STRESS-FREE PROPERTY MANAGEMENT

Back to: Landlord Success: Proven Strategies & Practical Advice for Stress – Free Property Management

The tenants have moved in, and they seem happy so now what do you have to do on a daily weekly, monthly, basis?

CONTACT DETAILS. As we purchase more and more properties it becomes difficult to remember tenant details, like names and phone numbers.

• Ensure that you have recorded all their contact details on the Tenant Contact detail form and have stored it on the inside cover of the Tenant File Folder
• Also, add all the tenants to your contact database system on your phone and computer. Make sure you record the names, phone numbers and unit address for the tenant, so you can search your phone by address if you can not remember their names.
• Also, add the name of all roommates in each tenant record; that way just in case you can only remember one name you will have access to all names. 
• Typically, during the first week or 2 after a new tenant moves in you will get a few calls as they settle into the property, with some questions or concerns regarding the property. Deal with these calls in a timely manner, answer the questions, and complete minor repairs. This will set the tone for the entire lease. Once they are settled in you should not hear from them as much.

REPAIRS and MAINTENANCE:  In general, I never allow my tenants to make repairs or improvements to the property. The Rule is ‘If there is a problem call me first’.

• At move in I show the tenant where the water and gas shutoffs are, and I also show them where the electrical box is and how to reset a breaker.
• Typically, most of your problems will be water related.
• I tell the tenant to keep an eye out for water leaks around the water tank, toilet, and faucets. I also tell them that if they see a little drip starting to let me know; please do not wait until midnight when the water is gushing out of the water tank. If the faucet, toilet, or water tank is leaking use the shut off to prevent damage and please clean up the water. This way if it happens at night, stop the leak, send me a text with a couple of photos and we can deal with it in the morning.
• If you are mechanically inclined, you can do these repairs yourself. Maybe you like to do plumbing but not electrical, so check out our trade’s list. 
• Get a complete description of the problem from the tenant, have them send photos. Most of the time when there is an issue, I will go over and inspect the problem in advance.  Even though the tenants explained the problem many are not mechanically inclined.  After viewing, I may choose to fix the problem myself if it is easy and I have the time, or I will call the appropriate trades person.
• Keep a list of trades people in your file and on your phone that you have had recommended and that you trust. Don’t start looking online when you have a problem.
• Plan and budget for upgrades to major items in advance. Particularly roofs, furnaces, water tanks, electrical breaker boxes. If you think you are getting to the end of your life cycle on a furnace, deal with it in the summer before it breaks when it is -40.  Obviously, when the furnace guys are not as busy you may get a better price, or you can shop for a sale and get a couple of quotes.
• We do not recommend renting furnaces and water tanks, this is becoming a new trend, but the problem is you pay a built in financing fee, and if you have to sell the home you will have to pay out the full purchase amount anyway.
• If you did not establish a line of credit on the property when you purchased it, try to get one even a small one. This way you have ability to pay cash for these items. The LOC money is as cheap as you will get anywhere.
• I always maintain a running check list of maintenance items on my phone for each property. These are items to be completed when time allows but are not critical. So, when I call, for example, a plumber for a specific problem I will also go to my list and see what else needs to be done. If the plumber is there changing the water tank, I will have him deal with those other outstanding items on the list, and save an additional service call fee.
• I said I never let my tenants do repairs as a rule of thumb. However, if I have a tenant that is a trades person and they have been living in one of my properties for a while and I trust them, I will let them do repairs in their field. For example, your roofer tenant may say “I can do the roof for you and will charge you half price on labor” then that could be a great option. Get a quote from him and a good independent roofing company. Learn what you need to learn about the technical aspects, then decide if your tenant is the right guy to do the work. I have done this in the past with great success and I also had him work on other properties of mine.
• If possible, try to give them a small job first to check out their workmanship quality and see how the entire process works out with them.
• Pay them the agreed amount, get a receipt so you can write it off. Do not trade services for free rent.  If you must pay someone to do the work, you might as well help them make money to pay their rent to you.
• It always hurts financially when you have to replace a larger mechanical item such as a furnace, an electrical panel, or hot water tank.  Think of this as an improvement to the property. These updates make it more saleable and more rentable in the long run.
• If a tenant has done good work at an affordable price and in a timely manner, I think, what other projects could I have him deal with on my other properties?
• Also, maybe you have a nephew that is looking for a summer job? Sometimes you can find projects that match the skill level of the individual such as painting a fence or shovel work.