Learn the basics of how to become a good landlord. There’s a lot to it, and this is just an overview, but it gives you a good take on the basics.
0:50 – Different types of rental units: rent your basement, rent rooms (roommates!), entire house, mother in law apartment (MIL), accessory dwelling units (ADUs), duplex, triplex, four-plex, and apartments.
2:15 – First step – choose an investment (rental) type. Second step, how do you want to run your business? Self managed or property manager? Money offsets stress. What level of involvement are you comfortable with.
3:45 – Are you going to be a giant prick? Take the time to think of the tenants and their situation on “move-in” day. Give the tenant reasons to have positive sentiment. If you’re self managing, make them welcome. If you’re working with a property manager, impose this method on your property manager — you’re the business owner!
5:58 – Here’s how you select your tenant. How to get references, and get face to face. Know what you’re ok with.
7:07 – Pets and service animals. Have a policy beyond “no pets allowed” — set the expectation that they will pay more if there’s an animal in the house.
8:35 – Credit and background checks. Do them. There are 3rd party sites that do them for landlords. Look at the most-recent history.
9:35 – Discrimination. Fair housing applies to landlords. It’s not a good idea to discriminate against protected classes. Don’t get into a lawsuit. It’s just easier. Race, color, religion, national origin, sexual preference, marital status, age, and handicap.
10:59 – It’s a business, even if you’re renting to family. Have a contract that sets expectations, and enforce the contract. If you can’t enforce it, lean on a property manager who will. The landlord pays when there’s no expectation. Contracts actually PRESERVE friendships.
16:10 – How are you going to manage repairs? Home warranty? Are you handy? Do you know industry pros?
17:30 – How do you set rent at the property? What’s market rental rate? Compile some comps from public information – go on Rentler and Facebook. Find the area, and find a similar property. Make a list of comps and determine what each property is renting at. How much security deposit should you collect? Should you be charging for pets? How much? Should you be charging utilities? Compare info. Review that information every 12 months (when your contract renews is a good time).
20:21 – Have provisions in your contract to be able to evict an non-paying (or otherwise unprofitable) tenant. Be aware of your local laws and risks.
21:30 – What did we learn today?
23:00 – Bloopers.
*No landlords were harmed in the filming of this real estate discussion.
Please contact us to tell us you love us, you want to hire us! Call or text:
Realtors with Hive Collective at Presidio Real Estate:
Tyler Cazier: 801-210-0230
Aric Wiszt: 801-228-7687
Lender with Elite Team at Security Home Mortgage:
NMLS: 178787
Jason Christiansen: 801-669-7271
NMLS: 240472
A Production with Security Home Mortgage’s Jason Christiansen, and Hive Collective at Presidio’s Tyler Cazier and “Mr. Suit” Aric Wiszt.