November 4, 2024 • 49 mins
Where we do this in the Spring season, one of the best times of the year to perform these tasks is during Fall, in preparation for the winter months.
This week on the podcast, we are discussing what landlords should focus on to winterize their rental property.
We also dive deep into year-end business preparations in the office, which is something that really should not be overlooked. Budgets, analysis, planning, and tax prep are just a few of the items we will be discussing.
LINKS
👉Outdoor Water Spigot Covers for Freeze Protection. 2 Qty, $6.89
👉 Episode 67: Renters Insurance
👉 Property Management Software We Recommend:
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👉 Episode 39: Pt 1, 50+ Must Ask Questions When Hiring a PM
👉 Episode 40: Pt 2, 50+ Must Ask Questions...PM
👉 Property Manager Questionnaire
👉 Episode 35: How Small Gestures Make a Big Difference
👉 The Fair Housing Institute: Courses/Certifications. Use code: YLR2024 for 15% OFF any course!
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Stacie (00:00):
Last year we did an episode called Fall's Checklist,
(00:03):
Rental Property Maintenance fora Hassle Free Winter.
And where today's will touch onwhat was covered in that
episode, we will also be talkingabout year end business
preparations as well.
You know, the things that youneed to take care of in your
office to ready yourself for thecoming year.
The scope of preparation for theproperty itself depends on the
(00:24):
location, the age, and how ontop of preventative maintenance
you have been as an owner.
And no judgment at all, we'vebeen there.
We've been in a place where wedid just what we had to do to
keep the place running.
But we're also here to say thatif you can avoid that, or work
towards not operating that way,you will have a much better
(00:45):
experience as a landlord.
Because the peace of mind ofknowing that we have done what
we can to mitigate risk goes areally long way.
Welcome to your landlordresource podcast many moons ago.
When I started as a landlord, Iwas as green as it gets.
(01:06):
I may have had my real estatelicense, but I lack confidence
in the hands on experienceneeded when it came to dealing
with tenants, leases,maintenance, and bookkeeping.
After many failed attempts, fastforward to today.
Kevin and I have doubled ourdoors and created an organized,
professionally operated rentalproperty business.
Want to go from overwhelmed toconfident?
(01:27):
If you're an ambitious landlordor maybe one in the making, join
us as we provide strategies andteach actionable steps to help
you reach your goals and thelifestyle you desire.
All while building a streamlinedand profitable rental property
business.
This is your landlord resourcepodcast.
(01:47):
Hello there, landlords, and thank you for listening to
the Your Landlord ResourcePodcast.
I'm your host, Stacie Casella.
Kevin (01:56):
And I'm your co host, Kevin Kilroy.
And we hope this finds everyonein a good place right now.
It's the beginning of November,and hopefully hurricane season
is dying down a bit.
And we know a lot of people gothit really hard in late
September with Helene.
And again, in early October withMilton.
(02:16):
So if you have a personal homeor a rental and have sustained
any damage or loss, please knowthat you are all in our prayers.
We did make some donations todifferent foundations as well as
to personal friends who losteverything, and are now having
to start all over.
It's been heartbreaking to watcheveryone go through the
(02:38):
experience.
But actually for the people weknow on a personal level, they
have been surprisinglyoptimistic.
And where it did take some timeto wrap their head around the
enormity of it all, theyreceived a lot of support and I
think that love really carriedthem through.
Stacie (02:56):
Yeah, one older couple that we know in western North
Carolina lived near a, a sweetlittle stream.
and when they built their homethere, they built it 15 feet
above the 500 year flood linethinking even in the worst of
storms that the house would beokay.
And the lady was home alone withher two dogs when the water
(03:18):
started to rise.
And in a matter of an hour, shewatched the water rise, watched
her truck float away, watchedthe water come in through the
wall of her stairs that camethrough an exterior outlet that
had been hit by debris and brokea hole in the wall.
We saw videos of the waterflowing halfway up against their
(03:39):
bedroom window and little bylittle their house was being
torn off and floating away.
You know, they're fine now andthey're living in Alabama with
pretty much just the clothes ontheir backs and the dogs, but
I'm saddened to say they did nothave flood insurance and their
insurance company has deniedtheir claim for the house and
for the cars.
(04:00):
And no judgment on why theystayed.
They did and will live with thatnightmare for the rest of their
lives.
We here on the West Coast liveevery day wondering when the
next big earthquake will hit,and even wildfires.
And personally for us, we haveearthquake insurance.
In California, if your propertyis located anywhere where a
(04:20):
flood has happened or couldhappen, they require you to pay
for flood insurance, even if thehome is a mile away from the
levee or the water source.
Kevin (04:29):
Yeah,, in Sacramento, we are required to hold it as the
property owners as are ourtenants with their renters
insurance.
And I believe last year when wehad some heavy rains, the sewer
backed up about, oh, I thinkthree blocks from our building.
And where our property was fine,many buildings and cars were
(04:50):
not.
And that had nothing to do withthe levees or rivers or any
consistent water source.
Listen, we are not going to getinto the why all this is
happening, but it is.
And our job as mentors forlandlords is to make sure you
are doing all you can to beprepared for the unexpected.
Whether that is a flood or afire or an earthquake.
(05:13):
I mean stuff happens
Stacie (05:16):
Yeah, and the sad part is that anyone who did not have
essentially flood insurance ontheir home and lost it, like it
floated away and every singlething they own within the
confines of that house is gone,they still have to pay their
mortgage on their home, eventhough it's no longer there.
If this happens to you, thebanks will come after you, and
(05:39):
you will likely have to file forbankruptcy, or allow your
property to be foreclosed on.
And if so, you can kiss tryingto get another mortgage for a
new home goodbye.
Kevin (05:49):
Yeah, and as we have recommended before, you need to
be checking in with yourinsurance broker at least twice
a year for an evaluation.
They are absolutely an integralpart of your rental property
team.
There are new policies andcoverages that are available for
property owners for occurrencessuch as natural disasters.
(06:11):
For instance, there are someinsurance companies that offer
what is called DIC insurance ordifference in conditions
coverage, as additional coverageto your homeowner's policy.
If there is an instance wherethere is a flood, wildfire,
tornado, hurricane, orearthquake, DIC insurance kicks
(06:32):
in and will pay off yourmortgage so you can move on.
And when your income isdependent on one source, it is
imperative that you do what youcan to protect that source, or
in our case, our rentalproperties.
Stacie (06:45):
It does feel like we're doing so much more now to
mitigate risk, don't you think?
Kevin (06:50):
Well, yeah, I think so.
And of course, the more propertyyou own, the more there is to
do, right?
Stacie (06:56):
Right.
Kevin (06:58):
We are getting ready to head up to the mountains here
soon to winterize all of thecabins up there and prepare for
really heavy snow loads, as thehomes are all located between
elevations of 6, 000 and someover 8, 000 feet.
Last year, one cabin was buriedin over 25 feet of snow.
(07:18):
Now at home, we havepreparations for rain.
In Idaho, freezing weather andice are issues we need to make
sure we are prepared for.
So, as you can see, ourproperties are diverse and
that's actually really good.
We won't lose everything all atonce in one disaster, but
there's a lot to do and managethis time of year.
Stacie (07:39):
Which is what we are here to talk about today.
You know, last year we did anepisode called Fall's Checklist,
Rental Property Maintenance fora Hassle Free Winter.
And where today's will touch onwhat was covered in that
episode, we will also be talkingabout year end business
preparations as well.
You know, the things that youneed to take care of in your
(08:01):
office to ready yourself for thecoming year.
So let's get to it.
You know, the scope ofpreparation for the property
itself depends on the location,the age, and how on top of
preventative maintenance youhave been as an owner.
And no judgment at all, we'vebeen there, you know, we've been
in a place where we did justwhat we had to do to keep the
(08:23):
place running.
But we're also here to say thatif you can avoid that, or work
towards not operating that way,you will have a much better
experience as a landlord.
Because the peace of mind ofknowing that we have done what
we can to mitigate risk goes areally long way.
Kevin (08:41):
And guess what, you guys?
Shit still happens.
We did everything right a couplewinters ago, and that didn't
matter when a neighbor down thestreet didn't take care of their
trees, and a rather large limb,uh, I'd say it was about 4
inches thick and at least 8 feetlong.
It broke off in a heavy stormand pierced the roof of our
(09:01):
apartments in Sacramento.
And we had no idea.
I mean, this was on top of thethird story, and the only way to
see it was from the neighbor'swindows, who were also three
stories up.
They texted us a photo to let usknow.
And if you're wondering why thetenant didn't report it, he said
he didn't hear it.
(09:22):
So, the previous owners, luckyfor us, pitched the roof and
built a new roof over the oldone.
So when the branch punched ahuge hole in the roof, water
fell to the old roof and nevercaused any issues.
Stacie (09:36):
Yeah, I mean that was lucky.
So with all that said, let'sstart with the roofing gutters.
If you can, check out the roofand see if you can find any
missing shingles or lifted areasor damage.
A lot of leaks can happen aroundthose vent pipes and chimneys,
so be mindful of checking thoseareas.
(09:57):
And if you're not comfortablegetting up on the roof, pay a
roofer to come out and do aquick inspection.
I mean, even sometimes I thinkthey'll do it for free.
Nine 10, they're not going tofind anything.
You also want to clean thegutters and the downspouts.
Now we don't get ice here and westill have things that get stuck
in the downspouts.
But if you get freezing coldweather, making sure your
(10:21):
gutters and downspouts are clearis crucial to avoid ice dams.
And once or twice we had ice damissues in the cabins and the
leaks screwed up the drywall.
It's not a big deal, but it'sjust a mess to have to cope
with.
Kevin (10:36):
And at your uncle's place there was a leak in one of those
vents.
I mean, we're still dealing withthat damage.
Stacie (10:42):
Yeah you guys do not underestimate the damage even
the smallest amount of water canmake.
And actually, well one of thosevents in our house is leaking
and the water coming throughthat primary bathroom ceiling
has caused the ceiling to haveall kinds of issues now.
Kevin (10:57):
Well, it's all job security for our contractor Jim,
right?
Stacie (11:01):
Yeah for sure.
All right, let's move on towindows and doors.
Make sure that they closeproperly, that the weather
stripping is in place, and thecaulking around the windows is
good, you know, there's nocracks.
We have had windows in a coupleof the units that have leaked,
not a huge deal again, but apain nonetheless.
If you have properties in areaswhere you will get below
(11:24):
freezing temps for days in arow, you need to check the pipes
and make sure that they'reproperly insulated.
Do not assume that everything isokay.
Rodents can get into crawlspaces and attics and chew that
insulation off.
We do our inspections inNovember and then usually again
in May.
And we will pay our contractorto be present, to look for
(11:47):
things because to be honest, weknow some stuff, but we don't
know enough, that's why he'sthere.
And the couple of hundred thatwe pay him, as well as our HVAC
guy to come and check theheaters in the fall and the AC
units in the spring, It reallyis nothing compared to all the
issues we'd have to deal with.
Kevin (12:05):
Yeah.
I'll pay for that piece ofbuying knowing that we have
taken preventative measures todecrease the chances of a heater
going out in the dead of winteror an AC unit going out in the
middle of a heat wave in thesummer.
Stacie (12:19):
Yeah.
And the funny thing is that whenhe checks the heater, he rarely
finds anything, but every singleyear he finds something wrong
with one of those AC units.
Alright, let's finish up theexterior really quick.
Check out your walkways forcracks that might be a tripping
hazard or an issue with icerelated incidents.
(12:41):
If you're responsible formaintaining walkways, stock up
on ice melt or salt or give itto the tenant to use if they're
responsible for thatmaintenance.
Like we wish our neighbor wouldhave done, trim overhanging
branches that can fall under theweight of snow or ice or break
off in heavy winds.
And blow out your irrigationlines and cover your exterior
(13:03):
hose bibs to keep them fromfreezing.
We have these great covers thatare really inexpensive that we
use on the cabins.
I think they're like seven bucksfor a two pack and they're
really super easy to use.
We'll link those in the shownotes if you want to check them
out.
Kevin (13:18):
Okay, now let's move inside.
And we know we have mentionedthese before, so we'll go
through them pretty quickly.
Along with checking on yourfurnace or boiler, change the
air filters.
If the AC is run over the summermonths, the filter is likely
pretty dirty and putting in anew one will help extend the
life of your HVAC systems.
(13:40):
You're going to want to checkthe heaters and the thermostats.
We tend to change the batteriesin our thermostats once a year
just so we don't get that callthat the heater doesn't work,
only to find out that thebatteries in the thermostat went
out.
Of course, check the smoke andcarbon monoxide detectors and
change the batteries in those ifyou feel it's necessary.
Stacie (14:01):
And here's a little tip for you.
We take a Sharpie pen and we putthe month and year on the
batteries every time we changethem.
So the next time that you go in,you'll know if it's time to
change them or not.
Kevin (14:14):
And if you're really organized and have a maintenance
book, the dates those batterieswere last changed should be in
your unit file.
Come on, we're all human andsometimes we fall behind keeping
up with those log books.
So that tip Stacie justmentioned really helps as a fail
safe.
Stacie (14:31):
Yeah, because if there is a fire, the insurance company
is going to ask when thosebatteries were changed last.
And if it's on the batteryinside the unit, you have your
answer.
Kevin (14:40):
Exactly.
And if you have a single familyhome or a rental with a wood
burning fireplace, considerhaving a professional come out
every few years and inspect andclean it.
They will check that the flueopens and closes properly, that
there are no cracks in theinterior where embers can get in
and cause a fire, and that thechimney cap on the roof is in
(15:02):
place because those can fly offin bad storms.
And just like on the outside,check around the windows, doors,
and basements for any signs ofwater intrusion or mold.
know, before you go out for thisfall inspection, like a couple
weeks before, take a minute tocontact your tenant and let them
(15:24):
know you will be doing your fullinspection soon and ask them,
are there any issues with theunit that need to be addressed?
This will allow you time tocontact the appropriate repair
person to meet you out there onthe day of the inspections.
It is most efficient for you togo one day and have your
contractor, your HVAC person,and maybe your electrician or
(15:45):
appliance repair person all comeon the same day to get stuff
done.
It's easy for you and it's alsoeasiest on your tenant to only
be inconvenienced one day thanmaybe several days.
Stacie (15:59):
And actually, we just finished a fall maintenance
checklist that you can downloadfor free.
You can grab that atyourlandlordresource.
com fall maintenance list.
We'll also link it in the shownotes for you.
All right.
I want to touch briefly ontenant communication.
Make sure that it's clear who isresponsible for what maintenance
(16:21):
tasks.
You never want to assume becauseit's a single family home or
town home that the tenant has tocare for those walkways.
Use addendums in your lease tospecify each and every task that
they're required to handle.
You should follow that up byputting the information in their
unit binder as well.
This unit binder is essentiallyyour unit encyclopedia.
(16:45):
And for the younger generationthat's listening, encyclopedias
are what us old people usedbefore Google was around to look
up information.
And besides other crucialinformation like use and care
notes, codes for locks,electronic payment information,
and general rules, the unitbinder should have a winter prep
(17:06):
checklist for the tenants ifthey are responsible for certain
maintenance items.
You know, like clarifyresponsibilities for snow
removal, whether it's thelandlord's or the tenant's duty
and who provides the suppliesfor those tasks.
Make sure it has information onwhat to do in an emergency, like
a power outage and who tocontact for maintenance or
(17:27):
winter related issues.
If your tenant is responsiblefor replacing air filters, in
that unit binder have the sizeand the location of the air
filter.
If your rental property getsfreezing temps, make sure your
tenant understands about leavingthe thermostat on if they leave
on vacation so that those pipesdon't freeze.
(17:49):
This would also be goodinformation to send in a
reminder email each season.
You know, just like we sendemails to our tenants about how
to cope during a heat wave orreminders on safety for the 4th
of July and for Halloween.
Send your tenant all theinformation you could think of
that they might need during thewinter months.
And we literally just cut andpaste the same template each
(18:11):
time we have to send out thesame email.
We make a few adjustments andupdate it and then send it out
to all of our tenants.
If it's something you needconfirmation of receipt on, ask
them to respond to that emailwith, got it.
Kevin (18:26):
Yeah.
That, I mean, that workswonders.
And they can't come back and saythey didn't know.
The responsibility has beenhanded over to them and they,
hopefully, will be morecognizant of handling things
properly.
All right, you guys, one thingwe have not addressed before but
want to discuss is some tipsabout snow removal.
(18:47):
Now, the checklist we sent outtouches on it, but if your
rental is in a place where youget a lot of snow, you might
need, to add on some of theseitems.
As we have already mentioned,determine who is responsible for
what.
If you handle snow removal,check your equipment and ensure
your snow blower, shovels, andother equipment are in good
(19:08):
working order.
Stock up on fuel and any spareparts that commonly go out.
Make sure you or your tenantshave de icing products.
And please be mindful of usingproducts that are
environmentally and pet friendlywhen possible.
When the weather gets bad, bagsof ice melt might be hard to
come by, so always have extrajust in case.
(19:32):
If you are like us and hire asnow removal company to keep the
driveways and walkways clear,make sure your contract is all
signed and up to date, andpayment has been made.
Also make sure that it is clearwhere they are to clear, how
often, and how soon after astorm.
Stacie (19:51):
Yeah, we have to pay for that invoice over summer, and by
the time October comes around,most of the snow removal
companies in the mountains havea full client base and are not
taking any new accounts.
Kevin (20:03):
Yeah, only needed to let that happen once to learn that
lesson.
Also, make sure your tenants areaware of the schedule.
I mean the last thing you wantis to have a big machine plow
into the driveway and take outtheir car or toys that were left
out and get covered with all thesnow.
Getting snow off of roofs isanother issue that can be
(20:25):
dangerous if left alone.
I mean, large chunks of snowsliding off a roof can take out
a car or worse kill someone.
So make sure there is a plan inplace for removal of that.
And the last thing to understandis, who is responsible for
installing snow stakes ordriveway markers to help guide
(20:45):
the snow plows and shovels,preventing damage to
landscaping, curves or propertyedges.
Stacie (20:52):
Or decks and stairways.
Kevin (20:54):
Yeah.
Last year there was so much snowat that one cabin that the snow
poles were buried.
And the backhoe came in withthose big blades a spinning and
took out one of the posts of therailing.
Stacie (21:07):
Of course, we had no idea until spring when the snow
had melted.
But the bottom line is that ifyour rental property gets snow
of any capacity, there needs tobe a plan in place on how it's
handled.
Especially driveways, walkways,and entrances for emergency
services and deliveries to reachyour property safely and easily.
(21:30):
Now, if your rental is locatedwhere there's a lot of rain,
like the Pacific Northwest, hereare some tips for rain
preparation.
Again, make sure gutters anddownspouts are clear so that
water can flow easily from theroof.
You want to ensure downspoutsdirect water at least four to
six feet away from thefoundation to prevent pooling
(21:51):
and potential flooding.
So use those downspout extendersor diverters that are made of
plastic and they fit right onthe end of the downspout.
Let's see, we already talkedabout checking the roof and
vents.
Okay, here we go.
Make sure you have the propergrading around your property, so
that the ground around thefoundation slopes away from the
(22:15):
building, so water won't getdown under the foundation.
Which leads me to thefoundation.
You'll need to check that forcracks as well.
Kevin (22:24):
And that's a fairly easy fix.
You can pick up sealant orcaulking and put it in those
cracks and prevent water fromseeping into the basement or
crawl spaces.
Stacie (22:34):
Yeah, we had to do that at the Chico house, remember?
Kevin (22:36):
Yeah, I do.
Stacie (22:38):
And in Sacramento and in our house here, we have to have
a sump pump to remove water fromlow lying areas underneath the
property.
So, you want to make sure thoseare working if you have them.
Ours here, the float does notwork so we just open the hatch
to the crawl space and tap itwith a broom handle.
Kevin (22:57):
Which is exactly what you don't want to have your tenants
do.
So make sure it's working if youprovided one.
Which reminds me, we need tocheck that one at your uncle's
rental.
Stacie (23:08):
Yeah, I have to ask him if he did that.
He's usually pretty good aboutchecking that out.
Kevin (23:11):
Yeah, he is.
But those sump pumps tend to goout easily, so replace them if
it's needed.
Okay, let me get through therest of these items here to prep
for rain.
Storm drains need to be cleared,so make sure there are no weeds
growing over them and they candrain easily and not back up.
Let's see what else.
Oh, if you provide outdoorfurniture or grills or any
(23:34):
equipment that rain can damage,maybe cover those up and tuck
them away in a protective area.
Make sure tree roots are notaffecting drainage systems too.
And if the property is in aflood prone area, have sandbags
ready to place around vulnerableentry points like doors and
garages to prevent flood waterfrom entering.
Stacie (23:55):
Yep, every single year we have a family member who has
to run and get sandbags for hergarage.
And tenants have to do the samewith my uncle's rental that has
the garage flood whenever we getheavy rain.
You know, some old homes werenot built with a consideration
to extreme weather, and hissmall cottage was built in the
(24:17):
early 1900s, and it has adetached garage that sits lower
than the house.
Like, the driveway dips downinto the garage behind the
rental home.
So, of course, when it rainsheavily, that garage is gonna
flood.
Are there things that he can doto prevent this from happening?
Absolutely.
He could buy a rubber bump, orbuild one out of cement, and
(24:40):
that would help direct the waterto the side of the garage where
the lawn is.
But, you guys, some landlordsare set in their ways about
certain things.
How does it get handled?
We have it disclosed in thelease that the garage floods
with heavy rains and not toleave anything on the ground
that could be damaged by water.
Kevin (24:59):
And yeah, that's a good point too.
If you guys have anything thatcan be a hazard or cause damage
to a tenant's personal items,make sure you disclose that in
your lease.
And of course, enforce renter'sinsurance policies to protect
their personal property.
We did an episode calledRenter's Insurance, Why Landlord
Should Require It, explainingwhy we make it mandatory for all
(25:23):
of our tenants to hold.
You can find that at yourlandlord resource.
com episode 67, or you can go toour website and search 67 and it
should come up.
We will also link that in theshow notes too.
Stacie (25:39):
And speaking of renters insurance, let's use this time
to switch over from physicalproperty maintenance to some end
of year tasks that are importanton the business side of things,
you know, in the office.
And one of those things is toensure each tenant's renters
insurance is good to go.
We recommend checking the policyto make sure that it has the
(26:03):
correct property address and ifapplicable, the unit number,
which is something that we'vehad issues with in the past.
You also want to check thepolicy to see if you have been
added as an interested party.
Now, if you received a copy ofthe policy declarations in the
mail, then it's likely that youare.
If you have not, and youreceived your copy of the policy
(26:26):
directly from the tenant, thisis something to check for.
The podcast goes over all thereasoning behind this, but the
one main reason is that you willreceive notifications if the
policy is changed or canceledfor some reason.
And this just happened to uslast month.
We received something in themail from a tenant's insurance
company.
(26:46):
And, you know, a lot of times Iknow what that envelope is and
I'll just toss it in a pile ofmail to open later, but for some
reason I opened it and I foundthat the tenant had canceled the
policy and not notified me ofit.
So of course I scan that paperand I email it off to him
explaining our policy and notingthe page on the lease where it
(27:10):
stated that renters insurance ismandatory.
And if not, it's a leaseviolation, yadda, yadda, yadda.
And the tenant got right back tome and said, oh yeah, I got a
new policy that was bundled withmy car insurance so I could save
money.
But they failed to add us on asadditional insured or as an
interested party.
So we didn't get this newreplacement insurance policy
(27:31):
information.
So at the year end, if you havenot already, go through your
mail and your files and makesure that your tenant's rental
insurance policies are up todate, have the correct address,
and have you listed as aninterested party.
This is also a really good timeto check on your own property
insurance as well as any otherpolicies you have like umbrella
(27:55):
insurance.
Think about scheduling a meetingwith your broker to discuss any
changes to properties orconcerns that you might have.
And this would be a good time toask them about that DIC
insurance add on to your policy.
Kevin (28:09):
Now, I don't know about any of you, but we have lost
insurance on multiple policies.
We lost it on our sixplex inSacramento because it"s over a
hundred years old, which isactually kind of ridiculous
because it was gutted and fullyrenovated in 2003.
I mean, that building is moreupdated than our personal home.
(28:30):
We lost it on one of our cabins,likely because of the wildfire
dangers.
And we also lost it on a classicvehicle we have.
Well, it's not as fancy as itsounds, but we do have a 1958
Willy that was Stacie'sbrother's, and we have done
quite a bit of work to get itrunning again.
And as soon as we changed theinsurance from non op to
(28:53):
drivable, they dropped ourpolicy.
Boy, is that fun to take out.
I mean, especially in themountains.
Stacie (29:01):
Yeah, my brother actually left that Willy, which
if you're not familiar withthem, it's an old army jeep that
can pretty much four wheel overany terrain.
He left that to my middle sonwho, I'm hesitant to say is just
like him.
Um, not in any of the bad ways,but they both love the outdoors
like camping and hiking andfishing.
And the two of them spent timehunting together as well.
(29:23):
So because of that, he got mybrother's most prized
possession, the classic Willy.
And of course, classic cars aremoney pits.
And because Kid 2 doesn't havethe money to sink into it, Kevin
and I dropped a bunch into it toget it working and running well
or at least we thought.
And we let him take it back tohis home in Idaho last Labor Day
(29:44):
weekend.
So he's happy as a clam andactually, so am I, to have that
spot in the driveway back.
Kevin (29:51):
Yeah, that's really a plus.
And it's funny, you don't thinkanyone notices stuff, but we've
had, what, the mailman andseveral neighbors ask, hey, what
happened to the Willy?
Yeah, I know.
Okay, so let's get back in youroffice and continue to talk
about end of year tasks.
One thing that we let lapse lastyear and will not allow to
(30:14):
happen again is reviewing andorganizing our financial
records.
For us, we had a lot of taxstuff we waited on gathering.
I mean, it was a real pain.
So much so that Stacie created atax prep checklist for us to
follow now.
And this will ensure we do notforget to add anything.
(30:34):
This is the time to review andorganize all of your financial
records.
Okay.
You want to ensure all rentalincome is accurately recorded.
So, go through rent payments,security deposits, and any late
fees or penalties collectedthroughout the year.
Organize expense receipts andinvoices.
(30:56):
So, gather all receipts forrepairs, maintenance, property
management fees, and otheroperating costs.
Organized records makes taxfiling so much easier.
Reconcile your bank accounts.
Cross check your bank statementswith your financial records to
ensure everything aligns andthere are no discrepancies.
(31:18):
You're going to want tocategorize expenses.
Ensure expenses are properlycategorized to make it easier
when preparing tax documents.
And this includes operatingexpenses, capital improvements,
and utilities.
Stacie (31:33):
And you guys full transparency here.
We have a business credit card,but we have several businesses
now, so tracking the expensesfor each one has become quite a
chore because some are on thebusiness card and some are paid
from the business debit card.
And some got mistakenly chargedon our personal credit cards and
(31:54):
those are the ones we forgotabout.
And we balance our bank accountsboth the personal and each of
the business ones.
But for the expenses that wererun through our personal
accounts, we have to actually goback and find those.
And we're not talking hugeamounts, but here's one
scenario.
We have rentals in Idaho, which,you know, so we can expense the
(32:15):
travel that we incur when we goback to do inspections or have
meetings with the HOA orwhatever.
And personally, we have a UnitedAirlines credit card and we use
those points earned to buyairfare.
So when we fly, we charge all ofour flights on that card because
we get like five times a pointsor something.
(32:36):
We also pay that credit cardwith our personal bank account.
So when there are expenses onthat credit card that belong to
a business, it's not so easy totrack.
When you purchase airfare, youdon't get a physical receipt to
file away like when we go to arestaurant.
So when we expense a meal onthat trip.
(32:58):
So our advice to you is to startnow on gathering all the
information that you're going toneed for your taxes.
Kevin (33:04):
Yep.
One thing that gets us each yearis the home office.
So if you have a home office,you'll need copies of your
mortgage statements, all utilitybills, property tax bills, and
your internet invoices.
Measure the room where youroffice is and figure what
percentage of space that isrelative to your entire home.
(33:26):
That percentage is the amountyou can deduct from all those
personal home expenses.
If you have done any repairs orimprovements to your rental
property.
Those are key to know about aswell.
So meet with your tax prepperson or CPA before year end to
discuss changes in tax laws thatmight affect you.
(33:47):
If there are legal changes orlarge improvements that need to
be made before year end to takeadvantage of for tax purposes,
you'll need this time to get itdone.
Stacie (33:58):
So one thing we recently learned was that for roofing
companies, their prices usuallygo up at the beginning of the
year.
So here in the Bay Area, we weretold to sign a contract for our
new roof, even if it won'thappen until the following year,
because then we can lock in thatlower rate.
Kevin (34:17):
Yeah, I believe that was because material costs go up and
they adjust their pricing aroundthat.
I mean, this one guy told us ithas been averaging, I think it
was around 15 percent each yearthe last several years.
And again, this is here in theSan Francisco Bay Area, so not
sure if that's true all over ornot.
Stacie (34:35):
Yeah.
Well, nonetheless, otherbusinesses are evaluating how
they can earn more money, justlike you should be doing.
One more thing on taxes where wehave dropped the ball before,
and that is preparing theinformation you need to process
1099s.
Anyone you've paid for a servicewho earns over$600 should be
(34:55):
getting one of those.
So this is where having all ofyour accounts balanced and your
expenses coded to the properbookkeeping account really makes
a difference.
And if you have an accountant ora bookkeeper who does this for
you, make sure that they aregoing to be ready to create
those once the new year rollsaround.
I also want to address yourmaintenance records.
(35:17):
Before the winter months set in,review your maintenance records
to make sure they're allcompleted.
We get some that we can put onthe back burner and the tenant
is fine with it, but we have toset reminders for ourselves to
circle back and complete them.
Otherwise, we will definitelyforget about them.
And like the roof that we werejust talking about, plan for
(35:39):
large scale maintenanceprojects.
Think about any major repairs orimprovements that need to be
scheduled for the upcoming yearand start planning timelines and
budgets.
For instance, upgrading singlepane windows to double pane ones
for efficiency.
Speaking of budgets, plan outnext year's budget.
You should know how much youhave in your reserves and if you
(36:04):
can perform any largermaintenance items.
Compare your budget for thisyear to what you actually spent
and see where changes can bemade.
Do you want to incorporate amore involved landlord software
that might cost more than thefree option that you're using
now?
Are you getting to a point whereyou have reached the max in your
reserves and can take more homefor yourself?
(36:27):
Or did you have some big hitsthat that reserve account this
year needs to be replenished?
These are all things you need toevaluate and plan around.
Kevin (36:38):
Yep.
And you want to check thingslike, has your property
appreciated?
Is it time to scale yourportfolio?
And if so, is the 1031 exchangea good option or have you made
so many improvements yourcapital gains would be minimal
and you can just sell itoutright and take your time
finding that next rentalproperty?
(37:00):
Again, these are all things todiscuss with your CPA and legal
team.
I think that's it for thefinancial side of things.
So let's move on to businessdevelopment and see what tasks
you can tackle on that end ofthe business.
Alright, let's start with yourleases.
Often landlord tenant lawschange and state specific leases
(37:22):
are updated to reflect those newlaws.
So, make sure your lease and itsaddendums are updated for when
your renewals roll around.
Take time to evaluate your rulesand criteria and see if any of
your lease terms need to beupdated.
So, for us, last year, wedecided we wanted to look into
using a RUBS program at thesixplex in Sacramento.
(37:46):
The acronym R U B S stands forRatio Utility Billing Systems,
which is where a company willcome in and handle dividing up a
utility bill that is usuallycovered by the owner.
Like for us, we pay for water,trash, and sewer charges on
behalf of our tenants.
(38:07):
We do not charge them for thatand we absorb the cost
ourselves.
There are companies out therenow that come and analyze the
water bill along with the sizeof each unit and how many
tenants are living there, andthen be able to determine how
much each unit should pay fortheir share.
Now, in order to begin thisprogram, we had to have each
(38:29):
tenant sign an addendum andagreement to those new charges,
so it took some planning and weultimately decided that we would
wait for each to renew and havethem sign the agreement with the
renewal.
Stacie (38:42):
Yeah.
You know, we tend to move slowlyon changes like this.
We could have had them all signat once and started the program
right away, but we had severalnew tenants and we thought it
really didn't make a goodimpression to throw another
expense at them just a couplemonths after they signed their
lease.
So we tabled that change andneed to revisit at this year
(39:04):
end.
And to add to what Kevin wasdiscussing about changing rules
and criteria, considermaintenance and who handles
what.
Are there any changes there thatyou might want to have the
tenant take over and takesomething off your plate.
Now, a lot of people will sayyou should be checking out your
rental rates, right?
(39:24):
This is your income, and ifother businesses are looking how
they could make more, you shouldtoo.
Well, not necessarily.
Now think about the fact thatrental rates vary and usually in
the late fall or winter monthsrental rates will decrease
because there's less rentersmoving and in the applicant
pool.
So landlords will lower theirrents even if its$25 to attract
(39:48):
applicants.
And my point is, we prefer toevaluate income as we get
renewals and turnovers.
And often we are pleasantlysurprised and can add a sizable
increase.
So for income evaluation, justkeep it where it is, or maybe
look at like a three or fivepercent increase for budgeting
purposes.
(40:09):
Don't use what the market is inthe last quarter of the year
unless you have a renewal orturnover that you have to deal
with.
And I touched on tenantcommunication briefly earlier,
but if you have any changes toyour policies or procedures that
the tenants need to know about,keep the tenants informed in a
well written email.
And you know, some largeproperty management companies
(40:32):
will send out a survey for theirtenants to complete, and that
will help them gauge tenantsatisfaction and get insights on
areas for improvement.
And we don't do this as of yet,but it's definitely something
that we're considering.
Kevin (40:46):
Yeah, I mean, even though we think we have the tenant
satisfaction part dialed in, Ibelieve there's always room for
improvement.
All right, I'm going to talk nowabout property management
software.
Now, we have not done an episodecomparing these as of yet, but
we have touched on a few of ourfavorites.
If you are a landlord who isalready using property
(41:08):
management software, ensure yoursoftware for managing finances,
maintenance requests, and tenantcommunication is up to date and
functions well for you and yourrental property business.
If not, explore upgrading it.
I mean, you might want toconsider upgrading to a more
efficient property managementtool that can streamline tasks
(41:31):
like rent collection, leasemanagement, and maintenance
tracking.
We have mentioned them before,but I mean, we love TurboTenant.
We also think Enago is anothergood option.
Both are free and most allexpenses are passed on to the
tenant.
EZ Landlord Forms, which hastraditionally always been state
(41:52):
specific forms like leases,addendums, applications, et
cetera, now offers rentcollection for their paid
accounts.
If you feel you have grown outof these software, DoorLoop,
HemLane, RentReady, and Availare all landlord management
software companies to consider.
We will link each of them in ourshow notes for you.
Stacie (42:14):
All right.
And one more thing to consideris backing up your information.
So make sure that all essentialdocuments, which would be your
lease agreements, your taxrecords and tenant information
are all securely backed up toboth a cloud storage solution
and a physical backup like anexternal hard drive.
(42:36):
And if you're a member at Costcoor Sam's Club or something like
that, they usually have thosereally at a good price.
You can pick those up.
Okay.
Getting ready to wrap up thingshere soon, you guys, we just
have a few more end of yeartasks to discuss.
And this next one can get alittle deep and that is.
If you have a business plan, goover it and evaluate how well
(42:59):
you stuck to it this year.
Did you meet your goals?
And consider what goals you wantto achieve for the upcoming
year.
And those can be as simple asupgrading a unit, or cutting
expenses, or working on renewalrates.
Or they can be big, like buyingyour next rental property.
Again, not always something thatis in black and white, and that
(43:21):
can be measured, but maybe inthe upcoming year you have big
changes personally and you needto back off from the business a
little bit.
Maybe you have reached a placewhere hiring a property manager
makes more sense.
And if so, check out episodes 39and 40 where we do a deep dive
into the 50 plus must askquestions when hiring a property
(43:43):
manager.
And we even have a questionnaireset up for you that you can
purchase and you can use thatwhen you're evaluating and
vetting your property managers.
So we'll link all of that in theshow notes for you.
Kevin (43:55):
Yeah.
I mean, we worked hard on thoseepisodes in that questionnaire.
And there's a ton of valuablecontent there.
Alright, now I think we touchedon legal before, but doing a
legal compliance check is a goodidea.
The end of the year is theperfect time to meet with all
your professional team members.
So, your realtor for propertyvalues, your CPA for tax prep
(44:19):
and financial planning, and ofcourse, your real estate lawyer
who can review your leases andmake sure they are compliant
with state, local, and federalregulations.
Review your tenant screeningprocedures to make sure you
won't get in trouble there.
And same goes with your evictionprocedures, which we hope you
never have to use.
(44:42):
The last thing we want torecommend is to take time to
reflect on your professionaldevelopment.
What can you do to improveyourself as a self managing
landlord?
Like, are there any courses totake or certifications you can
get?
One that comes to mind is totake a course on fair housing
and get your certificate inthat.
We will link the Fair HousingInstitute in the show notes
(45:04):
where you can take one big oneor many specific courses related
to fair housing.
Like for ESAs or criminalbackground checks.
If you use the code YLR 2024,you'll get 15% off any course
purchase.
And we get nothing in return forthis.
(45:25):
We are just sharing thatdiscount code for you to use.
Alright, the last thing I willsay about professional
development is to encourage youto join your local rental
housing association.
I mean those memberships inlocal or even national
associations can provide so manyvaluable resources, including
legal advice, networkingopportunities, and industry
(45:47):
updates.
Stacie (45:49):
Yeah, we are members in several of those.
And as a matter of fact, we justattended one conference down in
LA, Long Beach, California forthe AAOA, and we'll be traveling
back to Idaho to do our Novemberinspections, and we're finally
going to be able to attend oneof the meetings for the Boise
(46:09):
real estate investors networkback there.
It's a good opportunity, notonly to learn about the local
area with regards to rentalproperties, but investment
outlooks, and we get to networkwith other landlords as well.
Kevin (46:22):
Yeah, I mean, I really enjoyed the one down in Long
Beach.
I mean, that was better than Iexpected and that has me looking
forward to Boise, especially toonow.
Stacie (46:31):
Yeah, it was fun.
It was nice to get away for acouple days, too.
And, shameless plug here, we dohave a course on the process of
tenant screening coming out in2025.
And we would love if you wouldconsider taking it and expanding
your knowledge of self managingrental properties with our
course.
(46:51):
There is a link to sign up andbe on the wait list in our show
notes.
And one last thing we forgot tomention was, if you're someone
who wants to send a holiday giftto your tenants, start working
on that.
We did an episode last yearabout the benefits of giving
gifts and ideas on what you cando, and we'll link that in the
show notes to give it a listen.
But time tends to get away fromus as we get closer to the
(47:14):
holidays, and with tenantstraveling, consider sending or
dropping off that gift a littleearly.
You can even use Thanksgiving asyour gift giving, uh, with a
message about being thankful forthem as tenants.
All right, you guys, so that isour episode.
We hope we got your mindthinking about what you can do
this last quarter of the year toorganize and prepare yourselves
(47:37):
and your rental propertybusiness for the upcoming year.
And if you guys like what youhear on this podcast, would you
do us a favor and subscribe orfollow on your favorite podcast
platform?
This way, all of our episodeswill be waiting for you each
week, so you can enjoyeverything we have to say about
landlording and owning rentalproperties.
(47:58):
And we would be reallyappreciative if you could even
leave us a kind of review.
Those reviews really help otherlandlords like you know that
we're the real deal andhopefully they'll listen too.
So links to those review sitesare in the show notes.
Now, if you have a question oryou want to suggest a subject
for our podcast, you can text usat 650 489 4447.
(48:23):
That's 650 489 4447.
Or you can email us atStacie@your landlord resource.
com.
That's Stacie with an I E orKevin yourlandlordresource.
com.
We want you to feel free todownload any of those free forms
that we offer, or if you want tosign up for our free weekly
(48:45):
newsletter, you can access allthose in the show notes as well.
And if you'd like to followalong, you can find us on
Instagram and Facebook, and wealso have a private Facebook
group as well.
You will find all the links youneed in our show notes.
Thanks again for taking time outof your day to listen to our
podcast and until next timeyou've got this landlords!
Last year we did an episode called Fall's Checklist,
(00:03):
Rental Property Maintenance fora Hassle Free Winter.
And where today's will touch onwhat was covered in that
episode, we will also be talkingabout year end business
preparations as well.
You know, the things that youneed to take care of in your
office to ready yourself for thecoming year.
The scope of preparation for theproperty itself depends on the
(00:24):
location, the age, and how ontop of preventative maintenance
you have been as an owner.
And no judgment at all, we'vebeen there.
We've been in a place where wedid just what we had to do to
keep the place running.
But we're also here to say thatif you can avoid that, or work
towards not operating that way,you will have a much better
(00:45):
experience as a landlord.
Because the peace of mind ofknowing that we have done what
we can to mitigate risk goes areally long way.
Welcome to your landlordresource podcast many moons ago.
When I started as a landlord, Iwas as green as it gets.
(01:06):
I may have had my real estatelicense, but I lack confidence
in the hands on experienceneeded when it came to dealing
with tenants, leases,maintenance, and bookkeeping.
After many failed attempts, fastforward to today.
Kevin and I have doubled ourdoors and created an organized,
professionally operated rentalproperty business.
Want to go from overwhelmed toconfident?
(01:27):
If you're an ambitious landlordor maybe one in the making, join
us as we provide strategies andteach actionable steps to help
you reach your goals and thelifestyle you desire.
All while building a streamlinedand profitable rental property
business.
This is your landlord resourcepodcast.
(01:47):
Hello there, landlords, and thank you for listening to
the Your Landlord ResourcePodcast.
I'm your host, Stacie Casella.
Kevin (01:56):
And I'm your co host, Kevin Kilroy.
And we hope this finds everyonein a good place right now.
It's the beginning of November,and hopefully hurricane season
is dying down a bit.
And we know a lot of people gothit really hard in late
September with Helene.
And again, in early October withMilton.
(02:16):
So if you have a personal homeor a rental and have sustained
any damage or loss, please knowthat you are all in our prayers.
We did make some donations todifferent foundations as well as
to personal friends who losteverything, and are now having
to start all over.
It's been heartbreaking to watcheveryone go through the
(02:38):
experience.
But actually for the people weknow on a personal level, they
have been surprisinglyoptimistic.
And where it did take some timeto wrap their head around the
enormity of it all, theyreceived a lot of support and I
think that love really carriedthem through.
Stacie (02:56):
Yeah, one older couple that we know in western North
Carolina lived near a, a sweetlittle stream.
and when they built their homethere, they built it 15 feet
above the 500 year flood linethinking even in the worst of
storms that the house would beokay.
And the lady was home alone withher two dogs when the water
(03:18):
started to rise.
And in a matter of an hour, shewatched the water rise, watched
her truck float away, watchedthe water come in through the
wall of her stairs that camethrough an exterior outlet that
had been hit by debris and brokea hole in the wall.
We saw videos of the waterflowing halfway up against their
(03:39):
bedroom window and little bylittle their house was being
torn off and floating away.
You know, they're fine now andthey're living in Alabama with
pretty much just the clothes ontheir backs and the dogs, but
I'm saddened to say they did nothave flood insurance and their
insurance company has deniedtheir claim for the house and
for the cars.
(04:00):
And no judgment on why theystayed.
They did and will live with thatnightmare for the rest of their
lives.
We here on the West Coast liveevery day wondering when the
next big earthquake will hit,and even wildfires.
And personally for us, we haveearthquake insurance.
In California, if your propertyis located anywhere where a
(04:20):
flood has happened or couldhappen, they require you to pay
for flood insurance, even if thehome is a mile away from the
levee or the water source.
Kevin (04:29):
Yeah,, in Sacramento, we are required to hold it as the
property owners as are ourtenants with their renters
insurance.
And I believe last year when wehad some heavy rains, the sewer
backed up about, oh, I thinkthree blocks from our building.
And where our property was fine,many buildings and cars were
(04:50):
not.
And that had nothing to do withthe levees or rivers or any
consistent water source.
Listen, we are not going to getinto the why all this is
happening, but it is.
And our job as mentors forlandlords is to make sure you
are doing all you can to beprepared for the unexpected.
Whether that is a flood or afire or an earthquake.
(05:13):
I mean stuff happens
Stacie (05:16):
Yeah, and the sad part is that anyone who did not have
essentially flood insurance ontheir home and lost it, like it
floated away and every singlething they own within the
confines of that house is gone,they still have to pay their
mortgage on their home, eventhough it's no longer there.
If this happens to you, thebanks will come after you, and
(05:39):
you will likely have to file forbankruptcy, or allow your
property to be foreclosed on.
And if so, you can kiss tryingto get another mortgage for a
new home goodbye.
Kevin (05:49):
Yeah, and as we have recommended before, you need to
be checking in with yourinsurance broker at least twice
a year for an evaluation.
They are absolutely an integralpart of your rental property
team.
There are new policies andcoverages that are available for
property owners for occurrencessuch as natural disasters.
(06:11):
For instance, there are someinsurance companies that offer
what is called DIC insurance ordifference in conditions
coverage, as additional coverageto your homeowner's policy.
If there is an instance wherethere is a flood, wildfire,
tornado, hurricane, orearthquake, DIC insurance kicks
(06:32):
in and will pay off yourmortgage so you can move on.
And when your income isdependent on one source, it is
imperative that you do what youcan to protect that source, or
in our case, our rentalproperties.
Stacie (06:45):
It does feel like we're doing so much more now to
mitigate risk, don't you think?
Kevin (06:50):
Well, yeah, I think so.
And of course, the more propertyyou own, the more there is to
do, right?
Stacie (06:56):
Right.
Kevin (06:58):
We are getting ready to head up to the mountains here
soon to winterize all of thecabins up there and prepare for
really heavy snow loads, as thehomes are all located between
elevations of 6, 000 and someover 8, 000 feet.
Last year, one cabin was buriedin over 25 feet of snow.
(07:18):
Now at home, we havepreparations for rain.
In Idaho, freezing weather andice are issues we need to make
sure we are prepared for.
So, as you can see, ourproperties are diverse and
that's actually really good.
We won't lose everything all atonce in one disaster, but
there's a lot to do and managethis time of year.
Stacie (07:39):
Which is what we are here to talk about today.
You know, last year we did anepisode called Fall's Checklist,
Rental Property Maintenance fora Hassle Free Winter.
And where today's will touch onwhat was covered in that
episode, we will also be talkingabout year end business
preparations as well.
You know, the things that youneed to take care of in your
(08:01):
office to ready yourself for thecoming year.
So let's get to it.
You know, the scope ofpreparation for the property
itself depends on the location,the age, and how on top of
preventative maintenance youhave been as an owner.
And no judgment at all, we'vebeen there, you know, we've been
in a place where we did justwhat we had to do to keep the
(08:23):
place running.
But we're also here to say thatif you can avoid that, or work
towards not operating that way,you will have a much better
experience as a landlord.
Because the peace of mind ofknowing that we have done what
we can to mitigate risk goes areally long way.
Kevin (08:41):
And guess what, you guys?
Shit still happens.
We did everything right a couplewinters ago, and that didn't
matter when a neighbor down thestreet didn't take care of their
trees, and a rather large limb,uh, I'd say it was about 4
inches thick and at least 8 feetlong.
It broke off in a heavy stormand pierced the roof of our
(09:01):
apartments in Sacramento.
And we had no idea.
I mean, this was on top of thethird story, and the only way to
see it was from the neighbor'swindows, who were also three
stories up.
They texted us a photo to let usknow.
And if you're wondering why thetenant didn't report it, he said
he didn't hear it.
(09:22):
So, the previous owners, luckyfor us, pitched the roof and
built a new roof over the oldone.
So when the branch punched ahuge hole in the roof, water
fell to the old roof and nevercaused any issues.
Stacie (09:36):
Yeah, I mean that was lucky.
So with all that said, let'sstart with the roofing gutters.
If you can, check out the roofand see if you can find any
missing shingles or lifted areasor damage.
A lot of leaks can happen aroundthose vent pipes and chimneys,
so be mindful of checking thoseareas.
(09:57):
And if you're not comfortablegetting up on the roof, pay a
roofer to come out and do aquick inspection.
I mean, even sometimes I thinkthey'll do it for free.
Nine 10, they're not going tofind anything.
You also want to clean thegutters and the downspouts.
Now we don't get ice here and westill have things that get stuck
in the downspouts.
But if you get freezing coldweather, making sure your
(10:21):
gutters and downspouts are clearis crucial to avoid ice dams.
And once or twice we had ice damissues in the cabins and the
leaks screwed up the drywall.
It's not a big deal, but it'sjust a mess to have to cope
with.
Kevin (10:36):
And at your uncle's place there was a leak in one of those
vents.
I mean, we're still dealing withthat damage.
Stacie (10:42):
Yeah you guys do not underestimate the damage even
the smallest amount of water canmake.
And actually, well one of thosevents in our house is leaking
and the water coming throughthat primary bathroom ceiling
has caused the ceiling to haveall kinds of issues now.
Kevin (10:57):
Well, it's all job security for our contractor Jim,
right?
Stacie (11:01):
Yeah for sure.
All right, let's move on towindows and doors.
Make sure that they closeproperly, that the weather
stripping is in place, and thecaulking around the windows is
good, you know, there's nocracks.
We have had windows in a coupleof the units that have leaked,
not a huge deal again, but apain nonetheless.
If you have properties in areaswhere you will get below
(11:24):
freezing temps for days in arow, you need to check the pipes
and make sure that they'reproperly insulated.
Do not assume that everything isokay.
Rodents can get into crawlspaces and attics and chew that
insulation off.
We do our inspections inNovember and then usually again
in May.
And we will pay our contractorto be present, to look for
(11:47):
things because to be honest, weknow some stuff, but we don't
know enough, that's why he'sthere.
And the couple of hundred thatwe pay him, as well as our HVAC
guy to come and check theheaters in the fall and the AC
units in the spring, It reallyis nothing compared to all the
issues we'd have to deal with.
Kevin (12:05):
Yeah.
I'll pay for that piece ofbuying knowing that we have
taken preventative measures todecrease the chances of a heater
going out in the dead of winteror an AC unit going out in the
middle of a heat wave in thesummer.
Stacie (12:19):
Yeah.
And the funny thing is that whenhe checks the heater, he rarely
finds anything, but every singleyear he finds something wrong
with one of those AC units.
Alright, let's finish up theexterior really quick.
Check out your walkways forcracks that might be a tripping
hazard or an issue with icerelated incidents.
(12:41):
If you're responsible formaintaining walkways, stock up
on ice melt or salt or give itto the tenant to use if they're
responsible for thatmaintenance.
Like we wish our neighbor wouldhave done, trim overhanging
branches that can fall under theweight of snow or ice or break
off in heavy winds.
And blow out your irrigationlines and cover your exterior
(13:03):
hose bibs to keep them fromfreezing.
We have these great covers thatare really inexpensive that we
use on the cabins.
I think they're like seven bucksfor a two pack and they're
really super easy to use.
We'll link those in the shownotes if you want to check them
out.
Kevin (13:18):
Okay, now let's move inside.
And we know we have mentionedthese before, so we'll go
through them pretty quickly.
Along with checking on yourfurnace or boiler, change the
air filters.
If the AC is run over the summermonths, the filter is likely
pretty dirty and putting in anew one will help extend the
life of your HVAC systems.
(13:40):
You're going to want to checkthe heaters and the thermostats.
We tend to change the batteriesin our thermostats once a year
just so we don't get that callthat the heater doesn't work,
only to find out that thebatteries in the thermostat went
out.
Of course, check the smoke andcarbon monoxide detectors and
change the batteries in those ifyou feel it's necessary.
Stacie (14:01):
And here's a little tip for you.
We take a Sharpie pen and we putthe month and year on the
batteries every time we changethem.
So the next time that you go in,you'll know if it's time to
change them or not.
Kevin (14:14):
And if you're really organized and have a maintenance
book, the dates those batterieswere last changed should be in
your unit file.
Come on, we're all human andsometimes we fall behind keeping
up with those log books.
So that tip Stacie justmentioned really helps as a fail
safe.
Stacie (14:31):
Yeah, because if there is a fire, the insurance company
is going to ask when thosebatteries were changed last.
And if it's on the batteryinside the unit, you have your
answer.
Kevin (14:40):
Exactly.
And if you have a single familyhome or a rental with a wood
burning fireplace, considerhaving a professional come out
every few years and inspect andclean it.
They will check that the flueopens and closes properly, that
there are no cracks in theinterior where embers can get in
and cause a fire, and that thechimney cap on the roof is in
(15:02):
place because those can fly offin bad storms.
And just like on the outside,check around the windows, doors,
and basements for any signs ofwater intrusion or mold.
know, before you go out for thisfall inspection, like a couple
weeks before, take a minute tocontact your tenant and let them
(15:24):
know you will be doing your fullinspection soon and ask them,
are there any issues with theunit that need to be addressed?
This will allow you time tocontact the appropriate repair
person to meet you out there onthe day of the inspections.
It is most efficient for you togo one day and have your
contractor, your HVAC person,and maybe your electrician or
(15:45):
appliance repair person all comeon the same day to get stuff
done.
It's easy for you and it's alsoeasiest on your tenant to only
be inconvenienced one day thanmaybe several days.
Stacie (15:59):
And actually, we just finished a fall maintenance
checklist that you can downloadfor free.
You can grab that atyourlandlordresource.
com fall maintenance list.
We'll also link it in the shownotes for you.
All right.
I want to touch briefly ontenant communication.
Make sure that it's clear who isresponsible for what maintenance
(16:21):
tasks.
You never want to assume becauseit's a single family home or
town home that the tenant has tocare for those walkways.
Use addendums in your lease tospecify each and every task that
they're required to handle.
You should follow that up byputting the information in their
unit binder as well.
This unit binder is essentiallyyour unit encyclopedia.
(16:45):
And for the younger generationthat's listening, encyclopedias
are what us old people usedbefore Google was around to look
up information.
And besides other crucialinformation like use and care
notes, codes for locks,electronic payment information,
and general rules, the unitbinder should have a winter prep
(17:06):
checklist for the tenants ifthey are responsible for certain
maintenance items.
You know, like clarifyresponsibilities for snow
removal, whether it's thelandlord's or the tenant's duty
and who provides the suppliesfor those tasks.
Make sure it has information onwhat to do in an emergency, like
a power outage and who tocontact for maintenance or
(17:27):
winter related issues.
If your tenant is responsiblefor replacing air filters, in
that unit binder have the sizeand the location of the air
filter.
If your rental property getsfreezing temps, make sure your
tenant understands about leavingthe thermostat on if they leave
on vacation so that those pipesdon't freeze.
(17:49):
This would also be goodinformation to send in a
reminder email each season.
You know, just like we sendemails to our tenants about how
to cope during a heat wave orreminders on safety for the 4th
of July and for Halloween.
Send your tenant all theinformation you could think of
that they might need during thewinter months.
And we literally just cut andpaste the same template each
(18:11):
time we have to send out thesame email.
We make a few adjustments andupdate it and then send it out
to all of our tenants.
If it's something you needconfirmation of receipt on, ask
them to respond to that emailwith, got it.
Kevin (18:26):
Yeah.
That, I mean, that workswonders.
And they can't come back and saythey didn't know.
The responsibility has beenhanded over to them and they,
hopefully, will be morecognizant of handling things
properly.
All right, you guys, one thingwe have not addressed before but
want to discuss is some tipsabout snow removal.
(18:47):
Now, the checklist we sent outtouches on it, but if your
rental is in a place where youget a lot of snow, you might
need, to add on some of theseitems.
As we have already mentioned,determine who is responsible for
what.
If you handle snow removal,check your equipment and ensure
your snow blower, shovels, andother equipment are in good
(19:08):
working order.
Stock up on fuel and any spareparts that commonly go out.
Make sure you or your tenantshave de icing products.
And please be mindful of usingproducts that are
environmentally and pet friendlywhen possible.
When the weather gets bad, bagsof ice melt might be hard to
come by, so always have extrajust in case.
(19:32):
If you are like us and hire asnow removal company to keep the
driveways and walkways clear,make sure your contract is all
signed and up to date, andpayment has been made.
Also make sure that it is clearwhere they are to clear, how
often, and how soon after astorm.
Stacie (19:51):
Yeah, we have to pay for that invoice over summer, and by
the time October comes around,most of the snow removal
companies in the mountains havea full client base and are not
taking any new accounts.
Kevin (20:03):
Yeah, only needed to let that happen once to learn that
lesson.
Also, make sure your tenants areaware of the schedule.
I mean the last thing you wantis to have a big machine plow
into the driveway and take outtheir car or toys that were left
out and get covered with all thesnow.
Getting snow off of roofs isanother issue that can be
(20:25):
dangerous if left alone.
I mean, large chunks of snowsliding off a roof can take out
a car or worse kill someone.
So make sure there is a plan inplace for removal of that.
And the last thing to understandis, who is responsible for
installing snow stakes ordriveway markers to help guide
(20:45):
the snow plows and shovels,preventing damage to
landscaping, curves or propertyedges.
Stacie (20:52):
Or decks and stairways.
Kevin (20:54):
Yeah.
Last year there was so much snowat that one cabin that the snow
poles were buried.
And the backhoe came in withthose big blades a spinning and
took out one of the posts of therailing.
Stacie (21:07):
Of course, we had no idea until spring when the snow
had melted.
But the bottom line is that ifyour rental property gets snow
of any capacity, there needs tobe a plan in place on how it's
handled.
Especially driveways, walkways,and entrances for emergency
services and deliveries to reachyour property safely and easily.
(21:30):
Now, if your rental is locatedwhere there's a lot of rain,
like the Pacific Northwest, hereare some tips for rain
preparation.
Again, make sure gutters anddownspouts are clear so that
water can flow easily from theroof.
You want to ensure downspoutsdirect water at least four to
six feet away from thefoundation to prevent pooling
(21:51):
and potential flooding.
So use those downspout extendersor diverters that are made of
plastic and they fit right onthe end of the downspout.
Let's see, we already talkedabout checking the roof and
vents.
Okay, here we go.
Make sure you have the propergrading around your property, so
that the ground around thefoundation slopes away from the
(22:15):
building, so water won't getdown under the foundation.
Which leads me to thefoundation.
You'll need to check that forcracks as well.
Kevin (22:24):
And that's a fairly easy fix.
You can pick up sealant orcaulking and put it in those
cracks and prevent water fromseeping into the basement or
crawl spaces.
Stacie (22:34):
Yeah, we had to do that at the Chico house, remember?
Kevin (22:36):
Yeah, I do.
Stacie (22:38):
And in Sacramento and in our house here, we have to have
a sump pump to remove water fromlow lying areas underneath the
property.
So, you want to make sure thoseare working if you have them.
Ours here, the float does notwork so we just open the hatch
to the crawl space and tap itwith a broom handle.
Kevin (22:57):
Which is exactly what you don't want to have your tenants
do.
So make sure it's working if youprovided one.
Which reminds me, we need tocheck that one at your uncle's
rental.
Stacie (23:08):
Yeah, I have to ask him if he did that.
He's usually pretty good aboutchecking that out.
Kevin (23:11):
Yeah, he is.
But those sump pumps tend to goout easily, so replace them if
it's needed.
Okay, let me get through therest of these items here to prep
for rain.
Storm drains need to be cleared,so make sure there are no weeds
growing over them and they candrain easily and not back up.
Let's see what else.
Oh, if you provide outdoorfurniture or grills or any
(23:34):
equipment that rain can damage,maybe cover those up and tuck
them away in a protective area.
Make sure tree roots are notaffecting drainage systems too.
And if the property is in aflood prone area, have sandbags
ready to place around vulnerableentry points like doors and
garages to prevent flood waterfrom entering.
Stacie (23:55):
Yep, every single year we have a family member who has
to run and get sandbags for hergarage.
And tenants have to do the samewith my uncle's rental that has
the garage flood whenever we getheavy rain.
You know, some old homes werenot built with a consideration
to extreme weather, and hissmall cottage was built in the
(24:17):
early 1900s, and it has adetached garage that sits lower
than the house.
Like, the driveway dips downinto the garage behind the
rental home.
So, of course, when it rainsheavily, that garage is gonna
flood.
Are there things that he can doto prevent this from happening?
Absolutely.
He could buy a rubber bump, orbuild one out of cement, and
(24:40):
that would help direct the waterto the side of the garage where
the lawn is.
But, you guys, some landlordsare set in their ways about
certain things.
How does it get handled?
We have it disclosed in thelease that the garage floods
with heavy rains and not toleave anything on the ground
that could be damaged by water.
Kevin (24:59):
And yeah, that's a good point too.
If you guys have anything thatcan be a hazard or cause damage
to a tenant's personal items,make sure you disclose that in
your lease.
And of course, enforce renter'sinsurance policies to protect
their personal property.
We did an episode calledRenter's Insurance, Why Landlord
Should Require It, explainingwhy we make it mandatory for all
(25:23):
of our tenants to hold.
You can find that at yourlandlord resource.
com episode 67, or you can go toour website and search 67 and it
should come up.
We will also link that in theshow notes too.
Stacie (25:39):
And speaking of renters insurance, let's use this time
to switch over from physicalproperty maintenance to some end
of year tasks that are importanton the business side of things,
you know, in the office.
And one of those things is toensure each tenant's renters
insurance is good to go.
We recommend checking the policyto make sure that it has the
(26:03):
correct property address and ifapplicable, the unit number,
which is something that we'vehad issues with in the past.
You also want to check thepolicy to see if you have been
added as an interested party.
Now, if you received a copy ofthe policy declarations in the
mail, then it's likely that youare.
If you have not, and youreceived your copy of the policy
(26:26):
directly from the tenant, thisis something to check for.
The podcast goes over all thereasoning behind this, but the
one main reason is that you willreceive notifications if the
policy is changed or canceledfor some reason.
And this just happened to uslast month.
We received something in themail from a tenant's insurance
company.
(26:46):
And, you know, a lot of times Iknow what that envelope is and
I'll just toss it in a pile ofmail to open later, but for some
reason I opened it and I foundthat the tenant had canceled the
policy and not notified me ofit.
So of course I scan that paperand I email it off to him
explaining our policy and notingthe page on the lease where it
(27:10):
stated that renters insurance ismandatory.
And if not, it's a leaseviolation, yadda, yadda, yadda.
And the tenant got right back tome and said, oh yeah, I got a
new policy that was bundled withmy car insurance so I could save
money.
But they failed to add us on asadditional insured or as an
interested party.
So we didn't get this newreplacement insurance policy
(27:31):
information.
So at the year end, if you havenot already, go through your
mail and your files and makesure that your tenant's rental
insurance policies are up todate, have the correct address,
and have you listed as aninterested party.
This is also a really good timeto check on your own property
insurance as well as any otherpolicies you have like umbrella
(27:55):
insurance.
Think about scheduling a meetingwith your broker to discuss any
changes to properties orconcerns that you might have.
And this would be a good time toask them about that DIC
insurance add on to your policy.
Kevin (28:09):
Now, I don't know about any of you, but we have lost
insurance on multiple policies.
We lost it on our sixplex inSacramento because it"s over a
hundred years old, which isactually kind of ridiculous
because it was gutted and fullyrenovated in 2003.
I mean, that building is moreupdated than our personal home.
(28:30):
We lost it on one of our cabins,likely because of the wildfire
dangers.
And we also lost it on a classicvehicle we have.
Well, it's not as fancy as itsounds, but we do have a 1958
Willy that was Stacie'sbrother's, and we have done
quite a bit of work to get itrunning again.
And as soon as we changed theinsurance from non op to
(28:53):
drivable, they dropped ourpolicy.
Boy, is that fun to take out.
I mean, especially in themountains.
Stacie (29:01):
Yeah, my brother actually left that Willy, which
if you're not familiar withthem, it's an old army jeep that
can pretty much four wheel overany terrain.
He left that to my middle sonwho, I'm hesitant to say is just
like him.
Um, not in any of the bad ways,but they both love the outdoors
like camping and hiking andfishing.
And the two of them spent timehunting together as well.
(29:23):
So because of that, he got mybrother's most prized
possession, the classic Willy.
And of course, classic cars aremoney pits.
And because Kid 2 doesn't havethe money to sink into it, Kevin
and I dropped a bunch into it toget it working and running well
or at least we thought.
And we let him take it back tohis home in Idaho last Labor Day
(29:44):
weekend.
So he's happy as a clam andactually, so am I, to have that
spot in the driveway back.
Kevin (29:51):
Yeah, that's really a plus.
And it's funny, you don't thinkanyone notices stuff, but we've
had, what, the mailman andseveral neighbors ask, hey, what
happened to the Willy?
Yeah, I know.
Okay, so let's get back in youroffice and continue to talk
about end of year tasks.
One thing that we let lapse lastyear and will not allow to
(30:14):
happen again is reviewing andorganizing our financial
records.
For us, we had a lot of taxstuff we waited on gathering.
I mean, it was a real pain.
So much so that Stacie created atax prep checklist for us to
follow now.
And this will ensure we do notforget to add anything.
(30:34):
This is the time to review andorganize all of your financial
records.
Okay.
You want to ensure all rentalincome is accurately recorded.
So, go through rent payments,security deposits, and any late
fees or penalties collectedthroughout the year.
Organize expense receipts andinvoices.
(30:56):
So, gather all receipts forrepairs, maintenance, property
management fees, and otheroperating costs.
Organized records makes taxfiling so much easier.
Reconcile your bank accounts.
Cross check your bank statementswith your financial records to
ensure everything aligns andthere are no discrepancies.
(31:18):
You're going to want tocategorize expenses.
Ensure expenses are properlycategorized to make it easier
when preparing tax documents.
And this includes operatingexpenses, capital improvements,
and utilities.
Stacie (31:33):
And you guys full transparency here.
We have a business credit card,but we have several businesses
now, so tracking the expensesfor each one has become quite a
chore because some are on thebusiness card and some are paid
from the business debit card.
And some got mistakenly chargedon our personal credit cards and
(31:54):
those are the ones we forgotabout.
And we balance our bank accountsboth the personal and each of
the business ones.
But for the expenses that wererun through our personal
accounts, we have to actually goback and find those.
And we're not talking hugeamounts, but here's one
scenario.
We have rentals in Idaho, which,you know, so we can expense the
(32:15):
travel that we incur when we goback to do inspections or have
meetings with the HOA orwhatever.
And personally, we have a UnitedAirlines credit card and we use
those points earned to buyairfare.
So when we fly, we charge all ofour flights on that card because
we get like five times a pointsor something.
(32:36):
We also pay that credit cardwith our personal bank account.
So when there are expenses onthat credit card that belong to
a business, it's not so easy totrack.
When you purchase airfare, youdon't get a physical receipt to
file away like when we go to arestaurant.
So when we expense a meal onthat trip.
(32:58):
So our advice to you is to startnow on gathering all the
information that you're going toneed for your taxes.
Kevin (33:04):
Yep.
One thing that gets us each yearis the home office.
So if you have a home office,you'll need copies of your
mortgage statements, all utilitybills, property tax bills, and
your internet invoices.
Measure the room where youroffice is and figure what
percentage of space that isrelative to your entire home.
(33:26):
That percentage is the amountyou can deduct from all those
personal home expenses.
If you have done any repairs orimprovements to your rental
property.
Those are key to know about aswell.
So meet with your tax prepperson or CPA before year end to
discuss changes in tax laws thatmight affect you.
(33:47):
If there are legal changes orlarge improvements that need to
be made before year end to takeadvantage of for tax purposes,
you'll need this time to get itdone.
Stacie (33:58):
So one thing we recently learned was that for roofing
companies, their prices usuallygo up at the beginning of the
year.
So here in the Bay Area, we weretold to sign a contract for our
new roof, even if it won'thappen until the following year,
because then we can lock in thatlower rate.
Kevin (34:17):
Yeah, I believe that was because material costs go up and
they adjust their pricing aroundthat.
I mean, this one guy told us ithas been averaging, I think it
was around 15 percent each yearthe last several years.
And again, this is here in theSan Francisco Bay Area, so not
sure if that's true all over ornot.
Stacie (34:35):
Yeah.
Well, nonetheless, otherbusinesses are evaluating how
they can earn more money, justlike you should be doing.
One more thing on taxes where wehave dropped the ball before,
and that is preparing theinformation you need to process
1099s.
Anyone you've paid for a servicewho earns over$600 should be
(34:55):
getting one of those.
So this is where having all ofyour accounts balanced and your
expenses coded to the properbookkeeping account really makes
a difference.
And if you have an accountant ora bookkeeper who does this for
you, make sure that they aregoing to be ready to create
those once the new year rollsaround.
I also want to address yourmaintenance records.
(35:17):
Before the winter months set in,review your maintenance records
to make sure they're allcompleted.
We get some that we can put onthe back burner and the tenant
is fine with it, but we have toset reminders for ourselves to
circle back and complete them.
Otherwise, we will definitelyforget about them.
And like the roof that we werejust talking about, plan for
(35:39):
large scale maintenanceprojects.
Think about any major repairs orimprovements that need to be
scheduled for the upcoming yearand start planning timelines and
budgets.
For instance, upgrading singlepane windows to double pane ones
for efficiency.
Speaking of budgets, plan outnext year's budget.
You should know how much youhave in your reserves and if you
(36:04):
can perform any largermaintenance items.
Compare your budget for thisyear to what you actually spent
and see where changes can bemade.
Do you want to incorporate amore involved landlord software
that might cost more than thefree option that you're using
now?
Are you getting to a point whereyou have reached the max in your
reserves and can take more homefor yourself?
(36:27):
Or did you have some big hitsthat that reserve account this
year needs to be replenished?
These are all things you need toevaluate and plan around.
Kevin (36:38):
Yep.
And you want to check thingslike, has your property
appreciated?
Is it time to scale yourportfolio?
And if so, is the 1031 exchangea good option or have you made
so many improvements yourcapital gains would be minimal
and you can just sell itoutright and take your time
finding that next rentalproperty?
(37:00):
Again, these are all things todiscuss with your CPA and legal
team.
I think that's it for thefinancial side of things.
So let's move on to businessdevelopment and see what tasks
you can tackle on that end ofthe business.
Alright, let's start with yourleases.
Often landlord tenant lawschange and state specific leases
(37:22):
are updated to reflect those newlaws.
So, make sure your lease and itsaddendums are updated for when
your renewals roll around.
Take time to evaluate your rulesand criteria and see if any of
your lease terms need to beupdated.
So, for us, last year, wedecided we wanted to look into
using a RUBS program at thesixplex in Sacramento.
(37:46):
The acronym R U B S stands forRatio Utility Billing Systems,
which is where a company willcome in and handle dividing up a
utility bill that is usuallycovered by the owner.
Like for us, we pay for water,trash, and sewer charges on
behalf of our tenants.
(38:07):
We do not charge them for thatand we absorb the cost
ourselves.
There are companies out therenow that come and analyze the
water bill along with the sizeof each unit and how many
tenants are living there, andthen be able to determine how
much each unit should pay fortheir share.
Now, in order to begin thisprogram, we had to have each
(38:29):
tenant sign an addendum andagreement to those new charges,
so it took some planning and weultimately decided that we would
wait for each to renew and havethem sign the agreement with the
renewal.
Stacie (38:42):
Yeah.
You know, we tend to move slowlyon changes like this.
We could have had them all signat once and started the program
right away, but we had severalnew tenants and we thought it
really didn't make a goodimpression to throw another
expense at them just a couplemonths after they signed their
lease.
So we tabled that change andneed to revisit at this year
(39:04):
end.
And to add to what Kevin wasdiscussing about changing rules
and criteria, considermaintenance and who handles
what.
Are there any changes there thatyou might want to have the
tenant take over and takesomething off your plate.
Now, a lot of people will sayyou should be checking out your
rental rates, right?
(39:24):
This is your income, and ifother businesses are looking how
they could make more, you shouldtoo.
Well, not necessarily.
Now think about the fact thatrental rates vary and usually in
the late fall or winter monthsrental rates will decrease
because there's less rentersmoving and in the applicant
pool.
So landlords will lower theirrents even if its$25 to attract
(39:48):
applicants.
And my point is, we prefer toevaluate income as we get
renewals and turnovers.
And often we are pleasantlysurprised and can add a sizable
increase.
So for income evaluation, justkeep it where it is, or maybe
look at like a three or fivepercent increase for budgeting
purposes.
(40:09):
Don't use what the market is inthe last quarter of the year
unless you have a renewal orturnover that you have to deal
with.
And I touched on tenantcommunication briefly earlier,
but if you have any changes toyour policies or procedures that
the tenants need to know about,keep the tenants informed in a
well written email.
And you know, some largeproperty management companies
(40:32):
will send out a survey for theirtenants to complete, and that
will help them gauge tenantsatisfaction and get insights on
areas for improvement.
And we don't do this as of yet,but it's definitely something
that we're considering.
Kevin (40:46):
Yeah, I mean, even though we think we have the tenant
satisfaction part dialed in, Ibelieve there's always room for
improvement.
All right, I'm going to talk nowabout property management
software.
Now, we have not done an episodecomparing these as of yet, but
we have touched on a few of ourfavorites.
If you are a landlord who isalready using property
(41:08):
management software, ensure yoursoftware for managing finances,
maintenance requests, and tenantcommunication is up to date and
functions well for you and yourrental property business.
If not, explore upgrading it.
I mean, you might want toconsider upgrading to a more
efficient property managementtool that can streamline tasks
(41:31):
like rent collection, leasemanagement, and maintenance
tracking.
We have mentioned them before,but I mean, we love TurboTenant.
We also think Enago is anothergood option.
Both are free and most allexpenses are passed on to the
tenant.
EZ Landlord Forms, which hastraditionally always been state
(41:52):
specific forms like leases,addendums, applications, et
cetera, now offers rentcollection for their paid
accounts.
If you feel you have grown outof these software, DoorLoop,
HemLane, RentReady, and Availare all landlord management
software companies to consider.
We will link each of them in ourshow notes for you.
Stacie (42:14):
All right.
And one more thing to consideris backing up your information.
So make sure that all essentialdocuments, which would be your
lease agreements, your taxrecords and tenant information
are all securely backed up toboth a cloud storage solution
and a physical backup like anexternal hard drive.
(42:36):
And if you're a member at Costcoor Sam's Club or something like
that, they usually have thosereally at a good price.
You can pick those up.
Okay.
Getting ready to wrap up thingshere soon, you guys, we just
have a few more end of yeartasks to discuss.
And this next one can get alittle deep and that is.
If you have a business plan, goover it and evaluate how well
(42:59):
you stuck to it this year.
Did you meet your goals?
And consider what goals you wantto achieve for the upcoming
year.
And those can be as simple asupgrading a unit, or cutting
expenses, or working on renewalrates.
Or they can be big, like buyingyour next rental property.
Again, not always something thatis in black and white, and that
(43:21):
can be measured, but maybe inthe upcoming year you have big
changes personally and you needto back off from the business a
little bit.
Maybe you have reached a placewhere hiring a property manager
makes more sense.
And if so, check out episodes 39and 40 where we do a deep dive
into the 50 plus must askquestions when hiring a property
(43:43):
manager.
And we even have a questionnaireset up for you that you can
purchase and you can use thatwhen you're evaluating and
vetting your property managers.
So we'll link all of that in theshow notes for you.
Kevin (43:55):
Yeah.
I mean, we worked hard on thoseepisodes in that questionnaire.
And there's a ton of valuablecontent there.
Alright, now I think we touchedon legal before, but doing a
legal compliance check is a goodidea.
The end of the year is theperfect time to meet with all
your professional team members.
So, your realtor for propertyvalues, your CPA for tax prep
(44:19):
and financial planning, and ofcourse, your real estate lawyer
who can review your leases andmake sure they are compliant
with state, local, and federalregulations.
Review your tenant screeningprocedures to make sure you
won't get in trouble there.
And same goes with your evictionprocedures, which we hope you
never have to use.
(44:42):
The last thing we want torecommend is to take time to
reflect on your professionaldevelopment.
What can you do to improveyourself as a self managing
landlord?
Like, are there any courses totake or certifications you can
get?
One that comes to mind is totake a course on fair housing
and get your certificate inthat.
We will link the Fair HousingInstitute in the show notes
(45:04):
where you can take one big oneor many specific courses related
to fair housing.
Like for ESAs or criminalbackground checks.
If you use the code YLR 2024,you'll get 15% off any course
purchase.
And we get nothing in return forthis.
(45:25):
We are just sharing thatdiscount code for you to use.
Alright, the last thing I willsay about professional
development is to encourage youto join your local rental
housing association.
I mean those memberships inlocal or even national
associations can provide so manyvaluable resources, including
legal advice, networkingopportunities, and industry
(45:47):
updates.
Stacie (45:49):
Yeah, we are members in several of those.
And as a matter of fact, we justattended one conference down in
LA, Long Beach, California forthe AAOA, and we'll be traveling
back to Idaho to do our Novemberinspections, and we're finally
going to be able to attend oneof the meetings for the Boise
(46:09):
real estate investors networkback there.
It's a good opportunity, notonly to learn about the local
area with regards to rentalproperties, but investment
outlooks, and we get to networkwith other landlords as well.
Kevin (46:22):
Yeah, I mean, I really enjoyed the one down in Long
Beach.
I mean, that was better than Iexpected and that has me looking
forward to Boise, especially toonow.
Stacie (46:31):
Yeah, it was fun.
It was nice to get away for acouple days, too.
And, shameless plug here, we dohave a course on the process of
tenant screening coming out in2025.
And we would love if you wouldconsider taking it and expanding
your knowledge of self managingrental properties with our
course.
(46:51):
There is a link to sign up andbe on the wait list in our show
notes.
And one last thing we forgot tomention was, if you're someone
who wants to send a holiday giftto your tenants, start working
on that.
We did an episode last yearabout the benefits of giving
gifts and ideas on what you cando, and we'll link that in the
show notes to give it a listen.
But time tends to get away fromus as we get closer to the
(47:14):
holidays, and with tenantstraveling, consider sending or
dropping off that gift a littleearly.
You can even use Thanksgiving asyour gift giving, uh, with a
message about being thankful forthem as tenants.
All right, you guys, so that isour episode.
We hope we got your mindthinking about what you can do
this last quarter of the year toorganize and prepare yourselves
(47:37):
and your rental propertybusiness for the upcoming year.
And if you guys like what youhear on this podcast, would you
do us a favor and subscribe orfollow on your favorite podcast
platform?
This way, all of our episodeswill be waiting for you each
week, so you can enjoyeverything we have to say about
landlording and owning rentalproperties.
(47:58):
And we would be reallyappreciative if you could even
leave us a kind of review.
Those reviews really help otherlandlords like you know that
we're the real deal andhopefully they'll listen too.
So links to those review sitesare in the show notes.
Now, if you have a question oryou want to suggest a subject
for our podcast, you can text usat 650 489 4447.
(48:23):
That's 650 489 4447.
Or you can email us atStacie@your landlord resource.
com.
That's Stacie with an I E orKevin yourlandlordresource.
com.
We want you to feel free todownload any of those free forms
that we offer, or if you want tosign up for our free weekly
(48:45):
newsletter, you can access allthose in the show notes as well.
And if you'd like to followalong, you can find us on
Instagram and Facebook, and wealso have a private Facebook
group as well.
You will find all the links youneed in our show notes.
Thanks again for taking time outof your day to listen to our
podcast and until next timeyou've got this landlords!
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