Module 7: Property Management Essentials

A Beginner's Guide to Building Wealth Through Property

---

Module Overview

Time Required: 120-150 minutes
Difficulty Level: Beginner to Intermediate
Prerequisites: Modules 1-6 completed

Learning Objectives

By the end of this module, you will be able to:

1. Understand landlord legal responsibilities and tenant rights
2. Create effective lease agreements that protect you
3. Market rental properties to attract quality tenants
4. Screen tenants thoroughly using best practices
5. Set appropriate rent prices for maximum occupancy and income
6. Handle routine maintenance and emergency repairs
7. Manage tenant relationships and resolve conflicts
8. Navigate the eviction process when necessary
9. Decide between self-management and hiring property managers
10. Set up systems for efficient property management

---

Part 1: Landlord Legal Responsibilities

Before renting your property, you must understand your legal obligations as a landlord.

Federal Laws Affecting Landlords

Fair Housing Act (FHA)

What It Prohibits: Discrimination based on seven protected classes:

1. Race
2. Color
3. National origin
4. Religion
5. Sex (including sexual orientation and gender identity)
6. Familial status (families with children, pregnancy)
7. Disability

What This Means for You:

You CANNOT:

• Refuse to rent based on protected classes
• Set different terms or conditions
• Advertise preferences ("No children")
• Provide different services
• Falsely deny availability
• Harass or intimidate

Examples of Violations:

• ❌ "No kids allowed"
• ❌ "Prefer young professionals"
• ❌ "Christian landlord seeks Christian tenant"
• ❌ Higher rent for families
• ❌ Refusing emotional support animals

You CAN:

• Screen based on credit, income, rental history
• Require all applicants meet same criteria
• Set occupancy limits (2 per bedroom + 1 reasonable)
• Charge pet fees (not for service/support animals)
• Require minimum income (2.5-3x rent typical)

Penalties:

• Fines up to $100,000+
• Compensatory damages to victims
• Legal fees
• Loss of property in extreme cases

Best Practice: Treat every applicant identically. Use objective criteria only.

Americans with Disabilities Act (ADA)

What It Requires: Reasonable accommodations for disabled tenants.

Examples:

• Allow service animals (even if "no pets" policy)
• Allow emotional support animals (with proper documentation)
• Permit tenant modifications (wheelchair ramps, grab bars)
• May need to modify common areas for accessibility

Tenant Responsibilities:

• Tenant pays for modifications
• May need to restore to original (unless modification benefits everyone)
• Must provide documentation for support animals

Lead-Based Paint Disclosure (Pre-1978 Properties)

Requirements:

• Disclose known lead paint hazards
• Provide EPA pamphlet "Protect Your Family from Lead in Your Home"
• Include lead disclosure in lease
• Give tenant 10 days to conduct lead inspection

Penalties:

• Up to $19,507 per violation
• Criminal penalties possible
• Treble damages to injured parties

State and Local Laws

Vary Significantly by Location:

• Security deposit limits and handling
• Notice requirements
• Rent control or stabilization
• Required disclosures
• Habitability standards
• Eviction procedures
• Required lease terms

Your Responsibility: Research laws in your state and city. Ignorance is not a defense.

Resources:

• State landlord-tenant law guides
• Local landlord associations
• Real estate attorney consultation
• Property management companies

Landlord's Duty to Maintain Habitable Property

Implied Warranty of Habitability: Property must be safe, sanitary, and fit for human habitation.

Required:

• Working plumbing, heating, electrical
• Hot and cold running water
• Adequate sanitation (working toilet, shower/bath)
• Structural integrity
• No pest infestations
• Working smoke detectors and CO detectors
• Adequate locks
• Weather-tight roof and walls
• No health hazards

Your Obligations:

• Make repairs promptly (24-48 hours for urgent)
• Maintain common areas
• Address code violations
• Respond to tenant repair requests
• Keep property in compliance with codes

Tenant's Rights if You Don't:

• Withhold rent (some states)
• "Repair and deduct" (fix and deduct from rent)
• Break lease without penalty
• Sue for damages
• Report to housing authority

Best Practice: Respond to all maintenance requests quickly. Document everything.

Privacy and Entry Rights

Tenant's Right to Privacy: Tenants have right to "quiet enjoyment" of property.

When You Can Enter:

• Emergencies: Immediately (fire, flood, gas leak)
• Repairs: With notice (24-48 hours typical)
• Inspections: With notice, reasonable times
• Showings: With notice (when selling or re-renting)
• Court Order: With proper documentation

Notice Requirements:

• Typically 24-48 hours advance written notice
• Reasonable hours (9 AM - 5 PM generally)
• State specific day/time of entry
• Some states allow oral notice, but written is better

You CANNOT:

• Enter without notice (except emergencies)
• Harass tenant with excessive entries
• Enter to snoop or inspect tenant's belongings
• Change locks to force tenant out
• Remove tenant's property

Best Practice: Always give written notice. Document entries. Enter only when necessary.

Security Deposits

What You Can Collect: Varies by state, typically 1-2 months' rent maximum.

Proper Handling:

• Deposit in separate account (required in many states)
• Provide receipt
• Pay interest (required in some states)
• Cannot use during tenancy (except with tenant permission)

Deductions Allowed:

• Unpaid rent
• Damage beyond normal wear and tear
• Cleaning (if left excessively dirty)
• Unpaid utilities (if tenant responsible)
• Broken lease penalties (if specified in lease)

Normal Wear and Tear (Cannot Deduct):

• Faded paint
• Minor scuffs on walls
• Worn carpet (expected lifespan)
• Small nail holes
• Dirty windows
• Minor scratches on floors

Damage (Can Deduct):

• Holes in walls (large)
• Broken windows
• Stained or burned carpet
• Broken appliances (tenant fault)
• Missing fixtures
• Excessive dirt/cleaning needed

Return Timeline:

• Typically 14-45 days after move-out (varies by state)
• Must provide itemized list of deductions
• Return remaining balance with explanation

Penalties for Improper Handling:

• Must return full deposit
• Pay tenant damages (2-3x deposit common)
• Pay tenant's attorney fees

Best Practice: Document property condition at move-in and move-out with photos/video.

---

Part 2: Creating Effective Lease Agreements

A strong lease protects both you and your tenant.

Lease vs. Rental Agreement

Lease:

• Fixed term (usually 1 year)
• Terms cannot change during lease period
• Rent locked for term
• Tenant committed for full term
• More stability for landlord

Rental Agreement (Month-to-Month):

• No fixed end date
• Either party can terminate with notice (30-60 days)
• Can change terms/rent with notice
• More flexibility
• Less stability (more turnover risk)

Recommendation for Beginners: Use 1-year leases for stability and predictable income.

Essential Lease Components

1. Parties and Property

This Lease Agreement ("Lease") is made on [Date] between:

LANDLORD: [Your Name]
Address: [Your Address]
Phone: [Your Phone]
Email: [Your Email]

TENANT(S): [Tenant Name(s)]

PROPERTY ADDRESS: [Rental Property Address]
Unit/Apt #: [If applicable]

Include All Tenants: Every adult occupant (18+) must sign lease and be responsible for full rent.

2. Lease Term

TERM: This lease begins on [Start Date] and ends on [End Date].

RENEWAL: Lease automatically converts to month-to-month unless either 
party gives 60 days written notice of non-renewal or new lease is signed.

3. Rent Amount and Due Date

RENT: $[Amount] per month

DUE DATE: Rent is due on the 1st day of each month

LATE FEE: If rent not received by [5th of month], late fee of $[Amount] 
or [%] of monthly rent applies.

GRACE PERIOD: [Optional: "No late fee if rent received by 3rd of month"]

PAYMENT METHODS: Rent payable by:
- Online payment to [Portal/Venmo/Zelle]
- Check payable to [Your Name]
- Money order

Mail payments to: [Address]

Late Fee Guidelines:

• Typically $25-100 or 5-10% of rent
• Must be reasonable
• Check state law for maximums
• Some states require grace period

4. Security Deposit

SECURITY DEPOSIT: $[Amount] due on or before [Date]

DEPOSIT USE: May be used for:
- Unpaid rent
- Repairs beyond normal wear and tear
- Unpaid utilities
- Cleaning if left excessively dirty
- Broken lease penalties

DEPOSIT RETURN: Within [30 days] of move-out, Landlord will:
- Return deposit with interest (if required by law), OR
- Provide itemized list of deductions and remaining balance

MOVE-IN CONDITION: Tenant acknowledges property delivered in acceptable 
condition. Move-in inspection report attached.

5. Occupancy

OCCUPANTS: Only the following persons may reside at the Property:
- [Tenant Name(s)]
- [Minor children names and ages]

GUESTS: Guests may stay no more than [14 consecutive days or 30 days 
per year] without Landlord's written permission.

SUBLETTING: Tenant may not sublet or assign this Lease without 
Landlord's written consent.

Why This Matters:

• Controls who lives in your property
• Prevents unauthorized tenants
• Limits wear and tear
• Ensures compliance with occupancy standards

6. Utilities and Services

TENANT RESPONSIBILITIES:
Tenant is responsible for the following utilities and services:
- Electric
- Gas
- Water/Sewer
- Trash collection
- Internet/Cable
- Lawn maintenance

LANDLORD RESPONSIBILITIES:
Landlord is responsible for:
- [List anything you pay, if anything]
- Property taxes
- Homeowners insurance
- Structural maintenance

Best Practice: Make tenant responsible for all utilities possible. Reduces your costs and gives tenant control over usage.

7. Maintenance and Repairs

LANDLORD'S RESPONSIBILITIES:
Landlord will maintain:
- Structural components (roof, foundation, walls)
- Major systems (HVAC, plumbing, electrical)
- Appliances provided by Landlord
- Common areas (if applicable)

TENANT'S RESPONSIBILITIES:
Tenant will:
- Keep property clean and sanitary
- Prevent damage
- Replace light bulbs
- Change HVAC filters monthly
- Report problems promptly
- Not make repairs without permission
- Pay for damage caused by Tenant or guests

MAINTENANCE REQUESTS:
Tenant must report maintenance issues to [Phone/Email] promptly.

EMERGENCY REPAIRS:
Emergencies (water leaks, no heat, etc.) should be reported immediately 
to [24/7 Contact Number].

TENANT-CAUSED DAMAGE:
Tenant is responsible for repair costs due to negligence or misuse.

8. Property Use and Restrictions

USE: Property is for residential use only. No business use without 
written permission.

PROHIBITED ACTIVITIES:
- Illegal activities
- Drug manufacture or sale
- Disturbing neighbors
- Damaging property
- Violating HOA rules (if applicable)
- Smoking inside [if applicable]
- Excessive noise after [10 PM]

ALTERATIONS:
No painting, modifications, or alterations without written permission.

9. Pets

PETS: [Choose one]

Option A - No Pets:
No pets allowed without written consent.

Option B - Pets Allowed:
[Number] pets allowed with following terms:
- Pet type: [Dog/Cat/Other]
- Maximum weight: [25 lbs]
- Pet deposit: $[Amount] (non-refundable/refundable)
- Monthly pet rent: $[Amount] per pet
- Tenant responsible for all pet damage
- Tenant agrees to clean up after pet
- Aggressive breeds prohibited: [List]

EMOTIONAL SUPPORT ANIMALS:
Reasonable accommodation for support animals under Fair Housing Act 
with proper documentation.

Pet Deposit Guidelines:

• $200-500 typical per pet
• Some states regulate refundable vs. non-refundable
• Monthly pet rent: $25-75 per pet

10. Property Access

LANDLORD'S ACCESS:
Landlord may enter Property with [24/48] hours written notice for:
- Repairs and maintenance
- Inspections
- Showing to prospective tenants/buyers

NOTICE: Notice may be given by [text, email, phone, written notice].

EMERGENCY ACCESS: Landlord may enter immediately without notice in 
emergencies (fire, flood, gas leak, etc.).

11. Insurance

LANDLORD'S INSURANCE:
Landlord maintains insurance on the building. Landlord's insurance 
does not cover Tenant's personal property.

TENANT'S INSURANCE:
Tenant is strongly encouraged to obtain renter's insurance to protect 
personal property and liability.

Requiring Renter's Insurance: Some landlords require proof of renter's insurance. This:

• Protects tenant's belongings
• Provides liability coverage
• May cover tenant-caused damage
• Costs $10-20/month

12. Lease Violation and Termination

LEASE VIOLATIONS:
Violations include but not limited to:
- Non-payment of rent
- Unauthorized occupants
- Property damage
- Illegal activity
- Violating lease terms

NOTICE TO CURE:
Landlord will provide [3-10 day] notice to cure violation. If not 
cured, Landlord may terminate lease and begin eviction.

ABANDONMENT:
Property considered abandoned if Tenant absent for [30 days] without 
notice and rent unpaid.

EARLY TERMINATION:
Tenant who breaks lease early is responsible for:
- Rent until property re-rented or lease expires
- Advertising costs
- [2 months rent penalty - if allowed in your state]

MUTUAL TERMINATION:
Lease may be terminated by mutual written agreement.

13. Renewals and Move-Out

LEASE RENEWAL:
Landlord will notify Tenant [60 days] before lease expiration of 
renewal terms or non-renewal.

MOVE-OUT NOTICE:
Tenant must provide [60 days] written notice if not renewing.

MOVE-OUT CONDITION:
Tenant must:
- Return property in clean condition
- Repair all damage beyond normal wear and tear
- Remove all personal belongings
- Clean carpets professionally (if required)
- Return all keys and access devices
- Provide forwarding address

FINAL INSPECTION:
Landlord will inspect within [48 hours] of move-out.

14. Additional Provisions

SNOW REMOVAL: [If applicable]
Tenant responsible for shoveling walkways and driveway.

LAWN CARE: [If applicable]
Tenant responsible for mowing lawn and basic landscaping.

HOMEOWNERS ASSOCIATION: [If applicable]
Tenant must comply with all HOA rules (attached as Exhibit A).

LEAD-BASED PAINT: [Pre-1978 properties]
See attached EPA disclosure and acknowledgment.

FLOOD ZONE: [If applicable]
Property is in flood zone. Tenant should consider flood insurance.

15. Signatures

TENANT ACKNOWLEDGMENT:
Tenant acknowledges reading and understanding this lease and agrees 
to all terms.

TENANT SIGNATURE: _________________ DATE: _______
TENANT SIGNATURE: _________________ DATE: _______

LANDLORD SIGNATURE: _______________ DATE: _______

All Tenants Must Sign: Every adult occupant should sign. All are jointly and severally liable for full rent and all obligations.

Lease Addendums

Additional Documents to Include:

Move-In Inspection Report:

• Room-by-room condition documentation
• Photos attached
• Tenant signs acknowledging condition

Pet Addendum (If Applicable):

• Detailed pet rules
• Additional deposits and fees
• Liability for damage

Lead-Based Paint Disclosure (Pre-1978):

• Federal requirement
• EPA pamphlet provided
• Tenant acknowledges

HOA Rules (If Applicable):

• Copy of CC&Rs
• Parking rules
• Amenity usage rules

Smoking Policy:

• Clear statement on where smoking allowed/prohibited
• Penalties for violations

Military Clause (Optional):

• Allows early termination if tenant receives orders
• Required in some states for military tenants

Getting Professional Help

When to Use an Attorney:

• First lease you're creating
• Unusual situations
• Complex properties (multi-family, commercial)
• When in doubt

Cost:

• Lease review: $200-500
• Custom lease preparation: $500-1,000
• Well worth the investment for protection

State-Specific Forms: Many states have free standard lease forms:

• State realtor associations
• State housing authorities
• Legal aid organizations

---

Part 3: Setting Rent and Marketing Property

Getting the right rent and attracting quality tenants are essential.

Determining Optimal Rent

Method 1: Comparable Rentals

Same process you used for analysis, but refresh your research:

Your Property: 3 bed, 2 bath, 1,500 sq ft, good condition

Recent Rentals (Last 30 days):
1. $1,650/month - Updated kitchen
2. $1,550/month - Average condition
3. $1,600/month - Good condition
4. $1,575/month - Good condition
5. $1,625/month - Excellent location

Average: $1,600
Your Starting Rent: $1,575 (slightly below average for quick rental)

Method 2: Property Managers

Call 2-3 local property managers: "I have a 3/2 property at [address]. What rent would you recommend?"

They'll give accurate local market knowledge.

Method 3: Online Tools

• Rentometer.com
• Zillow Rent Zestimate
• Apartments.com market data

Use as secondary validation, not primary source.

Rent Pricing Strategy:

Price Slightly Below Market:

• Attracts more applicants
• Fills faster
• More choice of quality tenants
• Less vacancy loss

Example:

Market Rent: $1,600

Price at $1,575 (1.5% below):
- Receive 10 applications vs. 3
- Fill in 2 weeks vs. 6 weeks
- Choose best tenant vs. settling
- Only lose $25/month = $300/year
- Gain 4 weeks = $1,475
- Net gain: $1,175 + better tenant

Avoid Underpricing or Overpricing:

• Too low: Leave money on table, attract questionable tenants
• Too high: Sits vacant, costing far more than rent difference

Creating Compelling Listings

Great Listings = More Quality Applications

Essential Elements:

1. Headline:

Bad: "3 Bedroom House for Rent"
Good: "Beautiful 3BR/2BA Home in [Desirable Neighborhood] - Updated Kitchen!"

2. Description:

Template:

[OPENING - Paint the picture]
Welcome to this charming 3-bedroom, 2-bathroom home in the sought-after 
[Neighborhood Name]! This spacious [1,500 sq ft] property offers the 
perfect combination of comfort and convenience.

[FEATURES - Highlight best aspects]
Features include:
- Updated kitchen with stainless steel appliances
- Spacious living room with abundant natural light
- Master bedroom with en-suite bathroom
- Large fenced backyard perfect for pets/entertaining
- In-unit washer and dryer
- 2-car garage
- Central heat and air
- Hardwood floors throughout

[LOCATION - Sell the neighborhood]
Located in [Neighborhood], you're minutes from [popular amenity], 
excellent schools (rating), shopping, dining, and [major employer/university]. 
Easy access to [Highway] for downtown commute.

[CALL TO ACTION]
Available [Date]. Contact us today to schedule a showing!

3. Photos (Critical!):

Minimum: 15-20 high-quality photos

Must Include:

• Exterior/curb appeal
• Living room (multiple angles)
• Kitchen (multiple angles)
• All bedrooms
• All bathrooms
• Yard/outdoor space
• Garage/parking
• Special features

Photo Tips:

• Daytime with natural light
• Clear and uncluttered
• Wide angles showing space
• Clean property before photographing
• Consider professional photographer ($100-200)

Bad Photos = Fewer Inquiries

4. Video Tour (Optional but Powerful):

• 2-3 minute walkthrough
• Smartphone quality acceptable
• Narrate features
• Post on YouTube, link in listing
• Dramatically increases interest

5. Detailed Specifications:

PROPERTY DETAILS:
- Bedrooms: 3
- Bathrooms: 2
- Square Feet: 1,500
- Property Type: Single Family
- Year Built: 2005
- Parking: 2-car garage
- Laundry: In-unit
- Cooling: Central A/C
- Heating: Central gas
- Flooring: Hardwood/Carpet
- Yard: Fenced
- Pets: Cats OK with deposit
- Lease Term: 1 year

RENT & DEPOSITS:
- Rent: $1,575/month
- Security Deposit: $1,575
- Application Fee: $35
- Pet Deposit: $300 (if applicable)

UTILITIES:
Tenant responsible for: Electric, Gas, Water, Internet

LEASE START DATE: [Date]

6. Clear Requirements:

RENTAL REQUIREMENTS:
- Credit score: 620+ preferred
- Income: 2.5x monthly rent minimum
- Employment verification required
- Rental history: No evictions
- Background check required
- References: Previous landlords
- Application fee: $35 (non-refundable)

TO APPLY:
[Instructions for applying]

Setting expectations upfront filters applicants.

Where to Advertise

Free Options:

1. Zillow

• Reaches most renters
• Easy listing process
• Syndication to other sites
• Essential - Always use

2. Facebook Marketplace

• Free
• Local reach
• Quick responses
• Post in local rental groups too

3. Craigslist

• Still widely used
• Free for individual landlords
• Renews every few days
• Watch for scammers

4. Yard Sign

• Attracts locals
• Drive-by traffic
• Simple and effective
• Include phone number

5. Word of Mouth

• Tell neighbors, friends, coworkers
• Current tenant referrals
• Often best source

Paid Options:

1. Apartments.com

• $9.99-19.99/month
• Wide reach
• Good for multi-family

2. Rent.com

• Similar to Apartments.com
• Good exposure

3. Newspaper/Local Publications

• Less effective now
• May work in some markets

Recommendation: Start with free options (Zillow, Facebook, Craigslist, yard sign). Only pay if struggling to find tenants.

Showing the Property

Scheduling Showings:

Option A: Individual Showings

• Schedule specific appointments
• One-on-one attention
• Requires more time
• Better for occupied properties

Option B: Open House

• Set 2-3 hour window
• Multiple people view
• Less time commitment
• Better for vacant properties
• Creates urgency (competition)

Recommendation for Beginners: Individual showings for more control and safety.

Showing Best Practices:

Before Showing:

• Property clean and presentable
• All lights on
• Pleasant temperature
• Fresh smell (no strong scents)
• Remove clutter
• Mow lawn

During Showing:

• Be professional but friendly
• Highlight features
• Point out recent updates
• Answer questions honestly
• Don't oversell
• Let them explore
• Watch for red flags

Red Flags During Showing:

• Asks about getting in early without deposit
• Makes negative comments
• Seems disorganized
• Brings large group unannounced
• Doesn't ask relevant questions
• Only cares about move-in specials
• Can't meet in daylight hours

Safety Tips:

• Meet during daylight
• Tell someone where you're going
• Keep phone accessible
• Don't meet at property alone (especially first time)
• Trust your instincts

After Showing:

• Provide application if interested
• Explain next steps
• Timeline for decision
• Don't make promises

---

Part 4: Tenant Screening - The Most Important Process

Good tenants make landlording easy. Bad tenants make it miserable. Screen thoroughly.

The Tenant Screening Process

Step 1: Pre-Screening (Before Application)

Ask these questions when they inquire:

PHONE/EMAIL PRE-SCREENING QUESTIONS:

1. When do you need to move in?
2. What's your current housing situation? (Own/rent/living with family)
3. Why are you moving?
4. How many people will be living in the property?
5. Do you have pets? (Type, size, number)
6. What's your monthly household income?
7. Are you currently employed? Where?
8. Have you ever been evicted?
9. Have you ever filed bankruptcy?
10. Do you smoke?

PURPOSE: Filter obvious non-qualifiers before wasting time on showing.

Disqualifying Responses:

• Can't afford rent (income below 2.5x rent)
• Previous evictions
• Needs to move in immediately (rushing = red flag)
• Evasive answers
• Recent bankruptcy
• Multiple pets when not allowed

If They Pass Pre-Screen: Schedule showing and provide application.

Step 2: Rental Application

Essential Application Elements:

Personal Information:

• Full legal name
• Date of birth
• Social Security Number
• Driver's license
• Current address
• Phone and email
• Emergency contact

Employment Information:

• Current employer
• Position
• Supervisor name and phone
• Length of employment
• Monthly gross income
• Previous employer (if less than 2 years)

Income Verification:

• Pay stubs (last 2-3 months)
• Bank statements
• Tax returns (if self-employed)
• Offer letter (if new job)

Rental History:

• Current landlord name and phone
• Current address and monthly rent
• Move-in and move-out dates
• Reason for leaving
• Previous landlord (at least one, two preferred)

References:

• Personal references (2-3)
• Non-family if possible

Additional Information:

• Vehicle make, model, license plate
• Pets (type, breed, weight)
• List all occupants
• Bankruptcy history
• Eviction history
• Criminal history

Authorization:

• Credit check authorization
• Background check authorization
• Rental history verification
• Employment verification

Application Fee: $25-$75 to cover screening costs (credit report, background check).

Step 3: Credit Check

What You're Looking For:

Credit Score:

• 650+: Excellent
• 600-649: Good
• 550-599: Fair (proceed cautiously)
• Below 550: High risk

Payment History:

• Recent late payments?
• Collections?
• Charge-offs?
• Judgments?

Debt-to-Income:

• Total monthly debt obligations
• Add rent to see if manageable
• Should be below 50% total

Red Flags:

• Multiple late payments
• High credit card balances
• Recent evictions or judgments
• Unpaid collections
• Bankruptcy (less than 2 years)

Services for Credit Checks:

• TransUnion SmartMove ($25-40)
• TurboTenant ($29-55)
• Cozy/Apartments.com ($35-45)
• RentPrep ($21-35)

Tenant-Paid vs. Landlord-Paid: Some services let tenant order and pay, others require landlord account. Tenant-paid is simpler.

Step 4: Background Check

What to Check:

Criminal History:

• Felonies (especially violent crimes, theft)
• Misdemeanors
• Sex offender registry (always check)

Eviction History:

• County court records
• Eviction database searches
• Previous eviction is major red flag

Public Records:

• Bankruptcies
• Judgments
• Liens

Your Evaluation:

Automatic Disqualifiers (Most Landlords):

• Sex offenders
• Recent violent crimes
• Methamphetamine convictions
• Recent evictions (within 3-5 years)

Case-by-Case:

• Old minor offenses (10+ years)
• Non-violent crimes
• Bankruptcies (if 2+ years old and now stable)

Be Consistent: Apply same standards to all applicants (fair housing!).

Step 5: Income Verification

Income Requirements: Gross monthly income should be 2.5-3x monthly rent.

Rent: $1,600/month
Required Income: $4,000-$4,800/month

Applicant Income: $4,500/month
Ratio: 2.8x rent ✓ (Acceptable)

Verification Methods:

Pay Stubs:

• Last 2-3 months
• Shows gross income
• Verifies employer
• Check for consistency

Bank Statements:

• Last 2 months
• Shows deposits
• Verifies income
• Look for consistent deposits

Employer Verification:

• Call employer directly
• Confirm position
• Confirm income
• Confirm employment status
• "How long has [Name] worked there?"
• "What is their position?"
• "What is their approximate income?"

Tax Returns (Self-Employed):

• Last 2 years
• Schedule C or 1099s
• Verify with bank statements
• Self-employed need more scrutiny

Red Flags:

• Inconsistent income
• Recent job start (less than 3 months)
• Inflated claims vs. documentation
• Unwilling to provide verification
• Income barely meets requirement

Step 6: Rental History Verification

Calling Previous Landlords:

Call Current Landlord Last (they may lie to get rid of bad tenant!)

Call Previous Landlord First (more honest assessment)

Questions to Ask:

LANDLORD VERIFICATION SCRIPT:

"Hi, I'm [Your Name]. [Applicant Name] has applied to rent my property 
and listed you as their landlord. Do you have a minute to answer a few 
questions?"

1. Did [Name] rent from you?
2. What was the rental period? (Verify dates)
3. What was the monthly rent? (Verify amount)
4. Did they pay rent on time consistently?
5. Were there any late payments? How many?
6. Did they give proper notice when leaving?
7. What condition was the property in when they moved out?
8. Were there any complaints from neighbors?
9. Did they violate the lease in any way?
10. Would you rent to them again? (CRITICAL QUESTION)

If hesitant: "On a scale of 1-10, how would you rate them as a tenant?"

Red Flags:

• Landlord wouldn't rent to them again
• Multiple late payments
• Property damage
• Complaints from neighbors
• Lease violations
• Left without proper notice

What if Landlord Won't Verify?

• Try different contact method
• Ask applicant for different landlord
• Proceed with extra caution

Step 7: Make Decision

Scoring System Approach:

TENANT SCREENING SCORECARD

Credit Score:
700+: 10 points
650-699: 8 points
600-649: 6 points
550-599: 4 points
Below 550: 0 points

Income (Multiple of Rent):
3.5x+: 10 points
3x-3.4x: 8 points
2.5x-2.9x: 6 points
Below 2.5x: 0 points

Rental History:
Excellent references: 10 points
Good references: 8 points
Fair references: 5 points
Negative references: 0 points

Employment:
2+ years same employer: 10 points
6 months-2 years: 7 points
Under 6 months: 4 points

Background:
Clean: 10 points
Minor old issues: 7 points
Concerning issues: 0 points

TOTAL POSSIBLE: 50 points

40-50: Approve
30-39: Conditional approval (co-signer, higher deposit)
Below 30: Deny

APPLY CONSISTENTLY TO ALL APPLICANTS

Handling Multiple Applications

If Multiple Qualified Applicants:

First Come, First Served (If All Equal):

• Accept first qualified applicant
• Fair and defensible

Best Qualified (If Different):

• Higher income
• Better credit
• Better references
• Longer employment
• Document reasoning

Never Base On:

• Protected classes (race, religion, etc.)
• Personal preferences
• Gut feeling alone
• Anything discriminatory

Approving or Denying Applicants

Approval:

EMAIL/LETTER:

Dear [Applicant],

Congratulations! Your application for [Address] has been approved.

Next Steps:
1. Sign lease agreement (attached)
2. Pay security deposit: $[Amount]
3. Pay first month's rent: $[Amount]
4. Provide proof of renter's insurance
5. Schedule move-in inspection

Total Due Before Move-In: $[Amount]
Payment Methods: [List methods]

Please complete these steps by [Date] to secure the property.

Looking forward to having you as our tenant!

[Your Name]
[Contact Info]

Denial:

You MUST Provide Reason (Fair Credit Reporting Act)

ADVERSE ACTION NOTICE

Dear [Applicant],

Thank you for your application for [Address]. After careful review, 
we must inform you that your application has been denied.

This decision was based on information in your consumer report provided by:

[Credit Bureau Name]
[Credit Bureau Address]
[Credit Bureau Phone]

Specific Reason(s):
[Select actual reasons:]
- Insufficient credit history
- Delinquent credit obligations
- Bankruptcy
- Income insufficient for amount of credit requested
- No credit file
- Length of employment
- Unable to verify rental history
- Unable to verify employment

Under the Fair Credit Reporting Act, you have the right to:
- Obtain a free copy of your credit report within 60 days
- Dispute inaccurate information in your report

This notice does not prevent you from applying for rental housing in 
the future.

Sincerely,
[Your Name]

Critical:

• NEVER give vague reasons
• NEVER cite protected class characteristics
• ALWAYS be specific and factual
• DOCUMENT your decision-making
• APPLY standards consistently

---

Part 5: Move-In Process

Setting up the tenancy properly prevents future problems.

Move-In Checklist

Before Tenant Arrives:

☐ Property professionally cleaned ☐ All repairs completed ☐ Fresh paint (if needed) ☐ Carpets cleaned ☐ Yard maintained ☐ All appliances working ☐ HVAC serviced ☐ Smoke/CO detectors tested ☐ Change locks ☐ Confirm utilities can be transferred

Move-In Day:

☐ Complete move-in inspection with tenant ☐ Document property condition (photos/video) ☐ Both parties sign inspection report ☐ Provide keys and garage openers ☐ Review lease terms ☐ Provide important information sheet ☐ Review emergency procedures ☐ Collect first month + deposit (if not already) ☐ Provide receipts

Move-In Inspection Report

Purpose: Documents property condition to prevent disputes at move-out.

Process:

1. Walk through together (you and tenant)
2. Photograph/video everything
3. Note condition room by room
4. Both sign report
5. Keep copies safe

Sample Format:

MOVE-IN CONDITION REPORT

Property: [Address]
Tenant: [Name]
Date: [Date]

Rate Condition: E=Excellent, G=Good, F=Fair, P=Poor, N/A

EXTERIOR:
[ ] Roof: ___
[ ] Siding: ___
[ ] Windows: ___
[ ] Front door: ___
[ ] Garage door: ___
[ ] Driveway: ___
[ ] Lawn: ___
[ ] Fence: ___
Notes: _________________

LIVING ROOM:
[ ] Walls: ___
[ ] Ceiling: ___
[ ] Flooring: ___
[ ] Windows: ___
[ ] Light fixtures: ___
[ ] Outlets: ___
Notes: _________________

[Continue for each room...]

TENANT ACKNOWLEDGMENT:
I acknowledge that I have inspected the property and that it is in 
acceptable condition except as noted above.

Tenant Signature: _____________ Date: _______
Landlord Signature: ___________ Date: _______

Best Practice: Take 50-100 photos on move-in day. Store safely (cloud backup).

Move-In Package

Provide Tenant With:

1. Keys and Access:

• All door keys
• Mailbox key
• Garage opener(s)
• Gate code
• Alarm code

2. Important Information Sheet:

TENANT INFORMATION PACKAGE

PROPERTY ADDRESS: [Address]

LANDLORD CONTACT:
Name: [Your Name]
Phone: [Your Phone]
Email: [Your Email]
Emergency Phone: [Your Phone]

RENT PAYMENT:
Amount: $[Amount]
Due Date: [1st of month]
Payment Method: [Online portal/mail/etc.]
Late Fee: $[Amount] after [Date]

MAINTENANCE REQUESTS:
Non-Emergency: [Email/phone/portal]
Emergency (after hours): [Phone]

UTILITIES:
Electric: [Company, Phone]
Gas: [Company, Phone]
Water: [Company, Phone]
Trash: [Day, Company]
Internet/Cable: [Options]

IMPORTANT LOCATIONS:
Water shutoff: [Location]
Electrical panel: [Location]
Gas shutoff: [Location]
HVAC filter: [Location/Size]

HVAC FILTER CHANGES:
Replace monthly with [Size] filter
Available at [Store]

EMERGENCY CONTACTS:
Police: 911
Fire: 911
Poison Control: 1-800-222-1222
Utility Emergency: [Numbers]

REMINDERS:
- Rent due 1st of month
- Change HVAC filter monthly
- Report maintenance issues promptly
- No smoking inside
- Lawn care is your responsibility
- Snow removal is your responsibility

3. Lease Documents:

• Signed lease (their copy)
• Move-in inspection report
• Lead paint disclosure (if applicable)
• HOA rules (if applicable)

4. Manuals:

• Appliance manuals
• HVAC information
• Thermostat instructions
• Garage door opener instructions

---

Part 6: Ongoing Property Management

Now that tenant is in place, how do you manage the property?

Rent Collection Systems

Method 1: Online Payment (Recommended)

Services:

• Cozy (now Apartments.com) - Free
• TurboTenant - Free
• Zelle - Free
• Venmo - Free
• PayPal - Small fee

Benefits:

• Automatic reminders
• Scheduled payments
• Automatic tracking
• No check deposits
• Instant confirmation

Setup:

1. Choose platform
2. Add tenant
3. Set rent amount and due date
4. Share payment instructions
5. Monitor payments

Method 2: Automatic ACH Transfer

Setup:

• Tenant authorizes automatic withdrawal
• Rent automatically debited on 1st
• Deposited to your account

Benefits:

• No chasing payments
• Never late
• Minimal effort

Method 3: Check by Mail

Old School but Works:

• Tenant mails check
• You deposit
• Keep records

Method 4: Drop Box/Lockbox

Less Common:

• Physical lockbox at property
• Tenant deposits check/money order

Recommendation: Start with online payment. It's easy, free, and professional.

Handling Late Rent

Day 1 (Rent Due): If not received by end of day, send friendly reminder:

TEXT/EMAIL:

Hi [Tenant Name],

Just a friendly reminder that rent for [Month] is due. I haven't 
received it yet. Please send payment today to avoid late fees.

Payment options: [List options]

Thanks!
[Your Name]

Day 3 (Grace Period Expired, If Applicable):

FORMAL NOTICE:

Dear [Tenant],

Rent for [Month] in the amount of $[Amount] was due on [Date] and 
remains unpaid.

Late Fee: $[Amount] now applies

Total Amount Due: $[Rent + Late Fee]

Please submit payment immediately. If I don't receive payment by 
[Date], I will begin legal proceedings to collect rent owed and/or 
evict.

Contact me immediately if you're experiencing financial hardship and 
need to discuss payment arrangements.

[Your Name]
[Date]

Day 5-7:

Call tenant:

• What's going on?
• When can you pay?
• Can you pay partial now?

Document the conversation.

Day 10-14:

If still no payment, file eviction notice (varies by state).

Payment Plans:

Only If:

• Tenant has good history
• Legitimate hardship
• You believe they'll pay
• Put in writing

PAYMENT PLAN AGREEMENT

Tenant [Name] owes [Amount] for [Month] rent.

Payment Plan:
- $[Amount] by [Date]
- $[Amount] by [Date]
- $[Amount] by [Date]

Current month's rent due as normal on [Date].

If any payment missed, landlord may immediately file eviction for 
total amount owed.

Tenant: _____________ Date: _____
Landlord: ___________ Date: _____

Never Accept Partial Payments Without Written Agreement: In some states, accepting partial payment can delay eviction.

Maintenance and Repair Management

Maintenance Request Process:

1. Tenant Reports Issue

• Via text, email, or portal
• Describes problem
• Includes photos if helpful

2. You Assess Urgency

Emergency (Respond Immediately - Within Hours):

• No heat in winter
• No AC in summer (extreme heat)
• Water leaks/flooding
• No water
• Gas leaks
• Electrical hazards
• Security issues (broken locks, doors)
• Sewage backups

Urgent (Respond Within 24 Hours):

• Appliance failures
• Plumbing issues (slow drain, running toilet)
• HVAC not working (moderate weather)
• Minor leaks

Routine (Respond Within 48-72 Hours):

• Light bulbs out
• Minor repairs
• Cosmetic issues
• Non-essential items

3. Schedule Repair

Your Options:

Option A: DIY (If You Have Skills)

• Schedule with tenant
• Complete repair
• Document work done
• Keep receipts

Option B: Hire Contractor

• Get quotes (1-3 depending on cost)
• Approve expense
• Schedule with tenant
• Verify completion
• Pay contractor

4. Follow Up

• Confirm repair completed
• Ensure tenant satisfied
• Document for records

Building Contractor Network:

Essential Contractors:

• General handyman
• Plumber
• Electrician
• HVAC technician
• Roofer
• Appliance repair
• Locksmith

Finding Good Contractors:

• Ask other investors
• Property managers
• Online reviews (Google, Yelp)
• Verify licensing and insurance
• Get references

Getting Good Rates:

• Use same contractors repeatedly
• Pay promptly
• Provide repeat business
• Negotiate rates upfront

Preventive Maintenance

Prevent Problems Before They Happen:

Annual: ☐ HVAC service (spring and fall) ☐ Inspect roof ☐ Check exterior caulking/sealing ☐ Inspect foundation for cracks ☐ Service garage door ☐ Check smoke/CO detectors ☐ Flush water heater ☐ Clean gutters (spring and fall) ☐ Check exterior paint/siding ☐ Inspect plumbing for leaks

Semi-Annual: ☐ Change HVAC filters (tenant responsibility, but verify) ☐ Test GFCI outlets ☐ Check for pest issues

Quarterly Property Inspections:

Purpose:

• Catch maintenance issues early
• Verify tenant compliance
• Check for unauthorized occupants/pets
• Document condition

Process:

1. Give proper notice (24-48 hours)
2. Schedule with tenant
3. Walk through entire property
4. Take photos
5. Note any issues
6. Discuss needed repairs
7. Follow up on violations

What to Look For:

• Cleanliness/hoarding
• Damage
• Unauthorized pets
• Smoking damage
• Mold/moisture
• Plumbing leaks
• HVAC filter changes
• Safety issues
• Lease violations

Document everything with photos and written notes.

Handling Tenant Complaints and Conflicts

Common Issues:

1. Noise Complaints

Your Approach:

"I received a noise complaint from your neighbors about [description]. 
The lease requires respecting quiet hours after 10 PM. Please keep noise 
levels reasonable, especially late evening. Thank you for your cooperation."

If Continues:

• Formal lease violation notice
• Potential lease termination

2. Neighbor Disputes

Your Role:

• Stay neutral
• Don't take sides
• Enforce lease terms
• Encourage direct communication

3. Unauthorized Occupants

Action:

"It's come to my attention that additional people are living in the 
property beyond those listed on the lease. All occupants must be 
approved and listed on the lease. Please contact me immediately to 
discuss adding them to the lease with proper screening."

4. Unauthorized Pets

Action:

"I noticed [pet type] at the property. Pets are not allowed per your 
lease [or: Pets require deposit and approval]. You have 7 days to 
remove the pet or contact me to discuss adding it to the lease with 
proper deposit/rent [where applicable]."

5. Late Night Calls

Policy: "For non-emergency maintenance, please text or email during business hours (9 AM - 6 PM). For true emergencies (fire, flood, gas leak, no heat), call anytime."

Set Boundaries:

• Don't be available 24/7 for non-emergencies
• Train tenants on proper communication
• Be responsive but professional

Record Keeping

Essential Records:

Financial:

• Rent payments (dates, amounts)
• Late fees charged
• Security deposit
• Maintenance expenses
• Receipts for everything

Property:

• Lease agreement
• Move-in/move-out inspections
• Maintenance requests
• Repair records
• Photos/videos
• Property inspections

Communications:

• All emails with tenant
• Text message log
• Notices sent
• Complaints received

Software Options:

Free:

• Cozy/Apartments.com
• TurboTenant
• Spreadsheets (Google Sheets/Excel)

Paid:

• QuickBooks
• Stessa
• Buildium
• AppFolio

Recommendation for Beginners: Start with free option (Cozy or TurboTenant) or simple spreadsheet.

---

Part 7: Evictions - The Last Resort

Sometimes tenants don't work out. Eviction is difficult but sometimes necessary.

When to Evict

Valid Reasons:

1. Non-Payment of Rent Most common reason. Tenant doesn't pay rent.

2. Lease Violations

• Unauthorized occupants
• Unauthorized pets
• Illegal activity
• Property damage
• Repeated noise complaints
• Violating HOA rules

3. Holdover Tenancy Tenant stays after lease expires without renewal.

4. Property Sale (Some States) New owner wants vacant property.

The Eviction Process

CRITICAL: Follow Your State's Laws Exactly

Eviction procedures vary by state. Consult attorney or research thoroughly.

General Process (Varies by State):

Step 1: Notice to Quit/Pay or Quit

For Non-Payment:

PAY RENT OR QUIT NOTICE

TO: [Tenant Name]
AT: [Property Address]

You are hereby notified that you are in default of your rental agreement. 
Rent of $[Amount] for [Month] was due on [Date] and remains unpaid.

You are required to:
PAY the past-due rent of $[Amount] within [3-10] days, OR
QUIT (vacate) the premises

If you neither pay nor vacate within [X] days, legal action will be 
taken to evict you and recover rent owed.

Dated: [Date]
Landlord: [Signature]

For Lease Violations:

NOTICE TO CURE OR QUIT

TO: [Tenant Name]
AT: [Property Address]

You are in violation of your lease agreement for the following reason(s):
[Describe violation]

You are required to:
CURE (correct) this violation within [3-14] days, OR
QUIT (vacate) the premises

If violation is not cured or you do not vacate, legal action will be taken.

Dated: [Date]
Landlord: [Signature]

Delivery:

• Hand deliver (best - witness or take photo)
• Certified mail
• Post on door (check state law)

Document Everything:

• Keep copies
• Photo of notice posted
• Certified mail receipt
• Witness statement

Step 2: File Eviction with Court

If tenant doesn't pay/cure/leave:

1. Go to local courthouse
2. File eviction lawsuit (unlawful detainer)
3. Pay filing fees ($100-300 typical)
4. Serve tenant with court summons

Step 3: Court Hearing

• Usually 2-4 weeks after filing
• Bring all documentation:
  • Lease
  • Payment records
  • Notices sent
  • Photos of violations
  • Communications
• Present case to judge
• Tenant can present defense

Possible Outcomes:

Judgment for Landlord:

• Eviction granted
• Money judgment for rent owed
• Court orders tenant to vacate

Judgment for Tenant:

• Eviction denied
• Tenant can stay
• May need to correct your process

Settlement:

• Negotiate payment plan
• Tenant agrees to move by date
• Avoid lengthy eviction

Step 4: Writ of Possession

If tenant doesn't leave after judgment:

1. Request writ of possession from court
2. Sheriff serves writ
3. Sheriff physically removes tenant (if necessary)
4. Change locks
5. Store tenant's belongings (per state law)

Timeline: Entire process typically 30-90 days depending on state.

Eviction Mistakes to Avoid

NEVER:

• ❌ Self-Help Eviction:
• Changing locks
• Removing tenant's belongings
• Shutting off utilities
• Harassing tenant
• Physically removing tenant

These are ILLEGAL and will get YOU in trouble.

• ❌ Accepting Partial Rent After Filing: May delay or dismiss eviction in some states.

• ❌ Poor Documentation: You need records to win in court.

• ❌ Discriminatory Eviction: Never evict in retaliation for:

• Tenant reporting code violations

• Tenant exercising legal rights

• Discriminatory reasons

• ❌ Improper Notice:

• Wrong notice type

• Wrong notice period

• Improper delivery

• Missing information

Any mistake can force you to restart process.

Collecting Unpaid Rent

After Eviction:

Options:

1. Small Claims Court - Sue for unpaid rent
2. Collection Agency - Sell debt
3. Report to Credit Bureaus - Document nonpayment
4. Wage Garnishment - If you win judgment

Reality: Often hard to collect from evicted tenants. Consider it a loss and move on.

Better Approach: Screen thoroughly upfront to avoid eviction.

---

Part 8: Self-Management vs. Hiring Property Manager

Should you manage yourself or hire a professional?

Self-Management

Pros:

• Save 8-12% of rent (management fees)
• Direct control
• Closer to investment
• Learn the business
• Build relationships with tenants

Cons:

• Time commitment (5-10 hours/month per property)
• Handle all issues personally
• Available for emergencies
• Less leverage with contractors
• Learning curve
• Stress

Time Requirements:

Monthly:

• Rent collection: 30 minutes
• Maintenance requests: 1-3 hours
• Communications: 1-2 hours
• Bookkeeping: 1 hour
• Property inspections (quarterly): 2 hours

Total: 5-10 hours/month

Additional Time:

• Tenant turnover: 20-40 hours
• Finding new tenant: 10-20 hours
• Emergency repairs: Unpredictable

Good For:

• First 1-3 properties
• Those wanting to learn
• Local properties
• Lower price points (fees eat more profit)
• Handy owners

Professional Property Management

What They Do:

Tenant Management:

• Marketing and advertising
• Showing property
• Screening tenants
• Lease preparation
• Rent collection
• Lease enforcement
• Eviction handling

Property Maintenance:

• Coordinate repairs
• Maintain contractor network
• Emergency response (24/7)
• Schedule preventive maintenance
• Inspect properties

Financial Management:

• Collect rent
• Pay expenses
• Provide monthly statements
• Year-end tax documents
• Security deposit handling

Legal Compliance:

• Know landlord-tenant laws
• Proper lease documents
• Proper eviction procedures
• Fair housing compliance

Typical Fees:

Monthly Management:

• 8-12% of monthly rent
• 10% most common

Example:
Rent: $1,500/month
Management Fee (10%): $150/month = $1,800/year

Your Net Rent: $1,350/month

Leasing Fees:

• 50-100% of first month rent (one-time when placing tenant)
• Covers marketing, screening, lease preparation

Maintenance Markup:

• Some charge 10-20% markup on repairs
• Covers coordination time

Minimum Fees:

• Some charge minimum (like $100/month regardless of rent)

Total Annual Cost Example:

Rent: $1,500/month
Monthly Fee: $150 × 12 = $1,800
Leasing Fee (every 2 years): $1,500 ÷ 2 = $750/year
Total Annual Cost: $2,550

As % of Annual Rent: 14%

Pros:

• Hands-off (mostly)
• Professional expertise
• Tenant screening done for you
• 24/7 emergency response
• Legal compliance
• Contractor network
• Scale easily
• Time freedom

Cons:

• Costs 8-12% of rent (or more)
• Less control
• Quality varies widely
• Communication can be slow
• May not care as much as you
• Some unnecessary repairs/costs

Good For:

• 4+ properties
• Out-of-state investing
• Busy professionals
• Those prioritizing time over money
• Properties needing active management

How to Choose Property Manager

Interview Multiple Companies:

Questions to Ask:

1. How long have you been in business?
2. How many properties do you manage?
3. What's your management fee?
4. What's your leasing fee?
5. Do you markup maintenance costs?
6. What's your tenant screening process?
7. What's your average vacancy time?
8. How do you handle maintenance calls?
9. Do you have 24/7 emergency service?
10. How often do you inspect properties?
11. What reports do I receive and how often?
12. How do I access my funds?
13. Can you show me a sample owner statement?
14. What's your eviction experience?
15. Do you have client references?
16. What's your termination policy?

Red Flags:

• Unwilling to provide references
• Vague answers
• Unprofessional
• Fees seem very low or very high
• Poor communication
• No written agreement
• No license (where required)

Check:

• Online reviews (Google, Yelp)
• Better Business Bureau
• State licensing (if required)
• References from other investors

Management Agreement:

• Month-to-month or 1-year?
• Termination terms
• All fees clearly stated
• Services included
• Responsibilities defined

Hybrid Approach

Consider:

• Self-manage initially (learn the business)
• Hire manager when you have 3-5 properties
• Self-manage some, hire for others
• Hire for turnover/leasing only (tenant placement services)

Tenant Placement Only:

• Service finds and screens tenant
• You manage ongoing
• One-time fee: $500-1,000 or 50-100% first month rent
• Good compromise

---

Part 9: Key Takeaways from Module 7

Core Principles

1. Know the law:

• Fair Housing Act protects seven classes
• Lead paint disclosure for pre-1978
• State/local laws vary significantly
• Maintain habitable property
• Respect tenant privacy

2. Strong leases protect you:

• Use state-specific forms
• Include all essential terms
• Be clear and specific
• Get legal review
• All tenants sign

3. Tenant screening is critical:

• Credit check
• Background check
• Income verification (2.5-3x rent)
• Rental history verification
• Apply standards consistently

4. Systems create efficiency:

• Online rent collection
• Maintenance request process
• Record keeping systems
• Regular property inspections

5. Communication prevents problems:

• Respond promptly
• Be professional
• Document everything
• Set clear expectations
• Enforce lease consistently

6. Management choice depends on situation:

• Self-manage: 1-3 properties, local, learning
• Hire manager: 4+ properties, out-of-state, time-constrained
• Calculate costs vs. benefits

Your Action Steps

Before proceeding to Module 8, complete these tasks:

1. ✅ Research Local Laws

• State landlord-tenant laws
• Local rental regulations
• Required licenses/permits
• Security deposit rules
• Eviction procedures

2. ✅ Obtain Lease Agreement

• Download state-specific form
• Review thoroughly
• Customize if needed
• Attorney review recommended

3. ✅ Set Up Tenant Screening

• Choose screening service
• Create application form
• Develop screening criteria
• Create evaluation system

4. ✅ Build Systems

• Rent collection method
• Maintenance request process
• Record keeping system
• Communication templates

5. ✅ Create Documents

• Tenant information sheet
• Move-in inspection form
• Maintenance request form
• Lease violation notice template

6. ✅ Build Contractor Network

• General handyman
• Plumber
• Electrician
• HVAC
• Get quotes and references

7. ✅ Decide: Self-Manage or Hire

• Calculate costs
• Interview property managers if hiring
• Set up management systems if self-managing

8. ✅ Take the Module 7 Quiz

---

Module 7 Self-Assessment Quiz

Test your understanding. Answers provided at the end.

1. The Fair Housing Act protects how many classes? a) 3 b) 5 c) 7 d) 10

2. What is typical tenant income requirement? a) 1.5x monthly rent b) 2x monthly rent c) 2.5-3x monthly rent d) 4x monthly rent

3. What credit score is generally considered "good" for rental applications? a) 500+ b) 600+ c) 650+ d) 700+

4. When should you call a previous landlord vs. current landlord? a) Call current landlord first b) Call previous landlord first (more honest assessment) c) Only call current landlord d) Doesn't matter

5. What is typical property management fee? a) 3-5% b) 5-8% c) 8-12% d) 15-20%

6. Security deposits typically cannot be used for: a) Unpaid rent b) Normal wear and tear c) Tenant-caused damage d) Broken lease penalties

7. How much advance notice typically required before entering rental property? a) No notice required b) 2-4 hours c) 24-48 hours d) 1 week

8. What should you NEVER do when trying to evict a tenant? a) Follow legal process b) File with court c) Change locks yourself d) Hire attorney

9. True or False: You can refuse to rent to families with children.

10. What is the first step in eviction for non-payment? a) Change locks b) Serve Pay or Quit notice c) File lawsuit d) Call police

---

Quiz Answers

1. c) 7 (race, color, national origin, religion, sex, familial status, disability)
2. c) 2.5-3x monthly rent
3. c) 650+ (though 600+ is acceptable)
4. b) Call previous landlord first (more honest assessment)
5. c) 8-12%
6. b) Normal wear and tear
7. c) 24-48 hours (varies by state)
8. c) Change locks yourself (illegal self-help eviction)
9. False - Familial status is protected class
10. b) Serve Pay or Quit notice

Scoring:

• 9-10 correct: Excellent! You understand property management essentials.
• 7-8 correct: Good work! Review missed concepts.
• 5-6 correct: Fair. Re-read sections about legal requirements and screening.
• Below 5: Review the entire module before proceeding.

---

Conclusion: You're Ready to Manage Your Property

Congratulations on completing Module 7! You now understand how to manage rental properties effectively, find quality tenants, handle maintenance, and decide between self-management and hiring professionals.

You've mastered:

• Landlord legal responsibilities and tenant rights
• Creating effective lease agreements
• Marketing properties and setting rent
• Comprehensive tenant screening process
• Move-in and ongoing management
• Handling maintenance and repairs
• Eviction procedures (when necessary)
• Self-management vs. hiring property managers

This Completes Your Operational Knowledge: You now have the complete skillset to purchase AND manage investment properties successfully.

What's Next: The remaining modules cover taxes, scaling your portfolio, and long-term wealth building strategies.

---

You're ready for Module 8: Real Estate Taxes and Legal Considerations.

In the next module, you'll learn about tax benefits of real estate investing, deductions you can claim, legal structures for holding property, and how to work with CPAs and attorneys to maximize benefits and minimize liability.

You can buy properties and manage them. Now let's learn how to protect and maximize your returns through proper tax and legal strategies.

---

"Ninety percent of all millionaires become so through owning real estate." — Andrew Carnegie