How not to get sued by the tenants? It's easy. Be a good honest reasonable landlord. I bet you don't walk around sueing good honest reasonable tenants, right? :)
The whole eviction thing costing $1000s is just a CA thing. I think this is because CA leans heavily towards the tenant no matter what. Not so in Utah. Utah is a lot more fair. If the landlord is in the right, then Utah will lean heavily with the landlord and vice-versa. Example: A friend of mine had a lady from CA stop paying. When he went over there to talk to her, she literally told him, "Good luck getting me out". His response was, "Lady, this ain't CA. You should begin packing your stuff". Exactly 12 days later, and with a cost of only $100.00, my friend showed up with the Sheriff and the deadbeat lady was put out on her ass. Of course she cried to the Sheriff, but the order was in his hand.
@@MikhailFromUSA : I agree. And now that I've watched the entire video, I heard the property mngr guy even say that CA leans towards the tenant. But you have to ask the question, "Why is that"? Well, I can say why, but people aren't going to like it. CA is too full of liberal, tree hugging, blankety, blank types of people who want everything for free. The whole damn state is going bankrupt because of all their stupid programs giving money to people who shouldn't get it. Even though I was born and raised in CA (long, long time ago), I figured this out in the early 80s at the age of 19 and joined the Army. Thereby getting the hell out of that state. I've only ever been back to visit family who still lives there; sadly. And I hate the stupid ass'd rules when I do travel there. Like not being able to conceal carry, and I have to store my gun unloaded and in a locked fucking case. May as well just carry a fucking club, cause if a gun ain't loaded and cocked it don't shoot; all it is is a club at that point.
I live in California and you’re absolutely right. California will always protect the tenants even if the tenants are dead beats. California will even protect squatters and force a long battle for a landlord to get rid of bad tenants or squatters. California also just past a bill that will put in place rent control for everyone. I take care of my elderly mother and can’t leave her, but I wish I could move out of this horrible state. I love California, but the far left liberals have destroyed this state. California is now like a third world country. Our electricity is being shut off, they are getting ready to ration water, our taxes are some of the highest in the nation. We have night water, electrical and gas bills. I could go on and on. The sad part is people keep electing these far left liberals who keep taking away our rights and causing so many people to become homeless.
TrailTrackers: Actually, it's the same. They're talking about hiring a lawyer to handle the eviction process, which will cost about the same across the states. In CA you can also just get the sheriff to evict someone with you. However, the tenants can fight it and cause a lot of issues if they prove that they have nowhere to go and will be homeless if evicted. Edit: I looked up the fee for filing an unlawful detainer (eviction) in my county and it is $255, which looks pretty similar in surrounding counties as well.
@@bobp1016 Bob, the rent control you speak of passed by the legislature does NOT apply to single family homes, so if you have those types of properties, you're not affected
Edwin Barker Actually it does apply to single family homes if you have over a million dollars worth of investment properties. So a person can own one or two properties. If your rental properties are worth more then a million then you fall under the rent control law.
lol, I was worried that you got sued again. MeetKevin: the most sued realtor in America, lol. COURSE SUGGESTION: A video going through as many ways to avoid being sued and avoiding unequal housing violations (which you cover in part) under the tenant section :)
This information is gold!!! I'm dealing with an investor who self-manage his properties and act like he is living in a 3rd world country, fortunately he has listing to me in many occasions and saved him in the long run thousand of dollars. Thanks Kevin for sharing your knowledge with us.
I self managed a 4-unit building I owned in LA a few years back and experienced both problems. I had a professional tenant who sued me in their first month for $10k and we ended up settling for around $7k and I had another tenant who discovered mold and his brother was a microbiologist. In the end I did the remediation and after much hand holding and expense avoided a lawsuit and discovered the real reason he was so unhappy was that his new business was failing. And, after losing 6 rental homes in the last recession and having 3 different management companies shut down by the authorities and the owners arrested for embezzling rental income, I now flip vacant land.
phenomenal video! so much content! I'm not a landlord nor a prop. mgmt but it's always great to know. I don't understand why your channel doesn't have more subs, you offer so much daily in depth content, thank you!
I agree, getting started as a landlord without any experience you kind of have to expect a dog fight. Either learn more about the job or hire someone else who knows the job well.
When I started renting the rooms out of my house I didn't know how to do evictions. When I got a bad tenant I had to learn. it was a steep learning curve.
I'm a property manager and my husband is not. We recently bought a few multifamilies and it's amazing the differences between us. Good property managers have experience and know their laws.
Great video Kevin! Ton of value here! As an aspiring real estate investor, getting sued by tenants is something that's never even crossed my mind, so I'm very glad I clicked on this video today. Keep the awesome content coming!
I've been a landlord for about 10 years now, 4 units, and I agree, happy tenant = happy life. I have a property manager, and I tell her "If it squeaks, grease it." I want any complaint (toilet, water leak, needs a new lock, whatever) handled by the end of the day, barring a major issue. If they make an optional but reasonable request, I try to honor it. It might cut into my short-term cash, but I gain a loyal, appreciative tenant, who costs me less overall in the long term. I also do periodic inspections just to make sure something isn't creeping up. Of course you can't guarantee you won't get some psycho who fools you, but usually their credit score (my main screening criteria) will show you their likelihood to be a good tenant.
@dodgeplow is it legal to do periodic checkups? I have to move for work short term and I’m really nervous about renting out my house. I’m definitely getting a property management company, but I wanted to be hands on as well. I was thinking of doing periodic checkups, but I’m not sure if it’s legal. I haven’t spoken to property management companies yet. I’m still searching for a great one.
@@bsce100 It is absolutely legal, at least in the few states I've lived in. You'll need to check the landlord laws of your state. I do it every 3 months for a new tenant until I have a good impression of them. I give notice beforehand. If something needs servicing, that is the ideal time since I or my agent show up to review what the problem is.
3:15 yeah it is also in New Zealand - it is a component you add onto your house insurance (called renters insurance) where for a small additional fee it covers loss of rental income, malicious damage and gradual damage to your tenanted properties. Yes as stated there are requirements such as regular inspections (evidence must be provided for claims), etc. Unlike the Australian version which only property management companies can only get renters insurance - landlords who manage their properties can get it themselves. Highly recommended product and it has been a life saver for my Dad when tenants go vile.
A number of great points hear! Thank you. I can't agree more with "Happy tenant happy life"!! Also examining my insurance coverage has just been bumped up on my to do list.
I have avoided evicting tenants on 2 separate occasions just by giving them a deadline, and offering them their deposit back if they meet the deadline, that's the best way of doing it I think.
I managed many apartments before, in SGV, in southern CA. I used to flash a $100 bill and tell them if they leave in a week, I would give it to them instead of the eviction company to start an eviction and mess up their credit. It worked every time. Of course refund their deposit too if they don't break anything. Nowadays you may need to pay $500. When they are broke and know they have to move sooner or later, why not take the cash and go. 2 came back to check for mail, and chat with me as friends. One gave me his car salesman business card and said to come see him if I ever shop for a car.
@@GR-uc1gq One way to do it is to open a brokerage account with Fidelity. Then buy an S&P500 index fund. For instance, you can buy FXAIX, this is Fidelity's S&P500 index fund. You can put in however much money you can afford to each month, say on the days you get paid each month so you have a routine. That's it. If you do that alone, you'd be in a far better financial position in the future. And it's not risky.
I saw a slip and fall crook in Lowes through whole process over 15 minutes. Fall - Manager report - limping half way to his truck and then lighting a cigarette and start laughing as he got into his truck with his drug addict girl friend. These folks are everywhere do your background checks.
A old friend came by my house uninvited, he was drunk and on my porch. I went to bed. I thought he left, but he came in my house and fell now he is decided to sue me.DO I HAVE A LEG TO STAND ON?
If he was uninvited also file charges for trespassing he’s no longer ur friend you’ll want anything you can have on paper to show to a judge he was there on he’s own terms and uninvited
⭐ This gentleman conducted an exceptional interview! Peter from Rincon, sir, you earned an A+ ⭐ I got a laugh at 11:59 "I don't subscribe to that!" I'm going to start using that phrase 🤣
There is insurance for EVERYTHING! lol Glad to see this is out there for decent landlords. Good landlords shouldnt have to lose their shirt behind a dirtbag tenant
A situation where a tenant had a roof leak into a closet that caused mold. Did not report it to landlord. So push comes to shove and it starts to look like eviction is needed and renter says what about the mold in the closet you never fixed? (what mold in what closet? They never informed us) Then they call the city, county, etc. etc. before finally leaving. Leaving behind a mess for the landlord to cleanup ie. the mold and the report to the city and county that requires proof that the issue has been remediated. I'm fairly sure this was an attempt to gain concessions and probably to leave behind a poison pill if they had to leave. But the not calling and reporting damage then "springing" it on the landlord is a fun one to deal with. It was this first rental and experience that led me to get a property manager.
I self-manage; sorry, but the majority of property management companies SUCK. Don't believe me? Go to the Biggerpockets forum and you'll agree. For every good PM company there are a dozen bad ones. How to avoid getting in trouble with Fair Housing - accept the first person(s) who meet your rental criteria. Saying one needs a PM company because they're better is ignorance, just as those who think one MUST have a RE agent to buy or sell a property....
Real property management is the worst they tried to rip me off for a deposit on a house I rented online when I met them at the property it was half the square footage but worse it was destroyed and full of dog smelly pop they then refused to return my money....visa helped me get my money back but it took 30 days in the intern I had half the money I needed to move on, very bad situation
Question. If the people have several lawsuits ongoing, settled, etc., and insurance companies are usually involved, at what point would they be guilty of insurance fraud? (assuming the fraud can be proven) Are why are people allowed to continue the sue happy behavior without being held accountable? BTW. Love your videos. I have learned a lot. Thanks.
10 years ago, my friend’s apartment had a tenant complaining about mold. I got suspicious and went with him to the LA Superior courthouse to look up cases by entering the tenant’s name into the self-service computer available to the public in the room where you file cases. Sure enough there was a case against his previous landlord. We hired some licensed air quality company to take some sample air quality tests and showed them the satisfactory results. 2 months later the tenant moved when he thought no fortune could be made here. i got to check out this Surevestor policy.
Remember to stay on your management company and monitor them a lot. I’m sure there are good professional ones but the one we had (a well known company in our area) did absolutely nothing except collect their cut. House got destroyed and the manager had no oversight. Lesson learned; squeaky wheel gets the oil. If you have a management company, you have to stay on them and make sure they do their job. If you have no manager, you have to stay on the tenant and make sure everything is ok.
Another amazing video by Meet Kevin. This is GOLD sir, absolutely GOLD! These are the videos that drive me here. Real world value, things I can apply today.
I owned 5 rentals at one point and when one of those tenants moved out they rubbed dog shit all over the places their dog hadn't chewed up and pissed on. 1/5 for me. We sold 3 of them. The remaining two are rented out to family and a large construction company for middle management to use. Other than that, fuck owning property. Too much of a hassle for me. All you guys and gals that love it? Awesome for you! Keep at it! I'll stick with equites, options and futures.
What a great guy (the property manager) willing to go on camera and speak candidly about these topics. I'm sure he's very biased, but I'm interested in these ideas and will do my own due diligence on them.
I don't know many tenants that would do that, because that would end up on their credit and rental history. I don't think that's very common. I wouldn't get this insurance.
Can you do background checks on Tennants to see if they have "pending" lawsuits? Is there way to get a red flag before getting them in the property to check if there are always filing lawsuits?
@@lifestylewithlexi I'm not aware of any state with that requirement unless you are referring to criminal records. Even then, landlords are allowed to consider a record of violence or danger to people nearby.
5 dollar fix for a water leak that caused mold, mold companies work off insurance to get rid of it, plumbers makes holes to access cause to repair, repairs have to made to make the area whole again and possible court fees faced to reasonably provide a safe environment for the tenant was not neglect form landlord or management co. I’ve worked in a lot of apartments where there was abuses from tenants who are ok in living in subpar conditions as long their rent don’t go up. And landlords who think if it ain’t broke don’t fix it, which only leads to some sort of equipment failure, rot, mold, etc. Regular maintenance keeps down cost, supports the service industry to get knowledgeable repair men, rentals rented, and less heartache on both ends.
Meet Kevin BRRR method. Sort of. I’m a professional in hvac. And am using that, among many other skills I have to put in the management of the work I’m not doing. Along with executing my own. At the end I’ll add $68k equity. Along with pulling away with $15-20k out of the deal. To fund my next one. This is the first of many. My goal is 10 in 5 years.
I am an insurance professional in Colorado, and he is 100% correct that most agents don't understand the difference between an additional insured and an additional interest.
I’ve owned multiple houses and rented out and the biggest mistake I did was self manage the first one . After that painful experience I got property managers on the advice of my accountant . I found that trash will target people that self manage.
I've also noticed that bad tenants target self managed properties. I still self manage, but I screen my tenants thoroughly, never tell them I own the place, and strictly follow the lease.
Screening tenants is easy, use income and credit qualifiers, this avoids pretty much all those laws. Managmemt companies are only useful if the amount of your time spent exceeds the value of W2 job.
you're not remembering that the Peter Principle reigns, mediocrity prevails and there are few penalties for Americans to NOT follow rules and respect owners. The False accusal and the heckler's veto have been in the playbook of clients for about 40 years now. Living in Floriduh, I've had two instances that the Civil Judge has gone 100% AGAINST settled law. Yet I still win.
Kevin can you make a PDF on the tips and tricks to do when screening a tenant. I believe selecting the tenant is the most important thing when buying real estate.
@@dynamicwellness33 : Actually, based on the video content, I would title the video: "If You Own Rental Property in CA, Get a Good Property Manager - Here's Why".
I've thought about purchasing property and renting it out but I've been shied away because of shitty tenants. Actually purchasing and doing maintenance on it isn't a big issue. Its shitty people.
On the flip side, my question is how do you avoid unscrupulous apartment or management companies? My biggest fear is being charged, as a tenant, for shoddy repair work or issues like cracks in the ceiling (we live on the first floor of a renovated 1950s building). I think lawsuits are a VERY last resort to make sure all things remain balanced and no one is taken advantage of. Mismanagement can hurt tenants, too.
Deductions? I just recently purchased a rental property and didn't know that. I had some tenants and who pretty much destroyed my house. The cost to put it back together was more than the deposit and they don't want to pay. Any suggestions? They told me that they have a lawyer. I took pictures before moving in and moving out.
I'm learning so much from these videos. I own four properties, that's including the house I live in. My main home is at the Jersey Shore and my other 3 are in the Pocono mountains. Been thinking of renting two of them out. Never been a landlord before but I'm learning a lot from these youtube videos. Would you recommend a leased tenant or should I put those two houses up on AirBnB?
This video isn't entirely accurate. There are exemptions to the Fair Housing Act. For example, owner occupied rentals with four or fewer rentals and single family houses without the use of a broker (owner can't own more than 3 houses).
Fantastic video and information. Thanks for putting it together. I am closing on a duplex tomorrow, and I'm a bit nervous since I'm inheriting the tenants, not knowing if an adequate screening process was applied.
So brother just moved into a place that’s infested with bed bugs and they keep telling him they’ll give him a prorated refund and they haven’t done it yet still what should he do
I had a rental property and the tenants quit paying. Went to a lawyer. He said, basically, she's pregnant and you can't get her out. Luckily we found a company that bought the house we were renting and they had to deal with her. They had deeper pockets. We could have gotten them out, but it would have cost thousands we didn't have. And these scum bags knew that.
Hi kevin, started watching you a couple days ago, watched over 15 videos you posted, great point. I am currently living in Camarillo, do you happen to have any meets in ventura county? Love to meet you if possible. Also, contacted peter’s company today and got almost instant response, gonna follow up with them tomorrow for one of my rental here. Keep up the great work and thanks for sharing
So, this professional property management company doesn't have "Are these prospective tenants 'Pros' involved in a bunch of lawsuits" as one of their screening steps? Scary!
When you watch the begging half of the video then your battery dies, so you watch the whole video again without skipping an ad since you already know it’s a good video
I know this video is based on being in California and deals with Californian laws (I live in Texas by the way), but I can't find my answer to that question you guys mentioned in the video "Can a tenant be denied living in your rental property if they have pending or previous lawsuits against landlords"? What if the applicant gives you the approval to run a background check and that clears you to look up their history, can I still deny them for that without getting sued?
Dont private mange unless you have experience. I have gone through countless hours of training, and continue to be trained in fair housing as new laws come up which they do frequently, I have been in the property management feild for 5 years. The fine here is $20,000 for violating fair housing. We cannot ask how many people will be in the home? That would be a violation, correct way to phrase that would be how many occupants will be residing in the home? It's too risky, pay the fee for a professional, I promise it's worth it. Google and read review for local PM company's, then have a meeting with them at your home, ask them what their screening is like, how much would they rent your home for?
Thank god I live in Idaho where I can evict a tenant for absolutely no reason. I do not need to provide a reason for why I’m evicting a tenant. Now I would never just say I didn’t like them, but if they were abusing the property they are either gonna fix it or gonna get evicted. And for screening potential tenants. Always look at how they treat their car and previous house. How do they treat themselves? Are they clean.
As an insurance agent, Mold is usually not covered. Mold isn't covered because the tenant or homeowner neglected to file a water claim as soon as it happened. Usually water damage is limited too. The verbiage that the insurance company may fallow is that water damage has to be sudden or accidental. Sudden and accidental such as a pipe burst. The water claim needs to be filed ASAP to prevent mold from occurring. Water damage from negligence is typically never covered. Make sure your insurance agent knows that you are renting your home out on a long term, short term or vacation rental. You need a specific policy for each case. I'm in Orange County, CA. Feel free to contact me at insureitbiz@gmail.com for what if scenarios.
Kevin love your channel---and I'm from Ventura. BUT, in 15 years of having rentals in multiple states PM's have cost me THOUSANDS move than any tenant ever has. Legal piracy!! Maybe Peter is THE exception to this. I'll take my chances based on MY mistakes rather than my PM's LIES, OVERCHARGING, and pure laziness. GRRRRRR, whew, ok, rant over
my fix for the fear of a tenant not being able to pay rent was being able to afford the rental even without renting. if you can front the mortgage payment independently without rental income, you know you can outlast any tenant, after all, once you file a case with the LTB they will be liable to pay for the time they squatted.. expect the worst plan for the best
How does fair housing apply when screening for a lease option/rent to own tenant? We always choose whom we want even though it’s still based on data regarding whom can qualify best to exercise the option. I may have to have some more discussion with my attorney just to ensure compliance!
Yeah definitely check with your attorney -- for self managing though, shouldn't be an issue to write down your criteria. Check, a quick word doc, "Forward Tenant Screening & Qualification Criteria 11-24-2019" with a quick bullet-point list on credit, etc. :D
Should I send them a shirt?
How not to get sued by the tenants? It's easy. Be a good honest reasonable landlord. I bet you don't walk around sueing good honest reasonable tenants, right? :)
@@Oneofakind123 Buddy STFU you know nothing and you have NOTHING.
@@Oneofakind123 Oh my sweet summer child
Kevin can you make a video on how to find a good property management company
@@chadswolington7135 Well, I do have a certain level of finesse. That's something.
The whole eviction thing costing $1000s is just a CA thing. I think this is because CA leans heavily towards the tenant no matter what. Not so in Utah. Utah is a lot more fair. If the landlord is in the right, then Utah will lean heavily with the landlord and vice-versa. Example: A friend of mine had a lady from CA stop paying. When he went over there to talk to her, she literally told him, "Good luck getting me out". His response was, "Lady, this ain't CA. You should begin packing your stuff". Exactly 12 days later, and with a cost of only $100.00, my friend showed up with the Sheriff and the deadbeat lady was put out on her ass. Of course she cried to the Sheriff, but the order was in his hand.
@@MikhailFromUSA : I agree. And now that I've watched the entire video, I heard the property mngr guy even say that CA leans towards the tenant. But you have to ask the question, "Why is that"? Well, I can say why, but people aren't going to like it. CA is too full of liberal, tree hugging, blankety, blank types of people who want everything for free. The whole damn state is going bankrupt because of all their stupid programs giving money to people who shouldn't get it. Even though I was born and raised in CA (long, long time ago), I figured this out in the early 80s at the age of 19 and joined the Army. Thereby getting the hell out of that state.
I've only ever been back to visit family who still lives there; sadly. And I hate the stupid ass'd rules when I do travel there. Like not being able to conceal carry, and I have to store my gun unloaded and in a locked fucking case. May as well just carry a fucking club, cause if a gun ain't loaded and cocked it don't shoot; all it is is a club at that point.
I live in California and you’re absolutely right. California will always protect the tenants even if the tenants are dead beats. California will even protect squatters and force a long battle for a landlord to get rid of bad tenants or squatters. California also just past a bill that will put in place rent control for everyone. I take care of my elderly mother and can’t leave her, but I wish I could move out of this horrible state. I love California, but the far left liberals have destroyed this state. California is now like a third world country. Our electricity is being shut off, they are getting ready to ration water, our taxes are some of the highest in the nation. We have night water, electrical and gas bills. I could go on and on. The sad part is people keep electing these far left liberals who keep taking away our rights and causing so many people to become homeless.
TrailTrackers: Actually, it's the same. They're talking about hiring a lawyer to handle the eviction process, which will cost about the same across the states. In CA you can also just get the sheriff to evict someone with you. However, the tenants can fight it and cause a lot of issues if they prove that they have nowhere to go and will be homeless if evicted. Edit: I looked up the fee for filing an unlawful detainer (eviction) in my county and it is $255, which looks pretty similar in surrounding counties as well.
@@bobp1016 Bob, the rent control you speak of passed by the legislature does NOT apply to single family homes, so if you have those types of properties, you're not affected
Edwin Barker
Actually it does apply to single family homes if you have over a million dollars worth of investment properties. So a person can own one or two properties. If your rental properties are worth more then a million then you fall under the rent control law.
This was the most compelling advertising for this management company that I've ever seen
Yes. If you're a property manager since he only insures property management companies.
@@keinlieb3818 I took it as you should only rent with property management companies that have his insurance
L0L same thoughts 😂
There is something wrong with our legal system when it's cheaper to settle a lawsuit for $10k than fight the lawsuit.
There are much worst.
I got sued for a slip and fall at a commerical property I own. Lucked out my insurance was great. Another Great Video Lesson.
Yikes! Glad that worked out
lol, I was worried that you got sued again. MeetKevin: the most sued realtor in America, lol.
COURSE SUGGESTION: A video going through as many ways to avoid being sued and avoiding unequal housing violations (which you cover in part) under the tenant section :)
we all know how not to get sued. its easy. say multiple times on a video #dontsuemebro and wear the shirt that says #dontsuemebro
This information is gold!!! I'm dealing with an investor who self-manage his properties and act like he is living in a 3rd world country, fortunately he has listing to me in many occasions and saved him in the long run thousand of dollars. Thanks Kevin for sharing your knowledge with us.
I self managed a 4-unit building I owned in LA a few years back and experienced both problems. I had a professional tenant who sued me in their first month for $10k and we ended up settling for around $7k and I had another tenant who discovered mold and his brother was a microbiologist. In the end I did the remediation and after much hand holding and expense avoided a lawsuit and discovered the real reason he was so unhappy was that his new business was failing. And, after losing 6 rental homes in the last recession and having 3 different management companies shut down by the authorities and the owners arrested for embezzling rental income, I now flip vacant land.
What a nightmare!!! Wow!
:(
My parents have a rental house company and I still learned something from this video! Thank you.
phenomenal video! so much content! I'm not a landlord nor a prop. mgmt but it's always great to know.
I don't understand why your channel doesn't have more subs, you offer so much daily in depth content, thank you!
Can’t wait till Graham makes a video on “How I sued Meet Kevin for $.20 cents !!”
$.20 lawsuits
This comment had me rolling!
Would be a great april fools gag if graham and kevin both released videos saying graham was suing kevin
He sued Kevin for the price of the coffee he likes
This reminds me of a story I saw where an Air B&B tenant caused almost $10,000 in damages to a place in one night.
I agree, getting started as a landlord without any experience you kind of have to expect a dog fight. Either learn more about the job or hire someone else who knows the job well.
Bingo a good real estate investor has sound judgment and a good property management company.
Or pull up with the 9
When I started renting the rooms out of my house I didn't know how to do evictions. When I got a bad tenant I had to learn. it was a steep learning curve.
Careful and good luck. There many bad tenants who want the free rent and take advantage from landlord.
By far your best video. Your not criticizing anybody. Your actually giving solid real estate investing advice. thank you. watched the whole video.
I'm a property manager and my husband is not. We recently bought a few multifamilies and it's amazing the differences between us. Good property managers have experience and know their laws.
Great video Kevin! Ton of value here! As an aspiring real estate investor, getting sued by tenants is something that's never even crossed my mind, so I'm very glad I clicked on this video today. Keep the awesome content coming!
I've been a landlord for about 10 years now, 4 units, and I agree, happy tenant = happy life. I have a property manager, and I tell her "If it squeaks, grease it." I want any complaint (toilet, water leak, needs a new lock, whatever) handled by the end of the day, barring a major issue. If they make an optional but reasonable request, I try to honor it. It might cut into my short-term cash, but I gain a loyal, appreciative tenant, who costs me less overall in the long term.
I also do periodic inspections just to make sure something isn't creeping up. Of course you can't guarantee you won't get some psycho who fools you, but usually their credit score (my main screening criteria) will show you their likelihood to be a good tenant.
Are you in CA?
@@sl4983 east coast
@dodgeplow is it legal to do periodic checkups? I have to move for work short term and I’m really nervous about renting out my house. I’m definitely getting a property management company, but I wanted to be hands on as well. I was thinking of doing periodic checkups, but I’m not sure if it’s legal. I haven’t spoken to property management companies yet. I’m still searching for a great one.
@@bsce100 It is absolutely legal, at least in the few states I've lived in. You'll need to check the landlord laws of your state. I do it every 3 months for a new tenant until I have a good impression of them. I give notice beforehand. If something needs servicing, that is the ideal time since I or my agent show up to review what the problem is.
dodgeplow okay I’ll double check the laws here in Florida. Thank you so much for the info!
3:15 yeah it is also in New Zealand - it is a component you add onto your house insurance (called renters insurance) where for a small additional fee it covers loss of rental income, malicious damage and gradual damage to your tenanted properties. Yes as stated there are requirements such as regular inspections (evidence must be provided for claims), etc. Unlike the Australian version which only property management companies can only get renters insurance - landlords who manage their properties can get it themselves. Highly recommended product and it has been a life saver for my Dad when tenants go vile.
I absolutely love how you go out of your way to find and meet these professionals to do these videos. Thanks Kevin!!! Love your videos bro!
👏👏👏👍🏿👍🏿
I got a property manager right after deciding to rent my first town house it was one of the best decisions that I've made.
A number of great points hear! Thank you.
I can't agree more with "Happy tenant happy life"!!
Also examining my insurance coverage has just been bumped up on my to do list.
Great information, thanks Peter and Kevin. Would love to see more videos on tenant/landlord issues and how to best resolve or prevent them!
I have avoided evicting tenants on 2 separate occasions just by giving them a deadline, and offering them their deposit back if they meet the deadline, that's the best way of doing it I think.
Worse thing to do is not try and work things out even if it means loss of rent or paying them a few bucks to leave.
I managed many apartments before, in SGV, in southern CA. I used to flash a $100 bill and tell them if they leave in a week, I would give it to them instead of the eviction company to start an eviction and mess up their credit. It worked every time. Of course refund their deposit too if they don't break anything. Nowadays you may need to pay $500. When they are broke and know they have to move sooner or later, why not take the cash and go. 2 came back to check for mail, and chat with me as friends. One gave me his car salesman business card and said to come see him if I ever shop for a car.
This is why I buy and hold index funds forever wayyyyy easier and more fun
How did you learn. I want to be financially well off and thought if rental properties but seems like a huge headache.
@@GR-uc1gq One way to do it is to open a brokerage account with Fidelity. Then buy an S&P500 index fund. For instance, you can buy FXAIX, this is Fidelity's S&P500 index fund.
You can put in however much money you can afford to each month, say on the days you get paid each month so you have a routine. That's it.
If you do that alone, you'd be in a far better financial position in the future.
And it's not risky.
I saw a slip and fall crook in Lowes through whole process over 15 minutes. Fall - Manager report - limping half way to his truck and then lighting a cigarette and start laughing as he got into his truck with his drug addict girl friend. These folks are everywhere do your background checks.
This is really good info Kevin! I mean, really informative for someone who wants to enter this market. Thanks!
A old friend came by my house uninvited, he was drunk and on my porch. I went to bed. I thought he left, but he came in my house and fell now he is decided to sue me.DO I HAVE A LEG TO STAND ON?
If he was uninvited also file charges for trespassing he’s no longer ur friend you’ll want anything you can have on paper to show to a judge he was there on he’s own terms and uninvited
I don’t think he was drunk. He planned to sue you.
⭐ This gentleman conducted an exceptional interview! Peter from Rincon, sir, you earned an A+ ⭐
I got a laugh at 11:59 "I don't subscribe to that!" I'm going to start using that phrase 🤣
I tell woman that all the time. I don't subscribe to the magazine called Drama.
@@johnwayne2103 🤣
@Bigtombowski ❤
Good video. I invest out of state and use a PM and I self manage as well. Self managing is not hard but you have to know what you are doing.
There is insurance for EVERYTHING! lol Glad to see this is out there for decent landlords. Good landlords shouldnt have to lose their shirt behind a dirtbag tenant
How so? Management company failed to do a free and simple search of court records.
@@bftjoe those searches can only tell so much. They aren't going to show every dirt bag tenant out there
The houses on that street have nice landscaping.
That look like Ventura keys or Oxnard Shores.
@Ace Bensen your parents live on a lovely street.
All owner-occupied... no tenants. LOL.
Meet Kevin Excellent Interview.
You are giving out great information.
Kevin has gone from the real estate guy to the grant cardone fanboy to the lawsuit guy (I love you kevin don't take this the wrong way)
Tennessee Cox as Kevin would say. “It’s unfortunate” lol. You’re still the man Kev
This is the kind of stuff I want to see. Thanks man.
A situation where a tenant had a roof leak into a closet that caused mold. Did not report it to landlord. So push comes to shove and it starts to look like eviction is needed and renter says what about the mold in the closet you never fixed? (what mold in what closet? They never informed us) Then they call the city, county, etc. etc. before finally leaving. Leaving behind a mess for the landlord to cleanup ie. the mold and the report to the city and county that requires proof that the issue has been remediated. I'm fairly sure this was an attempt to gain concessions and probably to leave behind a poison pill if they had to leave. But the not calling and reporting damage then "springing" it on the landlord is a fun one to deal with. It was this first rental and experience that led me to get a property manager.
I self-manage; sorry, but the majority of property management companies SUCK. Don't believe me? Go to the Biggerpockets forum and you'll agree. For every good PM company there are a dozen bad ones.
How to avoid getting in trouble with Fair Housing - accept the first person(s) who meet your rental criteria.
Saying one needs a PM company because they're better is ignorance, just as those who think one MUST have a RE agent to buy or sell a property....
Real property management is the worst they tried to rip me off for a deposit on a house I rented online when I met them at the property it was half the square footage but worse it was destroyed and full of dog smelly pop they then refused to return my money....visa helped me get my money back but it took 30 days in the intern I had half the money I needed to move on, very bad situation
Very informative Kevin, hopefully you can do more about topics like lawsuits and evictions and how to be a landlord....
Question. If the people have several lawsuits ongoing, settled, etc., and insurance companies are usually involved, at what point would they be guilty of insurance fraud? (assuming the fraud can be proven) Are why are people allowed to continue the sue happy behavior without being held accountable? BTW. Love your videos. I have learned a lot. Thanks.
10 years ago, my friend’s apartment had a tenant complaining about mold. I got suspicious and went with him to the LA Superior courthouse to look up cases by entering the tenant’s name into the self-service computer available to the public in the room where you file cases. Sure enough there was a case against his previous landlord. We hired some licensed air quality company to take some sample air quality tests and showed them the satisfactory results. 2 months later the tenant moved when he thought no fortune could be made here. i got to check out this Surevestor policy.
Remember to stay on your management company and monitor them a lot. I’m sure there are good professional ones but the one we had (a well known company in our area) did absolutely nothing except collect their cut. House got destroyed and the manager had no oversight. Lesson learned; squeaky wheel gets the oil. If you have a management company, you have to stay on them and make sure they do their job. If you have no manager, you have to stay on the tenant and make sure everything is ok.
Not knowing a law is no excuse for violating a law... BUT if you hire a property manager, then you have plausible deniability.
Another amazing video by Meet Kevin. This is GOLD sir, absolutely GOLD! These are the videos that drive me here. Real world value, things I can apply today.
I owned 5 rentals at one point and when one of those tenants moved out they rubbed dog shit all over the places their dog hadn't chewed up and pissed on. 1/5 for me. We sold 3 of them. The remaining two are rented out to family and a large construction company for middle management to use. Other than that, fuck owning property. Too much of a hassle for me. All you guys and gals that love it? Awesome for you! Keep at it! I'll stick with equites, options and futures.
What a great guy (the property manager) willing to go on camera and speak candidly about these topics. I'm sure he's very biased, but I'm interested in these ideas and will do my own due diligence on them.
I don't know many tenants that would do that, because that would end up on their credit and rental history. I don't think that's very common. I wouldn't get this insurance.
Can you do background checks on Tennants to see if they have "pending" lawsuits? Is there way to get a red flag before getting them in the property to check if there are always filing lawsuits?
I need to know this too
Background check services can provide court records with the subject as plaintiff and defendant.
Most states have laws barring people from denying a rental based on prior litigation.
@@lifestylewithlexi I'm not aware of any state with that requirement unless you are referring to criminal records. Even then, landlords are allowed to consider a record of violence or danger to people nearby.
@@PCFLSZ here's a link to NYS ag.ny.gov/sites/default/files/changes-in-nys-rent-law.pdf
*Getting sued by Grant Cardone, now tenants, next it will be Graham Stephen*
😂
Kevin isnt the one getting sued. It's the other guy in the video
5 dollar fix for a water leak that caused mold, mold companies work off insurance to get rid of it, plumbers makes holes to access cause to repair, repairs have to made to make the area whole again and possible court fees faced to reasonably provide a safe environment for the tenant was not neglect form landlord or management co. I’ve worked in a lot of apartments where there was abuses from tenants who are ok in living in subpar conditions as long their rent don’t go up. And landlords who think if it ain’t broke don’t fix it, which only leads to some sort of equipment failure, rot, mold, etc.
Regular maintenance keeps down cost, supports the service industry to get knowledgeable repair men, rentals rented, and less heartache on both ends.
This vid is my fav of yours so far. But like them all. Closing my first min a week!!! Then fours months of work.
4montgs what are you doing?
Meet Kevin BRRR method. Sort of. I’m a professional in hvac. And am using that, among many other skills I have to put in the management of the work I’m not doing. Along with executing my own. At the end I’ll add $68k equity. Along with pulling away with $15-20k out of the deal. To fund my next one. This is the first of many. My goal is 10 in 5 years.
I am an insurance professional in Colorado, and he is 100% correct that most agents don't understand the difference between an additional insured and an additional interest.
7:30 don't you just accept the first person that qualifies to avoid this?
I enjoyed this video. A lot of interesting and useful knowledge. Do more videos like this.
I’ve owned multiple houses and rented out and the biggest mistake I did was self manage the first one . After that painful experience I got property managers on the advice of my accountant . I found that trash will target people that self manage.
I've also noticed that bad tenants target self managed properties. I still self manage, but I screen my tenants thoroughly, never tell them I own the place, and strictly follow the lease.
whoa this video quality is crisp!
Screening tenants is easy, use income and credit qualifiers, this avoids pretty much all those laws. Managmemt companies are only useful if the amount of your time spent exceeds the value of W2 job.
you're not remembering that the Peter Principle reigns, mediocrity prevails and there are few penalties for Americans to NOT follow rules and respect owners. The False accusal and the heckler's veto have been in the playbook of clients for about 40 years now. Living in Floriduh, I've had two instances that the Civil Judge has gone 100% AGAINST settled law. Yet I still win.
Well said
I like this person Kevin is interviewing. Seems like an experienced and nice man.
Kevin can you make a PDF on the tips and tricks to do when screening a tenant. I believe selecting the tenant is the most important thing when buying real estate.
Meanwhile in Texas....get your crap that the sheriff put on the curb! 😂
Ah home, thank goodness for our state.
Ten Plus : Same thing in Utah. I added a comment with example above.
Yep- this video should really be called “why you shouldn’t own rental property in California!”
@@dynamicwellness33 : Actually, based on the video content, I would title the video: "If You Own Rental Property in CA, Get a Good Property Manager - Here's Why".
Ten Plus ❤ Don't Mess With Texas!
I am so Glad I moved out of Ca andd far from the Left Coast.
maybe the professional tenants did the water leak themselves
I've thought about purchasing property and renting it out but I've been shied away because of shitty tenants. Actually purchasing and doing maintenance on it isn't a big issue. Its shitty people.
You have the best videos on real estate
I’m so glad I’m not trying to do this in CA place is insane.
lmao
Explain
Truth Seeker hahaha, it’s 6 months later.....That was me response to what Kevin was saying, so I’m using his argument.
Any liberal state is a disaster
On the flip side, my question is how do you avoid unscrupulous apartment or management companies? My biggest fear is being charged, as a tenant, for shoddy repair work or issues like cracks in the ceiling (we live on the first floor of a renovated 1950s building). I think lawsuits are a VERY last resort to make sure all things remain balanced and no one is taken advantage of. Mismanagement can hurt tenants, too.
if they're truly unscrupulous then it will be very obvious and many warning signs
If a tenant sue the owner in India, he can enjoy the property at the same rent till the verdict arrives (which is in like 20 F%#KING YEARS)
Deductions? I just recently purchased a rental property and didn't know that. I had some tenants and who pretty much destroyed my house. The cost to put it back together was more than the deposit and they don't want to pay. Any suggestions? They told me that they have a lawyer. I took pictures before moving in and moving out.
After hearing all of that I definitely want a property manager for my first house I don't have the patience or the time to go through all of that.
In California, if you have a house guest for more than 3 days and they won’t leave, you need to give them a 30 notice to vacate!!! WTF?!?!
Thank you for the video Kevin. Excellent information.
I'm learning so much from these videos. I own four properties, that's including the house I live in. My main home is at the Jersey Shore and my other 3 are in the Pocono mountains. Been thinking of renting two of them out. Never been a landlord before but I'm learning a lot from these youtube videos. Would you recommend a leased tenant or should I put those two houses up on AirBnB?
This video isn't entirely accurate. There are exemptions to the Fair Housing Act. For example, owner occupied rentals with four or fewer rentals and single family houses without the use of a broker (owner can't own more than 3 houses).
Fantastic video and information. Thanks for putting it together. I am closing on a duplex tomorrow, and I'm a bit nervous since I'm inheriting the tenants, not knowing if an adequate screening process was applied.
That's so great. Are you living in one of them?
We just bought a multi family home but made sure tenants where required to leave.
I see. I just wondered if you were going to live in one and rent the other out.
@@karenkramer3760 nah, I'm not living in one of the units. Would be nice if that were possible!
Ditronus 😬😬😬😳
Yes! Great video! Always follow up with current laws. Grace hill has excellent online learning for rental laws
So brother just moved into a place that’s infested with bed bugs and they keep telling him they’ll give him a prorated refund and they haven’t done it yet still what should he do
These videos are so informative. Keep it up Kevin
I had a rental property and the tenants quit paying. Went to a lawyer. He said, basically, she's pregnant and you can't get her out. Luckily we found a company that bought the house we were renting and they had to deal with her. They had deeper pockets. We could have gotten them out, but it would have cost thousands we didn't have. And these scum bags knew that.
This was some helpful information. Thanks
Omg, plan to buy property to rent out in CA , but after watching this make me reconsideration.
If EVERYONE is in a protected class, wouldn’t that mean NOBODY is in a protected class? 🤔 Must be nice!
If everyone is special than nobody is special.
Hi kevin, started watching you a couple days ago, watched over 15 videos you posted, great point. I am currently living in Camarillo, do you happen to have any meets in ventura county? Love to meet you if possible. Also, contacted peter’s company today and got almost instant response, gonna follow up with them tomorrow for one of my rental here. Keep up the great work and thanks for sharing
Great video!! So much good information
So, this professional property management company doesn't have "Are these prospective tenants 'Pros' involved in a bunch of lawsuits" as one of their screening steps? Scary!
Hopefully they modified their screening process after that.
This is the best and first video to watch for any potential landlord
Solid advice and wisdom. Thanks!
When you watch the begging half of the video then your battery dies, so you watch the whole video again without skipping an ad since you already know it’s a good video
I know this video is based on being in California and deals with Californian laws (I live in Texas by the way), but I can't find my answer to that question you guys mentioned in the video "Can a tenant be denied living in your rental property if they have pending or previous lawsuits against landlords"? What if the applicant gives you the approval to run a background check and that clears you to look up their history, can I still deny them for that without getting sued?
They are just jealous you kill it in the money game and they live paycheck to paycheck.
Steve Luistro - Financial and Life Tips Never let anyone know you have money. Good rule of thumb.
People like you are why this world is such a shitty place.
Which statistically means he's more unhappy than we are.
Dont private mange unless you have experience. I have gone through countless hours of training, and continue to be trained in fair housing as new laws come up which they do frequently, I have been in the property management feild for 5 years. The fine here is $20,000 for violating fair housing. We cannot ask how many people will be in the home? That would be a violation, correct way to phrase that would be how many occupants will be residing in the home? It's too risky, pay the fee for a professional, I promise it's worth it. Google and read review for local PM company's, then have a meeting with them at your home, ask them what their screening is like, how much would they rent your home for?
Thank god I live in Idaho where I can evict a tenant for absolutely no reason. I do not need to provide a reason for why I’m evicting a tenant. Now I would never just say I didn’t like them, but if they were abusing the property they are either gonna fix it or gonna get evicted.
And for screening potential tenants. Always look at how they treat their car and previous house. How do they treat themselves? Are they clean.
As an insurance agent, Mold is usually not covered. Mold isn't covered because the tenant or homeowner neglected to file a water claim as soon as it happened. Usually water damage is limited too. The verbiage that the insurance company may fallow is that water damage has to be sudden or accidental. Sudden and accidental such as a pipe burst. The water claim needs to be filed ASAP to prevent mold from occurring. Water damage from negligence is typically never covered. Make sure your insurance agent knows that you are renting your home out on a long term, short term or vacation rental. You need a specific policy for each case. I'm in Orange County, CA. Feel free to contact me at insureitbiz@gmail.com for what if scenarios.
Kevin love your channel---and I'm from Ventura. BUT, in 15 years of having rentals in multiple states PM's have cost me THOUSANDS move than any tenant ever has. Legal piracy!! Maybe Peter is THE exception to this. I'll take my chances based on MY mistakes rather than my PM's LIES, OVERCHARGING, and pure laziness. GRRRRRR, whew, ok, rant over
Meet "Dont sue me bro" Kevin
I cashed out and sold a house I owned for 5 yrs. Bought for 80k, sol for $120k. I should have kept and rented it.
my fix for the fear of a tenant not being able to pay rent was being able to afford the rental even without renting. if you can front the mortgage payment independently without rental income, you know you can outlast any tenant, after all, once you file a case with the LTB they will be liable to pay for the time they squatted.. expect the worst plan for the best
How much does it cost to hire a property manager?
Bigtombowski Thank you for the information lots of blessings for you.
Between 5% and 10%.
Valuable info! Thanks Kevin and Peter!
Kevin, this was FANTASTIC content!
I had to evict a roommate in Oregon. It cost filing fees and cost to serve them, so less than $200. It was actually pretty easy.
How does fair housing apply when screening for a lease option/rent to own tenant? We always choose whom we want even though it’s still based on data regarding whom can qualify best to exercise the option. I may have to have some more discussion with my attorney just to ensure compliance!
Yeah definitely check with your attorney -- for self managing though, shouldn't be an issue to write down your criteria. Check, a quick word doc, "Forward Tenant Screening & Qualification Criteria 11-24-2019" with a quick bullet-point list on credit, etc. :D
Meet Kevin Thanks Kev! You’re a G! You have a new subscriber and fan!