Melvin Feller Discusses Ways for Landlords to Become Better Organized

Melvin Feller Discusses Ways for Landlords to Become Better Organized.

Melvin Feller Business Ministries Group in Burkburnett and Dallas Texas and Lawton Oklahoma. Our mission is to call and equip a generation of Christian entrepreneurs to do business as ministry. We provide workshops and resources that help companies discover how to do business God’s way. When the heart of a business is service rather than self it can be transformed into a fruitful business ministry earning a profit and being of service to the community and their customers. Melvin Feller is currently pursuing another graduate degree in business organizations.

Ways for Landlords to Become Better Organized by Melvin Feller

Owning rental property can be a great source of secondary income but it can also be an extreme headache if not approached correctly. Many people jump right into the investing game with little background or education on how the game actually works, and often find themselves up the creek without a paddle. There are tips and tricks that you can implement to help minimize your headaches and maximize your return on investment. Although it is impossible to plan for all circumstances, you can absolutely minimize your risks by following a few of these tips to help avoid the rental nightmares.

Solid Application Process

Ways for Landlords to Become Better Organized by Melvin Feller

Having a strict application process can immediately weed out potential tenants that you would not want to rent to. You can learn a lot about a potential tenant from the information they provide. You can access information about their references, employment history, whether or not they are smokers, have they ever been convicted of a crime, etc. Charge an application fee to cover the costs of running a credit and criminal background check. If an applicant can’t afford to pay the $20 application fee, how can you expect them to pay the $900 a month rent payment? Running a credit report and criminal background check is necessary. Accessing this type of information allows you to get a good idea of the individual’s debt vs. income ratio, how timely they have been on past payments, etc.

Security Deposit

Ways for Landlords to Become Better Organized by Melvin Feller

Collecting a security deposit is an absolute must. Do not rent to someone without collecting a deposit. Period. You need to be aware of and follow any state laws and regulations regarding the amount you can legally collect for a deposit. Most commonly, a deposit can be equal to one month’s rent. No matter what the law might be, you must collect a deposit of some sort. Deposits will save you future headaches and help you avoid paying out of pocket for damage your tenants are responsible for paying.

Leases

Have everything in writing, always have some sort of documentation, and keep copies on file. I do not care if you are renting to your cousin, brother, sister, or mother; have a lease of some sort! It is often a good idea to have your lawyer or attorney review or even write your lease so that you have some assurance of its strength and legality.

Responsiveness

Responding to your tenants’ complaints and issues appropriately is very important. If you are timely in completing repairs your tenants will be appreciative and be more apt to pay rent on time. Promptly dealing with repairs is the best way to build a solid relationship with your tenants.

Relationships

Ways for Landlords to Become Better Organized by Melvin Feller

It is important to establish a professional relationship with all of your tenants. Showing your tenants that you genuinely care about their living conditions makes for a much better tenancy — you may even be able to turn bad tenants in to good tenants! That being said, it is always important to make the distinction between being friendly and being friends; you must create a policy and stick to it.

Continuing Education

Education is the key to success, and knowing the ins and outs of how rental property and investments work will make you a better off landlord. You should constantly be updating your knowledge on local laws and regulations, including tenant and landlord rights, fire and safety code, and many others.

Property Management

Ways for Landlords to Become Better Organized by Melvin Feller

If you are using a property management company, be sure to do your homework. Check references, interview the individuals and get a good feel for the people who will be working for you. Always monitor your monthly statements and make sure the work being done is professional and by someone licensed and bonded.

Not a 9 to 5 Job

In case you did not already know, being a landlord is NOT a 9-to-5 job. You never know what issues are going to arise, but when they do, they always seem to happen at the most inconvenient times. If you are currently a landlord or thinking of becoming one, there are some key skills you must possess and perfect.

Time Management

Ways for Landlords to Become Better Organized by Melvin Feller

As I said, you never know what issues will come up, but when they do, you have to set aside time to figure out a plan of attack and fix the issue quickly. Far too often, I see landlords who do not have quality time management skills and their lack of skill affects the entire building. First, the lawn is not mowed and the grass becomes overgrown. Next, the paint begins to peel. Then garbage begins to pile up around the building. Before you know it, you have lost your “curb appeal.” Because there is no “curb appeal”, you have a hard time finding quality renters and become desperate. Finally, you find someone who seems to have their act together and you think, “I’ll just rent to these guys. I don’t have time to perform a credit and background check or call their references.” Because you “didn’t have the time” to properly vet your new tenants, they now are not paying their rent and you have to file for eviction, which costs you a couple thousand dollars in lost rent and court/attorney fees. You are now left with a unit that has been abused in every way possible and you need to repair/repaint walls, deeply clean everything, etc., etc., etc. Everyone knows someone like this — someone that just has so much going on that they cannot seem to find the time to do the necessary things needed to maintain their rental property.

Organization

Ways for Landlords to Become Better Organization by Melvin Feller

A huge part of time management is organization. If you are organized then everything just goes more smoothly. As a landlord, a big part of being organized is developing a detailed filing system. When you are organized, you will not spend your time looking for lost things like that heating bill, or that maintenance request, or the telephone number to the contractor who is supposed to come and repair your kitchen floor, because you will know exactly where it all is.
Things you absolutely need to file are:

Bills

Maintenance requests and tenant complaints
Rental applications, must be kept for at least 1 year because applicants have a year to appeal if they feel they were discriminated against
Vendor W-9s Rental receipts Prior tax returns Leases
Any notices you have ever given to a tenant
Communication

]Another key to being a good landlord is developing your active listening skills. When your tenants feel that you actually care about the issue at hand, things seem to go a little smoother.

Take time to listen to what the tenant has to say and after they are done, reiterate what they have said back to them to make sure you have the details down. This will tell the tenant you have been listening and will give them confidence that you will handle the issue at hand. Answer your phone and/or return calls within a reasonable amount of time. When a tenant calls you with an issue, do not wait a week to call them back. What kind of message do you think that sends?

Budgeting

Ways for Landlords to Become Better Organized by Melvin Feller

A lot of issues landlords face are directly related to money in one way or another. The best way to avoid issues with money is to create a budget and monitor it! I review all of my budgets once a month. This will allow you to see where your money is going and develop a plan to increase your income and decrease your expenses. With a budget, you can also set money aside every month to make necessary repairs and develop a “slush fund” for those unpredictable events such as frozen pipes, appliance failure, and code violations.

Finally, Treat Landlording as a Business Not a Hobby!!

Yes, owning rental property is a business. If it were not, you wouldn’t be paying taxes! When things need to be done, it is always better to do them ASAP rather than dragging your heels. Landlords have the amazing job of providing people with a place to live that is comfortable and enjoyable. However, things do not always go as planned and hard decisions need to be made. I like to say that there is a very fine line between being “friends” with tenants and being “friendly” towards tenants.

Melvin Feller Business Organization Graduate Candidate, Business Owner and Business Coach

Melvin Feller Business Consultants Ministries Group in Texas and Oklahoma. Melvin Feller founded Melvin Feller Business Consultants Group Ministries in the 1970s to help individuals and organizations achieve their specific Victory. Victory as defined by the individual or organization are achieving strategic objectives, exceeding goals, getting results or desired outcomes. He has extensive experience assisting businesses achieve top and bottom line results. He has broad practical experience creating WINNERS in many organizations and industries. He has hands-on experience in executive leadership, operations, logistics, sales, program management, organizational development, training and customer service. He has coached teams to achieve results in strategic planning, business development, organizational design, sales, and customer response and business process improvement. He has prepared and presented many workshops nationally and internationally.