Prepare to be a Landlord

If you have not already done so, determine who you will use to run credit and background checks on your Tenants and Tenant-Buyers.

Mark this task as done when you determine who you'll use.

Take some time to research the landlord-tenant laws for your city, county, and your state.

Mark this task as done when complete.

Review the rules and regulations regarding service animals. Use the following links as a starting point.

HUD guidelines regarding Service Animals

https://www.hud.gov/program_offices/fair_housing_equal_opp/assistance_animals

Article published by a Colorado based law firm on this

https://frascona.com/landlords-guide-to-handling-tenants-request-for-assistance-animals/

Consult your attorney when making any decisions or policies regarding the accommodation of persons with service animals as the laws may have been modified or changed.

Review Fair Housing Act before writing your ad to make sure you do not violate any laws.

https://www.hud.gov/fairhousing

Be sure to check for any updates or modifications to this act.

Make sure you feel comfortable with the cash reserves you have for your rental property.

Most CPAs will recommend you have between 6 months and 12 months of your mortgage payment, taxes, insurance and maintenance reserves for your property.

If you do not have this amount saved for your property, make it a goal to work on building up your account to have that for each rental property you have.

Mark this task as done when complete.

Find your local landlord group and attend meetings to stay abreast of the rental market and network with other landlords.

Mark this task as done when complete.

Write out your own process for screening and approving tenants.

Plan ahead by considering all possible what-if scenarios you can think of and what you'd do in each situation before it happens. Write this out.

Mark this task complete when you have your process written out.

If you're offering the property to a Tenant-Buyer on a Lease Option, write out your own process for screening and approving Tenant-Buyers.

Plan ahead by considering all possible what-if scenarios you can think of and what you'd do in each situation before it happens. Write this out.

Mark this task complete when you have your process written out.

Get or create your own "Rental Application" to be used when tenants and/or tenant-buyers apply to rent your properties.

Use the Nomad "Rental Application" as a starting point:

https://RealEstateFinancialPlanner.com/rental-application/

Mark this task complete when you have your own "Rental Application".

Get or create your own "Rental Application Evaluation Worksheet" to be used when tenants and/or tenant-buyers apply to rent your properties.

Use the Nomad "Rental Application Evaluation Worksheet" as a starting point:

https://RealEstateFinancialPlanner.com/rental-application-evaluation-worksheet/

Mark this task complete when you have your own "Rental Application Evaluation Worksheet".

Get or create your own "Rental Application Evaluation Criteria" to be used when tenants and/or tenant-buyers apply to rent your properties.

Use the Nomad "Rental Application Evaluation Criteria" as a starting point:

https://RealEstateFinancialPlanner.com/rental-application-evaluation-criteria/

Mark this task complete when you have your own "Rental Application Evaluation Criteria".

Get or create a "Reservation Deposit Agreement" form that you'll use with your Tenant or Tenant-Buyers when they reserve your rental property.

Ask your Contract and Paperwork Attorney or your Real Estate Broker.

Mark this task complete once you have a "Reservation Deposit Agreement" form.

Watch the recording of the live presentation of "Tenant Screening" available on:

https://RealEstateFinancialPlanner.com/tenant-screening/

Watch the recording of the live presentation of "Mock Tenant Screening" available on:

https://RealEstateFinancialPlanner.com/mock-tenant-screening/

Get or create your own written "Tenant Evaluation Criteria" to be in compliance with Fair Housing Laws.

This is the written standards and approval process for whether a Tenant or Tenant-Buyer qualifies to rent your property.

Remember that you are about to loan someone an asset that is probably worth hundreds of thousands of dollars (the value of your property), so you should screen Tenants and Tenant-Buyers thinking that you're loaning them something that is worth hundreds of thousands of dollars to you. Personally, I'd even tell them that to set the right tone.

Mark this task complete when you have written "Tenant Evaluation Criteria".

Read through your "Tenant Evaluation Criteria" and highlight sections you have questions about. Write down your questions.

Mark this task complete once you've read through the "Tenant Evaluation Criteria" and documented your questions.

Get or create your own "Move-In Inspection Report" and "Move-Out Inspection Report" that you can use with your Tenant or Tenant-Buyer.

You can usually get this either from your Real Estate Broker or your Contract and Paperwork Attorney.

Mark this task complete when you have a "Move-In Inspection Report" and "Move-Out Inspection Report".

Watch the recording of the live presentation of "The $5,000 Lease Demystified" available on:

https://realestatefinancialplanner.com/the-5k-lease-demystified-nomad-2017-edition/

Download a copy of the "Lease" you intend to use (either from your Attorney or from your Real Estate Broker) or create your own with the help of your Attorney.

https://RealEstateFinancialPlanner.com/lease/

Mark this task complete once you have a copy of the "Lease".

If you're using my "Lease", read the "Annotated Lease" to see examples of the "Lease" filled in and see how we explain it to Tenants and Tenant-Buyers.

https://RealEstateFinancialPlanner.com/lease/

Mark this complete once you've read through the "Annotated Lease".

Read through your "Lease" and highlight any sections you have questions about. Write down the questions you have.

Mark this task complete once you've read through the "Lease".

Practice filling in a complete sample "Lease" before meeting with your Tenant or Tenant-Buyer to show a property and complete a "Lease".

Mark this task complete once you've practiced filling in a complete "Lease" and asking your Contract and Paperwork Attorney any questions if they come up while doing it.

Watch the recording of the live presentation of "The Lease Option – The Lease Part II" available on:

https://RealEstateFinancialPlanner.com/the-lease-option-the-lease-part-ii/

Have your Contract and Paperwork Attorney prepare your "Lease-Option" documents for your Tenant-Buyer or create them with your Attorney's help.

Mark this task complete once your Contract and Paperwork Attorney has prepared your "Lease-Option" documents.

Read through your "Lease-Option" paperwork. Highlight any sections you have questions about. Write down your questions.

Mark this task complete once you've read through your "Lease-Option" paperwork. You'll be scheduling time to meet with your Contract and Paperwork Attorney to have your questions answered in another task.

Meet with your Contract and Paperwork Attorney to go over the highlighted sections of your "Lease-Option" documents. Ask your Attorney your questions about the paperwork.

Mark this task as complete once you understand and feel comfortable with your "Lease-Option" documents.

Write out what questions you're going to ask when Tenants or Tenant-Buyers are calling in on your marketing.

Mark this task complete when you've got a written script of questions.

Practice your script for incoming calls from Tenants and/or Tenant-Buyers.

"Professionals practice off the field." The time to learn your script is not when you have a fully qualified, Tenant-Buyer with a large down payment on the phone.

Mark this task complete once you've run through your script enough times so that you feel comfortable with it.

Determine and write out the criteria that you'll use to evaluate a Tenant-Buyer.

Mark this task as complete when you have written evaluation criteria to be in compliance with Fair Housing Laws.

Determine what Rent you'll charge for the property or, if you're offering a Lease-Option, what Lease-Option Rent you'll charge for the property.

This is often done by researching what Fair Market Rent is.

Some Real Estate Brokers may subscribe to a service that allows them to pull rental comparables to help to determine rent.

Mark this task complete when you have determined your Rent.

If you're offering the Tenant-Buyer a Lease-Option, determine what is your minimum acceptable Option Fee.

Mark this task complete when you have your minimum Option Fee for your Lease-Option or if you're not doing a Lease-Option at all.

If you're offering the Tenant-Buyer a Lease-Option, determine what price the Tenant-Buyer can purchase the property from you in year 1 and year 2.

Mark this task complete when you have prices for year 1 and year 2 for your Lease-Option or if you're not doing a Lease-Option at all.

Watch the recording of the live presentation of "Marketing for Tenants" available on:

https://RealEstateFinancialPlanner.com/marketing-for-tenants/

Watch the recording of the live presentation of "Property Management Mastery" available on:

https://RealEstateFinancialPlanner.com/property-management-mastery/

Watch the recording of the live presentation of "Solving Tenant Challenges" available on:

https://RealEstateFinancialPlanner.com/solving-tenant-challenges/

If you have not done so recently, review the recording of the live presentation of "Property Management Mastery" available on:

https://RealEstateFinancialPlanner.com/property-management-mastery/

Call your Insurance Agent and get an Umbrella Insurance policy to protect you and your growing real estate empire.

Remember the following when approaching Tenant Interactions

• Build Trust and Rapport
• Communicate Regularly
• Respond Quickly
• Handle Reasonable Requests
• Be Firm but Fair
• Set Expectations and Hold to Them
• Document Everything
• Remain Calm
• If you can't be calm - Hire a Property Manager