[Emily]

I got being a landlord thrown into my lap recently… Where should I start for rental agreements? Legal Zoom? An attorney? Can I ask a property management company? I’m in Texas if that makes a difference.

[Harmony]

We have a rental house in Frisco and use PMI Property Management. They are great. Their commission is 6.5% of our gross rent.

[Chanute]

I manage a property in San Antonio and use my old PM rental agreement. Is the rental property also in Texas? If you don’t want the headache of being “on call” for every need., get a PM. If you don’t mind calls and managing the occasional work order, do it yourself. Legal zoom and I can send you my agreement as an example if you like.

For reference: I used PM from ‘13-‘18. Came back to check external property which wasn’t up to my standards and required repairs. They were fired. I’ve been managing myself since ‘18 and live in GA.

Suggested: I keep hearing the 1% rule when considering buying rental properties

[Hamza]

First make sure the propriety is worth it. Sometimes people overvalue something because it’s a specific asset class but ignore the underlying asset.

See if it’s even worth it as a landlord to keep (is it profitable?) and if not then should you keep it as a second home, vacation home, or just a way to battle inflation and home prices?

If the pros outweigh the cons then you’ll want a lawyer to draft the paperwork needed. In reality they already have these documents drafted and they have the entry level employees make changes. You’ll want to make sure you find a real estate lawyer to not only draft these documents but more importantly help you store the property in a way where you lessen the liability.

Once that’s done you find the best property management company there is. This is the hardest part but once you find them it will be nearly hands off from there. This is why the first step was necessary, if you are not making money then how can you expect to pay a management company and still profit?

[Pam]

I’m in Texas and have a few properties. Happy to talk on the phone on what’s it like to own rental property and what you need to know. I am not a realtor, property manager, or any other service provider. Just a fellow rental property owner.

I think the first question is how involved in the business do you want to be.

It can be overwhelming at first.

Also, check out: Home office deduction vs rental income: which is better?

[Neka]

If you are managing your own properties and want rental agreements to give your tenants, you can sign up for ZILLOW.

I have not tested the site myself (I hired a property management company) but was told the site keeps up with the new state laws and customizes clauses for each property.

[Robert]

Get yourself a good property management firm. I have used the same firm since 1994. She takes 10% of the gross rents of the top, but she deals with EVERYTHING.

She is worth her weight in gold, IMHO. And get yourself a good CPA.

[Lit]

Zillow does have everything from background check to credit check to collecting your rent or customizing a contract. I use the Texas lease agreement by realtor/brokers or you can pay a realtor to draw the contract.

My first year as a landlord I hired a company but after the first year I learned to self-manage.

[Joel]

I hated managing rental property. These days if I received a property as a gift or inheritance I’d just sell it and add the funds to my investment portfolio. I wouldn’t feel obligated to keep any piece of property for any reason unless it was my home.

But that’s just my opinion. Do with it what you will.

[Aaron]

The bigger question is how did you get owning an investment property “thrown in your lap”?

If it’s not something you have thought about and planned to do, it may not be a good idea.

[Ben]

Big question is do you want rental property? If not, sell.

[Ryan]

Get yourself a property manager. The money it costs is some of the best money I have ever spent. They handle all the legal paperwork. Vetting, repair calls.

I would usually spend about 5-10 minutes a month dealing with my properties. That was usually 1-2 emails and checking the money/income&expenses statement.

[Author]

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