Be A Success as a landlord with these fundamentals

If you're going to get involved in real estate investing, you need to know how to manage tenants. Here are six keys to becoming a successful landlord.
Grab a free copy of the show notes to this video. Just follow this link: kenmcelroy.com/landlord-101-d...
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⏱ Module Timecodes ⏱
0:00 Opening Remarks
0:40 Key Point - 1: Being a landlord is a business
1:33 Key Point - 2: Policies and Procedures
4:06 Key Point - 3: If it is in the lease be prepared to enforce it
5:36 Key Point - 4: Understand the security deposit
9:22 Key Point - 5: Criminal and credit background checks
10:42 Key Point - 6: Fix what's broken
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Ken is the author of the bestselling books The ABC’s of Real Estate Investing, The Advanced Guide to Real Estate Investing, The ABC’s of Property Management, and most recently his book on entrepreneurship: The Sleeping Giant. Ken is a Rich Dad Advisor.
Ken's company: www.MCCompanies.com
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If you are interested in this topic you can find more information out at the links below.
Complete guide to becoming a landlord in 2020themortgagereports.com › guide-to-becoming-a-landlord
Sep 4, 2018 - Want to become a landlord in 2020? Owning investment property is a key driver of wealth. It might not be as hard as you think with the help ...
Basic Landlord Obligations Under Landlord-Tenant Lawwww.thebalancesmb.com › basic-landlord-obligations-...
Here are five basic obligations every landlord must follow regardless of the state where he or she owns rental property.
Missing: fundamentals ‎| Must include: fundamentals
Tenants' Rights Basics - FindLawrealestate.findlaw.com › landlord-tenant-law › tenants-r...
Sep 6, 2018 - FindLaw's primer on the basics of legal rights and protections for tenants. ... this topic, and others, at FindLaw's section on Landlord Tenant Law.
How to Manage a Rental Property | Zillow Rental Managerwww.zillow.com › resources › manage-properties
Feb 18, 2020 - It's important for a landlord to understand the basics of how to manage tenants. You should dedicate time to keeping up with tenant requests ...
#Success #RealEstateInvesting #BasicsOfRealEstate

[@probingone8810]

Ken, Here's one for you! I hope it puts a smile on your face; Collecting rents is never fun, nor is it easy. With some tenants it is always an ordeal. Let me tell you a story about one of my tenants from long ago. It was a guy who was an actor - one of those ‘starving artist’ types with a big ego. This young actor was trying to talk me into waiting for the rent. "In a few years," this guy says, "people will point to this apartment and say, ‘Christopher Martin, the famous actor, once lived there.'" I said, "If I don't get my rent tonight, they'll be able to say it tomorrow." :-)

[@taroman7100]

ha, LOVE it. Not to mention the lowlifes and the laws. I think the renters are a certain breed.

[@vacuumbed1]

Thank you Ken, great advice. I just bought a 6 unit rental property and it’s located on McElroy Road! They may have named it after you.

[@riseyourvibration9669]

Seriously? At McElroy Rd?

[@lorenceman]

I have learned #1 just makes everything run a lot more smoothly. It's not a "hobby" or "side hustle", it's a Business. Draw the line from the beginning and treat it like a real Company. Thank you for dropping the wisdom as always Mr. M!

[@MichelleVisageOnlyFans]

What else should it be?

[@DayanaPlays]

Loved this. I’m closing on my first duplex in 3 weeks and videos like these are extremely helpful 😊

[@KenMcElroy]

Hey Dayana I'm glad it was helpful!

[@ThePortraitArt]

Generally excellent advice. However in states like NY or CA almost all the typical stuff on the lease (unless very serious or criminal, or health hazard) is in all practicality, un-enforceable. late fees? They can just stop paying rent all together. What you gonna do? you have to wait 3month if you're lucky to go to court, then maybe, maybe you get a favorable outcome. Sometimes you need a lawyer and that's extra cost and you need 90% of proof you are right while they just need to create 15% of doubt for the outcome to be in their favor. One single fire alarm out of place, u lose. One single evidence you don't have? dismissed. Squatters are also a real problem in these states. So while technically the lease/contract/law is on your side, practically they are not, well, practical to enforce in some places. The police officers I have talked to, who are landlords themselves, basically told me to just pay bad tenants to move cuz that's what they had to resort to do as the most cost effective method. So #1 tip? Get your screening right. Easy to get people in, hard to get people out. Make sure only the right ones gets in. Now in others states like say.. Texas, yeah, enforce the rules. But don't let this scare you. Most people are decent people. Someone with good credit isn't gonna want an eviction record, bad reference and a big point drop. A student with a parent as a cosigner, isn't gonna want the living situation to interfere with their studies. Just do your screening properly.

[@ChldofGd]

Great advice, thank you. I am a new 4 unit rental property owner in LA and what you say, I am learning the hard way.

[@mayyanevermind457]

You are absolutely right. I have burned so many times. when I finally got a good tenants I dont raise rent as long as they there. Even now when inflation hit me so badly.

[@tanyarobbins6314]

Another great well put together video. Thank you.

[@mitchellatkins9701]

very insightful, thank you

[@THEBIGGESTSCUMBAG]

WHEN THE KING SPEAKS, I LISTEN

[@febelynbernal7256]

Thank you. I am learning a lot from you.

[@riseyourvibration9669]

That was terrific!! Thank you

[@suebenbow6860]

Excellent information Ken. Thanku

[@MichaelBarayev]

Always great info

[@Farhan.DucatiS1k]

Ken Love what you do with sharing your knowledge been listening to you since I started in real estate and after listening to the rich dad audio videos and the ABC's of Real Estate Investing back in 2010-2011

[@salut6554]

I love the view with this chair

[@lakermark2006]

such great suggestions here. i wish i heard this 10 years ago before i went through the eviction process multiple times. but sometimes, it's unavoidable and things can go sideways in a hurry. some of the things ive learned on top of what Ken says, start on a shorter term lease before a year long one. the screening process is so very important, i agree with Ken not to make any compromises or it will be a nightmare. also, it's not best to have a group of roommates who splits the rent because things happen and they need to be treated as a package deal.

[@CHRIS-ob4hk]

Love your videos!!! Thank you for sharing this info with us. I would love to see also investing elsewhere in the world, like Dubai for example!

[@cookiebrice3133]

great 👍 advice and knowledge. thanks

[@nickp9996]

Really loves this video too! Thank you Ken! I love your books too. I already read ABC of real estate investing and abs of property management

[@JaneDoe-bw8mn]

Great information! Thank you.

[@finelife6019]

Your video is very informative. Thank you. I love listening to you talk. I have several properties but I’m such a softy. Luckily, my tenants are all wonderful!

[@oddities-whatnot]

Finelife "I have several properties". Paid for with what exactly as you only look young ? Mortgaged up to the neck. LOL

[@lb728]

Ken, I could really use a rent estimator tool. Is that in any of your vids? I understand cash flow importance. That hinges on what I can expect in rent collection. Thank you.

[@carnegieuniversity475]

No sabía que tenían la camisa en español, voy a comprarme una :)

[@shyampareek9029]

Make a video on timber investment

[@MozartMartins]

I am about to start to manage my properties. You gave me a great view about how I should make things done.

[@sribavangopalapillai6272]

Hi Ken - Would you be able to share the policy list with the viewers? Thank you in advance.

[@kunalmodhave9287]

Sir please make video on how to play with tax system

[@tb1830]

Can anyone explain? thanks for the great videos. Can you explain how housing market will crash and price of homes will go down, if our dollar value goes down same time? What will be the different this time. please let me know what you think. Thank you.

[@josemiguelhernandez4718]

Typo on the landlord basic #3 The fourth bullet point which states • Make certain to include all third party fees espcially bank fees.

[@KenMcElroy]

Thanks for letting me know Jose! The PDF has been corrected. 👍

[@marcypotter5495]

This video was helpful and I very much appreciated it. Just a heads up though, there are SEVERAL spelling mistakes on those pop-up notes throughout the video.

[@douglasaugustomorenosanche2350]

Ser Infinito! El mejor eslogan! Be Infinite the best saying! Greetings and blessings from Caracas, Venezuela!

[@KenMcElroy]

Thanks for watching! I'm so glad you liked the shirt and saying!

[@elonmusktesla8339]

Let me just make it simple Run and interest

[@theluckysimpsonshow]

Hi Ken Thanks for the videos its really helpful. What is your take on insurance? Can you provide as with your thoughts.

[@joshuarichardson4139]

I am wanting to talk to you about being a tentent and would like to know from a landlord point of view and your own opinion

[@esthersaig785]

My tenant has more people in the house than what is mentioned in the contract and there is no way for me to proof it and it’s very upsetting.

[@kyunghogan7717]

What's best way to collect rent without seeing renter

[@junielvalenzona4382]

Mentor Ken Did you played Monopoly in your younger years?

[@pinkyjose9244]

Should I move tenants every year?

[@lyleburlingame2276]

Does Ken have advice for dealing with property managers? I feel like mine are inefficient and costing me money, milking me for stuff

[@RachelBianchi]

Use a good PMS!

[@elizabethalston3167]

Good information? The ..chair you sitting in looks so comfy.

[@amit04051979]

Hello Ken I am a bit confused about real estate so can you just show us by doing a real deal

[@KenMcElroy]

Hey Aditya, I did a video a few weeks back where I went through a simple deal. You can find it at this link: kzbin.info/www/bejne/b2m1hICrqq-Fepo Hope that helps! Thanks for watching!

[@xpicklepie]

NO PARTIAL PAYMENTS!! Rent must be paid in full on the due date every month!!

[@krisanderson3796]

How did that work for you?

[@basecode06791]

What about other countries?

[@jeffreyd508]

Cool vids, thanks. I owned 12 units in Chicago back in 2000-2006. If want to learn to hate people, become a landlord, especially a Housing Choice landlord (former section 8) . Thought I would never own RE again. Especially considering that a simple index stock fund will crush any RE return in the long run. If you add the same leverage to stocks as we do with RE, the crushing is even more pronounced.......without the headaches . But, I now live in Ukraine, where we have the highest rental returns on planet Earth. If you're not getting 3%+ a month on your rentals, you're underperforming. I bought am 85sm house, with no plumbing inside, for 1200usd, thats right, just over 1,000 usd, on the fringe of Kiev. I get 140usd a month in rent. Its completely paid for in a year, considering I put some 500usd in rennovations . I also have a 22sm studio, new construction, closer to the center. I paid 4800usd, delivered 'grey', like all new construction here. I paid about 3300usd to finish, about 150 per sm. I get 240usd a month, and all investment recovered in three years . I just bought a new, under construction flat in the center to live in. 63sm, 48,000usd, property tax is 3usd a year, what it should be, lol! You guys in the u.s. are out of your minds with property tax. Under 60sm for flats is ZERO property tax, and under 120sm for houses. HOA's are 7usd a month, what they should be . You can retire here, immediately, if you can borrow 20k on a credit card, buy a couple flats, live in a shared dorm for few years, for 30usd a month, then youre sitting nice. Re-invest. My monthly expenses total less than 200usd, and I eat out every day, I drink beer three nights a week (1usd for 2.5 liters btw). Metro is 18 cents u.s., up from 10 cents last year (yes, inflation is high here, but under control again). My bank CD;s are paying 11-19.25%. Not a misprint. Few years ago, was 24% for a one year CD. After Russia, we had the second best performing currency of 2019. Not good for usd holders though, which I am, with about 71% of assets . Anyway, I'm from Chicago and lots of my friends are afraid to invest overseas, but the opportunities are boundless out here!

[@duneme]

I’m weird, I like my Renters! That being said, I raise their Rent every year!

[@johnmcphee9439]

Have fun having them trash your place. Treat them bad, get treated bad. I never raise my rent prices.

[@mjb3908]

I'm with you. I simply monitor the markets my rentals are in. Increases do not have to be huge. I may only raise it $10-$40 a year but it all adds up over the years and those amounts are typically not enough for a tenant to say "too much, I'm moving". As long as you stay within the local market rents (I usually try to stay 5%-7% under market rents), they will not move. As Ken said, fix things right away when they break (that's really what the rent increases are for!). Adjust rents reasonably...be responsive and proactive when your tenants need assistance and you'd be surprised how well things can work out as time goes on!

[@willowbirdwoman]

Ew