How independent rental owner education saved me time & money.

"Well, I've got $100,000 of my own money invested in rental properties, what now?" These were my thoughts some 13 years ago, when I first started to invest in single-family town houses and duplexes in the Dallas area. I was working full time as Vice President of Sales for an import company, which took all my daytime hours, with lots of travel. That left me weekends to manage my newly acquired rental properties.

I read several books on "Land Lording", got some lease forms from an office supply company, and ran "For Rent" ads. I guess, I made most of the mistakes new owners make and although I had good vendors and workers, I just was not making any money.

Then I took my first step to profitability--I joined the Apartment Association of Greater Dallas (AAGD) and enrolled in the NALP course, which was held in the evenings for IROC (Independent Rental Owners Committee) owners like me.

This course helped greatly and I now spend a lot less time getting good, quality tenants, oops residents. My advertising, prospect qualification and closing skills improved dramatically. The profitability needle began to edge upward.

I toyed with obtaining some of the more advanced property management programs: Certified Apartment Maintenance Technician (CAMT), Certified Apartment Property Supervisor (CAPS), etc. but I just could not fit them into my frantic schedule. Earle Leeder, an IROC member says, "IROC members are jacks of all trades, masters of none." I now owned and managed more than 20 properties and most weekends I was like the proverbial "Cat on A Hot Tin Roof."

One of my biggest problems occurred when the resident moved out. It was my practice to tell the residents to clean the property as if your favorite aunt was coming to visit. I guess many of my residents did not care much for their aunt, because all too often the residences were left filthy and required not only cleaning, but hauling out trash, repainting, etc.

I then learned about the local IROC program conducted by the AAGD. It was held at noon, a box lunch was provided and it took exactly one hour. This I had time for.

At one session I lamented to the instructor about my poor record of move-outs. She asked, "What kind of move out instructions do you give the residents?" I looked at her blankly--I had no idea what "Move Out Instructions" were. She said, "Jack, if you want your residences to be cleaned in a certain way you need to tell your residents exactly what you want."

Well, I went home and made a list ... a list that got longer and longer. This list is part of my letter to the resident. Then I asked myself, "Suppose they don't do the things I ask, how much shall I deduct from their security deposit?" I then wrote a page of charges. I made these pages part of what I mailed to the resident after he/she gave notice. The results were fantastic. For the most part, my residences were turned back to me in tip-top shape, and I happily returned most of the security deposit to the resident.

Now when I am given notice of termination, I mail a signed copy of these documents, adding pertinent information it's as simple as that.

With my 20 properties (condominiums and duplexes) I may be classified as a typical IROC member. If you, too, are a small investor, owner or manager, IROC can help you.

The newly revised IROC Organization and Operations Manual will guide you on how to set up and manage a successful IROC in your local apartment associations. This 15-page manual is jammed full of helpful information such as:

What is IROC

A brief synopsis and description of IROC.

Organizational Structure 

Explores Association Committee vs. Independent Committee, Board of Directors representation and dues.

Marketing IROC Activities

Discusses IROC benefits, plus how to advertise and promote membership to prospective IROC members.

Educational Services for IROC Members

This is the longest section, and reviews an exhaustive array of educational subjects and courses, as well as potential speakers and seminar leaders. A special section gives tips on how to make IROC meetings more productive. A new section is devoted to the Rental Owners Course.

Form Sales

Discusses standard lease agreements and other important related documents (applications, move in forms, and move out notifications)

Other Services

Several helpful ideas to help IROC members save time and money are reviewed in detail.

If you are interested in participating in IROC, contact Jack Terrillion at 972/991-9140

Jack Terrillion, NALP, is NAA's IROC Chair and owner of Terrillion Investments.