I received a question from a student just yesterday that fit our topic perfectly.
“Diana, I’ve already submitted an offer and received the counter offer, but I don’t know if this property would be easy to rent and how much the regular rent is in the area. Additionally, I have concerns if this property would qualify for Section 8. My purpose in this deal is to have my father get cash flow; his money is sitting in the bank and he’s looking for one property with a low down payment and a low monthly payment which will cash flow. Please help me.”
My direction to this student is to run the numbers and protect themselves legally. To do that they will need a variety of resources: forms, legal advice, continuing education, account systems, credit checks and so on. I use two main resources, AOA – Apartment Owners Association (of California) and Rentometer. If you are in California, I would suggest you look into AOA. They have a lot of great resources. I feel their legal advice line, forms and credit check services are superior.
But first, find out what the market rents are for this property. That is one of the places that Rentometer comes in very handy.
Rentometer, with its advanced product RentometerPro (an automated rental management system), can help you do all the management functions you need with ease. “We’re essentially acting as an impartial third party for both people (landlord and tenant) to interact in a really convenient way that is up to date with the times. A majority of our clients are individuals or small partnerships and those folks really own a majority of the rental property in the United States. Most of the people who fall in that category are people who are in an industry other than real estate and they’re just managing their properties on the side as long-term or mid-term investments for additional income,” says Atsiknoucas, CEO of Rentometer.
The Rentometer’s services helped Matt Angerer, an owner of 22 units in Northwestern Pennsylvania, go from the cumbersome process of collecting rents to a process he doesn’t even have to think about. “My tenants can now send their rent either directly to the processing facility that RentometerPro owns … and in turn, they will actually cash the checks and deposit them into my account, or my tenants can pay online via electronic fund transfer or pay by credit card.”
The system is automated so that rents are automatically posted to the landlords account ledger and to the tenants account. Part of the automated system is automatic notices to pay if rent is late. It will then bill, track and collect the late charges. That in itself can pay for the service.
Being a landlord doesn’t have to be hard and it is one of the easiest ways to build wealth.
Diana D. Hill