I'm evany Caldwell with Rei investment society. And we are going to talk about the role of the property manager. So here you again all of the tools and resources you need to start and have a successful property management company, you're going to learn the role of the property manager. So the role is number one to find quantify tenants when I mean find qualified tenants, I mean that you've actually done your due diligence as far as pre qualifying them. And when you're done your pre qualifying your pre qualifying is what are the criterias that the landlord set for? Now sometimes if it's a new landlord, they may not know what those traditional criteria should be or the standard criteria should be.

Such as okay for them to qualify credit A 600 credit score, or maybe a 650 credit score, or it also could be they make three times the income, no bankruptcies, no judgments don't fiction. So again, they're working. And sometimes you don't have to be working as long as they get the income, whether it's government assistance, it doesn't matter whether it's Child Support alimony, as long as they qualified income wise, you cannot discriminate they qualify. So, qualifying attendance is one of the things do an accredited background check is another thing and then also being able to find the tenant, how are you effectively finding this tenant? So that is one of the roles of the property manager determining the rental income, I'm sorry, the rental amount. So what is the rental amount?

How do you determine the rental amount? Well, of course you should be able to know the area you should be to know what the market rent is the market rate of rent is going for one bedroom or for two bedroom, whether you're living in the river North area Whether you live in in the Gold Coast area, whether you live in in High Park, whether you live in Beverly Hills, you should know what the rental market rates are. If you don't you need to start doing research. One of the places you can kind of get an idea what the rents are is going to Zillow. But there's another website, if you send me your, if you email me or follow me, I would definitely give you that information. There's definitely another website that you can actually get rental rates from.

Collecting rent is another job of the property manager. So you have to effectively collect rent, how do you collect rent? Well, one of the ways you're going to collect rent is no, you're not going to knock on the door. This is not the the Flintstone days. But what you're going to do is make sure you have the correct property software, whereas the tenant can actually go online and pay the rent. So as a property manager, you need to make sure that you're able to collect rent several different ways.

Whether it's a car Whether it's a credit card payment, whether they pay online, whether they pay, you know, come to the office, whether they mail a cashier's check money order and PayPal, it really doesn't matter. But the fact is, you need to be able to collect rent in several different ways, and making sure that you enforcing when the rent is due, and how much the rent is, and if there's any late fees. So collecting the rents and making sure that they're paid on time is the job of a property manager, creating and enforcing house rules. You've got to create an enforce house rules. So I'm going to talk about that in just a few minutes. Property maintenance, the up keeping of the building, making sure as far as this property maintenance that yes, you do have the janitor Yes, you do have to build an engineer.

But you know what? There's other parts of the property maintenance that property managers don't even realize such as vendors. Maybe you don't have a regular nine to five janitor, maybe you don't have a regular nine to five plumber, that's okay. But you need to have vendors that you are in contract with, whereas you can call them because unit number 202. flooded unit number five be the electricity went out, yes, they paid the bill. So there was some kind of electrical issue. So you need to be able to have vendors on speed dial.

But you also need to make sure that you've done your bidding properly when it comes to these vendors. And when I say you're bidding properly, just because you got a plumber, you excited and you say, Whoa, you know, I'm doing really great. I'm a property manager and I have all the maintenance in the world. All the maintenance in a world don't matter if you haven't done your due diligence to the fact where as you haven't gotten your bids in, because if you do pick any vendor, you got a budget issue. So budgeting is your next most important thing as a property. Manager.

The reason that ambassador in the landlord hired you is because number one, it was for the upkeep. But again, they want to make money too. They want to know what the ROI is the return of investment. So if they don't have a good return of investment and a good cap rate on their property, on their portfolio on whatever property that you are managing, that you're not a good property manager. So again, as a property manager, it's extremely important that you find qualified tenants determine a rental amount, collect the rents on time, create the house rules and enforce them property maintenance and make sure you got good vendors bedded in and you bid with them, and also budgeting. Now, finding qualified tenants is extremely important when it comes to being a property manager, especially because you're representing your landlord.

Managing tenants is another core responsibility when it comes to being a property manager. The property manager may be involved in finding tenants and screening the prospective tenants and men managing the daily complaints and all the issues regarding to the tenants. So finding the tenants as a property manager are extremely important when it comes to fill in the vacancies. Now, you have to make sure that when you're advertising and finding these tenants, you're not just advertising anywhere. There are a lot of different several apartment rental syndication websites that you can list your properties on to find those tenants. And for an example, you have Zillow that you can listen to you have written links who does a rental syndication and when I say a rental syndication, your post your property on this one particular website, when you post them on one website is syndicated out to 50 to 100 different websites, and it's little to minimum work that is done for you.

Now, in addition to that, when you're doing some of those websites, like they have written direct rent with direct rent, try that Something that I actually put inside of this course right here under the Tools outside of the syndication, but there is a section on there. Whereas if they want to see the apartment, they can see it, but also, it says, Hey, would you like to get pre approved for this apartment? Would you like to get pre qualified? Would you like to run up credit a background check. So some of these software's that I gave you the tools for at the very end of this course, will actually do the screening process for you. The other job and rycart guarding to find the qualified tenants is you want to make sure that you are effectively not just having the credit and background check ran, but you understand what it is that you're doing.

Your landlord gave you a set criteria as to how he or she wants to proceed with tennis. It needs to be equal across the board doesn't have nothing to Do a race creed, color, religion, sex origin, it needs to be consistent across the board. Everyone he said the same credit score. Everybody needs to make the same income. If you say there's no evictions, credit, no evictions, bankruptcies, collections judgments, it needs to be the same across the board. So just make sure that you are finding qualified tenants that are going to take care of your landlord's property.

Another role of the property manager is to determine the rental amount, setting the rental amounts collecting and adjusting. So when it comes to setting the rental amounts, the property manager basically need to know what the rents are in the area. They need to be able to determine what the rent rate is based upon what the market rent is going for in the area and basically do a comparable analysis. So one of the ways you can actually do this is I'm there's a way website that I will give to you as a tool that you can go to they help you determine the rents. I don't want you to ever assume what the rents are supposed to be. Just because 123 Main Street is a two bedroom and is rent for $4,000 does not mean that your landlord property at one to five main street can rent for $4,000 because 1123 Main Street was a luxury condo that was being rented and it has a bigger square footage 2500 square feet the granite counters open concept is stainless steel appliances.

Everything in there is just over the top floor to ceiling windows. But then your property is two bedrooms 1000 square feet from mica counters that hasn't been updated. It actually has a radiator versus forced air. There is a big difference here. So you got to know just not only the market rent in it area but also what the rents are going for if a property was recently rehabbed. If it's new construction, if it's just living ready, or overall, if it's just a complete dump, just know what your rent rates are.

Collecting rent is another thing that's important as you as a property manager, your owner, one of the reasons they got you is to make sure that you're gonna collect rent. A lot of times depending upon the type of property you got, your landlord investor may actually be someone that's out of the country. So when is in Australia, someone is in Canada, and you're managing their portfolio, so they were allowing you to collect the rent. One of the ways that you're gonna effectively collect the rent and be strict about it, is to make sure number one you set for late fees as to if the rent is paid by the fifth This is what's due. In addition to that, you also want to make it convenient for your tenants to pay rent, pay rent online, pay rent with one of the rental portals self Whereas the property software's that in your tools, so keep in mind you have property tools that are in this course for you to go to to see what properties software company you can use to collect rents, whether it's with a CH whether it's with a credit card, whether it is with a Google pay, whether it's PayPal, it doesn't matter.

This is this is 20 2020 2019 2019 2020. And the reality of it is, the world is all online, your life is pretty much online. So which means you have to make sure that your tenant can pay their rent, every which way possible. No excuses, if and buts about it, whether they do a wire, they need to be able to pay rent. And as the property manager, you need to be able to enforce the rent getting paid and getting paid on time, based upon what their lease says. And this is the lease That you set for based upon what your client the investor the landlord wanted the rents to be and what wanted the late fees to be.

Also, in regards to determining the rent, moving specials can even help with that move. And the reason I say moving specialists can help with that move in specialists can help with what the rent is going to be as far as the first month's rent as far as what the security deposit going to be. Because again, this might be a move in special, but it also is going to determine how you market it, how you just got tenants in real fast. So yes, you still want them qualify. But again, having that move in special is not only good for helping you find qualified tenants, but also helping you determine the rent either for that particular month but the key word is for that month you move in this month. The rent is a 50% off you move in this month, the rent is free for the first month but then after that you have to continue to pay this But there is an application fee and a security deposit.

So moving specials are always a good marketing tool and a promotional tool, especially if you're a new property manager or you get a building that's brand new, and it's huge, and you try to get filled up by a certain deadline, or you get a crappy building, and you're having a hard time getting tenants in here. So there's several reasons why you will have a move in special. But again, that is one of the factors that is used to help determine what the rent is going to be because that part is moving special is actually going to be in the profit and loss of the buildings going to be in the rent roll of the building is going to be as far as added to the budget of building as to what got what was made for that month, what was made for the year on these units and why and one of the reasons could have been lower for certain months was because of the move in special.

Now setting house rules is tremendous. You almost have to do that all the time. So just when you think that everything is perfect when it comes to your tenant, guess what? There's going to be a catch. There's definitely a catch whether they move in and whether they're moving out whether they've been there for years, there's always going to be reasons why you must have house rules and enforce them, despite what you think. tenants are not who you thought they was when you when they first moved in.

So you definitely have to establish these house rules and make sure you put those house rules in writing. One of the reasons why is because this is going to prevent tenants from abusing the property and making sure that if not causing you an idiot where it can cut into your budget cut into not just your budget with a builder has made your your investors ROI rate of return of their investment. Because if you're constantly calling maintenance and other vendors for the repairs, based upon your tenant constantly breaking house rules, that's not good. Also So when you have house rules, it makes sure that your tenant kind of follow what you say because they're basically scared that they could potentially get evicted. You know, and with that, anything that they do that is in the house rules, and they actually go against the house rules. Again, make sure you write that up.

You always want to keep a file because for whatever reason, you need the victim, you have several reasons why you need to victim wasn't just because they didn't pay the rent. But it also could be because then follow the house rules and those house rules could be anything from like I said the late You know, the late rent, the right of entry, meaning when I say right of entry, they came in the building in a way that they wasn't supposed to, on a consistent basis. They were having conversations, heated conversations, arguments, fights in the building, to the point whereas it may other tenants scared. So these could be house rules, where's no fighting in the building and things of that nature. Garbage removal, that's another house rule. You need to set forth exactly where the garbage should be put how the garbage should be put out where the garbage should be removed to how should we recycle?

If there's any type of improper garbage removal, that absolutely you want to write them up, put that in a house rules. The outside of keeping the landscaping that is part of the house rules to meaning, no trash, if you have your trash pick it up. If you're caught throwing trash out, then they can get rid up for that because again, that goes back to maintenance. Now you have to go ahead and call the janitor to clean up. What have you got the janitor working on another problem in the building? He can be in so many different places because the more you have him working constantly for little tedious things that the tennis could have done.

Now you call Calling again, vendors, vendors cost money. You're calling vendors not to clean up. But you may have to call the vendors to do the plumbing that john could have done who is the building's maintenance guy, something simple john could have done but he couldn't do it because he had to basically clean the landscaping clean a landscaping that he's already cleaned up, that your tenant clearly trash. So this should be in a house rules on the quiet of enjoyment, you know, quiet out was if this is a multi family building that you are managing, there needs to be quiet hours meaning it i'm not saying that the tenant can't be like absolutely, it can be loud. They can do whatever they want to. But as far as having a music blasting real loud, a party going on, then it shut off at 10 o'clock like you cannot have music extremely loud, especially if you're in a big apartment building because People have to get up and go to work in the morning.

So it's quiet enjoyment, they need to have quiet enjoyment. appropriate use of kitchen appliances. Now this mainly, you know, if the building is like I say, a newly remodeled building, you have Kenmore appliances, you have Frigidaire appliances, whatever the appliances are that you have this there, that your landlord and you as a property manager, you know, feels extremely expensive. They need to be able to clean those appliances in a certain way. So you can actually say, Hey, this is what we want you to use for the cleaning of the appliances. Also, when it comes to the appliances, if there's a garbage disposal, Hey, no grease putting down the garbage disposal.

Reason is you're emphasizing this is because again, if they're putting grease down a garbage disposal and for whatever he's making, that's okay, and it gets stopped up. Now we got two issues. Got a plumbing issue, but then we have an issue whereas we may need meat may need a new garbage disposal. JOHN the maintenance guy knows plumbing. But john, the maintenance guy, no don't know how to install that garbage does flow just garbage disposal. So he may know basic plumbing, but not to install a garbage disposal.

So now you have to call out one of the vendors so that you want to ensure that your house rules set forth their pet policies, emphasizing emphasizing emphasizing whatever the pet policies are, you do not allow dogs who do not allow calves if you do allow dogs, you know, under 25 pounds if you do allow kids, no more than two kids, whatever your pet policies are, it needs to specify it in the lease, but most importantly be part of the house rules and they should actually signed the house rules. So with doing all of this, this just make it easier for Have you as a property manager to make sure you help enforce and protect your property, your investment properties, your landlord property, and also is going to help when it comes to the reduction of maintenance. And in addition to that the budgeting making sure you keep the numbers down as far as the money that's going out, but making sure you also collected all the money that's coming in.

Now, the other thing is property maintenance. In regards to the property manager, you must keep the property in a safe and habitable condition for the properties that you are maintaining and your investors as well as the tenants that are there. So you want to also make sure you have regular maintenance emergency repairs. Now in regards to the property maintenance, this usually is not even exempt to just like I said, plumbing, electrical, it can pretty much be you know, preventative maintenance, such as extermination. Checking, you know, exchanging changing the filters, things of that nature. Because if you don't change the filters, and everything's fine, like it's cool to you, well what happens in six months what happens in a year you ain't changed those filters.

Now all of a sudden, the, you know, the P tech, the air conditioner, all of that things of that nature. HEPA see all of that blown out, only because you didn't do preventative maintenance. So the property maintenance guy or girl is going to do everything that you just asked them to do as far as landscaping, snow removal, removal and trash, any type of repairs that needs to be done. And you need to definitely make sure that you have a large network that are reliable of plumbers, electricians, carpenters and other contractors. These individuals, like I said, Yes, you may have someone that works on staff, but you definitely need to have your vendor list. Make sure that you vet these people so it's not just about the reviews and everything that Gun.

But again, you know your budget better than anybody you know what your budget is for your your building, you know what your budget is for the landlord. So therefore, don't just go spend all this money because you think is yours, it's not yours is your landlord. And if you spend all their money and again, I'm gonna say this again, they don't see the ROI, they return of their investment, you would no longer be their property manager. I don't care if you signed a three year contract or a five year contract, they will find a way to get out of the contract, because technically you violated something that was in a contract that basically says I can fire them because they're not worth crap. So when it comes to property maintenance, make sure that you are supervising everybody, supervising the building as a whole as upkeep, supervising the vacancies because the vacancies that they've taken too long it become it can become A property maintenance issue.

So with that being said, just make sure that as a property manager, you have all of your vendors on speed down, you pretty much know their prices, you know who's cheaper, who's reliable, and you know, your staff what they're able to do. And again, you're going to make sure you enforce your house rules, so you don't have a lot of property maintenance issues. As a property manager, one of the other most important things is you're going to be responsible for managing the budget as well as maintaining records. So property managers can be responsible for managing the budget for the building, as well as obviously they have to maintain these records. Now managing the budget, the manager must operate within a set budget that is set forth for the building, by the investor by the investment company by the landlord, if there's any type of emergency situations when the act of attendance or if there's any type of structure issues.

That can cause a great danger, then guess what, you need to make sure that you have a set aside for this for these emergencies for these repairs that needs to take place. As far as maintaining the records, you must maintain these records the property managers should always maintain records for the properties that they are managing. This does not just talk this is just this is just not for maintenance. This is for everything from signed leases from the inspections that was done. The inspections that was done could have been HUD inspections for low income for subsidies, inspections could have been anything from an extermination. expection inspection could have been from just your company's general six month or a year inspection just to see how the property looks or how the apartment looks.

Like I say any type of sign leases maintenance request, any complaints, any records of repairs, cost of repairs, maintenance calls, rain collections, any type of um, like I said complaints in regards to other tenants, as well as any police complaints that may have came in from or you know from another tenant or maybe the police gotten call. These records are really important for you to keep because again, if you need to evict a tenant, you need to have records because again, every state has different laws, but the state of Illinois is attendance right state, what that basically means is 10 is always right. 10 has come first. So to evict a tenant in the state of Illinois almost in possible, you can do it. But it's a little hard, but somebody other states, Texas, don't pay your rent, you get evicted tomorrow. So just know your know your know your state laws, know how to maintain these records.

And just enforce these rules. That's how I'm gonna keep saying enforce these rules, stay on budget and be a good property manager. You would get so much more business from your investors because all you need is a few good investors, you get three good investors, they get a lot of portfolios, guess what, you don't need a lot of clients. As simple as that. So I've pretty much informed you the role of the property manager from everything from finding the qualified tenants determining the rent amounts collected and rents, creating the force and a house rules property maintenance and budgeting. The only thing I really didn't touch on but that is in another course is just really knowing the landlord tenant laws, which I've already previously kind of mentioned.

Just know your state laws, know about how to properly handle the security deposits how to terminate the lease, how do you Vic the tenant, comply with a property and the safety standards and you Overall know the state law for apartment rentals for tenants for landlords. Otherwise, you're done with this particular section of the role of the property manager. And I hope this information was useful. There will be a handout there are these information as far as to what website you can go to, to basically be able to put you in a situation to do what to go ahead and learn how to market and analyze the different rent comparables for your city for your estate for your property.