Contents

Part 1: Real Estate Basics

1 Getting into Real Estate

Understanding Real Estate

Types of Real Estate

Unfurnished Rentals

Corporate Monthly Rentals

Vacation Rentals

Student Housing

Decisions, Decisions

How Much Time Do You Have for Upkeep?

What Are You Willing to Pay Out Each Month?

What Are Your Investment Goals?

Success Story

2 Ownership Structures and Financing

Types of Ownership

Sole Proprietorship

Partnership

Corporation (“C” Corp)

Limited Liability Company

Individual Retirement Account

Trusts

Making Sense of Mortgages

More Mortgage Matters

Questions to Ask Before You Borrow

3 What to Look for in a Rental Property

Location, Location, Location

What’s the Price per Square Foot?

What’s the Price per Unit?

How Much Are the Property Taxes?

How’s Area Employment?

What About Crime?

Consider Future Development

Any Amenities?

4 The Keys to Real Estate Success

Thinking Financially

Cash Flow

Profit and Loss

Leverage

Equity

Investment Life

Appreciation

Other Considerations

Do You Have the Time?

What About the Risks?

The Bigger Picture

The Keys to Profitability

Part 2: You and Your Property

5 Landlording Basics

Tips for Success As a Landlord

Possess Key Qualities

Keep It Simple

Know the Law

Trust Your Gut

Micromanage Your Property

Focus on Your Tenants

Establish Systems in Place

Maintenance Logs

Keys and Property Access

Emergency Plans

Changing Information

Get It in Writing

Rental Rates

Rental Agreement Versus Lease

Rules and Clauses

Disclosures

Other Policies

Facts About Fido

6 Preparing Your Property for Tenants

Making Your Property Look Good

Cleaning It Up

Annual or Seasonal Cleans

Make-Ready Cleans

Maid-Service Cleans

Making It Safe

Green Is the New Black

Easy Ways to Go Green

LEED Certification

Getting an Energy Audit

The Importance of Inspection Reports

Furnishing Your Rental

Accessories

Kitchen Items

Electronics

Furniture

Bathroom

Bedroom

Phone

Property Manual

7 Property Management and Maintenance

The Property Team

Who’s Answering Phones?

Assembling Your Team

Vetting Potential Team Members

Should You DIY?

The Importance of Maintenance

The Complaint Department

Establishing the Rules

Handling Tenant Complaints

Sending Complaint Letters

Emergency Preparedness

Create a Plan

Plan for Everything

8 Landlord Rights and Responsibilities

The Implied Warranty of Habitability

Your Rights as a Landlord

You Can’t Do That!

The Covenant of Quiet Enjoyment

Written Permission

Grandfather Clauses

Understanding Tenant Rights

Right to Entry Versus Right to Privacy

Permission Denied?

Respect Your Tenant’s Privacy

Rent Control

Part 3: You and Your Tenants

9 Finding the Right Renters

Establishing Your Brand

Marketing for Success

Create a Website for Your Rental

Smart Ad Placement and Search Strategies

Craft Your Marketing Plan

Make Your Property Stand Out

Get Testimonials

Track Your Success

Write It Well

Picture It

Photography Pointers

Virtual Video Tours

Listing Your Rental

Topic Sites

craigslist

Smart Social Media Strategies

YouTube

Facebook

Twitter

Pinterest

Social Media Management

Successful Property Tours

Making the Most of Inquiries

10 More Renter Considerations

Start with Good Communication

The Application Process

Reports and Checks

Rental History Checks

Credit Checks

Background Checks

Reference Checks

Approvals and Denials

Choosing a Tenant

Inheriting Tenants

Negotiating Rent Rates

Avoiding Scams and Frauds

Part 4: The Business Side of Rentals

11 Money Management

All About Rent

Collecting Rent

Banking

Imposing Late Fees

Increasing Rent

Security Deposit Basics

What Can You Charge?

Keeping or Returning It

Can You Increase a Security Deposit?

What About Interest?

What Other Fees Can You Charge?

The Collection Department

12 More Money Management

All About Accounting

Accountants

Accounting Software

Taxes

Schedule E Deductions

Depreciation

Property Tax Assessments

13 Renter Arguments, Evictions, and Vacancies

The Hatfields and the McCoys

Tenant Complaints

Landlord Complaints

Housing and Building Code

Code Complaints

Retaliation Laws

Courtroom Battles

Tenant Versus Tenant

Grounds for Eviction

Nonpayment of Rent

Lapse-of-Time

Breach of Lease Terms or Statutory Duties

Illegal Conduct or Serious Nuisance

Building Your “Bouncer Team”

The Eviction Process

Notice to Quit

Summons and Complaint

Appearance in Court

Answer to Complaint

Trial

Judgment and Execution

Creating a Property Turnover Plan

14 The Importance of Insurance

Yes, You Do Need Insurance

Types of Insurance

Homeowner’s Insurance

Landlord’s Insurance

Replacement-Cost Insurance

Cash-Value Insurance

Mortgage Insurance

Title Insurance

Liability Insurance

Specific Loss Insurance

Loss-of-Rent Insurance

Renter’s Insurance

Accidental Rental Damage Insurance

The Insurance Process

Deductibles

Adjustments

Payments

15 Building Your Business

Owning Your Own Business

Going Solo

Working with a Partner

Buying a Franchise

Real Estate Brokerages

Choosing a Target Market

Creating Your Business Plan

What Is Your Business?

Who Is Working Your Business?

Why Is Your Business Better?

Where Will You Find Customers?

How Much Money Will Your Business Need?

Know Your Competition

Establishing a Client Base

Financing Options

Necessary Licenses

Insuring Your Business

Setting Up and Running Your Office

Stay Updated

Publications

Trade Organizations and Associations

Chambers of Commerce

Continuing Education and Conferences

16 Rules, Laws, and Fair Housing

Discrimination Laws

The Fair Housing Act

Occupancy Standards

Federal Law Exemptions

State Laws

Understanding Disabilities

Reasonable Modifications

Section 504 of the Rehabilitation Act of 1973

Americans with Disabilities Act

Addicts

State and Local Laws

Uniform Residential Landlord and Tenant Act

Residential Lead-Based Paint Hazard Reduction Act

Megan’s Law

Terrorism

Patriot Act

Investigating Tenants

Be Prepared

Terrorism Insurance

Penalties

17 Hiring a Property Manager

Why Hire a Property Manager?

More Time for You

Current Market Knowledge

Current Law Knowledge

Tenant Connections and Knowledge

Finding the Right Company

A Note on Maintenance

A Note on Accounting

A Few More Questions to Ask

What About a Resident Manager?

Licensing

Setting Expectations

Appendixes

A Glossary

B Resources

Residential Property Management Software

National Real Estate Organizations

Books

Magazines and Other Publications

Real Estate Educational Forums

Real Estate Websites

Additional Resources

C Sample Documents

Tenant Communication Forms

Acceptance Letter

Departure Confirmation

Departure Notice

Emergency Contact Numbers

Key Distribution Record

Maintenance Request

Move-In/Move-Out Checklist

Notice of Denial

Notice of Returned Check

Potential Renter Inquiry

Reasonable Accommodation Request Form

Tenant Emergency Procedures

Warning Notice

Leasing Documents

Three-Day Pay Rent or Quit Notice

Five-Day Demand Notice

Deposit Itemized Deductions

Deposit Receipt

Eviction Notice

Lease/Rental Agreement

Lease Addition or Amendment

Lease Renewal

Lease Termination

Letter of Responsibility

Rental Rate Change Notice

Permission to Enter Notice

Pet Agreement

Property Management Agreement

Rental Application/Background and Credit Check Application

Property Forms

Appliance Tracking Sheet

Cleaning Checklist

Maintenance Checklist and Record

Work Order

Index