Epic Real Estate Investing - Make More Money on your Rental - Rent Ready Pointers | 1156

Episode Date: June 29, 2021

Whether you are doing it by yourself or with a team, you need to outline your scope of work in order to have your PROPERTY RENT READY! Therefore, in today’s episode, Mercedes, the Turnkey Girl, shares the 5 most valuable tips for creating a powerful and effective GAME PLAN, so your rentals can produce profitable cash-flowing assets!   Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terrio Media. So you want to be a real estate investor, but you don't want to do the work. If there were only a way where someone else could do it for you, now there is. Tune in here each and every Tuesday on the Epic Real Estate Investing Show for Turnkey Tuesdays with your host, Mercedes-Torres. Hello and welcome, welcome to Turnkey Tuesdays brought to you by Epic Real Estate Investing. My name is Mercedes Torres, your turnkey girl, and I am lucky enough to be partners in crime with Mr. Matt Terrio, the guy who created the epic real estate empire. I help busy professionals

create passive income through real estate investing so they don't have to work so hard and maybe even retire sooner. So I created this show to share tips, advice, and real life, real estate experiences so that you don't have to work so hard and you can create passive income in your world. So if this is your first time here, glad you made it. Make yourself at home. If this is not your first time here, welcome back. So you buy a rental and it's performing beautifully. Tenet is awesome.

She pays rent on time almost every month. And in almost four years that she's been living in your property, she's only been late a couple of times, once during a holiday and once because of an unexpected medical emergency that constituted a bill. She's an ideal tenant. But then she gets pregnant. Mother-in-law is moving in and all of a sudden your rental is now too small for this. growing family and you get that dreaded 30-day notice and she is moving out. Ugh, I hate when this happens, but this is what happens when you deal with rentals. And 30-day notices are not always fun.

But if you went through the turnkey route to acquire your rental, your property manager has got your back. So really, you don't need to do a whole lot because your property manager will handle all the logistics of your four-year tenant moving out. Property management will ensure that the tenant actually leaves on time or on the last day of their lease term. They will ensure your rental is left in decent condition and the property management team will actually walk through your rental, take pictures of your property. property and possibly any potential damage that could have transpired during the four years. And they should make any suggestions based off of the current market in case the property needs updating. After all, your tenant has been there for four years. So it is likely you're going to have to paint your property and possibly treat the floors

and maybe repair a few minor things that have transpired throughout the four years. The property manager will access the property and will do all of that for you and will likely call you to discuss the estimate that they're going to send to you to get the property rent ready. So you get to sit back and relax and essentially just wait for you to get the estimate. And at that time, you can evaluate how you want to move forward. And this is where I suggest that you hop on the phone with your property manager so that they can fill you in on the details because after all, they are your eyes and ears of your investment. But what happens if you don't have a property manager or you didn't go through a turnkey provider that provided you with all of. the services and perhaps you are managing the rental yourself. I hope this isn't you and I say this

because I speak from experience because when I started investing I was doing all of everything that I just described when a tenant moved out and I can say with 100% certainly I no longer have to do it and I do not miss it at all. But I'm actually glad that I did have to do it because it taught me a lot. And one of the biggest lessons I learned was that your scope of work is the foundation of your project. And in this case, your rent ready. Because this is your game plan for completing your rent ready successfully. So if this is you, if you, if you, you are the one that manages your own rental, I suggest you quickly learn how to write a scope of work and I highly suggest that you use it for all of your contractors so that you can provide an accurate

description of what you want so that your contractors can provide you an accurate quote. and the contract you hire will need to know exactly what you want done and at what level you are expecting your project to be complete. So I went through my bag of tricks and both from my personal experience and now the experience of my team. I have five most valuable tips for creating a powerful and effective scope of work. So here they are. Number one, be clear and concise. Do not leave room for interpretation. Make sure your objectives are obvious. If you want to convey that an action is mandatory, use words like must or shall. Define any terms that your team might find confusing because this will ensure that everyone is on the same page as to what is required

and what you expect of that. Number two, broad to detailed instructions. First, outline your goals in broad terms. Don't get wrapped up in the tiny details just yet. Start with a basic model of which crews will be working on on your process. Once you have a general idea of who is going to get involved, then start to fill in some of the more minute details. This will save you massive time, and after all, time is money. Number three, clear expectations and requirements.

If there is any confusion about who is responsible for what, in concordes, cause major delays and can affect your bottom line. Like who's responsible for the material? Who's responsible for the rental equipment? How much is labor going to cost you and how much labor is going to be required? Assign these responsibilities ahead of time to specific people. Now, if you hire a general contractor, then be sure that you know who he's delegating this to and you know exactly what the timeline is going to be. The expectations and the requirements need to be clear up front. Number four, open communication to your team. Subcontractors are masters at their profession, and they may be able to offer you valuable advice on how to do things better or more on budget.

Sit down with your subcontractors, go over the scope of work, and get their professional input. Surely your contractor has done a lot more rehabs than you have and their advice can serve you well. And tips like this may be extremely helpful for you in itself. Could be a learning experience. And number five, probably my most important suggestion is use contracts. I used to have a mentor that would say to me, negotiate like enemies, put it on paper, and then forget about it, and play as friends. Once you get this agreement out in the open and you entail the details, work it out in writing,

so that there's minimal room for misinterpretation, especially if both of you have discussed it and you mutually agree on it. If later there's any problems or arguments or misunderstandings or disagreements, you will then have the ability to pull up the contract and you'll have evidence of the agreement that you both put in writing and you should have him read it and sign it. so that you both mutually have understood and agreed. And again, both of you sign it.

I suggest that you have each subcontractors sign each scope of work just so that you are both held responsible and accountable for what is written and what is expected. I've always been a true advocate of teamwork, and I've been a fan of treating contractors with respect. Yet, I set boundaries and realistic expectations from the get-go. I truly feel that if you are

clear and concise with expectations and with directions, there is minimal room for misinterpretation and failure. And after all, all you want is a successful rent-ready so that it could produce a success. successful rental and in long term a profitable cash flowing asset. I truly hope these tips help you. They help me each and every time I get involved with any project pertaining to making something red ready. If you do not want to do the heavy lifting yourself, my suggestion is buy a turnkey rental where all of the heavy lifting is done for you, including getting the property rent ready. That's it for today. And until next week, on the next episode of Turnkey Tuesday, enjoy your cash well. If waiting for your investments to grow feels like waiting for pink to drive. There's a powerful secret your financial planner doesn't

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