speaker 1: leeway to essentially break leases whenever they wanted and and

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Speaker 1: here in the state that we live and that's just

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Speaker 1: not the case. So they just assumed some things that

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Speaker 1: weren't quite accurate. Right. Yeah, Well that's a great segue, man,

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Speaker 1: because after the break, we're gonna talk about UH state

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Speaker 1: specific laws and how important it is to know those

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Speaker 1: as well as other steps that we need to take

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Speaker 1: when it comes to managing rental properties effectively. And so

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Speaker 1: we'll get to all of that right after the break.

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Speaker 1: Art we're back from the break, We're talking about managing

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Speaker 1: rental properties, and there is a whole lot that goes

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Speaker 1: into managing a rental property. Well, sometimes you gotta like

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Speaker 1: step up your emotional fortitude game, like I had to

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Speaker 1: back in the day, and I just had to like,

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Speaker 1: all right, no, I'm sticking to my guns, and and

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Speaker 1: you know, I'm I'm I'm not going to be rude

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Speaker 1: or unkind, but I'm gonna have to be okay with

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Speaker 1: these people being mad at me, not liking me. And

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Speaker 1: that was hard, man, that was hard. I don't like him,

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Speaker 1: people don't like me. But another really important thing though,

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Speaker 1: when you're listening your property and you're talking to tenants

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Speaker 1: is that you need to make sure you're in compliance

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Speaker 1: with the law. So let's talk about that. In particular,

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Speaker 1: you need to make sure you're obeying the Fair Housing

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Speaker 1: Administrations rules. Don't ask questions that will get you into

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Speaker 1: potential legal trouble. Specifically, under the Act, landlords cannot discriminate

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Speaker 1: against tenants or potential tenants on the basis of race, gender, religion,

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Speaker 1: familial status, disability, or ethnicity. So no, this you've got

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Speaker 1: to obey the law, and violating these rules could could

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Speaker 1: get too in big, big trouble. Yeah, not only do

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Speaker 1: you not want to ask those questions when maybe either

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Speaker 1: ahead of time when you're kind of communicating with them,

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Speaker 1: but where you've met with them, or or even after

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Speaker 1: you've met them, right, but you want to not uh

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Speaker 1: listen any of those protected classes in the listing for

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Speaker 1: the property. Right can't be like nobody is allowed. Yeah, yeah, well,

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Speaker 1: in particular familiar status. I feel like that's one of

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Speaker 1: the more honest ones, one of the more honest mistakes

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Speaker 1: that we can make, because it's not good if you

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Speaker 1: put in your listing this is a property that's great

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Speaker 1: for families, or this property is is perfect for you know,

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Speaker 1: a single professional, like that kind of thing. You have

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Speaker 1: to stay away from family status because that's that's a

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Speaker 1: protected class. Things like race and religion or are obvious, right,

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Speaker 1: Like you're not gonna say, hey, this is a great

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Speaker 1: property for a Roman Catholic or the or this is

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Speaker 1: a great Muslim neighborhood, Like no, you can't, that's obvious.

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Speaker 1: You can't do those sort of things. But you gotta

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Speaker 1: watch out too when it comes to you know, what

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Speaker 1: you know. Earlier we talked about painting a picture for

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Speaker 1: what it might look like for someone to live in

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Speaker 1: your house. But you do want to make sure you

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Speaker 1: avoid language that that makes it seem like you're trying

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Speaker 1: to steer the listing towards or away from one of

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Speaker 1: those protected classes. For sure. Yeah, yeah, totally. And so Matt.

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Speaker 1: On the note of knowing your state's laws and rules,

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Speaker 1: I mean, they're they're obviously federal rules too, all right,

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Speaker 1: it's important to familiarize yourself with the nuances of your

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Speaker 1: state's landlord tenant laws. There are all sorts of little

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Speaker 1: things that can trip you up, but it really depends

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Speaker 1: on what state you live in, so you know whichever

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Speaker 1: of the fifty states you live in. It's going to determine, um,

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Speaker 1: some of the ways that you handle that rental property.

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Speaker 1: And there are third party sites like landlord ology dot com.

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Speaker 1: Will put a link to that in our show notes,

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Speaker 1: but they've got comprehensive guides for every state that can

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Speaker 1: be really helpful so that you can know the laws

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Speaker 1: and some of the specifics that need to be in

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Speaker 1: your lease and some of the specific things that you

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Speaker 1: need to communicate to tenants. And at the same time,

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Speaker 1: a lot of states have put together a landlord Tenant handbook,

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Speaker 1: like our state of Georgia has a great one, is

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Speaker 1: like eighty pages long or something like that. I've read

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Speaker 1: the whole thing because there's just so much you need

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Speaker 1: to know as you're getting up to speed, um, and

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Speaker 1: then I like go back to it as like some

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Speaker 1: light toilet reading write exactly, Yeah, just to brush up

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Speaker 1: every once in a while, like pull it up up

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Speaker 1: and while I'm going number two Chicken Suit for the

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Speaker 1: Soul and Georgia Landlordian Book exactly. They're both just true

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Speaker 1: joys to read. But yeah, I mean they're really that

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Speaker 1: that's something that you do need to bone up on,

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Speaker 1: and it's something that's important to read because it is

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Speaker 1: going to help you be a good landlord. You're gonna

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Speaker 1: know some of the rules that you have to abide by, um,

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Speaker 1: and you want to make sure you're doing everything by

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Speaker 1: the letter of the law. In addition to to your

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Speaker 1: own standards of wanting to manage and run a great

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Speaker 1: rental property, you want to also make sure you're in

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Speaker 1: compliance with the law to right. Yeah, so that's those

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Speaker 1: are the kind of like the first steps for managing well, right,

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Speaker 1: making sure that you're in compliance with the law of

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Speaker 1: whether it be federal or state. Let's kind of dive

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Speaker 1: into what it looks like, you know, more on the

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Speaker 1: day to day basis and and do like the best

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Speaker 1: thing that I feel like that we can say when

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Speaker 1: it comes to managing well is just to treat managing

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Speaker 1: these properties or you know, your property like a business,

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Speaker 1: you know, not a hobby. You definitely want to make

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Speaker 1: sure that you're you're being professional. That doesn't mean you

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Speaker 1: have to wear a suit and tie. You know, you

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Speaker 1: don't have to dress up or anything but tuxedo personally,

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Speaker 1: but if you did that, it probably weird people out

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Speaker 1: what is going on. But I think there are certain

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Speaker 1: expectations that tenants do want to see, you know, like

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Speaker 1: communicating clearly and effectively, and so make sure that you

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Speaker 1: are doing those kind of things. And one of the

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Speaker 1: other things that's important as well as having like a

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Speaker 1: schedule of maintenance for the house, right we feel it's

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Speaker 1: important for you personally to check in on that property

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Speaker 1: at least once every single quarter. You know. Uh, this

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Speaker 1: is why, like early on, why insisted on mowing my

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Speaker 1: own lawns my rental properties. Uh, it was just a

429
00:19:32,960 --> 00:19:35,879
Speaker 1: default way for me to have eyes on what was

430
00:19:35,920 --> 00:19:38,359
Speaker 1: going on there. Obviously I was cutting the grass more

431
00:19:38,359 --> 00:19:42,040
Speaker 1: than once a quarter. But uh, you know, this is

432
00:19:42,040 --> 00:19:44,200
Speaker 1: why having some of these properties close by is also

433
00:19:44,240 --> 00:19:46,439
Speaker 1: really helpful. Those you know, part of my strategy, as

434
00:19:46,480 --> 00:19:48,520
Speaker 1: part of your strategy as well, Jill. I know it's

435
00:19:48,520 --> 00:19:49,959
Speaker 1: not out of my way, you know to drive by

436
00:19:50,000 --> 00:19:52,399
Speaker 1: and see how things are looking. But either way, you know,

437
00:19:52,600 --> 00:19:55,880
Speaker 1: have at least four days a year that you schedule

438
00:19:56,080 --> 00:19:59,239
Speaker 1: for you know, maintenance, you know, filter changes, checking out

439
00:19:59,280 --> 00:20:01,960
Speaker 1: the interior, things like that. And on that note too,

440
00:20:01,960 --> 00:20:06,400
Speaker 1: it's good to maybe compile a list of contractors professional

441
00:20:06,400 --> 00:20:08,560
Speaker 1: contractors right who can do some work for you when

442
00:20:08,800 --> 00:20:11,040
Speaker 1: there there's a need that comes up that's something maybe

443
00:20:11,040 --> 00:20:13,880
Speaker 1: beyond you know, tightening a little pipe under the sink

444
00:20:14,000 --> 00:20:16,240
Speaker 1: or changing a light bulb, like things that I can do.

445
00:20:16,760 --> 00:20:19,320
Speaker 1: Uh So having that list even before you need it

446
00:20:19,400 --> 00:20:21,199
Speaker 1: is so helpful because when you find yourself in a

447
00:20:21,240 --> 00:20:24,360
Speaker 1: situation where something needs to be fixed quickly, a lot

448
00:20:24,359 --> 00:20:25,879
Speaker 1: of times it's easy to cut corners and you just

449
00:20:25,960 --> 00:20:27,879
Speaker 1: kind of take the first number that someoney gives you,

450
00:20:27,960 --> 00:20:30,360
Speaker 1: or the first number maybe even find online. But if

451
00:20:30,359 --> 00:20:32,280
Speaker 1: you know that like, oh, I've heard so and so

452
00:20:32,720 --> 00:20:35,199
Speaker 1: has used this guy before, or oh, I've heard that

453
00:20:35,240 --> 00:20:37,720
Speaker 1: this H Fact lady is just amazing by the way

454
00:20:37,800 --> 00:20:39,359
Speaker 1: you and I both use the same H Fact lady

455
00:20:39,680 --> 00:20:43,159
Speaker 1: and she is amazing. But having these names and numbers

456
00:20:43,200 --> 00:20:46,480
Speaker 1: and what they do on your phone and easily accessible

457
00:20:46,640 --> 00:20:49,440
Speaker 1: is is so important as well. Yeah, and Matt two,

458
00:20:49,440 --> 00:20:52,480
Speaker 1: to your point, it's important to have friends or at

459
00:20:52,520 --> 00:20:55,560
Speaker 1: least have you know, contacts in the space who also

460
00:20:55,680 --> 00:20:59,399
Speaker 1: managed properties so that you can share that kind of information. Oh,

461
00:20:59,440 --> 00:21:01,960
Speaker 1: you've got a great handy person, I've got a great

462
00:21:02,080 --> 00:21:04,680
Speaker 1: H Fact lady, and you can swap contacts and um,

463
00:21:04,920 --> 00:21:07,160
Speaker 1: you know it's not always full proof, but it's really

464
00:21:07,200 --> 00:21:10,400
Speaker 1: helpful to know people who know people and to have

465
00:21:10,440 --> 00:21:13,400
Speaker 1: that ability to share, especially when you need somebody last

466
00:21:13,440 --> 00:21:16,240
Speaker 1: minute and your person is busy and you gotta find

467
00:21:16,240 --> 00:21:18,159
Speaker 1: somebody else on the fly. Yeah, you don't have to

468
00:21:18,160 --> 00:21:20,359
Speaker 1: start from scratch, right, you don't have to reinvent the wheel.

469
00:21:20,359 --> 00:21:22,280
Speaker 1: It's just I can quickly check in with you and say, Hey,

470
00:21:22,520 --> 00:21:24,239
Speaker 1: who's that yard guy that you've used before. I've heard

471
00:21:24,240 --> 00:21:25,919
Speaker 1: you talk about before. I need to finally get his

472
00:21:26,040 --> 00:21:28,359
Speaker 1: name in my phone and give him a call. Yes,

473
00:21:28,480 --> 00:21:31,000
Speaker 1: it makes it so easy, it does, all right. Another

474
00:21:31,200 --> 00:21:34,600
Speaker 1: really important thing when you're treating your your rental properties

475
00:21:34,960 --> 00:21:37,600
Speaker 1: like a business is that you you have to have

476
00:21:37,640 --> 00:21:40,919
Speaker 1: a system, a clear system for tenant communication, and you

477
00:21:40,960 --> 00:21:44,119
Speaker 1: have to set clear guidelines as to how your tenants

478
00:21:44,160 --> 00:21:47,720
Speaker 1: should notify you of any problems with the property. Matt,

479
00:21:47,960 --> 00:21:50,400
Speaker 1: I made this mistake a big mistake early on when

480
00:21:50,400 --> 00:21:53,800
Speaker 1: I was managing rental properties. I gave them my my

481
00:21:53,880 --> 00:21:57,719
Speaker 1: cell phone number, uh, my email address. It was like,

482
00:21:57,760 --> 00:22:00,119
Speaker 1: just they can contact me anyway they wanted, whenever they wanted,

483
00:22:00,480 --> 00:22:03,639
Speaker 1: and it wasn't clear how I preferred to be contacted,

484
00:22:03,920 --> 00:22:06,880
Speaker 1: and I would respond almost at any point in time

485
00:22:06,920 --> 00:22:09,680
Speaker 1: if they texted me, like nine o'clock at night, Hey, Joel,

486
00:22:09,840 --> 00:22:11,960
Speaker 1: can you take a look at this really minor problem

487
00:22:12,000 --> 00:22:13,919
Speaker 1: sometime in the next couple of weeks. And I'm responding

488
00:22:13,960 --> 00:22:15,560
Speaker 1: and like, I'm about to go to bed, Man, I

489
00:22:15,600 --> 00:22:17,359
Speaker 1: don't want that. I'm placing you out if on your

490
00:22:17,400 --> 00:22:21,320
Speaker 1: mind you're dreaming about it exactly exactly, and that wasn't good,

491
00:22:21,560 --> 00:22:25,080
Speaker 1: So I would suggest picking one Personally. I'm email only

492
00:22:25,119 --> 00:22:27,479
Speaker 1: at this point. It sucks to get that text message

493
00:22:27,480 --> 00:22:30,720
Speaker 1: that something's broken in the evening, but I don't mind

494
00:22:30,760 --> 00:22:33,000
Speaker 1: it nearly as much when it comes across an email form.

495
00:22:33,000 --> 00:22:35,280
Speaker 1: I feel like I can dismiss that for twenty four

496
00:22:35,280 --> 00:22:37,880
Speaker 1: hours if need be, and create that system and stick

497
00:22:37,960 --> 00:22:40,720
Speaker 1: to it in order to avoid having to respond in

498
00:22:40,760 --> 00:22:42,960
Speaker 1: ways that you don't love or that do stress you out.

499
00:22:43,200 --> 00:22:44,680
Speaker 1: I think at the same time, it's just helpful for

500
00:22:44,720 --> 00:22:47,040
Speaker 1: your tenants to know, all right, this is the method

501
00:22:47,840 --> 00:22:51,120
Speaker 1: how I contact my landlord when something arises. If there's

502
00:22:51,200 --> 00:22:53,399
Speaker 1: a few different methods, it can get confusing. Yeah, And

503
00:22:53,440 --> 00:22:55,880
Speaker 1: over the years, Man, I found that what's been really

504
00:22:55,880 --> 00:22:58,440
Speaker 1: helpful for me is I've set up separate email addresses

505
00:22:58,720 --> 00:23:01,520
Speaker 1: per property, and I've got this Google Voice number as

506
00:23:01,560 --> 00:23:05,240
Speaker 1: well that I typically field those initial showings and you

507
00:23:05,240 --> 00:23:07,480
Speaker 1: know when when those listings are alive. And that's because

508
00:23:07,480 --> 00:23:10,440
Speaker 1: I found that, just like that showing in listing time period, right,

509
00:23:10,600 --> 00:23:12,840
Speaker 1: that it can be so overwhelming because people, I mean

510
00:23:12,840 --> 00:23:15,240
Speaker 1: they're emailing you and calling and you know, trying to

511
00:23:15,240 --> 00:23:17,639
Speaker 1: call you in text, like I've turned off call forwarding,

512
00:23:17,680 --> 00:23:19,280
Speaker 1: you know, from the Google Voice number. I'm I'm like

513
00:23:19,320 --> 00:23:21,960
Speaker 1: only text, but folks are going to reach out to

514
00:23:21,960 --> 00:23:24,680
Speaker 1: you at all hours of the day and night to

515
00:23:24,680 --> 00:23:26,160
Speaker 1: to try to make sure that they're able to see

516
00:23:26,160 --> 00:23:28,280
Speaker 1: that property asap we want to move in, and then

517
00:23:28,320 --> 00:23:30,439
Speaker 1: you never hear from those people. And so having some

518
00:23:30,480 --> 00:23:33,920
Speaker 1: of those those barriers between you, uh and getting in

519
00:23:33,920 --> 00:23:37,080
Speaker 1: a good night's sleep is important in particular during those

520
00:23:37,160 --> 00:23:40,040
Speaker 1: kind of higher stress periods where you're doing a lot

521
00:23:40,080 --> 00:23:42,920
Speaker 1: of communicating, you're fielding a lot of inquiries. Um. But

522
00:23:43,000 --> 00:23:44,560
Speaker 1: you know what I found though, for me personally, is

523
00:23:44,600 --> 00:23:46,359
Speaker 1: that after that, like once I actually get a tenant

524
00:23:46,359 --> 00:23:49,080
Speaker 1: in there, I'm very comfortable giving them my you know,

525
00:23:49,119 --> 00:23:51,760
Speaker 1: my cell number for them to have my personal email address.

526
00:23:52,040 --> 00:23:54,200
Speaker 1: And again, in the past seven years, I've never had

527
00:23:54,240 --> 00:23:55,600
Speaker 1: a call or a text in the middle of the

528
00:23:55,680 --> 00:23:58,040
Speaker 1: night where something you know, where something was wrong. And

529
00:23:58,080 --> 00:24:00,600
Speaker 1: that's because I too, have also commune dedicated to them

530
00:24:00,600 --> 00:24:03,120
Speaker 1: how I prefer to be contacted about things that are

531
00:24:03,280 --> 00:24:06,680
Speaker 1: non emergencies. Uh. But you know, granted, if there's something

532
00:24:06,760 --> 00:24:08,720
Speaker 1: going on that's an emergency, I want them to call me.

533
00:24:09,160 --> 00:24:10,800
Speaker 1: But that being said, knock on the wood, that's not

534
00:24:10,960 --> 00:24:13,560
Speaker 1: something that, uh, that I've had to deal with, and

535
00:24:13,600 --> 00:24:15,479
Speaker 1: it sounds like you haven't either. Yeah, yeah, I mean

536
00:24:15,520 --> 00:24:18,640
Speaker 1: I think those those stories are are overblown. And usually

537
00:24:18,800 --> 00:24:21,880
Speaker 1: if you have a lot of tenant horror stories in particular,

538
00:24:21,920 --> 00:24:24,760
Speaker 1: like everybody's bound to get something here, they're right, for sure.

539
00:24:25,119 --> 00:24:28,760
Speaker 1: But but oftentimes that is because there wasn't enough due

540
00:24:28,800 --> 00:24:32,200
Speaker 1: diligence done on the front end. I think that's almost

541
00:24:32,240 --> 00:24:35,240
Speaker 1: always where people make the mistake and then they pay

542
00:24:35,320 --> 00:24:37,240
Speaker 1: for it later on. Yeah, and real quick too. You know,

543
00:24:37,240 --> 00:24:39,320
Speaker 1: while we're talking about communication here, I think it's really

544
00:24:39,359 --> 00:24:43,360
Speaker 1: important to communicate about how rent is to be collected

545
00:24:43,359 --> 00:24:45,520
Speaker 1: and when it's to be collected. Right, And obviously this

546
00:24:45,560 --> 00:24:47,359
Speaker 1: is you talked about the least earlier. This is something

547
00:24:47,359 --> 00:24:49,560
Speaker 1: that should be very clearly spelled up in the lease.

548
00:24:50,040 --> 00:24:51,800
Speaker 1: But if your tennants know how it is that they're

549
00:24:51,800 --> 00:24:54,159
Speaker 1: supposed to pay rents, I feel like that's another one

550
00:24:54,160 --> 00:24:56,520
Speaker 1: of those points of tension that that folks are like, Oh,

551
00:24:56,560 --> 00:24:58,480
Speaker 1: I've heard horror stories about you know, having to collect

552
00:24:58,520 --> 00:25:00,800
Speaker 1: rent and what happens if you don't. But again, if

553
00:25:00,800 --> 00:25:03,240
Speaker 1: that's something that you've clearly communicated with them and that's

554
00:25:03,240 --> 00:25:05,080
Speaker 1: spilled out in the least, that's that's a headache that

555
00:25:05,080 --> 00:25:07,200
Speaker 1: you can avoid. Yeah, and make it easy on them,

556
00:25:07,240 --> 00:25:09,480
Speaker 1: don't don't make them drop a check in your mailbox.

557
00:25:09,480 --> 00:25:12,760
Speaker 1: How about make it easy for us for yourself, the

558
00:25:12,760 --> 00:25:14,879
Speaker 1: easiest thing to do is really the easiest thing for

559
00:25:14,920 --> 00:25:19,800
Speaker 1: both parties. We all have smartphones and venomouh cash app.

560
00:25:19,880 --> 00:25:22,200
Speaker 1: It is so easy and it's so easy to set

561
00:25:22,240 --> 00:25:25,959
Speaker 1: calendar reminders. Can you even set up automatic payments with

562
00:25:26,080 --> 00:25:28,679
Speaker 1: venmo or or cash app? Not that I know of,

563
00:25:28,800 --> 00:25:30,480
Speaker 1: but I don't know if you can either. But it's

564
00:25:30,560 --> 00:25:33,720
Speaker 1: so easy to set up a recurring calendar reminder and

565
00:25:33,800 --> 00:25:35,919
Speaker 1: just with a few clicks, few slipes with the thumb

566
00:25:35,920 --> 00:25:38,560
Speaker 1: and man, you've got that rent paid. It's true. Well

567
00:25:38,560 --> 00:25:40,040
Speaker 1: on the note of getting paid, we need to talk

568
00:25:40,080 --> 00:25:43,800
Speaker 1: about assessing your property performance every year. Are you making

569
00:25:43,840 --> 00:25:46,480
Speaker 1: money right? And and that is an important question to

570
00:25:46,520 --> 00:25:49,439
Speaker 1: ask if you're managing a rental property. You know, if

571
00:25:49,480 --> 00:25:51,359
Speaker 1: you had to replace a roof or an h VAC

572
00:25:51,480 --> 00:25:54,359
Speaker 1: unit this year, maybe your cash flow is down, but

573
00:25:54,400 --> 00:25:57,399
Speaker 1: hopefully you're sending aside money every month for maintenance anyways, Right,

574
00:25:57,880 --> 00:26:01,040
Speaker 1: if you're regularly going over your budge it did maintenance amount,

575
00:26:01,200 --> 00:26:02,760
Speaker 1: then it might be time to be a little more

576
00:26:02,800 --> 00:26:06,400
Speaker 1: realistic with how much you're you're truly gonna make with

577
00:26:06,440 --> 00:26:09,040
Speaker 1: that property. And there is a chance that if you

578
00:26:09,119 --> 00:26:12,919
Speaker 1: keep overshooting on maintenance by a good bit that the

579
00:26:12,920 --> 00:26:15,480
Speaker 1: the actual property just has too many issues and it's

580
00:26:15,480 --> 00:26:16,879
Speaker 1: not going to be a money maker for you. And

581
00:26:16,920 --> 00:26:19,840
Speaker 1: if that's the case, then it might mean it's time

582
00:26:19,840 --> 00:26:22,399
Speaker 1: to sell. But there is something about being able to

583
00:26:22,440 --> 00:26:25,440
Speaker 1: assess every single year, like how is this property doing

584
00:26:25,480 --> 00:26:27,600
Speaker 1: for me? And you know, Emily and I we get

585
00:26:27,680 --> 00:26:29,280
Speaker 1: jazzed at the end of the year to talk about, well,

586
00:26:29,320 --> 00:26:31,560
Speaker 1: how well have these properties performed, how are they doing

587
00:26:31,600 --> 00:26:33,399
Speaker 1: for their for our family? Are they still worth the

588
00:26:33,440 --> 00:26:35,480
Speaker 1: time and energy that we're putting into them? For what

589
00:26:35,520 --> 00:26:37,159
Speaker 1: we're getting out of them, um and and so that

590
00:26:37,240 --> 00:26:41,199
Speaker 1: that's always a good discussion. Having that performance assessment is

591
00:26:41,280 --> 00:26:43,800
Speaker 1: crucial I think to managing properties well and it gets

592
00:26:43,840 --> 00:26:47,160
Speaker 1: me excited to continue managing knowing that they are actually

593
00:26:47,240 --> 00:26:49,560
Speaker 1: doing what I I've set out for them to achieve,

594
00:26:49,560 --> 00:26:51,879
Speaker 1: like that they're actually helping our family build wealth and

595
00:26:52,160 --> 00:26:56,200
Speaker 1: create an alternate income stream exactly. Yeah, that's the primary goal, right,

596
00:26:56,560 --> 00:26:58,560
Speaker 1: But also let's let's talk about software and some of

597
00:26:58,560 --> 00:27:00,960
Speaker 1: these different platforms out there. You can use these to

598
00:27:01,000 --> 00:27:04,040
Speaker 1: help you just to stay organized and communicate well if

599
00:27:04,080 --> 00:27:05,640
Speaker 1: you feel that you need to kind of operate within

600
00:27:05,800 --> 00:27:08,520
Speaker 1: a system, you know, if if those boundaries around communication,

601
00:27:08,800 --> 00:27:11,680
Speaker 1: you know, if you found that those are harder to set, uh,

602
00:27:11,760 --> 00:27:15,040
Speaker 1: then it might be worth checking out Cozy dot c

603
00:27:15,200 --> 00:27:17,320
Speaker 1: O cozy co We We mentioned them earlier, but they

604
00:27:17,359 --> 00:27:19,679
Speaker 1: are the like the best all in one software that

605
00:27:19,720 --> 00:27:22,399
Speaker 1: we know of. It is free for landlords and tenants,

606
00:27:22,440 --> 00:27:23,879
Speaker 1: but they make their money in other ways, you know,

607
00:27:23,960 --> 00:27:26,840
Speaker 1: like if the tenant chooses to pay rent via credit card,

608
00:27:26,920 --> 00:27:29,359
Speaker 1: they can do that, but it also charges them a

609
00:27:29,400 --> 00:27:31,520
Speaker 1: small fee. And they also make their money to on

610
00:27:31,600 --> 00:27:35,199
Speaker 1: screenings that you would perform through that platform, but you know,

611
00:27:35,240 --> 00:27:38,120
Speaker 1: they offer an awesome platform to help you to manage

612
00:27:38,119 --> 00:27:41,399
Speaker 1: those properties and to communicate with your tenants, um, you know,

613
00:27:41,440 --> 00:27:46,159
Speaker 1: take maintenance request organized forms just overall stay organized. And

614
00:27:46,400 --> 00:27:49,720
Speaker 1: rent Ready is another platform that's worth looking at. It's

615
00:27:49,920 --> 00:27:51,919
Speaker 1: that one costs actually nine dollars a month if you

616
00:27:51,960 --> 00:27:53,920
Speaker 1: pay a year at a time, and I feel like

617
00:27:53,920 --> 00:27:55,439
Speaker 1: that was a little more set up for if you

618
00:27:55,480 --> 00:27:59,160
Speaker 1: have just a whole massive portfolio of properties. I saw.

619
00:27:59,200 --> 00:28:01,080
Speaker 1: One of the cool things that outrun ready is that

620
00:28:01,240 --> 00:28:03,280
Speaker 1: tenants can upload videos to it, you know, and so

621
00:28:03,359 --> 00:28:05,760
Speaker 1: there's a maintenance request, they can accompany that request with

622
00:28:05,840 --> 00:28:07,639
Speaker 1: a video. But again, if you're more of a mom

623
00:28:07,680 --> 00:28:10,119
Speaker 1: and pop landlord like Joel and I are, and you

624
00:28:10,160 --> 00:28:12,960
Speaker 1: just have a handful of properties, and you've communicated well

625
00:28:13,000 --> 00:28:15,920
Speaker 1: with your tendants and they understand you and you understand them, uh,

626
00:28:15,960 --> 00:28:18,399
Speaker 1: sometimes you can kind of sidestep some of those larger

627
00:28:18,440 --> 00:28:21,000
Speaker 1: platforms and software as long as you have set those

628
00:28:21,000 --> 00:28:24,240
Speaker 1: clear communication boundaries with your tenants. Yeah, and I love

629
00:28:24,280 --> 00:28:26,800
Speaker 1: that these that these platforms can offer just like a

630
00:28:26,840 --> 00:28:29,560
Speaker 1: whole range of help. Right like your your tenant can

631
00:28:29,560 --> 00:28:32,120
Speaker 1: not only just pay digitally there, which makes it easy

632
00:28:32,200 --> 00:28:34,399
Speaker 1: for you and for them. They can also submit a

633
00:28:34,440 --> 00:28:37,840
Speaker 1: maintenance request. You guys, communicate solely through that platform, if

634
00:28:37,840 --> 00:28:40,000
Speaker 1: that's what you want. It's just kind of nice. You

635
00:28:40,080 --> 00:28:42,240
Speaker 1: just log into the site and like everything that you

636
00:28:42,280 --> 00:28:44,240
Speaker 1: need to do in order to deal with me and

637
00:28:44,440 --> 00:28:47,160
Speaker 1: issues with the home is right here, right, And so yeah,

638
00:28:47,200 --> 00:28:48,960
Speaker 1: I think it's it's nice to be able to to

639
00:28:49,080 --> 00:28:52,120
Speaker 1: have that as a system. Really to help you create

640
00:28:52,160 --> 00:28:55,920
Speaker 1: that system, it's important to be firm but fair with

641
00:28:56,160 --> 00:28:58,200
Speaker 1: your tenants, right, stick to the stuff you've put in

642
00:28:58,200 --> 00:29:01,040
Speaker 1: the least. Being fair general is a good rule to

643
00:29:01,080 --> 00:29:04,720
Speaker 1: a bye bye in life, right, Yeah, totally. I think

644
00:29:04,840 --> 00:29:07,600
Speaker 1: like that is one thing though, Matt, that that tripped

645
00:29:07,640 --> 00:29:10,840
Speaker 1: me up early on, is if something is in the least,

646
00:29:10,920 --> 00:29:12,560
Speaker 1: you need to stick to it, and when it comes

647
00:29:12,560 --> 00:29:14,720
Speaker 1: to like a late payment or something like that. In

648
00:29:14,760 --> 00:29:17,200
Speaker 1: the beginning, I was like, I was pretty mushy about those.

649
00:29:17,440 --> 00:29:18,760
Speaker 1: You want to be cool about it. You're like, oh,

650
00:29:18,800 --> 00:29:20,320
Speaker 1: don't worry about it, you know you want to be

651
00:29:20,360 --> 00:29:23,040
Speaker 1: you want to be likable, right exactly. And then I

652
00:29:23,240 --> 00:29:24,920
Speaker 1: found out that that that just kind of led to

653
00:29:25,040 --> 00:29:27,840
Speaker 1: more issues down the road. And so yeah, that being

654
00:29:27,880 --> 00:29:32,240
Speaker 1: firm upfront is important. Obviously, COVID has made interactions with tenants.

655
00:29:32,280 --> 00:29:36,360
Speaker 1: Tenants um really different these days, right, late fees are

656
00:29:36,680 --> 00:29:40,000
Speaker 1: way less rigid right now, considering the circumstances. Uh, We've

657
00:29:40,000 --> 00:29:42,240
Speaker 1: talked about that on the show. How I've changed the

658
00:29:42,280 --> 00:29:45,880
Speaker 1: way that I'm interacting with with my tenants, the concessions

659
00:29:45,880 --> 00:29:47,800
Speaker 1: that we've made to try to to help them out

660
00:29:47,840 --> 00:29:50,040
Speaker 1: and keep them um in in the place that they've

661
00:29:50,040 --> 00:29:52,360
Speaker 1: been for quite a long time, and help keep some

662
00:29:52,360 --> 00:29:55,200
Speaker 1: stability for them at the same time. But in typical times,

663
00:29:55,200 --> 00:29:58,400
Speaker 1: sticking to what has been written in your lease is

664
00:29:58,680 --> 00:30:00,760
Speaker 1: is crucial. I think for a la lord, and the

665
00:30:00,880 --> 00:30:04,520
Speaker 1: more you deviate away from what you've have in writing

666
00:30:04,520 --> 00:30:07,760
Speaker 1: and you've both acknowledged um and and signed your name to,

667
00:30:08,160 --> 00:30:11,000
Speaker 1: the more likely you are to run into other issues. Yeah.

668
00:30:11,000 --> 00:30:12,840
Speaker 1: I mean it's just not fair to your tenants as well,

669
00:30:12,960 --> 00:30:14,960
Speaker 1: Right Like if if one month you're like, oh no,

670
00:30:15,000 --> 00:30:16,880
Speaker 1: don't worry about the late fee, but then the next month,

671
00:30:17,160 --> 00:30:19,200
Speaker 1: the very next day after when rent was due, you're

672
00:30:19,240 --> 00:30:21,719
Speaker 1: you're kind of hounding them saying, hey, where's rent. I mean,

673
00:30:21,760 --> 00:30:24,160
Speaker 1: that's not fair, that's not what you're looking for out

674
00:30:24,160 --> 00:30:26,240
Speaker 1: of the landlord, right like you, As a lay lord,

675
00:30:26,280 --> 00:30:27,960
Speaker 1: I want to make sure that my tenants feel like

676
00:30:28,040 --> 00:30:30,920
Speaker 1: they have somebody who they can count on to provide

677
00:30:30,960 --> 00:30:32,880
Speaker 1: them safe and clean housing, you know that at a

678
00:30:32,920 --> 00:30:35,720
Speaker 1: price that we've agreed to. And so communicating and sticking

679
00:30:35,760 --> 00:30:38,400
Speaker 1: with those terms, I think is is really important. I

680
00:30:38,440 --> 00:30:40,040
Speaker 1: like what you said, how how those terms are not

681
00:30:40,080 --> 00:30:42,040
Speaker 1: only for the tenant, but they're also for us as well,

682
00:30:42,080 --> 00:30:44,120
Speaker 1: to make sure that, like, well, even though we don't

683
00:30:44,160 --> 00:30:46,720
Speaker 1: want to abide by these things and everybody in the

684
00:30:46,720 --> 00:30:49,200
Speaker 1: short term would might benefit a little bit by kind

685
00:30:49,200 --> 00:30:51,239
Speaker 1: of fudging it, it's it is really important to kind

686
00:30:51,240 --> 00:30:54,200
Speaker 1: of stick with it because having those clear expectations is

687
00:30:54,520 --> 00:30:57,280
Speaker 1: pretty vital. Yeah, I agree, And Matt, we've talked a

688
00:30:57,320 --> 00:30:59,120
Speaker 1: lot about finding the right tenant. We've talked a lot

689
00:30:59,160 --> 00:31:02,720
Speaker 1: about it stabbor good systems to manage a rental property effectively.

690
00:31:03,040 --> 00:31:06,120
Speaker 1: But when is it time to hire a property manager

691
00:31:06,320 --> 00:31:08,360
Speaker 1: to do a lot of that managing for you? Well,

692
00:31:08,400 --> 00:31:21,160
Speaker 1: we'll answer that question right after this break. All right, man,

693
00:31:21,160 --> 00:31:22,680
Speaker 1: we are back from the break, and we just spent

694
00:31:22,920 --> 00:31:26,240
Speaker 1: a chunk of time talking about managing properties ourselves. So

695
00:31:26,320 --> 00:31:28,040
Speaker 1: let's talk. You know, you hinted at this but let's

696
00:31:28,040 --> 00:31:30,960
Speaker 1: talk about when it makes sense to hire a manager,

697
00:31:31,000 --> 00:31:35,640
Speaker 1: and that is never just kidding. Um. We believe that

698
00:31:35,680 --> 00:31:38,680
Speaker 1: you should at least try to self manage before you

699
00:31:38,680 --> 00:31:40,760
Speaker 1: look to hire someone to manage them for you. Like

700
00:31:40,800 --> 00:31:42,720
Speaker 1: we feel it's just such a good learning experience that

701
00:31:42,960 --> 00:31:45,520
Speaker 1: is worth having. Uh. And it will also help you

702
00:31:45,560 --> 00:31:48,480
Speaker 1: to learn what questions to ask if you are looking

703
00:31:48,480 --> 00:31:51,040
Speaker 1: at a potential property manager as well. Yeah, if you've

704
00:31:51,080 --> 00:31:53,240
Speaker 1: never managed a property, you're going in the dark when

705
00:31:53,280 --> 00:31:55,720
Speaker 1: you're interviewing property managers. You don't really know what to

706
00:31:55,760 --> 00:31:57,920
Speaker 1: ask them, and and so it's just much harder to

707
00:31:57,920 --> 00:31:59,720
Speaker 1: assess whether you're hiring someone who's going to do a

708
00:31:59,760 --> 00:32:01,840
Speaker 1: good um or not. Yeah, exactly. I kind of liken

709
00:32:01,920 --> 00:32:03,880
Speaker 1: this to at least being willing to like pick up

710
00:32:03,880 --> 00:32:05,920
Speaker 1: a paint brush, like when you first buy a property.

711
00:32:05,960 --> 00:32:08,200
Speaker 1: You know, Uh, if you're willing to maybe put in

712
00:32:08,240 --> 00:32:10,960
Speaker 1: a little bit of elbow grease at the beginning, then

713
00:32:11,000 --> 00:32:14,640
Speaker 1: maybe rental property ownership and management, you know, it may

714
00:32:14,680 --> 00:32:17,400
Speaker 1: not be for you. Matt. So, my mom, she really

715
00:32:17,400 --> 00:32:20,480
Speaker 1: likes h G TV. I've heard and I remember watching

716
00:32:20,480 --> 00:32:23,200
Speaker 1: this one episode one time with her, uh, and it

717
00:32:23,320 --> 00:32:25,840
Speaker 1: was like this this this couple who who wanted to

718
00:32:25,880 --> 00:32:28,160
Speaker 1: flip a home. Um, and there was like this expert

719
00:32:28,200 --> 00:32:31,000
Speaker 1: who was helping them along the way, but they didn't

720
00:32:31,000 --> 00:32:33,320
Speaker 1: want to get their hands dirty at all. They didn't

721
00:32:33,320 --> 00:32:35,400
Speaker 1: even want to go down in the basement they and

722
00:32:35,600 --> 00:32:38,200
Speaker 1: see some of the issues that existed with the property.

723
00:32:38,200 --> 00:32:40,320
Speaker 1: They just showed up with a bunch of money. Basically, yeah, exactly,

724
00:32:40,400 --> 00:32:42,520
Speaker 1: let's be on this show like you're just gonna do

725
00:32:42,560 --> 00:32:44,520
Speaker 1: it for us, right, and we're gonna make money in

726
00:32:44,560 --> 00:32:47,320
Speaker 1: the end. That's just a terrible approach when it comes

727
00:32:47,360 --> 00:32:49,960
Speaker 1: to buying a rental property, Like you you have to

728
00:32:49,960 --> 00:32:52,320
Speaker 1: be willing to one look at the whole house, but

729
00:32:52,360 --> 00:32:54,560
Speaker 1: then yeah, I get your get your hands dirty, um.

730
00:32:54,640 --> 00:32:57,040
Speaker 1: And I think the same is true when it comes

731
00:32:57,080 --> 00:32:59,600
Speaker 1: to managing. You have to at least be willing to

732
00:32:59,640 --> 00:33:01,520
Speaker 1: try it, and you'll learn a lot in those first

733
00:33:01,520 --> 00:33:04,680
Speaker 1: six months. You'll you'll maybe learned that you really want

734
00:33:04,760 --> 00:33:07,480
Speaker 1: a property manager, or you might learn that it's actually

735
00:33:07,480 --> 00:33:09,800
Speaker 1: easier than you thought it was. Um. But how do

736
00:33:09,840 --> 00:33:11,360
Speaker 1: you know when you are ready to get a pro

737
00:33:11,560 --> 00:33:14,520
Speaker 1: and what they normally charge. Well, if you just don't

738
00:33:14,520 --> 00:33:16,680
Speaker 1: want managing to be a part of your life, you're

739
00:33:16,680 --> 00:33:18,520
Speaker 1: one of those people who says, I like real estate,

740
00:33:18,640 --> 00:33:20,520
Speaker 1: but I don't want to manage it. I think that's

741
00:33:20,520 --> 00:33:23,000
Speaker 1: an okay way to approach it. But just know that

742
00:33:23,040 --> 00:33:25,280
Speaker 1: you're not going to find anyone else who will care

743
00:33:25,320 --> 00:33:28,360
Speaker 1: for your property as much as you do. The little

744
00:33:28,400 --> 00:33:31,480
Speaker 1: things that I see that I can improve on the

745
00:33:31,480 --> 00:33:34,560
Speaker 1: properties that I own. Well, somebody who's managing the property,

746
00:33:34,640 --> 00:33:38,000
Speaker 1: someone who's just getting paid to to essentially fix things

747
00:33:38,040 --> 00:33:41,800
Speaker 1: when they break, isn't necessarily looking for those cool, inexpensive

748
00:33:41,840 --> 00:33:43,880
Speaker 1: improvements that you can do along the way that will

749
00:33:43,920 --> 00:33:46,600
Speaker 1: make tenants happier or potentially even be able to get

750
00:33:46,600 --> 00:33:49,080
Speaker 1: you more rent. That's what I mean by by you

751
00:33:49,440 --> 00:33:51,560
Speaker 1: essentially being the one who's going to care about that

752
00:33:51,600 --> 00:33:54,120
Speaker 1: property the most. But if you are one of those

753
00:33:54,120 --> 00:33:56,280
Speaker 1: people who knows you want to invest in real estate,

754
00:33:56,320 --> 00:33:59,280
Speaker 1: but you also want to have a property manager, make

755
00:33:59,280 --> 00:34:02,240
Speaker 1: sure to factor in those costs when running the numbers

756
00:34:02,240 --> 00:34:04,520
Speaker 1: on a property. Matt and I were fans of people

757
00:34:04,720 --> 00:34:08,440
Speaker 1: factoring in the potential costs of a property manager into

758
00:34:08,560 --> 00:34:11,319
Speaker 1: the numbers just in case, no matter what. But if

759
00:34:11,360 --> 00:34:13,239
Speaker 1: it's a non negotiable, then then you have to have

760
00:34:13,280 --> 00:34:15,920
Speaker 1: it in there and and it will cost you eat

761
00:34:15,960 --> 00:34:18,439
Speaker 1: into some of those profits by you paying someone else

762
00:34:18,560 --> 00:34:21,000
Speaker 1: to take on the role of managing the property. It's

763
00:34:21,080 --> 00:34:23,240
Speaker 1: it's gonna cost you money. Yeah, and you know costs.

764
00:34:23,440 --> 00:34:26,480
Speaker 1: It truly is like the biggest consideration. Uh. And that's

765
00:34:26,520 --> 00:34:28,200
Speaker 1: something that we're gonna we will get to but we'll

766
00:34:28,239 --> 00:34:30,080
Speaker 1: get to that here in a little bit. Joe. I'm

767
00:34:30,120 --> 00:34:33,440
Speaker 1: thinking through how even though I've purposely purchased properties you know,

768
00:34:33,480 --> 00:34:35,920
Speaker 1: nearby and created systems that make them easier to manage, like,

769
00:34:35,960 --> 00:34:39,520
Speaker 1: I've still considered hiring a property manager recently, life and

770
00:34:39,560 --> 00:34:41,680
Speaker 1: having a bunch of kids, like, life gets busy, and

771
00:34:41,719 --> 00:34:43,600
Speaker 1: so I want to continue to own these homes. But

772
00:34:43,719 --> 00:34:47,160
Speaker 1: I you know, I get less excited by the management aspects,

773
00:34:47,400 --> 00:34:49,799
Speaker 1: you know, over time. I think that's a large part

774
00:34:49,800 --> 00:34:53,160
Speaker 1: of why I haven't necessarily looked to expanding the number

775
00:34:53,160 --> 00:34:54,600
Speaker 1: of properties I have, because I'm like, you know what,

776
00:34:54,760 --> 00:34:57,000
Speaker 1: like the ones I have right now are manageable, and

777
00:34:57,040 --> 00:34:59,799
Speaker 1: I like the level of my involvement. But I know

778
00:34:59,840 --> 00:35:01,160
Speaker 1: that like man if I'm if I'm gonna get a

779
00:35:01,160 --> 00:35:02,960
Speaker 1: bunch of more properties, I don't want to say it's

780
00:35:02,960 --> 00:35:05,000
Speaker 1: a full time job, but it's going to certainly require

781
00:35:05,040 --> 00:35:07,319
Speaker 1: a lot more of your time, and that's something I'm

782
00:35:07,400 --> 00:35:10,239
Speaker 1: kind of short on at the moment. And I'm also

783
00:35:10,480 --> 00:35:12,239
Speaker 1: stuck in this hard place there too because I'm also

784
00:35:12,280 --> 00:35:16,080
Speaker 1: not quite yet willing to pay for someone to management properties.

785
00:35:16,360 --> 00:35:17,960
Speaker 1: And so that's why at the moment, Yeah, I'm not

786
00:35:18,000 --> 00:35:21,440
Speaker 1: looking to expand that real estate portfolio. Yeah I understand. Yeah,

787
00:35:21,440 --> 00:35:23,480
Speaker 1: if I got a couple more, I definitely gotta find

788
00:35:23,560 --> 00:35:26,200
Speaker 1: find somehow I can't do it myself anymore. But I

789
00:35:26,239 --> 00:35:29,120
Speaker 1: think another another reason that people turn to property managers

790
00:35:29,120 --> 00:35:33,520
Speaker 1: that makes sense is if they're considering long distance ownership

791
00:35:33,560 --> 00:35:38,520
Speaker 1: of a property, Because managing a physical property from hundreds

792
00:35:38,520 --> 00:35:41,319
Speaker 1: and hundreds or thousands of miles away just it makes

793
00:35:41,320 --> 00:35:44,120
Speaker 1: it incredibly hard. So if you're moving but you still

794
00:35:44,120 --> 00:35:45,960
Speaker 1: want to own that property that you that you own

795
00:35:46,000 --> 00:35:48,719
Speaker 1: that's nearby, hiring a manager makes a whole lot of

796
00:35:48,760 --> 00:35:51,719
Speaker 1: sense unless the person renting your property is someone you

797
00:35:51,760 --> 00:35:55,520
Speaker 1: know closely. Having a local property manager I think becomes

798
00:35:55,600 --> 00:35:58,920
Speaker 1: essential when you're not living close by um in order

799
00:35:58,960 --> 00:36:01,360
Speaker 1: to be able to manage personally. And even if it

800
00:36:01,440 --> 00:36:02,960
Speaker 1: is some when you know, you still have to manage

801
00:36:02,960 --> 00:36:05,759
Speaker 1: it and that's just hard. To do from from far

802
00:36:05,800 --> 00:36:08,919
Speaker 1: away right. I mean, I'm thinking too of maybe another

803
00:36:08,920 --> 00:36:10,360
Speaker 1: reason why I might be going to have a manager.

804
00:36:10,360 --> 00:36:12,359
Speaker 1: I'm thinking I think it was five Am Joel, remember

805
00:36:12,400 --> 00:36:15,040
Speaker 1: our interview with him, uh, and I think it was him.

806
00:36:15,120 --> 00:36:17,399
Speaker 1: He shared the story about how he had gone in

807
00:36:17,840 --> 00:36:20,400
Speaker 1: to talk you know, with his tenants that he has

808
00:36:20,440 --> 00:36:22,920
Speaker 1: had about you know, the next year, and he kind

809
00:36:22,920 --> 00:36:24,400
Speaker 1: of like showed up with the lease and how you know,

810
00:36:24,400 --> 00:36:26,480
Speaker 1: and Rent was also going to be going up, but

811
00:36:26,760 --> 00:36:29,680
Speaker 1: he left that conversation with a signed lease, but Rent

812
00:36:29,760 --> 00:36:34,080
Speaker 1: went down, and he readily admitted that you know what,

813
00:36:34,440 --> 00:36:37,839
Speaker 1: I am a terrible landlord. This is yeah, this isn't

814
00:36:37,920 --> 00:36:39,920
Speaker 1: something that I'm good at. And so I think it's

815
00:36:39,920 --> 00:36:42,680
Speaker 1: important too to know your strengths. If you know that

816
00:36:42,760 --> 00:36:45,600
Speaker 1: even though you know the least spells out these certain things,

817
00:36:45,800 --> 00:36:47,880
Speaker 1: it still comes down to you as an individual to

818
00:36:48,000 --> 00:36:50,440
Speaker 1: enforce it. And if you know that that's not something

819
00:36:50,600 --> 00:36:52,719
Speaker 1: that you want to spend your time doing, or maybe

820
00:36:52,719 --> 00:36:55,200
Speaker 1: it's something that you're not that great at, I think

821
00:36:55,320 --> 00:36:58,000
Speaker 1: having a manager to kind of you know, be your

822
00:36:58,000 --> 00:37:01,160
Speaker 1: go between and to enforce those policies and those rules

823
00:37:01,239 --> 00:37:03,399
Speaker 1: for you, that might be something that's worth the money

824
00:37:03,440 --> 00:37:06,160
Speaker 1: as well. Yeah, or if managing that property is going

825
00:37:06,200 --> 00:37:09,080
Speaker 1: to get you emotionally tied up into knots consistently every

826
00:37:09,080 --> 00:37:11,680
Speaker 1: time a problem comes up, which is something that I

827
00:37:11,719 --> 00:37:13,800
Speaker 1: struggle with, to be honest, um, and it's something that

828
00:37:13,840 --> 00:37:16,719
Speaker 1: I've gotten better with over time. Uh, but for me,

829
00:37:16,800 --> 00:37:19,719
Speaker 1: that would be one of the reasons to potentially consider

830
00:37:20,000 --> 00:37:22,440
Speaker 1: a property manager as supposed to doing it myself. But

831
00:37:22,480 --> 00:37:25,919
Speaker 1: that's also what makes you a decent human being jeweled. Yeah,

832
00:37:26,360 --> 00:37:29,080
Speaker 1: maybe so, some might, some might disagree. Not everybody can

833
00:37:29,080 --> 00:37:32,600
Speaker 1: be cold hearted robots like I. All right, well, let's

834
00:37:32,600 --> 00:37:35,680
Speaker 1: talk about how to find a decent human being rental

835
00:37:35,719 --> 00:37:39,040
Speaker 1: profit for for a rental property manager, and like, if

836
00:37:39,080 --> 00:37:41,040
Speaker 1: you do want to hire a service to manage those

837
00:37:41,040 --> 00:37:43,600
Speaker 1: properties for you, there's a good way to go about it,

838
00:37:43,920 --> 00:37:45,960
Speaker 1: and the best way, I think are one of the

839
00:37:45,960 --> 00:37:48,920
Speaker 1: best ways is to hire a company that investor friends

840
00:37:48,920 --> 00:37:52,520
Speaker 1: have had positive experiences with over the years. Again, it's

841
00:37:52,520 --> 00:37:54,680
Speaker 1: another reason why it's crucial to have a network of

842
00:37:54,719 --> 00:37:58,080
Speaker 1: investor friends right at. Joining a local real estate group

843
00:37:58,080 --> 00:38:00,360
Speaker 1: in your community can help connect you to lots of

844
00:38:00,360 --> 00:38:03,720
Speaker 1: people that can help you in your investing endeavors, including

845
00:38:03,719 --> 00:38:07,759
Speaker 1: potential property managers. Matt one of my investor friends. He

846
00:38:07,840 --> 00:38:11,680
Speaker 1: also manages properly, who's not you? And I know him

847
00:38:11,800 --> 00:38:15,560
Speaker 1: incredibly well now and I understand how he manages his properties.

848
00:38:15,760 --> 00:38:18,080
Speaker 1: So if I do get to the point, um, and

849
00:38:18,200 --> 00:38:20,920
Speaker 1: you know, I get closer and closer every year where

850
00:38:20,960 --> 00:38:23,759
Speaker 1: I want to hire someone to manage the properties for me,

851
00:38:24,000 --> 00:38:26,280
Speaker 1: He's going to be the first place I've turned because

852
00:38:26,560 --> 00:38:28,279
Speaker 1: you know, I know him well, I know how he

853
00:38:28,320 --> 00:38:30,960
Speaker 1: manages his properties, and I feel comfortable. I would feel

854
00:38:31,000 --> 00:38:34,400
Speaker 1: totally comfortable having him manage mine. Um. But those are

855
00:38:34,400 --> 00:38:36,799
Speaker 1: the kind of things you learn through a network of

856
00:38:36,840 --> 00:38:39,919
Speaker 1: people over over time. Right. Yeah, But if you happen

857
00:38:39,960 --> 00:38:42,480
Speaker 1: to to not know somebody who is, you know, also

858
00:38:42,560 --> 00:38:46,360
Speaker 1: a property manager, you can definitely check online and read reviews,

859
00:38:46,360 --> 00:38:47,840
Speaker 1: just like we do for anything else we do it

860
00:38:47,840 --> 00:38:50,719
Speaker 1: in our life. Right. You can go to All Property Managements.

861
00:38:50,760 --> 00:38:54,040
Speaker 1: That's a great site to find local property managers, uh,

862
00:38:54,080 --> 00:38:56,520
Speaker 1: and you can request a quote for their services online.

863
00:38:56,520 --> 00:38:58,680
Speaker 1: It's super easy. But then beyond that, make sure that

864
00:38:58,719 --> 00:39:02,200
Speaker 1: you actually interview a few different property managers to get

865
00:39:02,200 --> 00:39:04,160
Speaker 1: a feel for for you know, what it is they

866
00:39:04,160 --> 00:39:07,800
Speaker 1: offered and how they differentiate themselves from any old standard

867
00:39:07,800 --> 00:39:10,440
Speaker 1: property manager. Like we're saying earlier, you want to be firm,

868
00:39:10,560 --> 00:39:12,240
Speaker 1: but at the same time you do want to be fair,

869
00:39:12,560 --> 00:39:14,080
Speaker 1: and that's kind of the it's it can be a

870
00:39:14,080 --> 00:39:18,359
Speaker 1: difficult balance to to strike as individuals. It's something that

871
00:39:18,480 --> 00:39:20,880
Speaker 1: we can do ourselves, but finding someone else who can

872
00:39:20,920 --> 00:39:22,560
Speaker 1: do a good job taking care of your tenants like that,

873
00:39:22,960 --> 00:39:24,520
Speaker 1: it can be a little more difficult. So make sure

874
00:39:24,560 --> 00:39:26,400
Speaker 1: that you don't just go with the first quote that

875
00:39:26,400 --> 00:39:28,520
Speaker 1: you receive back in your inbox, you know, yeah, yeah,

876
00:39:28,560 --> 00:39:31,360
Speaker 1: And then ask the right questions right of the companies

877
00:39:31,400 --> 00:39:35,040
Speaker 1: that you're talking to, Uh, interview three or four potential

878
00:39:35,160 --> 00:39:38,520
Speaker 1: property management companies. Ask questions like where do you advertise

879
00:39:38,640 --> 00:39:41,960
Speaker 1: for potential tenants? If they say, oh, just Craigslist or

880
00:39:42,000 --> 00:39:44,239
Speaker 1: just a sign in the yard, I mean that might

881
00:39:44,239 --> 00:39:48,319
Speaker 1: have been cool, worst, but it doesn't. That doesn't cut

882
00:39:48,320 --> 00:39:52,160
Speaker 1: in anymore. Also ask stuff like what your overall vacancy rate.

883
00:39:52,800 --> 00:39:55,480
Speaker 1: You'll you'll realize too that that's an important question because

884
00:39:55,680 --> 00:39:58,239
Speaker 1: if they're not keeping tenants happy, tenants are gonna move

885
00:39:58,280 --> 00:40:00,480
Speaker 1: out a whole lot more quickly. Or if they're not

886
00:40:00,480 --> 00:40:04,040
Speaker 1: doing a good job filling a vacant apartment, their their

887
00:40:04,120 --> 00:40:06,600
Speaker 1: vacancy rates are going to be higher. That means they're

888
00:40:06,600 --> 00:40:09,480
Speaker 1: not doing a good job listing the property and finding

889
00:40:09,920 --> 00:40:12,439
Speaker 1: qualified people to live in it. And you can even

890
00:40:12,440 --> 00:40:15,359
Speaker 1: ask to speak to tenants that they manage and ask

891
00:40:15,440 --> 00:40:18,440
Speaker 1: that tenant about how they respond to maintenance requests and

892
00:40:18,440 --> 00:40:21,359
Speaker 1: what their communications style is like. Those are the kind

893
00:40:21,360 --> 00:40:23,920
Speaker 1: of things they're going to help you determine whether or

894
00:40:23,920 --> 00:40:26,680
Speaker 1: not a rental property manager is going to be a

895
00:40:26,680 --> 00:40:28,879
Speaker 1: good fit for you or not. And then lastly, as

896
00:40:28,920 --> 00:40:30,680
Speaker 1: you are searching for a manager, make sure that you

897
00:40:30,719 --> 00:40:33,680
Speaker 1: read through whatever agreement that they send your way, that

898
00:40:33,680 --> 00:40:35,399
Speaker 1: you read through that pretty thoroughly. You know, you want

899
00:40:35,400 --> 00:40:36,560
Speaker 1: to make sure that you know the scope of the

900
00:40:36,600 --> 00:40:39,279
Speaker 1: services that they're gonna provide you. You don't want to

901
00:40:39,320 --> 00:40:42,440
Speaker 1: just focus on on going with the lowest price. You

902
00:40:42,480 --> 00:40:44,319
Speaker 1: get what you pay for. And so, Joel, while we're

903
00:40:44,360 --> 00:40:47,880
Speaker 1: talking about price and cost, right, let's talk about what

904
00:40:47,920 --> 00:40:51,239
Speaker 1: most property managers charge and what they typically do is

905
00:40:51,280 --> 00:40:55,200
Speaker 1: they charge half or a full first month's rent when

906
00:40:55,280 --> 00:40:58,000
Speaker 1: a new tenant moves in, and then in addition to that,

907
00:40:58,040 --> 00:41:01,120
Speaker 1: typically they will charge anywhere between seven and twelve percent

908
00:41:01,600 --> 00:41:04,120
Speaker 1: of the monthly rent you know, they might even charge

909
00:41:04,320 --> 00:41:07,200
Speaker 1: a setup fee upfront. Some property managers opt for a

910
00:41:07,239 --> 00:41:10,120
Speaker 1: flat fee instead of a percentage of the rent. So

911
00:41:10,200 --> 00:41:13,640
Speaker 1: often times though these fees are they're not set in stone. Uh,

912
00:41:13,640 --> 00:41:16,000
Speaker 1: these are things that you can negotiate some Yeah, I

913
00:41:16,000 --> 00:41:19,239
Speaker 1: think those are some good ballpark numbers, and those are

914
00:41:19,239 --> 00:41:20,719
Speaker 1: the kind of things. Yeah, you can push back on

915
00:41:20,760 --> 00:41:23,920
Speaker 1: and say, well, your competitor charges this, Well, why why

916
00:41:23,920 --> 00:41:25,680
Speaker 1: do you charge this much? And they might say, our

917
00:41:25,680 --> 00:41:29,080
Speaker 1: services are better. Here's what we're doing. Um, here's additionally

918
00:41:29,080 --> 00:41:31,360
Speaker 1: what you're getting if you hire us instead of the

919
00:41:31,400 --> 00:41:34,279
Speaker 1: other guy. This is a place though, where when we're

920
00:41:34,280 --> 00:41:36,239
Speaker 1: talking about frugal or cheap, Matt, you don't want to

921
00:41:36,239 --> 00:41:39,279
Speaker 1: go cheap when you're talking about someone who's taken care of,

922
00:41:39,760 --> 00:41:42,319
Speaker 1: in all likelihood one of the biggest investments that you've

923
00:41:42,360 --> 00:41:45,520
Speaker 1: ever made in your life having a rental property. You

924
00:41:45,600 --> 00:41:47,440
Speaker 1: want someone who is going to care for it the

925
00:41:47,480 --> 00:41:50,160
Speaker 1: way you do. And if that means an extra one

926
00:41:50,280 --> 00:41:53,239
Speaker 1: or two percent of the rent every single month is

927
00:41:53,280 --> 00:41:55,960
Speaker 1: going towards someone who is going to do just a

928
00:41:56,000 --> 00:41:59,560
Speaker 1: fantastic job and manage your place the way you would,

929
00:42:00,040 --> 00:42:02,160
Speaker 1: then I think it's worth it. Don't cheap out when

930
00:42:02,200 --> 00:42:04,640
Speaker 1: you're hiring a rental property manager and kind of know

931
00:42:04,800 --> 00:42:07,239
Speaker 1: the ballpark, know when you can push back and no

932
00:42:07,360 --> 00:42:10,200
Speaker 1: one you can negotiate. But ultimately you want to find

933
00:42:10,239 --> 00:42:12,719
Speaker 1: someone who is going to do a killer job, not

934
00:42:12,840 --> 00:42:15,319
Speaker 1: someone who's just gonna do like an average job, right, right.

935
00:42:15,400 --> 00:42:17,440
Speaker 1: But here here's the thing though, in the end, the

936
00:42:17,600 --> 00:42:20,680
Speaker 1: cost of property managers, like that is what is keeping

937
00:42:20,719 --> 00:42:23,000
Speaker 1: you and I from you know, jumping on the property

938
00:42:23,040 --> 00:42:25,120
Speaker 1: manager train, you know, Like, I mean that's for you,

939
00:42:25,239 --> 00:42:27,520
Speaker 1: I'm guessing that's probably your biggest consideration. Like, that's the

940
00:42:27,560 --> 00:42:30,160
Speaker 1: biggest thing that you have issue with? Is that so free?

941
00:42:30,200 --> 00:42:32,440
Speaker 1: I do it tomorrow? Yeah? Why not? Exactly if you

942
00:42:32,520 --> 00:42:34,400
Speaker 1: had somebody who's gonna do a great job for you

943
00:42:34,800 --> 00:42:37,360
Speaker 1: and it's going to be completely free pro bono, why not.

944
00:42:37,840 --> 00:42:39,960
Speaker 1: But when it costs you ten percent of your rents,

945
00:42:40,320 --> 00:42:44,279
Speaker 1: that could easily be of your profit. Right, So, say

946
00:42:44,480 --> 00:42:46,680
Speaker 1: you know you've got a mortgage that's a thousand bucks

947
00:42:46,719 --> 00:42:48,160
Speaker 1: and it's a property that you can rent out for

948
00:42:48,200 --> 00:42:51,799
Speaker 1: maybe two thousand dollars if they're collecting two dollars every

949
00:42:51,840 --> 00:42:55,080
Speaker 1: single month and in your profits are one tho dollars

950
00:42:55,400 --> 00:42:57,600
Speaker 1: and you're only left with eight hundred bucks I mean,

951
00:42:58,400 --> 00:43:00,680
Speaker 1: is a huge stinking fee, you know, and often the

952
00:43:00,760 --> 00:43:03,480
Speaker 1: numbers are are worse than that for most Yeah, and

953
00:43:03,560 --> 00:43:06,000
Speaker 1: that's that's the generous picture I just painted. It could

954
00:43:07,280 --> 00:43:10,359
Speaker 1: of the profits um are getting it eaten into by

955
00:43:10,480 --> 00:43:12,160
Speaker 1: by hiring someone to manage for you. So you have

956
00:43:12,239 --> 00:43:14,520
Speaker 1: to know here's what the typical costs are. I agree.

957
00:43:14,719 --> 00:43:16,719
Speaker 1: And then also, well is it worth it or not?

958
00:43:16,840 --> 00:43:19,600
Speaker 1: Because it completely changes the dynamics of how profitable that

959
00:43:19,680 --> 00:43:22,080
Speaker 1: rental property is. Yeah, And here's the other thing too.

960
00:43:22,239 --> 00:43:23,759
Speaker 1: I think a lot of times folks will think that

961
00:43:24,120 --> 00:43:26,279
Speaker 1: if I have a property manager, it alleviates some of

962
00:43:26,320 --> 00:43:29,680
Speaker 1: the stress of when things are coming out prepares that

963
00:43:29,760 --> 00:43:31,480
Speaker 1: need to be made, But you're still on the hook

964
00:43:31,480 --> 00:43:34,480
Speaker 1: for those repairs, right. You're just not necessarily the one

965
00:43:34,560 --> 00:43:37,800
Speaker 1: who's choosing the maybe even the best vendor that you know,

966
00:43:37,880 --> 00:43:40,400
Speaker 1: the best company to do the job. Instead, you're just

967
00:43:40,440 --> 00:43:42,000
Speaker 1: told that this is how much it costs. And so

968
00:43:42,160 --> 00:43:43,919
Speaker 1: I know, at least for me personally, I could see

969
00:43:43,920 --> 00:43:46,040
Speaker 1: myself getting frustrated because I'm like, well, did they go

970
00:43:46,200 --> 00:43:48,400
Speaker 1: with like someone who's doing really good work or somebody

971
00:43:48,719 --> 00:43:51,919
Speaker 1: who just advertises a lot in their name is around town.

972
00:43:52,200 --> 00:43:54,279
Speaker 1: I think this is an instance where maybe being a

973
00:43:54,360 --> 00:43:57,920
Speaker 1: slightly more proactive landlord, how that can eliminate a lot

974
00:43:57,960 --> 00:44:00,480
Speaker 1: of headaches, right if you're kind of leaning into problems

975
00:44:00,800 --> 00:44:03,840
Speaker 1: before they even become problems, right, instead of just ignoring

976
00:44:03,920 --> 00:44:06,400
Speaker 1: them and sweeping them under the rug, because you know what,

977
00:44:06,520 --> 00:44:08,880
Speaker 1: eventually you're going to have to deal with those issues.

978
00:44:08,880 --> 00:44:10,680
Speaker 1: You're going to have to deal with as maintenance requests.

979
00:44:10,920 --> 00:44:12,799
Speaker 1: You're going to have to make those repairs, and it's

980
00:44:12,800 --> 00:44:15,400
Speaker 1: good to handle those right away. And don't think that

981
00:44:15,560 --> 00:44:17,640
Speaker 1: just having a property manager takes you off the hook,

982
00:44:17,680 --> 00:44:20,600
Speaker 1: because guess what, you are still responsible for those repairs.

983
00:44:20,920 --> 00:44:22,440
Speaker 1: It's just that now there's a lot of other things

984
00:44:22,520 --> 00:44:26,080
Speaker 1: that aren't in your control. Yeah, man, Matt. Another factor

985
00:44:26,280 --> 00:44:29,040
Speaker 1: when you're talking about whether a property manager is worth

986
00:44:29,120 --> 00:44:32,360
Speaker 1: the cost or not. The most recent rental property that

987
00:44:32,400 --> 00:44:35,960
Speaker 1: I purchased a couple of years back, well, the rent

988
00:44:36,080 --> 00:44:39,359
Speaker 1: that the property management agency was asking was was way

989
00:44:39,480 --> 00:44:42,640
Speaker 1: under the market value, and so they didn't think the

990
00:44:42,719 --> 00:44:44,359
Speaker 1: home was worth as much as it was. I got

991
00:44:44,560 --> 00:44:47,080
Speaker 1: a pretty decent deal and ultimately, over the years have

992
00:44:47,160 --> 00:44:50,560
Speaker 1: been able to raise the rent to market rate. And

993
00:44:50,800 --> 00:44:53,279
Speaker 1: if I had a property manager who was like, no,

994
00:44:53,440 --> 00:44:55,080
Speaker 1: we're only going to ask this much for your place

995
00:44:55,360 --> 00:44:58,000
Speaker 1: and they're undervaluing it. That's that's how our vacancy rates

996
00:44:58,080 --> 00:45:01,879
Speaker 1: so low, because our rents are exactly because that's another

997
00:45:01,920 --> 00:45:03,040
Speaker 1: thing you have to watch out for us that there

998
00:45:03,040 --> 00:45:06,000
Speaker 1: are all these little things that can eat into the profits. Um.

999
00:45:06,200 --> 00:45:09,319
Speaker 1: And again not denigrating property managers. There are some great

1000
00:45:09,360 --> 00:45:11,239
Speaker 1: ones out there, and at some point I might go

1001
00:45:11,600 --> 00:45:15,120
Speaker 1: with in that direction. Um, But for the diligent landlord

1002
00:45:15,320 --> 00:45:20,160
Speaker 1: who is managing rental properties effectively, we think most of

1003
00:45:20,239 --> 00:45:22,839
Speaker 1: the time they don't need a property manager. They're gonna

1004
00:45:22,880 --> 00:45:25,200
Speaker 1: be more profitable, their home is going to be kept

1005
00:45:25,320 --> 00:45:28,279
Speaker 1: in an even better condition. Um. And it really won't

1006
00:45:28,320 --> 00:45:31,720
Speaker 1: be all that draining being a landlord if you're managing

1007
00:45:31,760 --> 00:45:34,680
Speaker 1: the properties you own effectively. That's right, man. Yeah, I

1008
00:45:34,719 --> 00:45:38,359
Speaker 1: could not agree anymore. Let's go ahead, No, get back

1009
00:45:38,400 --> 00:45:40,759
Speaker 1: to the beer this episode and I were drinking uh

1010
00:45:41,400 --> 00:45:44,160
Speaker 1: basement Pog I p a. This is by a scoff

1011
00:45:44,239 --> 00:45:47,440
Speaker 1: Law brewing company here in Atlanta. Actually, we recently had

1012
00:45:47,480 --> 00:45:49,600
Speaker 1: a pog beer on the episode where it's an I

1013
00:45:49,680 --> 00:45:53,120
Speaker 1: p A with passion fruit orange and guava. Oh yeah, man,

1014
00:45:53,160 --> 00:45:55,960
Speaker 1: what were your thoughts on this beer? Again? Do this

1015
00:45:56,080 --> 00:45:59,200
Speaker 1: is a tropical punch beer? Man? This had all of

1016
00:45:59,480 --> 00:46:03,759
Speaker 1: this like Island caribbeans sort of uh fruit flavor going on,

1017
00:46:04,280 --> 00:46:07,160
Speaker 1: and it was like abrasive in the best way. I

1018
00:46:07,280 --> 00:46:09,680
Speaker 1: thought it was like a West Coast style pog. I

1019
00:46:09,719 --> 00:46:11,800
Speaker 1: thought it had like some of the bitterness from the

1020
00:46:11,880 --> 00:46:15,759
Speaker 1: hops along with the juiciness from from the fruits that

1021
00:46:15,840 --> 00:46:17,560
Speaker 1: were that were in the beer. Yeah, I felt this

1022
00:46:17,600 --> 00:46:19,560
Speaker 1: one was pretty heavy on the po and less on

1023
00:46:19,640 --> 00:46:22,000
Speaker 1: the g I felt like it had a little bit

1024
00:46:22,040 --> 00:46:24,160
Speaker 1: less of that guava, but I felt like I was

1025
00:46:24,200 --> 00:46:26,200
Speaker 1: tasting a lot of the passion fruit, a lot of

1026
00:46:26,200 --> 00:46:28,560
Speaker 1: the orange, lot of orange. I felt like it almost

1027
00:46:28,560 --> 00:46:30,680
Speaker 1: seemed like there was a layer of like orange essential

1028
00:46:30,760 --> 00:46:32,480
Speaker 1: oils like floating on the top of the beer, like

1029
00:46:32,600 --> 00:46:35,360
Speaker 1: as you were to kind of sip it back. But yeah, man,

1030
00:46:35,400 --> 00:46:37,120
Speaker 1: I am glad that you and I got to enjoy

1031
00:46:37,239 --> 00:46:39,640
Speaker 1: this one. This is kind of nice too, for a

1032
00:46:39,760 --> 00:46:42,160
Speaker 1: nice fall day like today. It's been a while since

1033
00:46:42,160 --> 00:46:44,000
Speaker 1: I've had a scofflaw beer, but I'm glad they're back

1034
00:46:44,080 --> 00:46:46,719
Speaker 1: on my radar now. And it's maybe a brewery that. Yeah,

1035
00:46:46,760 --> 00:46:49,160
Speaker 1: you and I need to hit up soon, dude. Well cool, buddy,

1036
00:46:49,200 --> 00:46:51,080
Speaker 1: that's gonna be it for this episode. Listeners can find

1037
00:46:51,120 --> 00:46:52,759
Speaker 1: our show notes up on our website at how to

1038
00:46:52,840 --> 00:46:54,879
Speaker 1: money dot com. We'll be sure to link to any

1039
00:46:54,880 --> 00:46:58,280
Speaker 1: of the different resources for you if you do happen

1040
00:46:58,360 --> 00:47:02,440
Speaker 1: to start managing property yourself, which we would encourage you

1041
00:47:02,520 --> 00:47:05,200
Speaker 1: to do. Yeah, yeah, we think for for so many people,

1042
00:47:05,480 --> 00:47:07,960
Speaker 1: investing in a rental property can be just a fantastic

1043
00:47:08,120 --> 00:47:10,840
Speaker 1: vehicle to long term wealth building. And also, Matt, I

1044
00:47:10,880 --> 00:47:13,400
Speaker 1: just want to say thanks to everybody who listens consistently

1045
00:47:13,440 --> 00:47:15,680
Speaker 1: to the show. We really appreciate it. If you get

1046
00:47:15,719 --> 00:47:17,720
Speaker 1: the chance, If you haven't left a review, we'd appreciate

1047
00:47:17,800 --> 00:47:20,400
Speaker 1: that too, especially at Apple Podcasts. It just goes a

1048
00:47:20,560 --> 00:47:24,080
Speaker 1: long way to helping other people find the show find

1049
00:47:24,239 --> 00:47:27,000
Speaker 1: information that they can use to help them in their

1050
00:47:27,080 --> 00:47:29,600
Speaker 1: everyday lives when it comes to money. All right, Matt,

1051
00:47:29,640 --> 00:47:32,080
Speaker 1: that's gonna do it for this episode. Until next time.

1052
00:47:32,440 --> 00:47:34,040
Speaker 1: Best Friends Out, Best Friends Out.