Chandler Properties Blog

When Did I Change that Air Filter?
The other day I was scratching around trying to remember when the last time the air filters on my apartments had been changed.  As part of the lease agreement, the tenants are supposed to change the filters out on their own.  However, this only rarely happens.  Therefore, every three to six months I’ll go around and check the filters.  I am always amazed at the dirty condition of the filters.  In order to keep up with the age of the air filters as well as the dates of other routine maintenance I put together a maintenance log for each of my properties the other day.  I have decided that starting now, I will change the air filters every three months and reduce the strain on my air conditioner units.  If you would like to download an excel version of the maintenance log, go to the Resources Page and download it for free.

Maintenance Log Details
The maintenance log spreadsheet is a form that can be printed out for each property that a landlord manages.  It includes dates, amounts, and notes related to the following maintenance types.

• Lawn Care
• Pest Control
• Air Filters
• General Maintenance

IRS Consequences
This form not only provides an easy way to keep up with routine maintenance, but it also helps provide evidence that you are an active owner of real estate.  This is an important criteria for determining your tax status with the IRS.  There are tax advantages to being classified as a business owner by the IRS instead of a passive investor.  Keeping records of routine maintenance that you performed helps provide evidence that you are actively engaged in the management of your rentals.

I hope this form is helpful to the landlords out there.  Feel free to download and modify it to best suit your needs.  Any feedback is appreciated. 

What is the MLS?
A Multiple Listing Service (MLS) is a group of private databases which allows realtors representing sellers to share information about properties with realtors who may represent potential buyers or wish to cooperate with a seller’s broker in finding a buyer for the property. There is no single authoritative “MLS”, and no universal data format. The many local and private databases-some of which are controlled by single associations of realtors or groupings of associations are collectively referred to as the MLS because of their reciprocal access agreements. (Definition paraphrased from Wikipedia.)

How does this help the Average Investor?

The MLS has traditionally been a tool only available to to realtors.  With the advent of the Internet, average individuals are now able to access the MLS free of charge.  This allows us to have access to the same information as realtors.  We can search for properties by many variables.  Ex. Property Type, Location, Size, Price, etc.  

There are two good websites I use to search the MLS for properties. 

1. 1.Crye-Leike (Southeastern Market) www.crye-leike.com/main/search.php     
   

2. 2.Chattanooga MLS (Chattanooga, TN Market) www.chattanoogamls.net
   

How I use it?
I am constantly looking on the MLS for single family and multi-family properties to keep abreast of average market values.  By keeping an eye on the property market, an investor can develop a keen instinct for what a property is worth.  Then when a great deal comes around, it will be obvious.

It is a good idea for investors to have a clear cut idea of what kind of property they are looking to buy.  Below are a few criteria examples:

1. Single family house vs. multi-family house
2. Rural area or urban area
3. Price range
4. Square Footage
5. Potential rent

Narrowly defining your criteria will allow you to become an expert on a niche of the market.  Warren Buffett says, “You don’t have to be an expert on every company, or even many. You only have to be able to evaluate companies within your circle of competence. The size of that circle is not very important; knowing its boundaries, however, is vital.”  

This is an excellent point.  Find something you understand and become a master of it.  By understanding the value of the properties in your niche, you can patiently wait for a great deal to come along.  Then act quickly.