The Top 5 Successful Landlord Processes
Spencer Sutton here with gkhouses and I want to talk to you about the top 5 successful landlord process and property managers use.
There are five processes that if you’re a successful and growing property management company, you’re more than likely, you have a process around these areas.
Or if you’re a landlord and you’re growing your portfolio, you manage your own property; these processes are extremely helpful to you as well.
The First Out of The Top 5 Successful Landlord Processes:
The first process that we have found to be extremely helpful as we rent thousands and thousands of houses has been our leasing process.
There’s most definitely everything kind of lines, is in order of how we go and inspect the house, we take pictures of the house, we market the house, we write the descriptions.
We get it out on not only our website, but a lot of other websites, syndicated out, and then how we show the house, how we collect feedback, and how we accept applications.
Ultimately, that all needs to lead into getting a qualified tenant in the home.
So, that leasing process and as a very active time, if you own rental property, you’ve done it yourself, you know that is a very active time, when you have a house that’s vacant and you’re trying to get a lease, so we have a process for every single thing, everything that goes on in that time period.
The Second Out Of The Top 5 Successful Landlord Processes is
The second process that successful landlords or property managers use is just a move-in process.
Once you lease the house, now it’s time to move the tenant in. So, this is very, very important because you want to start this relationship off on the right foot, so there’s going to be nothing worse than a tenant moving into a house and things aren’t ready for them.
You know, whether it be something’s broken or, I mean, just there could be anything.
We always, we have a process for move-in as we always go back to the house, once we have a lease signed, the tenant cannot move in within, you know, of signing that lease, they can’t move in the next day.
We have to have a buffer of days that we can go out, walk the property once again, and make sure everything is functioning properly.
And in the case that something’s not working properly, we want to have time to get that taken care of, to get that fixed.
One instance I’m thinking about I was out with one of our property managers in an area and we were doing a move-in walk through, and the garbage disposal didn’t work, and then a light up in the fuse or something broke up in a light in the house.
And so, those were two separate work orders, he had to get somebody to come out and fix both of those before the tenant moved in.
Now, extremely important that you have all that buttoned up and you know that process because you want to start that relationship off on the right foot.
If a tenant comes in and things are broken, that is not the way to start that relationship, they’re always going to be thinking a certain way about you. Trust us from experience we know this.
The Third Out of The Top 5 Successful Landlord Processes:
Third most important process that successful landlords and/or property managers use is just a maintenance response process, some type of process to handle maintenance request.
You know, I’ve mentioned this before, if you own 1 rental property or 100 rental properties you are in a business.
So, you need to be very, very clear and understand exactly how you handle work orders.
We have a process, now, obviously, we’re dealing with hundreds of owners and thousands and thousands of tenants.
And, we have processes in place when somebody puts a work order in or a maintenance request in, how we get that to the tech, how the tech responds and gets in touch with the tenant, schedules that, how they go out there.
They either assess the worker or do the work, and then how they report back to us, to the owner, either it’s fixed or if it’s a larger problem that needs to be taken care of, we obviously get permission from the owner to fix that repair.
It has to all work in unison, a lot of times if you’re not a landlord, if you’re a property manager and you’re trying to get permission from the owner, it may take longer.
So, you need to have a follow-up system just to make sure because if you’re not following up with the owner, most definitely the tenant’s going to be following up with you.
You don’t want to leave the tenant just kind of in the dark wondering, “Are they ever going to get in touch with me? Are they ever going to fix this?” Because then they begin to think that you don’t want to fix anything and that’s not a good conversation to have.
So, your maintenance response system or process is extremely important.
The Fourth Out of The Top 5 Successful Landlord Processes:
Number four on our list is just your rent collection process.
You got to collect rent every single month and, you know, if you’re a landlord with one house, it might not be that big of a deal.
But as you try to grow your portfolio, if you’re an investor, you want to have more rentals; collecting rent is a big deal.
Knowing the lease, every lease, rent is due on a certain day, is late after a certain day, what happens after that, how’s a tenant charged if there’s a late fee? Those types of things.
Do you have a system for following up if rent is late, so we have to as many houses as we manage; we have to have systems and processes in place to collect rent.
And if rent gets to a certain point, we have to take a different set of actions to collect that rent.
And so, we have all this laid out, we are looking and checking on this weekly, the collections report.
Unfortunately, in some instances you tenants who simply can’t pay rent, maybe a life circumstance, maybe they lost their job or had a personal crisis.
If they can’t pay the rent, you’ve got to figure out, what do we do now? And so, having those processes in place so that you’re not caught off guard is extremely important. Especially as you grow your portfolio, grow more houses; you need to know so that you’re not, you know, just wondering,
“Hey, what do I do now?” So, have those processes in place, understand your local law, if it calls for an eviction, you need to understand the eviction process, how does that work? How long does it take? Is it 30 days, 90 days, 120 days? So, knowing those things, having all the steps laid out is extremely important as you grow your rental portfolio.
The Fifth Out of The Top 5 Successful Landlord Processes:
And the last really important process that all successful landlords have and that’s just the move-out process.
And why is this big deal? Well, really because if you’ve had a tenant in your home for five years is going to be extremely important that you treat them fair, whether they’ve been there one year or five years, it doesn’t really matter.
You need to treat them fair and part of that is walking, going back through the house and walking the house to assess if there’s tenant related damage versus just normal wear and tear.
Because that’s going to affect the security deposit which, you know, your municipality is going to have stipulations of when this needs to be returned, could be 30 days, could be 60 days.
How soon do you need to have that security deposit returned to the tenant? And then one of the steps for going through this, you know, collecting all the data, all the evidence, taking pictures, making a list and then sending it to…it’s called the disposition letter.
We send it to the tenant and say, “Hey, we walked through the house, here’s the condition when you moved in, here’s the condition when you moved out. Here are the lists of items that are normal wear and tear and here’s a few that are what we consider tenant related damage.
“So, at that point, we would send the security deposit back to the tenant minus the tenant related damage and they could follow up however they wanted to at that point.
You know, if they didn’t agree with those charges or whatever, they could make that known and we could just take it from there.
But you need to have a process because there are laws that govern how quickly you need to get that back to the tenant.
And it also is just going to make life easier to have a process for the move-out.
So those are the processes, the most important processes we have.
I mean, our whole company is run on systems and processes and we are always working to try to make a process easier, simpler, you know, for us and also for tenants, also for owners.
And so, if you have any questions about systems and processes you can reach out to me and I may direct you to somebody who’s in our operations department.
We actually have an entire website that’s just nothing but processes. So, if we ever have questions, we can go to that website and look at it.
So, if you have any questions, feel free to email me firstname.lastname@example.org. And that’s it, hope you’ve enjoyed it.