Hello,

I am starting the process of purchasing my first rental and obviously have a ton of questions for those seasoned landlords out there. So...what is your one bit of advise to someone just starting out?

Thanks everyone!

Catherine

Take investors instead of partners.

Screen, screen, screen.

Expect the unexpected.

If you're buying a unit directly from another investor who still has other units, remember that investor dump their crappy properties first.

You're realtor is not your friend.

When it comes to cities, boroughs, etc., it's easier to ask for forgiveness than it is permission.

When you figure up a project budget, add 25-30% to your estimate.

Screen, screen, and screen. Make sure you run a credit and background report on everyone. It's better to sit with an empty unit instead of renting to the wrong Tenant.

Landlord Association if you are lucky enough to have one near you.

#1...Never rent to friends, family or co-workers. It will only end bad and you will be looked at as the bad guy.

Screen well.

YOU are the boss.

Do not let tenants "help fix the place up" in exchange for rent.

Don't be a slumlord, keep your places up.

Nobody will take care of your property or yard the way you would. It just won't happen so don't sweat the small stuff.

Never allow a tenant to be late with rent. If they do it once, it can become the norm.

Welcome to the club and Good Luck on your investments.

QOut

Take pictures of Everything. Before and after photos can be important.

Watch for extra tenants living in the place and nip it quickly.

Take a fresh, crisp $100 and flush it down the nearest toilet. If you can do That, you may be ready to get in this game.

If not...take time to think about it some more.

I say this semi-seriously. I do not advocate wasting money but you should be at the point in life where if you lose $100, $1000, or even $10,000 it will not have a major negative impact on your attitude and you can think clearly enough to develop a plan for what to do next. The first time I lost $5000 on a deal I almost gave up. Thankfully I stayed in and recovered.

Real estate investing is not for the timid. Go bold or stay in stock index funds.

Keep an emergency fund! Find out the laws in your state (google landlord tenant law, Pennsylvania) and READ it and follow step by step procedures for 7 day notice, 30 day notices, evictions, security deposit procedures. When someone is late (even if they have an excuse you believe) send a 7 day notice IMMEDIATELY. You can always cancel it but don't lose time waiting.

If you can't fix it, ( anything and everything )

Treat it as a business, not a hobby.

Don't take everything personally, it is just a part of the business.

Basically do not believe a single word anybody says ever unless it can be proven. Never pay labor for a job before it is done 100%. Most real estate agents are idiots or vultures. Be strict but be fair. Clean units rent and sell. Do not over rehab or fix up unit. Leave emotions out of it keep it strictly business. I am only the property manager, I am not the owner, let me get back to you when I find out. No family, no friends, no co-workers. Let your phone go to voicemail.

get a Pennsylvania specific lease ... and - no offense intended - ignore those above who are telling you about 3 and 7 day notices .... waiver of notice is one of the best tools Pennsylvania landlords have access to (unless you're in the Kingdom of Phila)

If this was easy, everyone would be doing it.

Each time I find something out, ask a question or any "official" dealings with "government agencies" I get it in writing or I send an E-mail confirming out conversation.

Many times a City, State or Federal Employee makes a "official" decision that will effect your property and without "proof", someone else will tell you something different. Then you will in a catch 22 situation, not knowing what to do next.

I've had this problem dealing with such "Departments" such has:

1) The Los Angeles County Tax Assessor -- they tired to cheat me out of an extra $5,000 is property tax.

2) The Los Angeles Housing Department -- they tried and did steal my tenants rents claiming I was a slumlord. This was 12 hours after I closed on the purchase of the property. I had to sue my City and spend tens of thousands of dollars even though I had "Proof" of "Fraud by City Employee's and Officials".

3) Section 8. The City tried and did control my property so that I couldn't rent out a unit to anyone but a family on Section 8 Housing Vouchers. The only problem is the City stole money from the State and used those fund for their own use -- not issuing any new Housing contracts. I had a vacancy until I got the State court's relief.

All of the above, and more I had documented proof of Fraud and eventually won. With out proof, I would have gone to jail a dozen times over the past 39 years.

Pretty much all of the above, plus: STAY AWAY FROM SECTION 8!

Attend the mr landlord bootcamp.

Know your lease.

Write your lease for your benefit as much as the law allows.

Know the nuts and bolts of eviction in your locale before you sign a lease.

Use mr landlord credit check service.

Who advised to print your state laws and put in a 3-ring binder?--that was ME! Why, because I was doing things the military way. All your POs (policies and operations) go in a binder on your desk for reference. I also advised making MFRs (memos for record) on any situations that developed. That way you have a chronological order of events. MFRs get filed in the tenants folder--every tenant gets a folder. Folders start out with application, then results of crim check, copies of all checks rendered, then copy of lease, then anything that comes up during tenancy. Emails from them to you get printed and filed, phone conversation get an MFR, etc.

In 1999 I started with NO place to ask for advice. I didn't know about RE clubs or this site. I bought 2 SFHs and put in tenants before I found out I was doing everything wrong. It took me years to undo, then start doing it right. I had one "mentor" who made everything look easy. He did Sec-8, so I tried it too. Big disaster. Finally I realized that he was BIG, male, and spoke the language of @70% of the tenant base for properties in C-class neighborhoods (which is all I could afford to buy at the time). I just couldn't be the kind of LL he was. I learned my own LL style here from the many on the board. I found my own nitche.

If you have not bought anything yet, I suggest a small 2/1 or 3/1 ranch in a middle class neighborhood is the easiest to rent to the majority tenants. Unless you can do most of the rehab yourself, I suggest you pay a little extra if you can afford it, and purchase one needing as little rehab as pos. I did that wrong, I tried to save a little money and bought the one needing a lot of work.

Who advised to print your state laws and put in a 3-ring binder?--that was ME! Why, because I was doing things the military way. All your POs (policies and operations) go in a binder on your desk for reference. I also advised making MFRs (memos for record) on any situations that developed. That way you have a chronological order of events. MFRs get filed in the tenants folder--every tenant gets a folder. Folders start out with application, then results of crim check, copies of all checks rendered, then copy of lease, then anything that comes up during tenancy. Emails from them to you get printed and filed, phone conversation get an MFR, etc.

In 1999 I started with NO place to ask for advice. I didn't know about RE clubs or this site. I bought 2 SFHs and put in tenants before I found out I was doing everything wrong. It took me years to undo, then start doing it right. I had one "mentor" who made everything look easy. He did Sec-8, so I tried it too. Big disaster. Finally I realized that he was BIG, male, and spoke the language of @70% of the tenant base for properties in C-class neighborhoods (which is all I could afford to buy at the time). I just couldn't be the kind of LL he was. I learned my own LL style here from the many on the board. I found my own nitche.

If you have not bought anything yet, I suggest a small 2/1 or 3/1 ranch in a middle class neighborhood is the easiest to rent to the majority tenants. Unless you can do most of the rehab yourself, I suggest you pay a little extra if you can afford it, and purchase one needing as little rehab as pos. I did that wrong, I tried to save a little money and bought the one needing a lot of work. It took 3 months, 6 dif contractors and all my $10K to get it ready. If I had bought the better home I could have rented immediately and been IN 3 months rent.

You are in a noble profession. It is your job to keep it that way. You need to understand that you are operating a small business and your retirement directly depends on your performance.

Don't be afraid to ask for specific help