Are You A Long-Distance Landlord in Cleveland?

Here are some real world tips for you to apply in your real estate business to reduce risk, loss and increase revenues:

• Have a local mailing address on your tax roll and dealings with local city/government officials and tenants.
• Use contracts with handy-helpers and contractors, even if it is just one page sheet outlining the repair list and terms. Many landlords think they have to give up formalities for cheap pricing or because there is a “skilled labor” shortage. Well, the truth that, it’s all relative, if someone refuses to contract a job in writing, MOVE ON, there is always someone else.
• SECTION 8 is YOUR friend, don’t mess it up! If you are having a BAD relationship with subsidized housing it is because your M.O. is not correct. I personally built several large Section 8 income portfolios and it was the best investments ever. Here are the Common errors long-distance investors make with Section 8 (Or their ground troops handling their affairs here):
  • Not doing the paperwork correctly.
  • Using out of town addresses that piss off the inspectors and administrators.
  • Not following the rules and pissing off the officials.
  • Not showing up for inspections.
  • Not complying with their federally and state mandated compliance rules established by HUD.
  • Not getting certified as an owner (a super simple brief class here in Cleveland that is worth it – get to know the employees if you want to have several Section 8 rentals).
  • Not completing the repair list they give to you. Often is just a large punch list of little things. It’s worth it, remember this is an investment, so it is not money lost if you are holding for cash flow.
• Make sure you use LLC for the title of your income properties, and register it in Ohio as a foreign registration OR file a NEW LLC in Ohio. They are very strict about foreign corporations getting registered in Ohio.
• When hiring new hand-helpers, contractors or management companies, do a manual background check on them. This will save you a MAJOR headache.
• File assessment value complaints on your property taxes when they allow it, dispute value and show the repairs you had to do or still have yet to do. I recommend you do this internally and not hire someone else to do it, it is very simple to file.

So how do you conduct a manual background check on anyone?

That will be in the next article. But I want to say, it is worth the 1 hour effort, if you don’t have time, and I totally understand, CCFP offers a background investigation service for corporations and persons of interest. We can do it for you.