Lessons Learned

I love rental property! I love its potential for long-term financial security and freedom, I love the people
side of the business, and I love overcoming the challenges this life brings!

I have learned a lot over the years, but “if I knew then, what I know now” and I were to start my rental
property business all over, I would do things differently.

I can’t reverse the clock, but I can share a few lessons with you – maybe it will give you a head start!

Here are 30 lessons learned I have learned as an investor and a property manager…

Tenants

1. Tenants must have a job and references from a previous landlord. No exceptions!
   a) Is there a secure income? Are they good tenants?
2. Keep the application short!
   a) conduct reference and credit checks only.
3. Your tenant screening starts at first contact!
   a) Screen applicants online or over the phone before you even show the property.
   b) Failing to do so, wastes your time and theirs.
4. Don’t over-sell or bait people to see the property or fill-out an application.
   a) It’s a time waster!
5. Don’t assume you know what the tenant wants – Ask them!
   a) What are their “must-haves?”
   b) What are their deal breakers?
6. When you create a policy – stick to it.
   a) Ideally, your policy is a term of your lease but with clear policies or lease terms, you have an
   easy answer – “I’m sorry, our policy/lease doesn’t allow that”
7. Always charge a late fee – no exceptions.
8. Never waive the deposit requirement…even on a temporary basis.
   a) Its a huge red flag if your prospective tenant can’t provide the first months rent and deposit
   before signing the lease.
9. Don’t be the “owner!”
   a) If you haven’t hired a manager, your tenant should know you as the manager.
   b) As the “manager” can you always defer to the “owner” for a decision when needed.
   c) OK – I am biased – Hire a Manager! Better yet – give me a call!
10. A word about pets – if you accept them, charge for the privilege!
    a) At the very least charge a monthly “pet rent” – typically $25 to $40 per pet.
    b) In addition, consider a non-refundable pet charge upfront.
11. Immediately after the tenant provides notice that they will leave begin marketing the property!
12. One door equals one check! Don’t accept multiple checks from a single rental unit.
    Property Managers
13. Rates. There should be absolutely no surprises with a property manager’s fee schedule. The
    hourly rates for maintenance, lease-up fees, on-going management fees, etc..
14. Be honest with yourself! Do you have the time, skills and resources to handle this? A good
    property manager can provide peace of mind, give you your time back, and maximize the return
    on your investment.
    Contractors
15. Develop a list of contractors you use and trust for each specialty. Ideally, you will have more than
    1 contractor for each trade. A good property manager will have their list and may get preferential
    rates based on volume.
16. Review vendor bills closely. Especially if you do not deal with them frequently. Some contractors
    may be tempted to add various miscellaneous costs to their invoice. Know what you are paying
    for.
17. Review and reprice your insurance every year. Do you have the coverage you need? Is there an
    opportunity to reduce these costs?
18. Review all other annual or service contracts you might have
    Lenders
19. Don’t assume the bank you have been dealing with “forever” has your best interest in mind. Your
    branch may be great, but are governed by bank policy!
20. Get a good mortgage broker! This is a complex negotiation – you will want an experienced
    professional on your side.
    Property
21. If you have (or aspire towards) having multiple properties, try to keep your properties within near
    one another – especially if are managing them yourself. The greater the distance between your
    properties, the greater your investment of time, and energy.
22. Avoid trying to rent a property during November and December. Manage your lease terms to
    avoid vacancies in these months.
23. By the same token, try to buy properties during December, January and February. Why? No one
    else is buying property at this time.
24. If you only have the budget to do one thing, change the floors.
25. If you have the budget to do two things, paint.
    Relationships
26. This is a business, not a hobby. Treat it as such.
27. Your friends and family are more important than this business or any issue you are confronting at
    this moment. Don’t sacrifice these relationships while you build your real estate business.
28. Start with the end in mind. Most of us start this journey with the hope of reaching financial freedom
    and creating time to spend with family and friends
    Financials
29. Hire an accountant! If you have a good accountant, they will pay for themselves.
30. You can never underestimate maintenance costs! If you think repairs are expensive, failing to do
    routine maintenance is even more expensive!

Conclusion

Have Fun! This is a great business and there is always more to learn. Hopefully my experience will
help you along your journey.

We are here to help!