Rental Income Podcast With Dan Lane: Landlord l Rental Property Owner l l Real Estate Investor l Passive Income l Find Good Tenants

How to pick the right tenants, to minimize evictions.  Skip and Mary Saylor talk about the lessons they have learned from 40 years of owning rental properties.  They have rented a lot of properties, to a lot of different people over the years, but they have had very few evictions.  On this episode they reveal, in detail, exactly how they screen tenants

Screening Process:
1.) Fill out application
2.) Pay application fee
3.) Show photo ID
4.) Credit Check
5.) Check civil court records to see if they have been sued by a prior landlord for not paying rent or property damage
6.) Verify employment (min income 3x rent)
7.) Verify current and past landlords

 

Rental Criteria (they show this to tenants before taking application fee)
1.) No unpaid landords
2.) No utilities in collection (electric, water)
3.) No crimes against persons or drug convictions in the last 5 years
4.) Other negative credit information can be overlooked

Favorite Real Estate Book:

Landlording by Lee Robinson

Direct download: skip_and_mary_saylor_edits_revised.mp3
Category:Business -- posted at: 3:00am EST

How to manager 20 properties on the side without a property manager.  Sheila Konecke's main business is flipping houses.  She flips about 3 houses a month.  But, she manages to find time to manage 20 rentals on the side without a property manager.  This episode will show you how she does it.

Keys To Sheila's Success:

Sheila has had luck selling rentals to tenants, by telling tenants if they are interested in buying the house to let her know if they want to buy and she will give them a price

Sheila is fair to her renters.  They see this, and they don't want to leave her

Finding Renters
Sign in the Yard
Craigslist
MLS
Trulia
She usually finds tenants in 2 - 4 weeks

Screening Process:

Checks Credit - But, she warns credit doesn't really predict how the person will be as a renter
She charges a small fee mainly to make sure they are serious
References
Mainly she checks to see they do what they are going to do.
She likes people that take action.  "They need to get from A to B quickly"

The 3 Things Sheila Wants In A Tenant:
Pays the rent on time
Keeps the house nice
Doesn't call you for every little thing

It's hard to find all 3 things in a tenant.  She warns you are lucky to get 2 out of the 3

Budget To Fix Up Property Between Tenants:
$4,000 - $6,000

Favorite Real Estate Books:
Rich Dad Poor Dad by Robert Kiyosaki
Think And Grow Rich by Napolean Hill

Direct download: Rental06.mp3
Category:Business -- posted at: 3:00am EST

It is possible to own rental properties in a different city than you live in, and not have a property manager.  Tim Hennessey is proof of that.  Tim owns 7 rental properties.  He owns 4 in Florida, and 3 in Illinois (where he lives).  He manages the Florida properties from Illinois and he does it all without a property manager.

They Keys To Managing A Property From Out Of Town:

1.) Make it easy for tenants to make their rental payments.  (Tim gives them addressed, and stamped envelopes with deposit slips, so the tenants can mail the rent checks directly to his bank)

2.) Build a network of contractors that you trust that can deal with repair issues

3.) Be careful to pick long term renters to reduce turnover

4.) Schedule a time to visit the properties, and schedule a fairly intense schedule of showings to try to rent it yourself.  If it can't be rented before he leaves town, he hires a local Realtor to rent it out.

5.) Buy houses in nicer areas

6.) Take care of tenants....If carpet is worn, replace it.  If the house needs to be painted, paint it.

7.) Try to sign multiple year leases

8.) Raise the rent on a regular basis.  Not a lot.  Use 3% a year.

9.) It's better to take less money and get a higher quality tenant, than to get more money, and a lower quality tenant.

Tim's Criteria To Find Long-Term Tenants:

1.) Decent credit history

2.) Good prior rental history

3.) Decent job and income

 

Favorite Real Estate Book:

Rich Dad Poor Dad by Robert Kiyosaki

Other Advice:

Buy properties right.  What you make on a property is determined by what you pay for it.

Direct download: rental05.mp3
Category:Business -- posted at: 3:00am EST

Today Justin Williams talks about how he owns 10 rental units, and is not involved at all.  He hasn’t even seen some of the properties.  He also talks about how he has his house flipping set up to flip 120 houses a week, with him only working 5 hours a week.

He was motivated to set up systems for his business after reading:

The Four Hour Work Week by Tim Ferris
E-Myth Revisited by Michale Gerber
Built To Sell by John Warrillow

Some of the keys to his success are:

* His people know that they can’t come to him with a problem, without also having a solution
* Having systems for everything
* Having a property manager
* Hiring somebody that is better at doing stuff than he is, and letting them do it

 

The numbers Justin is looking for in a good deal:

Justin looks to buy at low points at the marketHas to have cash flow.  (Atleast 1.5X cash flow)..Example.  If he buys a house for $100,000 (including cost of house and repairs), he wants it to rent for $1,500 a month

Make sure you take repairs and vacancy into account when figuring out your budget

 

Contact Justin:

House Flipping HQ
Fail Fast Flipping
info@HouseFlippingHQ.com

Direct download: Rental04.mp3
Category:Business -- posted at: 3:00am EST

Today we talk to Patti Robertson, Patti talks about how she owns and manages 43 of her own properties and manages over 100 properties for other people with her property management company

Staff Of Property Management Company:
Property Manager (FT)
Bookkeeper (PT - Almost FT)
Receptionist (PT)
Maintenance Supervisor (FT)

Maintenance Worker (FT)

Resources Mentioned On The Show:
PropertyWare - Manage Properties and syndicates listings to over 100 rental sites
GoSection8.com
Craigslist.com
National Tenant Network - Tenant Screenings
Mr. Landlord.com

Great Landlord Tip:
Don't use flat paint.  You can't wash off dirt.  Use egg shell or semi-gloss paint

Direct download: Rental03.mp3
Category:Business -- posted at: 3:00am EST

Turning a primary residence into a rental is what Jack did.  Today he tells the stpry of how his family grew out of their house, and he turned it into a rental, instead of selling it.  Jack is making a small profit each month, and building wealth by having his tenant pay down his mortgage

How Jack finds tenants:
Craigslist

Credit Check Resources:
https://connect.experian.com/tenant-screening/landlord-credit-check.html
https://www.tenantbackgroundsearch.com
https://www.tenantverification.com
https://www.mysmartmove.com/
http://www.mrlandlord.com/html/creditfaq.html


Language in Leases For Pets:
"Tenant to de-tick and de-flea upon moving out"

Favorite Real Estate Book:
Rich Dad Poor Dad by Robert Kiyosaki

Resource For Contracts:
Nolo.com

Direct download: Rental02.mp3
Category:Business -- posted at: 7:54pm EST

This is an intro to The Rental Income Podcast.

http://www.RentalIncomePodcast.com

Direct download: intro_2015.mp3
Category:Business -- posted at: 2:35pm EST