Joplin Area Real Estate Investor Association

 

When someone has an interest in becoming a landlord, there are a few things they’ll want to consider. The potential landlord may have some questions around common-placed terminology that a seasoned landlord is very familiar with. Because of that, we’re going to dive into some basic Q&As:

1. What is a lease/rental agreement, and why is one important?

This is probably one of the most important and foundational questions and answers a landlord needs to know. Most people know what this is, even if they don’t know the exact definition. A lease is a legal contract that a tenant and landlord are bound to until it expires — it outlines critical information such as monthly rent, security deposits, rent increases, and tenant or landlord responsibilities. Most issues can be avoided by following the lease, and most tenant questions can be answered by the lease. Requirements for a lease agreement may vary by state, so it’s important to stay up-to-date with the current standards before going into an agreement.

2. What is a sublease?

Here’s another question that landlords may be curious about, especially if they’ve never been on either end of the tenant-landlord relationship. A sub-lease is a separate rental agreement between the original tenant and a new tenant who m
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Is property management easy? 

If you go into it blindly, you may end up learning some lessons the hard way. It helps to have a set of resources, tools and advice going into property management that others have learned along the way.

Karl Weekes has over 35 years of experience and lessons learned along the way. We won’t be sharing all of his advice today, but here are highlights to consider when investing and maintaining a property. Make sure to join us for the upcoming session on March 21st for more!

1. Attract Quality Tenants. 

One of the most important lessons is to learn how to attract and identify quality tenants. This aspect directly effects the income and expense side of the equation. Bad tenants could ruin you and wipe you out. This is key to maintaining sustainability in managing property.

Deals and all negotiations with tenants must be a win-win outcome to succeed. The art of listening is an important part to this equation.  Creative problem solving is very rewarding - go for it!

The tenant is the lifeline to financial success. In the upcoming session, we’ll talk more about how you can attract the right occupant.

2. Educate & Equip

Never undervalue the importance of education, networking and mentorship. Make sure you are educated on what you are getting into. This is essential.

You need to have the real numbers and put them in a cash flow analyzer before you start investing. Acquire your property the right way, with all of the information up front. Know answers to questions like “What is the vacancy rate?”; this varies by area. Find that out and know your market.

For longevity, make sure you have a team of people, this is not a solo act: a real estate agent, insurance consultant, attorney, skill set advisors, coach and contractors (just to name a few). There are so many different jobs when owning property, you need to know what it entails beforehand, whether you do it yourself or have someone you’ll hire to do it for you.

You thought you bought an Investment ?  Nope you bought a business and it’s not a hobby – treat it as such. This an active investment not a passive one – make sure you have the time and understanding that this is an “on the job training” and it’s a time involved endeavor!

There is so much to know and understand to succeed. and it changes DAILY - becoming a member to a group like FFREIA is a fast track to get there. the networking and educational opportunities are second to none.

3. Plan, Adapt & Adjust

If you are in it for the long haul -  establishing an "operating system" is  mandatory. What is an OS?  again a constant moving system - Process, procedures, forms, establish criteria etc.so that the system works for you and you are not a slave to your properties.

You want an automated process, especially when it comes to quantity.

Have a plan and system but be ready to adjust when the time comes. Learn to adapt and adjust - Managing properties is a moving target on a daily basis. Rules, codes, Market forces etc.. change literally in a daily basis. Change is inevitable. Deal with it!



All of these tips directly impact your income and expense side of the equation or the deal - whether its success for failure - you want to be on the SUCCESS side.

For more on property management, make sure to check out the Investor Academy conference with Karl Weekes. He’ll be diving into more content and will share his years of expertise and lessons learned.Meet like-minded investors and gain knowledge about long-term investment. Visit: ffreia.com for more details and to register.

Hope to see you there!