The Good Stewards

BRRRR Rent: The Key To Retaining Your Investment

Episode Summary

You retain your value of your investment property when you rent well. The Good Stewards dive into the key things investors should consider when determining your property management strategy for a BRRRR deal. Consistency is key.

Episode Notes

Set your Criteria--It’s like a job interview, find out why you shouldn’t hire your renter as a tenant:

2:00-8:00: Don’t discriminate or break any laws. They could be federal, state, local, etc. The cost of a bad resident is far far more than the cost of a vacant property.

Are you running property management or hiring it out?:

8:22-9:00: Be careful, interview property management companies. Our kind of Mantra is nobody's going to care about your properties as much as you do

9:27-15:46: What is your process? Write it out. Are you including utilities? Do you have a website so people can easily apply to be a tenant? Are there application fees? What’s your pet policy?

Determine Rental Agreements and Eviction Process:

16:25-23:00: The feel of that move-in process for your resident. You want to be good. Start off with a good impression with set expectations for both parties. What’s your eviction process? “I'm not allowed to give you a deal that I wouldn't be willing to offer others.”

“Residents” VS “Tenants”:

23:14: A tenant is what the court calls somebody when they're getting evicted while someone who we’re fortunate enough to have paying our mortgages for us as a resident?

Not-Horror Tenant Stories:

29:55: A lease renewal is a good time to have people who’ve had a positive experience leave a Google review.

Key Takeaways from Hosts:

32:24: Be consistent, treat your property management like a business

33:38: Watch out for the careful ways that people phrase their pet breeds.

Connect with the Good Stewards:

Episode Transcription

Bill: It's all about the policies again and when you're in a crunch situation with one of your renters, it's not personal even though it might feel that way and there is always a bad guy. You're the good guy. They're the good guy. The bad guy is the policies.

[00:00:18] Intro: Welcome to the Good Steward podcast. The only podcast dedicated to season Real Estate Investors who want to maximize the cashflow potential in their business. We are Buy and Hold investors with a thousand plus properties in markets across the U.S. who bring an insider's view into the nitty-gritty details of real estate investing. If you are looking to develop the mindset teams and systems that can dramatically build your real estate business and net worth, you're in the right place.

[00:00:52] Ryan: Welcome to this episode of the good stewards podcast. I'm Ryan Dossey.

[00:00:56] Amanda: I'm Amanda Perkins.

[00:00:57] Bill: I'm Bill Syrios.

[00:00:58] Andrew: I'm Andrew Syrios,

[00:00:59] Bill: Welcome to the good stewards podcast. We're really glad that you've joined us today. We're going to be talking about a important subject particularly. If you're a BRRRR investor, that's BRRRR that which is primarily what we do.

[00:01:16] And if you remember the B is buy the R is, first R is rehab, the second is rent, and then refinance and repeat. We're going to be talking about the second R the renting part of BRRRR, you know, it's been said many many times you make your money when you buy and I think all of us have found that to be true because if you don't get a good deal is not going to turn out all that well in the end you have to buy something at wholesale.

[00:01:42] But while that Mantra is very true about the B of BRRRR the second R is critical because you retain your value when you rent well and that is the point of what you're trying to do in a Buy and Hold strategy is use other people's money to finance the property, but also, use other people's money to pay off over time the cost of that property in mortgage, taxes, insurance, maintenance you name it.

[00:02:13] So if nothing else you really appreciate the folks that you're renting to because they're the ones who are going to lead you down the path of becoming well off in real estate. They're the folks paying the bill. Now when you think about who you're going to rent to that is really important because think about go think about when you interview somebody for a job. Maybe you've done that maybe more than once that person is going to put their best foot forward when they're there in the interview process, right? And your job as an interviewer is to find the reason you shouldn't hire them. And you're going to have to dig deep sometime because they're going to come off very pleasant, very accomplished, everything looks really good. How about when you're dating somebody isn't that the same situation they're going to particularly the first few dates are going to try to come off as well as possible. Your job again is to look for. Well, at least if you're looking for a long-term relationship is to look for why you might not want to continue that relationship and the same holds true with when you are looking for a person moving into your property that you will hope that they treat it just like you would treat that property over time because again, you're trying to retain your value as a BRRRR investor.

[00:03:36] I bet we've had some interesting experiences among our are good stewards group here and I'm sure you would have them if you were with us. You could share some some very interesting experiences to but maybe I'll turn it over to whoever would like to share some of what they've experienced in terms of the second R of BRRRR.

[00:03:55] Amanda: One thing that we always do is you know, I just want to chime in and say. Don't discount people and be violating any sort of fair housing laws in your area. Those can be national, state and local to your area. So be careful when you're discounting people that you're not making judgments against them that aren't allowed but one of the critical things that you know that is allowed is valuating, you know, it's like if they qualify they make enough money, but what's their past rental history like? That's really going to tell you how did they treat their last property? And you know, that's something you don't want to skip over. It's just the same like you said with a job interviewee, what was their past relationship with their old employer? What how do they you know, how do they leave their last rental? Did they leave a big balance? Because if they did that to somebody else they'll probably do it to you. Did they take good care of their property? It's a pretty good indication that they'll take care of yours.

[00:04:53] So, I mean that's just a given that that you know, that's something that you're going to want to be looking for when you're looking to put somebody into one of your houses.

[00:05:02] Ryan: You also want to make sure that you have criteria in place. I'm sure we've all seen like the big apartment signs that are pretty much like if you have a heartbeat in $200, you can move in tomorrow that is not how you should be running your business.

[00:05:15] If you own your own company, if you've ever acted in any sort of a management role and you've ever hired out of need that typically does not go very well. So a lot of the times when you're screening for potential residents, we've had properties that we've let sit empty for an extra month just to make sure we had somebody in there that we thought yeah, they're really going to take good care of this place, not just a heartbeat.

[00:05:39]Andrew: The cost of a bad resident is far far more than the cost of a vacant property but I would say you want to you want to just create this as I mean, it's goes through your entire business, but just create a system and just basically a funnel or people were you're marking your properties in a certain way. And people are coming in and they're giving the same general Spiel and then you're screening for the exact same criteria. This this is good way to protect you against against any sort of discrimination lawsuit. Just quickly there either Seven National categories that I think's race. Well we got race, color, religion, national origin, sex, disability and familial status those seven things and then some states have some additional things.

[00:06:24] Those are put to the side, of course like you should. And I mean we mainly look at like for ourselves here. We have we require three times the rent and income, we require no felonies unless it's so far back that it doesn't that it doesn't show up on your record what you see over seven years. We make the exception for a DUI will accept one of those if it's over a year old and then we don't, or too many missed more than one misdemeanor kind of thing and no evictions. It's kind of one of those he's usually not that hard to avoid eviction because most landlords will let you leave prior to the eviction if you just up and like if you just agreed with them to leave they'd rather do that than actually have to pay all the eviction costs.

[00:07:14] So you got the eviction process once your the it's likely you're willing to go through it again, especially if it was only a year or two ago and not 10 years ago.

[00:07:23] Ryan: Eviction typically means they're feisty

[00:07:26] Andrew: or just unwilling to talk to you unwilling to do anything and just don't really care that much

[00:07:33] Amanda: Well and I will say again pay attention to your local laws because there's some legislation coming down like for instance in Oregon that we're not going to be able to know if people have had evictions that I think are more than two or three years old. That's not something that can qualify prequalify them, you know as that, they don't meet our criteria. We have to accept that. Also, so we have to loosen our felony restrictions and you know, so again

[00:07:58] Andrew: And then there's the Ax murderer law, going in our area right, where you can't discriminate against ax murderers?

[00:08:03] Amanda: You know, that's the other thing you want to think about. Is this something that you're going to do for yourself in our. Globally in our company. We feel we are the best managers of our own properties, but maybe this isn't something you want to dive into in which case you want to hire a property management company to have to deal with that sort of headache. Be careful, interview property management companies. Our kind of Mantra is nobody's going to care about your properties as much as you do and so that's why we've chosen to set up property Management, wherever we go, but maybe that's not maybe that's doesn't mean that you're able to do and tell you, you know, get enough properties under your belt that you can hire someone to do it for you or maybe you can do it for yourself, but maybe it takes away from your ability to acquire properties that sort of thing. So it's you know, you have to decide what's the best for yourself.

[00:08:55] Ryan: Andrew you previously mentioned building a pipeline for potential residents to kind of come into the funnel to view properties, screening Etc. What we've kind of talked about what we're looking for, why don't you dive into how we're finding these people?

[00:09:10] Andrew: First of all, there's no pipeline if there's a funnel it's just a funnel. Okay. So really the first point I think you I mean every point, every part of your of your business should be, as I said systematized basically, I would actually recommend just writing it down. What is the process? So like for us when we finish a re a turnover we go out and we I mean depends where we take the process but go through everything that was supposed to be done. Make sure it was all done anything that was left to be done demand the contractor come out and do it before they get paid. Get that done get it cleaned and then basically write up a quick amenities list if it's a new property, so this would be like how many bedrooms, how many baths, does it have a master bedroom, does it have, does have a bay window. Does it have a bidet? This is a key key point that you're going to want to highlight if it does have a bidet, you know, things like that anything that you can put in into your advertising and you just keep on file for the next time it comes up etc.

[00:10:07] Amanda: And make sure you know things like what kind of utilities there are, you know, like electric and gas, no gas that kind of thing and what kind of heating and cooling system it has those kinds of things make a note of keep it. We have a system that in our property management database that we can keep all that stuff for but you don't want to have to be pulling all that stuff from your head. So it's a good it's a good way to you know, keep it all together so that you know when those questions come up.

[00:10:34] Andrew: And if it's an apartment who's the utilities going to be on as he can be on the the resident is going to be on you, you know as the resident of a the water sewer and trash and you going to pay the electric and gas or something like that? You should know that going upfront when you put your ad together because especially if you're offering something like all bills paid where you going to pay all the utilities you want to make a big deal out of that because you're going to be charging higher rent or if you're not you're going to lose money.

[00:10:59] So

[00:11:00] Bill: what's incredibly important is photos because the first introduction that a resident is going to have to your to your property is the photo and because most people are shopping online. They're not going to go out to the property and then look at another one and another one. They're going to look online. So having really good photos. If you don't know what good photos look like go to airbnb.com and generally those are very good photos. The more you can make them kind of elongated rather than squarish because that makes things feel larger, feel more expansive, the better off you're going to put those photos on your website, if you have one which we'd really encourage over time to build one if you're going to if you're going to do your own property management, you need to have a website. That's where you want to funnel people into initially to look at the property and then also to come up to speed with things like your rental application doing rental applications online is like the thing to do now.

[00:12:04] So is there an easy way for them to apply for the property? Do you have, are you going to charge them a rental fee to do so? In some of our markets we do and some of our markets we don't charge a rental fee.

[00:12:17] Andrew: You should almost always charge rental application fees unless you're doing like student rentals or something like that, that's a little off in my opinion. I would make, we once stopped charging them as a marketing. Gimmick of sorts and I've never seen such long lists of felonies in my entire life. That is like, why did you apply? Oh wait, there's no reason not to.

[00:12:38] I would say the pictures thing. We had a leasing agent that was taking pictures directly straight onto the property and they just look so tiny when you take it right in front of it just straight out and you know angle whatsoever. I lambasted him for that. You want to take your pictures, your front picture of the property about a 45 to 90 degree angle or a 45 I'd say a, 30 to 45 degree angle to make it look bigger. You want your pictures to be big, open and bright and so all the lights are on, make sure it's clean. Don't take a picture of you know, the counter and three cabinets and the stove. It should be the entire kitchen things like that.

[00:13:17] Ryan: Get out of your car to take the pictures the amount of times I try and it's like raining the windows up and it's like that's the only picture of the person has if you like a newer iPhone, that's probably good enough.

[00:13:28] But if you're rocking like a Nokia, you know walkie-talkie contractor phone. It's probably not going to look great.

[00:13:34] Bill: Yeah three-dimensional is I think a good way to think in your mind when you're taking angled photos. Does it look three-dimensional as most of us would look at a property or the exterior or the interior for that matter?

[00:13:46] Amanda: On the other thing is like when you buy this is a little bit of a different thing. But when you buy the property kind of and I have an idea of what you thought you were going to get for rent. When you go to rent the property go look at the market, but also compare your properties with other properties. We are often times putting something just a little bit nicer out there on the market we can get a premium for that and that maximizes what we can get out of our property to you know, help us pay our bills more.

[00:14:13] Andrew: Also take the picture of the middle of day. Do not pick a picture at night like or with the Sun going down. I've seen this before where the properties like dark and it looks like the apocalypse about to start, you don't want you won't you know people don't want to rent that so. Lots of little things in that are so I mean, they're even new technologies coming out where you can get like 3D, you know, like surround like those, one of those images that surround the he the whole you can just look all the way around

[00:14:37] Bill: 360 kind of thing

[00:14:38] Andrew: 360 view in like moves the next room and then it takes another 360. It's just like I don't think that's necessary. But I do think yeah, as you said dad, I'll call you Dad and not Bill.

[00:14:54] As I said pictures are the most important thing for your marketing and just clearly what you. What you're offering make it make all the details now, most people won't actually look that much past the price other than pets. We should mention this briefly with houses. Especially we highly recommend allowing pets charge pet rent lose your charge $25 a month per pet up to three.

[00:15:20] No dangerous breeds of dogs are not allowing pit bulls and things like that. And a pet nonrefundable pet deposit is usually about $250, but. This probably mostly just pays the damage pets do. Dogs do a little bit more damage, you know cats do less but Americans love their pets in particular and you just open your property up to a lot more people and and more demand means higher price.

[00:15:45] Yeah. So

[00:15:46] Amanda: So once you identify that right resident and they meet your criteria, you know, the next thing you're going to do is make sure you have a really solid written rental agreement that spells everything out, you know, we schedule as much as we can in person to sign leasing agreements just so that we can go through and kind of set things up for the process and you know, that's what are the things that's going to allow you to collect all of the rent you want, you know, you're going to you're going to want to lay those out and you know, having your property in as good of shape and that's why you know, like Andrew talked about doing going through and checking all the systems.

[00:16:25] The feel of that move-in process for your resident. You want to be good. You don't want them to move into a property and then have a bunch of broken stuff. You want to start with a good first impression, you know, it's inevitable that often times there will be you know, maybe especially if you bought a big rehab nobody's lived in it before the first person in there. Maybe you didn't check everything but you so if you know if there's an immediate moving repairs address them early address them immediately have good communication with your resident. It just starts everything off on a good foot.

[00:16:58] Bill: That first meeting is really important because when you think about a teacher's first day of school, usually she's kind of laying down the law. And what she what her expectations are what the policies are going to be put into place for how that classroom is going to operate. And in the sense, without being mean or nasty or you know, kind of ugly about anything, you should be kind of laying down the law in that first meeting because you have rental policies and it's not it's not about you, it's not about them, it's really about the relationships that they have to the rental policies that are in place.

[00:17:36] Ryan: Setting proper expectations.

[00:17:37] Bill: There you go.

[00:17:38] Amanda: Both ways. And you know, if something is it met for instance, you know people do fall on hard times, or maybe they don't make paying rent a priority. Treat it like a business treat everyone the same thing issue your 72-hour notices timely. Process for evictions quickly. Don't give you no, it's okay, maybe once you know, maybe you'll give people one off on, you know, maybe as long as you're consistent with it, maybe they get one free waive the late payment that sort of thing but one thing that I've learned and I, you know, I don't want to be too negative about this, but I've never been lied to as many times as I was when I was a property manager. People don't want I mean it's having a place to live is a really important thing for them. So they're going to tell you whatever they can and to try to just draw that time out a little bit. I'm not saying don't ever believe everyone or anyone or that everyone's bad but be strict, you know make that rental agreement stick. Don't be breaking the rules all the time because then they just sort of kind of always expect a break and the way for you to maximize your income potential is to always be collecting right on your property and if be somebody's moved in and they're not paying they need to move someplace else and you need to get somebody else in that can.

[00:18:55] Andrew: The lesson of this this entire show is to just always believe the worst of everybody and become a cynic at all times.

[00:19:04] Amanda: I don't want to say that

[00:19:05] Ryan: and you'll go far as a property manager

[00:19:07] Bill: One of our partners right now has a loan or a rental balance on one property, they rent for about $950, of $2780. They just listened too often to this story or that story another and instead of operating on the basis of their policies that are in place, and one of those policies is that they will make a deal one time about late rent and, when that late rent date is set between a resident and themselves, that's they have to keep that date. They can't come up with another story that elongates the time at that point, you know people has one friend of mine has said have gotten used to living indoors.

[00:19:51] And so they need if that's what they want to do. They need to make rent a huge priority in their life above everything else if they want to live indoors. So our friend/partner who kind of let this slip, and we've all done that I've been there I bet you every one of us have been there, because we are human and we do appreciate if people will fall on hard times

[00:20:13] Amanda: and you wanna believe the of people and you don't want to be so cynical but.

[00:20:17] Bill: It's all about the policies again. And when you're in a crunch situation with one of your renters, don't it's not personal. It's not even though it might feel that way and there is always a bad guy. You're the good guy. They're the good guy. The bad guy is the policies. The bad guy is the eviction notice. The bad guy is the law of the land. The bad guy is the bank account is empty. Because you know, so something other than you two are the bad guy, but you have to adhere to the policies that are in place. And I'm sorry, I wish I could do different, I wish I could I wish I could change it, but I just can't I always have to issue a 72-hour notice on the fifth day of the month when rent is now late and I always have to follow through on the eviction unless we put something, you know on and on and on it's all about the policies and that's what we both adhere to.

[00:21:16] Andrew: My brother Phillip is kind of the master this and I mean he. You know, you can use all these things like it would be illegal to do that because the fair housing like you're not allowed to treat and this is both good for policy-wise but it's actually good explanation.

[00:21:29] I'm not allowed to treat one resident, you know in a way that I'm not treating another. I'm not allowed to give you a deal that I wouldn't be willing to offer others. And so yeah always you know, we kind of see it as either the law, the policy, the the lease basically what's in the lease the rules of the lease.

[00:21:47] Or just the situation itself something bad happened. It's the past and that is that it's kind of that's the problem. But but the manager as a manager you're working to find the best solution possible with the resident. That's not what they want. The best solution is not what they want necessarily. Well, it's almost never what they want because they usually want to not pay their rent. But it's the best situation given what the situation is and what your rules and policies are and that's why they're having that setup up front is so important.

[00:22:16] Ryan: I heard our gal on the phone the other day working on a collection. We had somebody that we worked with a payment plan on like Bill mentioned, you know will work with a resident once in a year and set up payment arrangement and the girl miss the date. So she called there with kind of a hey just needs to get paid or you need to get out and then girl hits her with you know, I'm so sorry my son got shot and.

[00:22:37] Our gal doesn't skip a beat and just says, "well they didn't get shot last month too, did he?

[00:22:41] Amanda: Harsh

[00:22:45] Andrew: That might of been a little over, a little overly harsh

[00:22:47] Ryan: I don't know what happened with that, but I thought that was great

[00:22:52] Amanda: I bet that she didn't pay her rent.

[00:22:55] Ryan: No, I don't think she did.

[00:22:59] So I want to touch on kind of a big paradigm shift. I had when I first kind of joined the good stewards family and that's if you've noticed we don't call ourselves landlords and we don't call the people who rent from us tenants.

[00:23:14] We call them residents and I've heard Bill describe it as tenant is what the court calls somebody when they're getting evicted and somebody who we're fortunate enough to have paying our mortgages for us as a resident? They're not a tenant. So, you know in real estate investing were positioned where you know, we can make a lot of money.

[00:23:39] We can provide good, clean, affordable housing and we can provide people with a good experience and that I think ultimately comes down to viewing the people that are renting from you as your equals. These are human beings. You're not somehow Superior to them. I think there's a danger in real estate investing of you know, we've all had unfortunate stories, which I think we're going to share a few, with with residents.

[00:24:07] But there's kind of this danger of treating it as like, oh gosh, you know tenants are just the absolute worst. And I mean I've even seen a guy who like will livestream his evictions of like families sobbing as they're throwing stuff out on the yard and it's like what?

[00:24:22] So, you know, I think it comes down to like, operate from a position of integrity, treat people well stick to your rules and Property Management really isn't that difficult if you're doing that and setting proper expectations.

[00:24:34] Bill: Yeah, I think that's really important. As a matter of fact, if you if you're just starting out. It's pretty easy to take on the word residents or you could call them renters or customers clients, you know in business.

[00:24:48] It's it's the clients. It's the customers who pay the fare and we are customer centric. But if you've got an office now and you've been doing this for a while, it might be hard to transition from that one word tenants to the word resident. We have folks in Kansas City and their office kind of fun.

[00:25:08] They they put $100 in a jar and and you could do this with taken out ones or fives or tens. I'd probably take out a 10 but it in 10s every time somebody says the word tenant you take money out. Every time they say resident just keeps the money in and you do it for a week and at the end of the week everybody has their name in a bowl and whoever is picked out of the bowl gets to keep the rest of the money that's left.

[00:25:41] Not a bad way to get your office acclimated to using the different term

[00:25:46] Ryan: off the t word.

[00:25:48] Bill: That's right. That's right. So anyway, you can do that and it's really not about the word, it's about the attitude as Ryan talked about earlier. You know, how are we treating these these folks who are pain every single dime hopefully of the cost of our property and you know even.

[00:26:08] When I was texting our partner about, you know, giving an update regarding that twenty seven hundred eighty dollars. It was the hardest thing I could do to call that person a resident who owed his that much money, you know, I did not want to call them a resident. But in fact, you know, I forced myself to use the r-word as I feel like I should because they're the that's who they are to us, even though they owe us a bunch of money and are probably going to leave with a big bill in hand.

[00:26:37] So that's when it gets challenging or when the property gets really thrashed to still think about these folks in those terms, but it's just we're carrying on a long-term business here. We're being customer-centric and we're just we're just going to you know carry on like they're, they're our friends even though we have a business relationship with.

[00:27:02] Ryan: I know we talked about that. We were going to share like horror stories, but I think there's enough of those. What do you guys think about sharing a story of one of your tenants? That was just kind of a neat or unique situation.

[00:27:14] Bill: What did you say? I think we just took a ten dollar bill out of the bowl.

[00:27:17] Ryan: No pizza party for us in the Indy office

[00:27:20] Andrew: you I mean,

[00:27:21] Ryan: that's fair the rest of my staff may win it. Okay. So for me, I still think one of the coolest things that I've got to experience in real estate investing was the first family that I ended up leasing to as my very first property. And the son-in-law was there was on the lease and had literally brought his family over from Venezuela, his mom and dad.

[00:27:45] So these were people that were like brand new to the country. They'd never owned a house. They'd never had a house that they could even call their own and it was a really neat experience to be a part of like them celebrating the fact that they passed their citizenship. They were like sobbing as we were signing the lease there's a really cool experience to be a part of is anybody else have any any fun ones?

[00:28:09] Andrew: Got some horrible ones.

[00:28:10] Bill: That would be a no.

[00:28:12] Ryan: All right. I'm also the newest to this

[00:28:16] Amanda: We have residents actually bring gifts into the office. We do a really good job of taking care of our properties and doing. You know, we do inspections annually, on some of our College stuff that's more like quarterly just to keep on top of things. We have a lot of campus housing and. Sometimes those residents are a little tougher on our properties than others, but

[00:28:41] Ryan: your smoke detectors never get tampered with in Eugene. Do they

[00:28:46] Amanda: just keeping up on you know, just keeping up with that maintenance and responding to things and you know, keeping the lines of communication open, you know people bring cookies into the office to our property manager and flowers and that sort of thing.

[00:28:58] So, you know, we have a lot of good positive resident stories.

[00:29:04] Bill: And when you have those I would really encourage folks to give you a Google review. Probably that and Yelp, but I would expect Google is what people look at more often when they're looking up your website or your company

[00:29:20] Amanda: Property Management sites collectively and if that's what you know, your website is people that. You know people are going to complain if they didn't get all of their money back on a security deposit and even if it's 100% legitimate, you might even you might have reviews out there that you can't do anything about so it's good to promote people to go and do the positive review because not everybody thinking about always doing a positive review.

[00:29:45] Usually they're like, you know, if they left on bad terms they're going to smear your name and drag you through the mud because they're angry. So it's good to encourage people to.

[00:29:55] Bill: And a real good time to do that is at lease renewal when folks are in your office. Go ahead and have them just slide over your laptop and say, you know, I'd really appreciate if you could go if you've had a good experience.

[00:30:06] Could you leave us a review here? So that's the time to do it and it'll make a difference with people just looking again. They're going to look at your photos first, but they're going to want to know those people who are vetting you as a property management company or as. The folks that they're going to be relating to having that people remember

[00:30:27] Ryan: Yeah people love that they want to know what are you going to be like, you know when something breaks are you going to take care of them or is it going to be something where you know, they're going to be without hot water for two months, you know

[00:30:39] Andrew: and you should respond to the bad ones because they'll if they're if they're they're going to look at your star rating like on and and the last couple. If you if your star rating is decent, like if you're right here in the three most property management companies have really bad ones too. So if you're above three you're doing okay, you're doing good. But usually want all the bad ones very very professionally and if they see me as a couple bad ones here in there.

[00:31:04] Amanda: And not defensively

[00:31:05] Andrew: Not defensively

[00:31:06] Ryan: And don't just like don't say we're an idiot who never paid their rent. Yeah.

[00:31:12] Andrew: You don't want to sink down you want to come off as the cool-headed one. Who's is the cool if there's ever an argument between two people? You know if one person is screaming at the other and the other person is just like smirking and like just kind of well, okay, maybe not that but like if they're talking rationally or they

[00:31:29] Ryan: So Bill, how was it raising Andrew?

[00:31:32] Andrew: you're always going to take the person who's calm versus the person who's losing their mind. So you want to be in the written form of the calm one

[00:31:40] Ryan: Most people can read.

[00:31:42]Bill: Any last takeaways here and I'll just start with one and that is that maintenance is the best form of Resident retention. So if you are maintaining your property as well and you're responding quickly to things like the hot water heater is not operating, then you're going to you're going to have happy customers.

[00:32:02] If you're not if you're dragging things out getting to them in a timely fashion people going to get pretty frustrated with that and we realize how you know, everything breaks on the weekend. Doesn't it? Everything breaks, you know on Sunday morning kind of thing when it's so you need to have some things in place for emergency maintenance they need to know exactly how to get ahold of somebody who can deal with their their problem particularly over the weekends and at night, figure that out make sure that's in place. It's one of your parts of your system.

[00:32:32] Are there any other takeaways that we should

[00:32:34] Amanda: Be consistent, treat your property management like a business, you know, people always say to don't rent to friends and family, really don't! I mean that's not you're not getting maximize your profits by minimizing the amount of money that you're able to make on them. So that sort of thing

[00:32:52] Ryan: or employees

[00:32:53] Andrew: Or employees.

[00:32:54] Let me take that as my point. You can come up with another one.

[00:32:57] Ryan: I'll come up with some different go ahead

[00:32:59] Andrew: Don't do employees either. We've had only bad experiences with that several of the horror stories that I just you know, that Ryan didn't want to hear about could be traced back to that.

[00:33:11] And yeah, it's just it it mixes things up and if you ever have to let that person go.

[00:33:18] Ryan: Awkward.

[00:33:19] Andrew: Yeah, it's not. Yeah, it's a little awkward.

[00:33:22] Ryan: It's like why can't you pay your rent? Well, I know why you can't pay your rent.

[00:33:27] Andrew: If they're mad at you. They might take it out on your property. So

[00:33:30] Ryan: the walls.

[00:33:31] So I think my takeaway we touched on it briefly and that was dangerous dog breeds.

[00:33:38] Watch out for the careful ways that people phrase this a Staffordshire Terrier is a pit bull. Watch watch out for the there's some like oh, it's just he's just a mutt. It was a rescue. It's like, oh it's pitbull in a Rottweiler mutt. So, you know do a little bit of background there and then on the same note of not violating any laws, make sure you understand how like service animals work and what you can and can't decline for because you know, you can get into some kind of sticky situations there.

[00:34:15] I think that's actually one of the biggest questions I typically see is like can a pitbull be an ESA and is an emotional support animal the same as the service animal yada yada. So just make sure you're familiar with your state laws with regards to.

[00:34:29] Bill: I'll bet you guys have a bunch of other questions a bunch of other experiences and we would like to hear about them.

[00:34:34] So why don't you find us on thegoodstewards.com. Please leave your comments put your likes put your questions. We'd like to keep this topic rolling along with the others. It's really important again, you make your money when you buy but you retain your money when you rent well, so we'll sign off for now and see you next week.