How to automate landlord responsibilities

Written by Sarah Block on September 19, 2018. Posted in edited, For Landlords, Leases & Legal, Maintenance & Renovations, Move-in/Move-out, paid, Rental Advertising, Screening, Software, Step 1 - Perform Research

Landlord automation - life's a beach When I became an accidental landlord in 2011, all I knew for sure was that I needed a tenant, and fast.

Over the years, I have learned how to manage my properties through systems and processes that practically automate all landlord responsibilities. Since then, I like to say “life’s a beach” . . . or at least that’s true for my life as an independent landlord. Today, I’ll share my landlord automation secrets.

Step 1: Finding a tenant

The first thing I do with my rentals is to take great pictures that showcase the properties and surrounding towns. I write ads that help prospective tenants see themselves in that environment.

From there, I create a Google Drive folder and put photos and ad descriptions in it as well as a Google calendar for showings.

This is where the automation comes in.

Post your ad through syndication sites like Apartments.com and Cozy’s Property Listing portal.
Use an app like Calendly to automate scheduling showings, which populates on your Google Calendar.
If you want, you can even automate showings by using smart technology like Rently that allows prospects to schedule the showing from their smartphone and open the door for them. I wouldn’t recommend doing this one though if there are current tenants. Also, there is no replacement for meeting a prospective tenant in person.
The rental application can be done online for free with Cozy’s rental application. The application includes a background and credit check, which is always recommended.

Step 2: Set up lease and rent collection

Creating a lease and rent collection system is the most important step. If your lease isn’t legal or your payments aren’t automated, that is potential money out of your pocket.

Have an attorney create your first lease, ensuring that it is compliant with your local area. This lease can be customized for all other tenants. So, it is a one-time cost that will save you big money throughout the life of your rental.

Use DocuSign to have the tenant sign the lease and store on Google Drive or your Cozy portal, providing access to your new tenant.
Set-up automatic rent collection with Cozy’s rental payment portal. It’s free for both the landlord and tenant as long as they pay with an ACH. A bonus: Cozy automates late payments.

Step 3: Move-in checklist

Think of a new tenant moving in like a new employee starting a job. There is an onboarding process.

Start with a move-in inspection with the tenant. Have the tenant sign it. This will be gold when the lease is up if there are any issues. You’ll have proof the tenant agreed the unit met their expectations. On the other side, if an issue needs to be resolved, the tenant can fill out a maintenance request, and the entire process is tracked.
You can track any tenant onboarding and maintenance expenses for tax purposes and write them off during tax season using the landlord portal.
Build a small team of contractors that you can rely on. You will need a handyman and a cleaning crew for maintenance and turnover needs. Having this team in place from the beginning saves you time throughout the lifetime of the rental.

By taking a small amount of time upfront to set up systems, processes, and automation, being a landlord becomes much easier. While landlords jest that owning rentals are anything but passive income, it can be much more passive with a plan in place.

Tenant move-out letter plus 2 other free templates

Written by Laura Agadoni on August 7, 2018. Posted in edited, For Landlords, Landlord Tips, Leases & Legal, Move-in/Move-out, paid, Rent & Expenses, Security Deposits, Step 12 - Move-Out

Your goal as a landlord is not only to have tenants but to keep tenants (the good ones anyway) as long as possible. But no matter how wonderful you are as a landlord, and how great your rental may be, there usually comes a time when your tenant needs to move.

When your tenant plans to move, you should make the move-out process as smooth as possible. This benefits you and your tenant—when your tenant knows what to expect, they’re more likely to meet your expectations. Here are some templates you can use when your tenants’ leases are about to end.

The lease renewal letter

If you want your tenant to sign a new lease, contact them about two months before the current lease is due to end. The purpose of the lease renewal letter is to find out what their intentions are and to explain what they need to do if they wish to continue to live in your rental.

Tip: This is the time to raise the rent if you intend to.

Note: If you do nothing after the lease ends, and your tenant stays, your tenant becomes a month-to-month tenant.

Lease renewal letter template

Dear [name of resident],

It’s almost time to think about renewing your lease. I want to continue to have you as a resident and appreciate how friendly and easy you are to work with. Thank you so much for paying your rent on time every month and taking such great care of the property.

As you can imagine, over the last year my expenses on the property have increased.

Anyway, I am covering most of the expenses since I enjoy having you as a resident, and the good news is that your rent is only slightly increasing. I want to make the payments as low as possible, and the rent is only increasing [amount of increase] a month. Your new monthly rent amount will be [new rent amount], effective [date].

If you do not wish to renew your lease, please let me know as soon as possible.

If you have any questions about this, please feel free to give me a call. I look forward to having you as a resident for a long time.

Warmest regards,

[Your name]

P.S. I have included a new lease for the upcoming year. If this lease is satisfactory, please sign it and send it back to me. This is the same lease you signed last year. Nothing has changed except [list any and all changes].

Note: You don’t have to increase the rent. If you don’t want to, change that section to reflect the rent will remain the same.

2. The move-out letter

If your tenant decides not to renew and wishes to move, send them a move-out letter about a month before the lease ends. The purpose is to give instructions on what you expect of your tenant.

Move-out letter template

Dear [name of resident],

Thank you for renting my house these past [length of time].

This letter is your reminder that you will need to remove all your possessions by [ending date of lease]. If you move out before then, please let me know. In the event that you abandon personal property or junk on the premises or in front of the property, you may be held responsible for the cost of removal for those materials.

Your lease requires that you leave your unit in a clean and undamaged condition. I have every intention of returning all of your security deposit as long as you have fulfilled your agreement.

Specifically, you should do the following:

Remove all food, debris, and other personal belongings.
Clean (and defrost if necessary) refrigerator.
Clean stove, oven, and any other appliances.
Replace any burned out light bulbs.
Clean all floors and vacuum carpeting.
Report any and all damage in writing.

Upon leaving, please be sure to fully secure the rental by locking all windows and doors. The designated place to leave all keys and the garage door opener is [state where you want this left]. Please lock the door when leaving.

After you have vacated the rental, it will be inspected and photographed for compliance with your lease. The expense of cleaning beyond normal wear or repairing damage, if any, will be charged against your security deposit. You will be notified of any charges. Please leave a forwarding address.

I wish you the best in your new home.

Sincerely,

[Your name]

Note: This letter contains language about lease requirements. Make sure yours does as well before you include that.

3. Notice to pay rent or quit

If your current tenant missed a rent payment (or two), you probably shouldn’t invite them to renew the lease. In fact, you should send them a letter asking them to pay the rent ASAP or leave.

Notice to pay rent or quit template

[Today’s date]

[Tenant’s name]

Please take notice that the rent is past due at [address of the rental property], which you currently hold and occupy. Your rental account is delinquent in the amount itemized as follows:

Rental period: [list the month(s) you haven’t received rent]

Total rent due: [list the amount]

Pursuant to the written lease beginning [date the lease began], and terminating on [date the lease ends], you are hereby required to pay said rent on said premises, or you are hereby required to deliver up possession of the premises within three (3) days after service on you of this notice to the undersigned, or the undersigned will institute legal proceedings against you to declare a forfeiture of the lease under which you occupy said premises and to recover possession thereof, including rents and damages.

The undersigned does elect to terminate the lease if the rent is not paid within three (3) days.

The premises referred to are commonly known as:

[Property address]

[Your name, address, phone number, and email]

[Your signature]

Once you rent your property, you will hopefully have wonderful tenants who stay a long time. But since that isn’t always the case, you can still make things easier for everyone involved if you are proactive with your tenants by letting them know what the expectations are during move-out time.

Cleaning and repair rules when you move out

Written by Kathy Adams on April 24, 2018. Posted in edited, For Renters, Maintenance & Renovations, Move-in/Move-out, move-out, paid, Security Deposits, Step 10 - Repair & Maintain

communication The last thing you probably feel like doing as you move out of a rental is cleaning the place. Like it or not, though, you’re expected to leave it just as nice as it was when you moved in.

If you leave a dirty place for your landlord, they can hold back the cost to clean up from your security deposit. After all, it is your mess. But the security deposit is your money. You want as much of it back as possible, right? So just what are your responsibilities?

Read your lease

Besides typical cleanup duties such as washing the floor or vacuuming the carpet, the landlord expects you to do a thorough job of getting that rental back into shape. Move-out expectations vary, so check your rental agreement or lease to see what the landlord wants you to do.

Common cleanup duties

Common cleaning requests include wiping down baseboards, doorknobs, and light switches; dusting ceiling fixtures; washing the windows; and thoroughly cleaning appliances. Some landlords may expect a professional carpet cleaning as well. It’s definitely worth your time to read every move-out detail in your agreement, as some landlords levy extra fees if you don’t take care of an item on the list or if you don’t do it within the specified time frame.

Repair damages

Even minor damage to the rental must be repaired before you hand over the keys. A couple of nail holes may not seem like much to you, but if you don’t repair them, the landlord has to. That means they can bill you in the form of a deduction from your security deposit. Here’s a checklist of things to do:

Patch nail and tack holes with a small amount of spackle.
Erase scuff marks on walls and floors with a melamine foam eraser, aka a Magic Eraser.
Rub a walnut over scratches in wood floors, or fill them in with a wood marker that matches the floor color.
Replace anything you may have temporarily removed, such as cabinet hardware you swapped out for something that suits your own style.
Go through each room and closet, replacing any light bulbs that no longer illuminate.

Cleaning not your thing? Hire someone

If you choose not to clean and repair everything on the move-out list, there’s still hope. Hire a cleaning company to tackle your checklist. Just make sure you’re available to inspect the space afterwards to make sure they took care of everything. The same goes for repairs. If you broke a handrail off in a stairwell, for instance, and don’t have time to repair it, hire a handyman or contractor to take care of the problem.

Tell your landlord about any damages

Inform the landlord of specific items you can’t fix on your own, such as a broken handrail. Your landlord may ask to see the damage and assess whether they can repair it easily. If so, you may be off the hook. If not, expect a repair bill.

Informing the landlord of potential damage or cleaning concerns is always better than just skipping out and leaving the work for your landlord. If you completely bail on your responsibilities, you’ll probably not get some—or all—your security deposit back.

You might be charged extra for damages

If the damage is beyond minimal, such as missing floor tiles, mold on the shower surround, or massive stains on the carpet, the landlord could charge you more than the amount of your deposit. For instance, if your security deposit is $900 and it will cost $1,200 to repair everything in your unit, you may owe $300 to cover the difference.

Rules for holding back a security deposit

Whenever a landlord withholds any money from your security deposit (including charging you extra), you are entitled to a detailed breakdown of charges. Check your state laws to ensure the charges are legitimate. Common sense also applies; for instance, a $250 charge to fill in three small nail holes is extreme and likely would not hold up in court.

All in all, taking care of a minor aggravation—cleaning your old place—is well worth your time. Besides, you agree to do it when you sign your rental contract. Once you’ve refreshed your old abode, you’ll get your deposit money back, as well as peace of mind, knowing you’re leaving on good terms with your former landlord. On to a fresh start!

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