Book Review

Great Big Book for Landlords and Property Managers

By Jacquelyn Lynn

From the title of Stuart Leland Rider's Great Big Book for Landlords and Property Managers: The Care and Keeping of Tenants (Entrepreneur Press, 2006), you might think this is just another guide to managing rental properties. While it certainly is that, it's also much more.

Rider, a long-time real estate developer and investor, begins with a discussion of entrepreneurship and real estate, pointing out that real estate investors are entrepreneurs by the nature of what they do. He writes: “You have lived your entire life in and around other people's money-making investments. You were born in one, went to work in one, lived in one, played in one, and will most likely die in one and be buried in one. Yes, people who build cemeteries do so for a profit!”

Many investors tend to think of their personal residence in a different light than their income-generating real estate. Rider disagrees, writing, “You should show a profit, personal or financial, in everything you do, and with a little thought and planning, you can do it consistently. A house is not just a home, it should also be a serious income-producing asset. It can and should be the primary stepping-stone for your wealth-building plan.”

After explaining a variety of investment vehicles, Rider boils it down: “You have to buy into the idea that the single best asset you can have related to any real estate investment is a solid, rent-paying tenant.” He describes how to manage and maintain both residential and commercial properties, beginning with a thorough explanation of land use regulations which dictate what developers can do with property and then how owners and tenants can use it.

This book is rich with charts, lists, and illustrations. Rider's own experience validates his information and advice. For example, he points out that occasionally lenders will try to change the terms and rates of a loan at closing. His advice: “Do not stand for last-minute changes.” Keep a copy of your original loan application. When your loan is first approved, ask for a commitment letter for the loan “as applied for.” Bring these two documents to the closing. If the lender tries to change the terms to ones less favorable to you, simply point out that you have their commitment and if they change it at the last minute, they might be liable for breach of contract and damages.

Rider gives a very detailed explanation of residential and commercial leases. He includes sample leases then discusses each clause so that you and your tenants will understand your mutual obligations and responsibilities.

Throughout the book, Rider includes definitions in boxes to further explain the terms he is using (in addition to a comprehensive glossary). Readers will also appreciate his “Heads Up” notes with warnings and alerts.