Mr. Landlord’s sound, but tough advice

If you own residential rental houses or apartments, or want to someday, you’re going to profit from reading “The Landlord’s Kit” by Jeffrey Taylor. Known as “Mr. Landlord” for the superb monthly newsletter he has published for more than 15 years, Taylor reveals his profitable rental management secrets in his new book.

For example, he begins by explaining why the rental application is the landlord’s best cash-flow tool. He then shares how to “sell” your vacancy to prospects and how to avoid having a few unscrupulous tenants take unfair advantage of the landlord.

Each chapter contains several pages of concise explanations, such as how to use the “rental holding deposit receipt” correctly to hold the apartment or rental house for the applicant. Taylor also explains how and why landlords should use the verification forms to “evict deadbeats before they move in.”

The best parts of each chapter are the superb forms, which readers are invited to copy for personal use.

A unique aspect of Taylor’s rental screening is his point system to identify qualified applicants. It is much like a credit score or FICO score system that most lenders use.

He gives points for a good credit report, a checking account, a savings account, no prior evictions and even appearing on time for the rental showing appointment.

Whether you are a novice or experienced landlord, you’ll especially enjoy and profit from how Mr. Landlord puts his tenants on the “automatic rent payment plan” to withdraw monthly rent electronically from their checking or savings accounts. He says this works especially well with parents who pay their college student’s rent.

Frankly, Mr. Landlord seems like one tough landlord. To illustrate, if he agrees to accept a tenant’s pet, he interviews the pet. Also, he requires self-employed applicants to submit tax returns to verify income.

“Be tough during the first two to six months,” he advises, to condition and train new tenants.