What It Takes To Get One Tenant To Pay Off Your Mortgage For You
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Bill [00:00:01] Bent, you had a good experience with your first renter. I mean he. How many years was he? I think he was in there for five years. I remember, right?
Bent [00:00:09] Five years. I feel like for a while. I think it actually might have been three years he’d switched and my dad bought a bigger house for him and he moved to my dad’s rental. It’s kind of my renter but three or four years. You know he was amazing renter the older couple like him. When he came back to do the move on inspection report up and the stove hadn’t been touched.
Even the manual was still inside the oven years later for his stuff together. He had clearly every echoes everyday over there. I think it was every day they ended cleanly. I was pressured every day and I was just immaculate. Like clearly immaculate we just did nothing and put out on the market and rented out.
Bill [00:00:46] Yeah, Don’t expect this because that now goes in Bent how to get experience. I had a bad experience. I had some good renters but I had some doozy renters. It seemed like you always had good renters and I was inexperienced. I was renting out houses myself and wasn’t leveraging that skill set even my own family are rebuilding. I was great at finding tenants but I wasn’t sure why the owner and I work for him. Now I can guess. I had a tenant, he was good on paper. I didn’t have the resources to get into people’s backgrounds. I really see if they’re lying on their applications and stuff. So somebody told me nice stuff on the application. You know I didn’t.
I would run like their credit instead. I didn’t have a lot to go on. It was like other property management companies. They do a quick FBI background check That’s basically doesn’t go with everything you need. So I ran a lot of these checks. I get these turns and they would pay for a five or six months, never good. They’d have something in their past and I didn’t know about it. I was able to dig up or they lied on an application. I had one guy not like to be fake to know his own robbery. They got it at our condo and took said the check was stolen. The only thing he’s stolen his property was a check and so we called the police. It was like you know he faked a heart attack.
I mean this was a nightmare. It was honestly the difference between Benton’s riches and my riches. I wasn’t good at doing the application and winning them out. So key to growing your portfolio from 1 or 2 houses to 5, 10 or 15, it’s the Tenant and I noted with RentVest. I think that’s a big part. You tell me but I think that’s a big part of why you guys have taken off so big and done so well. It’s because you’ve got as good tenants. We’ve been so good at weeding out the riff raff that are like the ones I add.
Bent [00:02:38] That’s what’s a secret of property managment compnay. The biggest one is identifying the property and getting a good deal like fee at 20 percent discount at home. You’re going to be successful but really comes down to is the type of tenant you get because it trickles down to everything. The vacancy time also paying on time repair requests or less with a better tenant. They treat the home better they leave it in a better condition.
Bent [00:03:02] It just kind of trickles all of the aspects of what makes property management hard. It’s not like we do only person who can find great tenants. He’s just seeming like you’re talking about is identifying get some tools. Maybe they know about the certain tool that you can find. We have a private investigator doing background check because we know that crossed state lines. The automatic ones like TransUnion all those automatic ones. They don’t look at multiple states and actually figure out if it’s is real or not, then okay cross-check things with that. You need a human eye to do that. To say hey this John Smith is actually not this John Smith.
This guy John Smith actually should be in this background check which is huge. That’s a lot of time the people that are actually players don’t come corners. So that actually know how to work the system understand these rules. These kind of loopholes that no one knows about but they know about because that’s how they get by in life and there’s situations like that. So we get to find those things and it’s doing that. You’re one of those just kind of pass the sniff test. That’s what every day usually. I’ve met them. They seem like good people but really unfortunately what’s nice about us we can’t go by a sniff test. We’re actually also regulated by state division in fair housing.
Bent [00:04:14] We’ve got to make sure we kind of have a concrete across the board. If they pass or don’t pass we can’t just say look into this person say yes or no.
Bill [00:04:21] He looks like a good guy.
Bent [00:04:22] I can’t say that which is actually it’s incredibly inaccurate. We can’t even do that though nice thing. That’s usually what happens is that there’s other such a good guy. That’s such a good family so I went in and took them in. It’s usually the cripple of what happens in the rental investment. Unfortunately we don’t have that opportunity which is great. Plus we can also do the extra things and look at the different factors rental verification pay stuffs calling the past landlord like people to do that.
Call the past landlord and they’ll tell you what’s going on there. They’re usually given to the people that are kind of contractor knuckling the system will give you a fake past landlord and you sniff that out through tax records and stuff like. That we can find that no one else really has access but we can actually show how to do that. And so we’re able to do these things to make sure we get that better tenant plus. It’s really it’s not just about the verification. That’s one great aspect of the screening process. The other process is how you communicate with them. You sometimes make them good tenants are better tenants.
By you being responsive you give them all the information you can set in terms up front and expectations up front. It’s okay set the tone for the residency. And when you set that tone to be a great experience they want to reciprocate and have made sure the landlord the public match company has a great experience as well that reciprocity really is true. It’s not like we’re buying something from us but we’re giving them good customer service and good experience. They want to reciprocate and have a good experience for everybody as well. And it really becomes that win win situation which is seems like it’s kind of rare in the mental investment role.
[00:05:53] Right now the idea I think that’s what’s lost with property management that sometimes owners can do better. They could be more in touch with their tenant if they really want to. I like about what you’ve done is that you’ve made a system of where you’re removed where you need to know. Whenever you do the application stuff like that and you’re involved where you need to be where it’s most effective and by systemizing that. The loopholes where you know. Well ok I’ll give him another two days. FISA knows no reason about the notes.
Five days later they don’t pair or whatever else and they’re ready for that. It normally dies like with the letters pretty scary that they get something like Hubbard. You go to court and stuff it’s like these mandatory moments and most states whose job it offered certified leather. Yeah but it’s a scary letter. Oh yeah. That’s it. It’s almost like a wording of a judgment against you. He has yet to disclose that’s happening and so but they don’t want to freak me out either. But so there’s clear expectations that are set.
So that they don’t freak out and also they’re moving night like we wouldn’t be moving out. If you just pay your payment like there is communication and so this is all stuff you can do on your own. I quit bit was saying and you could be a great and that’s right. Some of these tips I want to give you. So you can be a great if you’re doing a self managed property we hope that you get sick of it and want to use us because we have a good system. Yeah, we can help improve the world with having better tenants and better owners.
We have this connect where owners like to tenants for people like their families they have needs they want to be in this school and the best for their kids. They want to be close to work or be an area that’s better for their health. Maybe holidays or I mean this house affects everything about their life. It’s the balance of recognizing them have a great experience to stay and take care of your house and feel ownership at the same time holding the system.