What I've Learned From My Rental Property

Here is a random list of things I have learned since purchasing my first investment property in February:

• How to buy and replace outlet covers


• The importance of having shut off valves in connection with every sink/toilet in your home. I now know how to identify and utilize said valves, and how to have them installed if need be.


• City policy on water meters, recycling, trash pickup, and landlord permits


• How to buy and replace cabinet hinges, handles, drawer knobs


• The importance of owning and using caulk - and a cordless drill (or one with a very long extension cord)


• How to buy and replace an AC filter, and how often to do so (Monthly! Unless you have an expensive fancy filter that lasts 3 months)


• How to paint walls, ceilings, and cabinets (without using painters tape!); How to clean brushes and paint rollers


• How to purchase and install blinds


• How to strip paint off cabinet doors (various paint stripping chemicals, knife-like devices, and - best of all - electronic sander-like machines)


• That you shouldn't pay a contracter in full for work he's done until a) it's done and b) you've inspected it to see it was done properly.


• How to screen potential tenants; how to property handle their personal information; the importance of documenting all communication with tenants in writing.


• How to say NO to tenants' requests and offers without feeling bad (It involves the ability to be firm while smiling pleasantly and subtly but swiftly changing the conversation topic).


• How to open a business checking account, credit card, and PO box. How to file a business name with the state (It's surprisingly easy! You just pick a name (have alternatives ready), go down to the courthouse, make sure no one has the name already by running variations through a public computer, fill out a 1 page form, pay $16, and you're done!).


• How valuable my time is, and that I'm willing to pay up for professional help for big projects (replacing counters, repairing garage doors, anything to do with plumbing).


• The importance of doing it yourself whenever possible. Profit isn't just made by raising rents; it's made by minimizing expenses. Raising rent by $25/mo is pretty meaningless if you're paying a plumber $150 every time the drain clogs.


• How mandatory a reserve fund is! I didn't expect a vacancy and expensive renovation 1 month into ownership, but I had no choice. Thank goodness I had some money in the bank.


• Keep Good Records! Save All Receipts! You can't take the tax deductions without records, and they are very lucrative deductions. Your expenses may seem small (at times), but they add up. Keep track of your mileage, too.