How to Treat Tenants In Your Rental Property


CLAYTON MORRIS: How
should you treat tenants in your rental property. That’s today’s
show, let’s dive in. [SOUND EFFECT] CLAYTON MORRIS: Hey
everyone, I’m Clayton Morris. NATALIE MORRIS:
I’m Natalie Morris, CLAYTON MORRIS: And, this is the
Investing in Real Estate Show, and today, we’re going to talk
about tenants in your property, the key part of the entire
process of actually getting your property cash
flowing and rented. We are longtime real
estate investors, we’ve flipped a lot of
houses, and the sole focus of this show, if you’re
new to this show, is all about buying
hold real estate for the purposes of creating
cash flow and legacy wealth for you and your family. So, we buy our properties,
and we hold them for the rest of our lives. That’s the goal. And of course, in
that process, you have to have great cash flowing
tenants in the property. Otherwise, the whole
thing doesn’t work, right? NATALIE MORRIS:
Exactly right, unless– then who are going to
rent to, the government? CLAYTON MORRIS: Right. NATALIE MORRIS: Aliens. CLAYTON MORRIS:
Government cheese, NATALIE MORRIS: I don’t know. I mean, you can rent
to the government, but that doesn’t mean you treat
your tenants any differently, we should talk about that later. Note to self, that
section 8 tenants. CLAYTON MORRIS: Right,
exactly, so there’s a lot to cover today,
and I think there’s a– I want to take an
enlightened position on this, because I think, it’s very– you can be very domineering
sometimes, when there’s– when there’s money exchanging
hands between people, someone is giving you
money to live in a property that you own, and you can
be very cavalier about it, you can be kind of a
tough ass if you know want to be that
way, or you could take an enlightened approach
to real estate investing, which is creating a great
place for your tenant to live. And there’s some
give and take there. That doesn’t mean
that the person is going to walk all over you
and take advantage of you, but setting some
clear boundaries for that relationship
is really important. NATALIE MORRIS:
Yeah, and I thought it might be good to talk
about our general philosophy. Of course, you do it your
own way, but what we do, and what we feel
comfortable with, is really to make every
decision under the test of whether or not that makes
that person feel at home. Like, we want people to
stay there and continue– for selfish reasons– to continue to pay us
every month, right? That’s the purpose, that’s
the business side of this. But, we forget that this is
a human business as well. We are buying homes
for people to live in, that becomes their home. It’s my property, but your
home, that’s sort of the way we like to think of it. So, when we get questions
from tenants like, can I have a dog or can
we cut back this tree, or I don’t know what are some
of the other questions like that are pretty– like
maybe, not allowed, but we take a liberal stance on CLAYTON MORRIS: Yeah, like we
had a property in Detroit– one of my favorite properties,
one of my first ones actually, and we got a message
from the property management company saying, hey,
the tenant would like to trim back some
of these bushes that are off of the front
porch, they wanted to– NATALIE MORRIS:
Actually, they said they wanted to
replace it themselves. They wanted to choose a
different type of shrubbery. CLAYTON MORRIS: Because,
this particular shrubbery was all spiky,
and they wanted it to be more pleasant for
the front of the house. NATALIE MORRIS: And
they had kids, right? CLAYTON MORRIS: They had kids
who would walk out on the yard, and they had a big
yard, that’s one of the reasons I like
single family homes, again, is that they make it their own. And so, the property
management company– we love them, but
they were like, you’re under no obligation to do this. You don’t have to
do this or prove this and I looked at Natalie– NATALIE MORRIS: And
actually, they said, we don’t suggest it, even. CLAYTON MORRIS: Why did they
say that, that they don’t suggest it, do you remember? NATALIE MORRIS: Maybe
a liability issue? I don’t know, if
you’re getting in there and removing something
super thorny, it’s a liability
that we don’t want. CLAYTON MORRIS:
Or maybe they just don’t want everything because– NATALIE MORRIS: If
I roll up my sleeves you can see all kinds of
gashes from trimming back our rosebushes. So maybe, I wouldn’t
want someone doing that on behalf of me. CLAYTON MORRIS:
Maybe, or it could be that they don’t want cosmetic
changes made to the house right, this is
landscaping after all, you’re going to remove a tree? I didn’t give you authorization
to cut down one of my trees, you know. So, that’s probably part of the
property management agreement, I would think. So, that was why they said,
any changes to the landscaping, not necessarily approved. But, what did we say? We said, sure,
that’s no problem. I looked at you, you
looked at me, we’re like, yeah we want them to make this
house feel like their own. And, if they plan to stay
there for a long time, and they did they were
there for like five years in this
property, so there’s an opportunity
for you to say, OK is that really a big deal, these
dead trees, these spiky bushes in the front are causing
them some heartache, allowing them to put in
their own spiky trees or whatever they want
to do, fine go ahead. But we treat this on a
case-by-case basis, of course. NATALIE MORRIS:
Right, especially in this political climate
right now, people lament the loss of common sense. And OK, that’s in
the contract right and we can be a
society that’s so to the letter and so litigious,
but there’s some common sense there. You live there, you don’t
want to get poked by bushes, I get that, how about you? That’s fine. You know, that’s
totally fine by me and so again, we just make
decisions, asking ourselves, can we make this
person more at home? And, one thing that we like
to do when it comes to– I mean, these are relationships,
it’s like a power exchange– we own it, you don’t, but we
don’t want to be oppressive. That’s how we are with our
children, we’re in charge here, but we want to empower you to
be as successful as possible. So, one of our
philosophies as parents, is say yes as much
as you possibly can, so that when you say
no, it has some power. And some– it’s like
an actionable no, you have a reason and
they think, well OK, I get a lot of freedom, so
I better listen to that. No, right, and it
can be difficult. We use property
management companies for all of our properties. So, it can be difficult if
you’re managing properties yourself, which is something
we don’t recommend, but if you are managing
properties yourself, the problem is that
you can tend to lure– you can fall into the
sense of security– this false sense of security
with tenants, because you’re managing the property. Now, let’s say, it’s past
the fifth of the month and they start to
fall behind on rent, under a normal property
management agreement the fifth of the
month comes and goes, the eviction process is
started pretty quickly. NATALIE MORRIS: Right. CLAYTON MORRIS:
Really, if you’re late and you’re not giving a
reason, there’s not a hardship, or you’re late and you let
the office know that you’re late for a reason, because you
have to fix your car at a cost $2000 and you know
you’ll have the money on the tenth of the month. OK, maybe a little
bit of a grace period to work with that tenant,
but it’s very easy– and I hear this all
the time from landlords that are managing properties
themselves is, that they let this tenant fall
behind for a few months and now that tenant basically
thinks they don’t have to pay rent because you gave them that
leniency for months at a time and they’re going to be
more prone to do that come the holidays when they want
to buy presents instead of spending money on their rent. So, you’ve got to be
very, very careful about walking that balance
between, what’s being walked on or being taken advantage
of, and also being a smart businessperson. NATALIE MORRIS:
Compassionate, right. Yeah, and my dad, he does
a lot of his own property management for his commercial
properties as well. And, every time someone
gets behind on his– and I hate to throw
my dad under the bus, but my dad always has
like a real personal story about why someone fell
behind on their rent. Like, one guy was renting
one of his warehouses, and he was starting a
business, and the business just hadn’t taken off. But, my dad thought it
was an awesome business, and he was like, I’m going
to give him a chance. So, they let him
go several months and then came up with
the payment plan, and he couldn’t make
the payment plan, and my dad was really
heartbroken over it. So, it’s hard, because you see
why these people have chosen to either live there
or set up shop there, you believe in these people
or you really want to– I mean, we’re the kind
of people who really want to believe in people until– we give everyone the
benefit of the doubt. And then, he’s had a
situation like that in his apartment complex, too. This was happening and he
knows really personal reasons and that’s something
that, it’s really hard. That’s why you should have
a third party in between, so that there’s just no
cold heartedness about it. But, at the same
time, you want to know what’s going on as
the property owner, so that ultimately you
make the decisions. Because, if we went to our
property manager and they said, this person’s not making
rent, but you know, they have a terminal disease
in their family or something, and it’s provable, you know, it
wouldn’t be like, evict them. CLAYTON MORRIS: Right. NATALIE MORRIS: So again,
there’s common sense there, and the reason we
thought of this podcast is because my sister, she just
bought a fourplex and someone had given her a template of the
letter to notify the existing tenants that there has
been a management change and that these are the rules– and she didn’t
write this letter, it came from a family friend,
but it was really nasty, and my mom and I were
like, you can’t send this, because it’s going to make
people feel unwelcome. Do you like rent, or do you
have an empty apartment complex with a lot of rules? And so, she’s like,
well, I do want them to know that I won’t put
up with crap, and I get that. We definitely don’t want
to put up with crap, but she’s sort of setting
the expectation right out of the gate, like, I’m
onto your shenanigans and I’m not having it. CLAYTON MORRIS: I
mean, that can happen, which is why I’m not a huge
fan of assuming tenants, because very often,
unless you know what the tenant’s
situation is, and you’ve looked at the ledgers,
and you understand that we just placed
this tenant a month ago, that sort of thing. But sometimes, we’ll
assume properties from people, tired
landlords that have had a tenant
in their property, and they should be
charging him $700 a month, they’re only charging
him $550 a month, and they may or may not
have been paying on time. You don’t know those
situations unless you’re dealing with professionals,
like what we do. But, a lot of times,
when people are– you all get wholesalers
that will send out e-mails and there’s a tenant in place,
been there for three years. And, this is the
situation– it’s like, great, but really have you
looked through their history do you know all this? And so, assuming tenants
can be difficult sometimes– in that situation, they’re
changing management companies, you’re changing from this
one owner to this new owner, you need to lay down
the law, but maybe not in such a boorish way, I guess. You don’t need to, you know,
the new sheriff is in town. NATALIE MORRIS:
These are the rules, you won’t be letting me
down, or else I’m going to– CLAYTON MORRIS:
I get it, I mean, I get that you want
to say, look hey, my rent is due on the
first of the month if it’s not received by the
fifth of the month we will start the eviction
process, it’s pretty clear what’s actually going– what’s actually happening here. We’re not going to give these
like 20-day grace periods anymore, we’re switching it up. The grace period will
only be five days, as per normal property
management agreements. NATALIE MORRIS: And
it’s always a good idea to put yourself in their shoes,
because we probably, most of us have lived in buildings that
have changed management, and that’s very stressful. Because, you think, oh crap, am
I going to have to move, what– is my rent going up,
are these new people are going to be nice, can
I keep my dog, or whatever. So, that’s already a
stressful situation, and then to get this super
unwelcoming letter in the mail, then I would move if I
could, right, wouldn’t you? CLAYTON MORRIS: Yeah, I’m well–
yeah, I mean, I feel like, I don’t live in this
place it feels– I get some negative juju, right? NATALIE MORRIS: Right. CLAYTON MORRIS: So,
here’s an example, you know when we get
a hold of tenants, let’s try to see what
the reason is did he or she lose her job or
something, when we assume a new tenant into a property. Well, if they lost their
job and they’re not going be able to pay and they’re
falling behind on their rent and it’s now past
the grace period, yes we’re going to have
to start an eviction, that’s what’s going
to have to happen. Now, if they had
some random setback, and they had to
pay for something like some sort of
a hardship, I’d recommend the owner try to
work with that person to try to catch up on those payments. And, that’s what any
good property management team will do– by the end of the
month, let’s make sure the full $500 is there,
don’t make us have to come back and knock on your
door three times, but that’s why you work with
a great property management team who is focused
on cash flow, because if you don’t
have those people that develop those relationships,
they go out to the house. They say, hey, Monica,
good to see you, are you able to give
us the other half of the rent this month? You develop those
personal relationships, and they come to
respect you, they don’t want to let you down as
the property management team, they know that you’re
working with them. And after all, it is
human beings you’re dealing with, you’re not
a monolithic building, faceless person,
faceless robot that has people living
in your building, it’s a people business. And so, you have
to work delicately, I think, sometimes around
the edges of these rules. NATALIE MORRIS: But, I think a
lot of times in this podcast, we take things from a
holistic, spiritual angle. It’s like, what are we putting
out there in the universe, If we’re treating
people bad or we’re expecting to be
disappointed, that’s usually going to be what we get. But, if we start
the relationship with some trust and some
empathy, it’s very rare that– and we own over 30
properties that– it’s rare that
we’re disappointed. Most of the time,
we try our best to be as hospitable
as possible, and we continue to keep in mind
what our purpose is, to provide a home
for our families and to make money obviously. CLAYTON MORRIS: So, it
starts with that first idea of the home, which is why
I like single family homes. And– just had a
great interview, it’s going to be coming
up here on the podcast in the next few weeks
with Brian Klein, he’s been a longtime
real estate investor, and he looks at
market conditions, and well, he’s a huge fan
of single family homes. There’s such a demand for
them, but also the value in those homes is consistent. The renters stay
for a long time, typically you don’t
have the transients that you might have in one
bedroom, efficiency apartments in a building or
like in a four plex, or an eight plex or
something like that, where there’s are a lot of
tenant turnover in those– and you’re creating
a home for somebody. So, that’s really why I started
buying single family homes, because I could understand it,
I could understand the value of having a yard, or driveway. NATALIE MORRIS: A parking
space, a washer and dryer. CLAYTON MORRIS: Yeah,
you could call your own at the end of the day. And so, my idea
of, when we rehab our homes, brand
new carpeting, we want the kitchen to be updated. We want it to be a place
with the right heating, the right electric updated,
the right plumbing, so that they feel like the
this is theirs, really, for all intents and purposes. NATALIE MORRIS: Exactly right. So, that’s all I have
to say about that. You have more to say about
that, Clayton Morris? CLAYTON MORRIS: No,
but I let I think it is important to talk about
expectations with fixing things and a property too,
because there is some give and take there. You might have a
tenant who wants to take advantage
of certain items that are there, where there’s
a gray area to be fixed, for instance a toilet backs up. OK, well what are in
flushing down the toilet? We’ve told you once, or the
property management team has told you, and they came
out and snaked the toilet with the plumber, and we
eat that cost for $40 bucks, or whatever it is,
for the plumber to clean the toilet
out, snake it out. NATALIE MORRIS: That’s
cheap for that service. CLAYTON MORRIS: Whatever it
is, I don’t know, but stop putting baby wipes
in the toilet, you know that that
clogs pipes, you’re not supposed to do that, it
even says right on the packaging not to do that. OK, if it’s done
again, then you’ve got to have a bit of a
iron fist about it and say, that’s coming out of
your security deposit. NATALIE MORRIS:
Right, and, just– here’s a word to the
wise, if that wipe package says flushable, it’s not. CLAYTON MORRIS: We had this,
and you have to be careful. These are some things you need
to be aware of, that if you’ve got a tenant that has children,
newborns specifically, there may be a tendency for them
to want to even flush diapers. I mean, that happens,
people, I’m telling you, people can be fairly
ignorant sometimes when it comes to raising kids. Like, I’ll be driving
through times square going to work at in the middle
of the night into the city, and I’ll see like kids
in a stroller, babies in a stroller out
there midnight. You’re like, that
kid should be asleep. So, there’s a lot of
ignorance when it comes to child rearing in this world. But, I don’t mean to
be judgmental, but yes. But, on that exact
issue, it’s like look, if you’ve got an older
house that may even have cast iron pipes,
even some of the clay pipes, the old ones– in New Jersey, we
have a lot of those, remember the piping that we
had on that one property, where we had to snake
it, had to come in and you could actually see the
vines from the trees growing through, the clay pipes,
and those get caught up, and so, you’ve got
vines going through it, almost acts like a sieve. And, then you’ve got baby
wipes that are clogging up against those vines
and it then it causes a sewer backup in the
house, whose fault is that? Well, it’s the tenant’s
fault to be honest with you. Yes, maybe you should
have clear sewer lines, but if you’ve warned them
about flushing things down the toilet, that’s going to
come out of a security deposit and you can’t let people walk
on you in those situations. Yeah, and I think that’s kind
of common sense though, right? NATALIE MORRIS: Like,
you’re not taking our stuff, so now now this is on you,
we’ve tried really hard to– we’ve provided you a really
nice home to live in, we’ve done our part. Now you got to do
your part keep it up. CLAYTON MORRIS: Well,
yeah, for instance, we had on a property
recently there was like a handrail in the
basement that was intact when we finished the
rehab on the house, and the tenants asked the
property management company to fix the handrail
in the basement. We did, but that’s coming
out of their security deposit because we didn’t break it,
it was pulled off the wall, maybe when they were
putting their boxes in the basement et cetera. Well OK, it costs
maintenance and time for a team to go out and
fix that they pulled it out of the drywall, who’s going
to eat the cost of that? Yes, we’re lending you
this house for a time but we also expect you
to lend it back to us in the same condition
that you left it. NATALIE MORRIS: Yeah,
right, that’s annoying. CLAYTON MORRIS: So, also
don’t be crazy with security deposits, another rule– not to I mean,
there’s a procedure for handling and looking
at security deposits after a tenant moves out. And, you have to
in certain states, you have to put in writing what
things are going to be fixed. I know I’m not sure– California was
different, but I know different states have
to be put in writing the property management
company will look at that. They’ll assess the house,
they’ll see if there’s damage, they’ll see if there are things
that the security deposit will cover, and typically,
it’s rare that a security deposit goes back to somebody
fully intact, wouldn’t you say? Nails in the wall, hanging
pictures, just like– NATALIE MORRIS: I guess. When I was renting,
and renting for myself, and also renting out my
apartment in San Francisco, it was pretty common to get
the security deposit back, except for the story
I’ve told several times on this show about that hellish
couple, unmarried couple with the dogs that peed
all over the place. And even that, they got
a good portion out of it, because I could only– this woman was such a terrible
tenant and she knew her rights, so she’s like,
well, you can’t ask me to pay for that pay
for that per section 8. I do have so it really depends
like you said in certain states it’s really hard
to hold a security deposit for certain things, and
in some states it is easier. CLAYTON MORRIS:
Right another thing you should think about
is the dogs and pets, and listing you know
the natural inclination I’ve talked about this before
the natural inclination is to think that oh I’m not
allow pets in my house. Yeah, maybe that’s
how you feel about it you feel strongly about that and
certainly property management agreements will have a
certain size limit to a dog so you’re not getting
an 800 pound dog that’s going to attack the neighbors,
but you know a lot of tenants have a difficult time
finding properties where they’re allowed
to have a pet. And guess what if you
are a property owner that allows your tenants to
keep pets in the house because you’ve got a
big yard and maybe you have a fence in the back
yard where the dog can run, that’s a huge selling point
for rent for this tenant and guess what? NATALIE MORRIS: You’ll
up-charge them too. CLAYTON MORRIS: You
can charge them, you can add an extra
little bit to the rent, sometimes like a
pet deposit as well. In addition to that
though, they’re going to stay for a long time,
because it’s hard for them to move and find another
property that’s pet friendly. And if they– they
tend to hunker down and you tend to get
tenants with pets that will stay a lot longer. So it’s something to think about
if you’re thinking about being a tough ass with the pet issue. No, I don’t want
a cat in my house. What do you care, you
live 1,000 miles away? You really care about a
cat, if it makes them happy? That’s easy. NATALIE MORRIS: And,
they can still– I mean, you’re
charging extra rent essentially the cat is also
another tenant paying you rent. It’s just another way to make
a little extra money so yeah. And, my apartment in San
Francisco that I owned and rented out, the
property management, their rules were that you could
have up to 50 pound of animal. So one 50 pound dog or two 25
pound dogs or five 10 pound dogs. It’s like a cumulative
poundage of pet. I never saw them
actually weigh them, but like you could have
two dinky ones or one big one or you, I
guess I don’t know I wondered if they would like
weigh out a snake like that takes up three pounds of could
you put your pet on a diet if they went above it? It just seems like
such a silly rule. CLAYTON MORRIS: Like, a kid
before a wrestling tournament is trying to make weight. NATALIE MORRIS:
Like, oh my lease is up my animals are got to
go on a diet to make weight. CLAYTON MORRIS: And, he’s
been eating so much lately no more for you stop
eating steak off the table. Well that’s a look at how
to treat your tenants. Any other thoughts about this? NATALIE MORRIS: No. CLAYTON MORRIS: Well said. NATALIE MORRIS: Thanks. CLAYTON MORRIS: Well, listen,
you treat your tenants well. So, bottom line is
treat your tenants well, they’ll take care of you,
you take care of them. Don’t let them walk on you,
don’t let them walk over you. But, also don’t walk on them. Remember you’re in
a people business when you’re in the
real estate world. Every piece of this chain
is the people’s business, you have to remember
that sometimes. People can hide behind keyboards
and send nasty e-mails. To people just
remember there are human beings on the other
side of those e-mails and when you like
what your sister sent. NATALIE MORRIS:
She didn’t send it. She’ll be so mad, because
she listens to this like, thanks for throwing
me under the bus but she didn’t send it
that she didn’t send it she sent it to my mom and I
and we both were like, whoa. This was another friend of
ours who had given it to her. CLAYTON MORRIS: Well, better
judgment prevailed on that. So, if you would like to
book a call with our team, go ahead you can go over
to MorrisInvest.com, we’ll take great care of you. If you don’t want to
have to hang drywall, deal with carpet, hire
contractors and all that we find great properties. We renovate them, we place
great tenants in the property. That’s what we do. So, you don’t have to
deal with any of that, and you just receive
monthly cash flow from your monthly rent
that’s what we do so check us out today go
over a Morris Invest if you want a book
call with our team and if not great we’ve got tons
of great resources over there also for you, tons
of great blog posts and downloads free of charge. Go check them out so you can
become a real estate investor. So now, go out there, become
a real estate investor. Take action everyone,
will see you next time. NATALIE MORRIS: Bye.

51 thoughts on “How to Treat Tenants In Your Rental Property

  • It got to a point where tenants were taking advantage of me. We changed out policy to the following.
    1) We will not call you for rent.
    2) If your rent is not paid on the morning of the 16th, we file eviction. Takes about 20 minutes total at the court house for a newbie in Charlotte.
    3) No exceptions.

    I let the tenants know that it isn't anything personal. After it happens once, they usually pay onetime. We also give them the option that they can change the day rent is due for an extra $20 per month. After a bunch of late fees, tenants usually appreciate only paying $20 extra per month rather than the full late fee. Of course some people are just later every month which I am OK with as well. Bottom line, you have to be willing to evict. It usually is not that hard to do once you figure it out.

  • It is amazing how informative your videos are.  I am a well-educated, career oriented person but the information provided in your channel has helped me 10x over!

  • I have one question: if the tenant stays for a long time ,like 5 years, do you rase the rent every year ? and what is the best way to tell the tenant about that? i only have one proprty and managing it myself . Thank you!

  • if a person have used m/c and visa cards over maxed can not make payment , what m/c company can do and still want to buy property but have small income just to live on, how to deal and handle bank , still want to buy property with my friend is lending me $1000.00 ? what will you advise please do reply

  • 18:45 The handrail shouldn't be secured in the drywall, it should be secured in a stud. If it wasn't installed properly from the outset, the tenant's security deposit shouldn't pay for that.

  • "It's my property. But, it's your home." I've said this myself to my tenants. It goes a long way to build a good relationship.

  • they don't like a man because then they think they can change other plans the best thing is but a professional landscaper go in and you probably manager that's why you have a property management company go in and let them change the plants and do not become chimney it is a business as not a home that's a real estate piece of property I know that sounds mean but I've been in the business over 30 years I'm a developer and a property management company I've got Papi all over the United States Apartment Homes commercial building and strip malls and let me tell you you not they are cash cows that's how we come says for I know it cold blooded that's how it's got to be or you're here everybody said store in the neighborhood and remember it's not their house or home it's your property it just like an employee they pay you you keep it clean you keep all the maintenance up and you do the best to give him a real clean environment just like employee they work and I get paid they don't pay out employees or work oh rentals I also Mountain Property Management Company on top of a Construction

  • depends on where the property is like in San Diego and some of the higher rents area you don't always get the value of what you properties what when went to think I'll make it up in volume even if I make $100 apartment I'm still making up and I can make up to $32,000 and a month with a bunch of poppies where I might only make a few hundred dollars and renting property so it's not always right to own homes that is one of the poorest investment whoever told you that is wrong

  • How come you are in different cities? Do you have kids? Who managing your personal finances? Who is final decision maker in your family?

  • You're so right about more freedom with kids. My 5 kids all grown up now. My kids didn't even have a curfew. But they knew that on school days they couldn't stay out after 10pm. Weekends were free for them to come when ever they felt like it. And believe it or not, most of the time my boys and girls came home by 12am. When they turned 18, I told them that it was their responsibility to organize their time, even though they were still in high school. I wanted to prepare them for college. Parents have such stiff curfews for adult kids just because they are still in high school. And then when they go to college, they are right away on their own and they don't know what to do, and how to manage their time. All my kids educated, no drug edicts, or alcoholics. I'm not saying that we are a perfect family, far from it. But our kids are really doing good.

  • I am not sure if you two have covered this before but I was wondering what tips you guys have when looking to hire a property manager. Thanks for the great info guys!

  • Why do so many apartment ads state that tenants must make "3 times the rent"? Is that even possible these days? As a retired person on a fixed income, my rent is now 2/3 of my monthly income. Yet I always pay the rent in full and on time. The rent comes first, and other things can be done without, if necessary. Retirees are often long-term tenants, too. One would think that having a reliable, long-term tenant at a lower monthly rate would be preferable to constantly raising the rent, and constant turnover of tenants.

  • I really look at it as just another business, you are more or less selling a service. The lease is the service contract. As far as damages go, I just use the classification of 'normal wear and tear'. If it isn't a normal wear and tear then tenant gets charged for it. An example would be 1 burned out light bulb. That would be normal wear and tear. Missing bulbs or any burned out bulbs over the count of 1 burned out, is not normal wear and tear. I think as long as you're fair, explain your reasoning why and have solid reasons most people are civilized about it. You can't just fix, fix, fix… if you do that the tenants will just keep breaking stuff that shouldn't be broken. Be cordial, but firm. I manage my own property. Yeah I know I'm cray – cray. But I am hands on kind of guy.

  • Great fair but firm perspective. My experience in property management has taught me that educating and regularly re-educating the tenant is a necessary element of a proper risk management plan, tenant appreciated, and helps build enduring owner/management-tenant relationships. Keep these great videos coming.

  • Very nice information, Thank you. I real like how you feel about the tenant, there home. I try very hard to have my tenants feel that it is there home. It has worked very well for me.

  • By law in New York and Connecticut we dont have to pay our rent until the 9th of ever month and I never pay mines a day before.

  • What are y'alls thoughts on renting out to section 8? I'm thinking about starting out with 3 or 4 of those properties before moving on to regular tenants because section 8 I'll be guaranteed to be paid on time every month. Plus I live in Louisville, KY and the only neighbourhoods where I can meet that $40k home are class D neighborhoods. Thanks for any tips! Love y'alls channel!

  • AFTER I GET THESE PEOPLE OUT OF MY HOUSE IM NEVER RENTING OUT MY HOUSE AGAIN. I AM SO TIRED OF THE CRAP. I COULD WRITE YOU A BOOK ON WHAT I HAVE GONE THREW WITH THESE FELONS IN MY HOUSE WHO I DIDNT KNOW WHERE FELONS BEFORE THEY MOVED IN 4 MONTHS AGO IT HAPPENED SO FAST BUT IM DONE WHEN THEY GET OUT FINALLY MY HOUSE IS NOT FOR RENT EVER AGAIN. IM GOING TO FIX IT BACK UP AND USE IT FOR BIBLE STUDY

  • I need answers now…. I live and a three family home… The lady down stairs got a recording camera video audio… And the guy upstairs been a victim too…. She got the basement door lock wit her key…. I feel she using my electric…lol… the lease say no catS she got cats …landlord said my garage too… My side the right.. The first floor lady keep locking it… For her….but… She took a pic of me guess from her camera system and put it on my door…. I was with my son taking him to school..His school clothes he had on lol… So she be watching me…. 7am…lard lord said no Kids at the house or staying the night…OK… I move n on the 6 of this mouth and being ask to leave 1 next… I feel her and the landlord lady our friends and they watch people then evict them but the lady downstairs really breaking the lease….her music up all the time…lol crazy but true… What do i do actually…I'm not the first everybody that move her go through the same thing…..

  • i definitely do not want to be like a parent to my tenants. i have great tenants that i treat with respect. and it is mutual. this specific tenant does not require a lot of overhead. i am totally laid back with them yet i know what is going on. had it been a different personality i would not have been as relaxed. fiy, this tenant did not pass the income rule. but they have been paying like a clock. wish they would renew again.

  • In real estate, a critical thing to consider is the potential cash flow of an income property. That means the amount of benefit that comes on an ongoing basis. It’s kind of like friendship with you. That pays dividends of respect and happiness every single day! Have a wonderful day today 😊

  • NOTES:

    HOW TO TREAT TENANTS:

    Essentially, this video talks about the balance between a tenant having responsibility to you and you having a responsibility to them. A key thing to remember is it is your property but it is their home. So, you need to do what you can to make the place a home as much as possible. If a tenant feels at home, they are more likely to stay long term. This is a very important thing to consider. Tenants who feel at home are less likely to cause problems for you. In short, if your clients feel at home, they’re far more likely to be better tenants. Essentially, this is a simple idea. Do unto others what you would have them do unto you.

  • The airlines should charge people by the pound good idea.. Why would I pay extra for my baggage when there are 90% fat people over my weight in the plane. lol

  • One Technic that I do ; when replacing toilets is to put one in with a larger diameter tube leading to the drain. The standard toilet is about 2.25 inches. You can go 3 inches and save yourself numerous calls to get them unplugged. I absolutely will not pay for their plugged toilet repair.

  • I think after being a landlord over ten years, you or your management company almost needs a single line initial part of each contract. For example, If you have any problems call these two numbers for repair. Do not fix it and send me the bill. Or, I have to right to inspect every Tuesday. Or, any toilet backup will be fixed by the tenant. Please call these numbers. Please initial that the unit is in good working order, nothing is damaged or lose. If we don't receive the rent payment by the fifth of the month, we will start eviction process. Etc Etc.

  • These people are genuine people Not many people like this around anymore genuine good people they can easily sell you their advice or strategies and they genuinely just wanna help people I'm definitely getting into C class houses investment and I watch all of their videos great great people

  • You guys are so REAL! Loving all the videos. Thanks again for the information. I am sharing your videos with work friends interested in real estate investing.

  • Great content and I agree that we are dealing with human beings . I once allowed my tenant to stay in my place for 4 months without paying rent due to a hardship and at the end she paid me in full. One reason I decided to allow it was because this particular tenant has been in my rental property for 10 years . Blessings

  • Hi Clayton and Natali, I currently own 5 properties in Central Virginia. I see your point on hiring a property management company, but some are better than others at actually managing the properties they own. With mine, rent is due on the first of the month, no exceptions. I have an automated reminder through email and text messaging that goes out 3 days before rents are due to remind my tenants. I don't every let a tenant give me an excuse for being late with rent payment. I look for distressed duplexes in my area and have been successful finding them. I like managing my own properties.

  • i just looked at a room for rent, and he told me i cannot use the laundry or the kitchen. i mean i dont have a car how can i live without using the kitchen or laundry? crazy

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