Class 100 – Buying Rental Property
When you buy a property that already has tenants you become an instant landlord. Ok everyone it is time to get ready for a crash course in dealing with tenants. My first time at being a landlord was not too bad. I bought a duplex with both sides already rented for $500 a side. I paid the water and fixed anything that broke. I owned that property for 2 years maybe going over there to fix something 1 hour a month. My cash flow was about $150 a month so I figured that hour a month I went over there was $150 an hour.
I use to do all my own repairs unless it was a big job or something that needed a license. I do not do that anymore, all the work that needs to be done is hired out to do. No more fixing toilets, electrical plugs, drains, or any other mess caused by the tenant.
Once you buy a property from another landlord that has tenants, the first thing you need to do is contact them. I like driving over to meet but you can also send a letter. You want to advise them that you are the new landlord, you should give them your contact information so they can reach you. Inform them on how you do business, like rent collections, repairs needed and you will be getting in touch with them about the rental agreement.
When you first meet with the new tenant you also nee to get their information we have provided a new tenant form in our forms section. Have them fill this out and mail it back to you for your records.
Raising Rents
You should only raise rents once a year I do it when the lease is up every year. When you buy a new property that would be a great time to raise rents. I would not do it the first week but do it within the first month.
Everyone wants to know the proper amount to raise rent. That would depend on your market as to what comparable rental property in that area is renting for. I would call around to other property for rent and see what their rents are that will give you a good range.
Deposits
Make sure you get all the tenants deposits credited to you when buying a rental property. Believe me they will want their deposit back when they leave the premise and guess who is paying for it whether you got the deposit from the previous owner or not.
Class 200 – Good and Bad Tenants
Finding good tenants can be tricky and requires due diligence with some luck. Here is a process for finding a good tenant.
Tenant moves out
Get rental ready to re-rent
Put ads in paper and rent signs in windows
Have potential tenants drive by home before showing
If interested after drive by get application and application fee
Check out all information on application
I try to get the paper work filled out at their current address so I can see how they live
Review the lease with the tenant, give lead based paint booklet and get lead paint disclosure signed
Have rental agreement signed
Earlier we talked about digital cameras, take a before they move in picture and review the condition with the new tenant
You should ask the previous tenant if they know any other good renters. I have found some really good tenants doing this method.
Finding bad tenants is just as easy as finding good, but you do not want the bad tenants. Here are some things you will need to do when you get a bad tenant.
Bad tenant
File 3-day notice to evict if late on rent.
Loud tenants or ones that disturb neighbors you can have a mediator come in.
You can ask tenants to leave if mediation does not work.
Offer them $100 to move out in 15 days.
Some things you cannot do to get rid of tenants.
Intimidate
Remove doors
Lock doors
Turnoff utilities
Disturb their peace
Take items from them for ransom
You cannot throw them out
Class 300 – Eviction of Tenants
Forcing a Tenant Out
You can force a tenant out but you need a good reason or cause. The most frequent reasons to evict include non-payment of rent, violating the lease rules, disturbing the neighbors, illegal activity, having pets when not allowed, additional occupancy of people and violation of rules in the lease. You usually have to give them a period of time to correct the infraction before you can evict. In
You should hire a lawyer to advise you on the eviction process if you are new to landlording. You can get standardized forms from the local courts, software on landlording or the Board of Realtors. You should use these forms and fill in the blanks properly making sure that they follow the law.
Once the period has ended, the landlord can file a lawsuit. The court will assign the case for trial as a "summary" or quick proceeding. If you delivered the proper service of the summons and complaint on the tenant, the judge will give you a judgment after a trial. The judge can actually order the tenants evicted right at the end of the trial. There is usually a time period for them to move out anywhere from
An eviction can take anywhere from 5 weeks to a few months depending on your state and laws.
What about rent owed. In some states the tenant can still be held liable for the payment of rent if the lease provides for it. Yet it is very unusual for you to sue the tenant a second time if the reason for the first lawsuit was nonpayment of rent.
Sign up for our advanced Landlording classes by clicking on Join Now .
Advanced classes include these Landlording classes:
Class 300 - Managing Rentals
Class 400 - Section 8
Class 500 - Fire, Safety and Liability
Class 600 - Website & Internet Marketing for Tenants
Class 601 - Buying Data
Class 700 - Taxes, Accounting and Book Keeping
Class 800 - LLC Information
Plus you will get advanced classes on short sales, marketing, flipping, financing and much more.