Landlord Systems: The Unit Binder

Running rental properties efficiently often comes down to having the right systems in place. In this episode, Kevin and I walk through a very effective landlord system we’ve created for our rentals — our unit binder.

A unit binder for landlords is a simple system we place inside every rental unit that answers common tenant questions, explains how appliances work, and provides helpful information about the property. Over time, this system has dramatically reduced tenant questions, prevented unnecessary maintenance calls, and helped our tenants handle everyday situations more independently.

Inside the binder we include property information like trash schedules, parking rules, inspection expectations, and appliance care instructions. We also use QR codes that link to short instructional videos so tenants can troubleshoot common issues without needing to contact us.

What started as a simple idea has turned into one of the most valuable landlord systems we use in our rental business. It helps our tenants feel supported while also allowing us to manage our properties more efficiently.

If you’re a self-managing landlord looking to reduce tenant questions, prevent maintenance issues, and operate your rentals more professionally, let us walk you through how our unit binder system works and how you can build one for your own properties.

LINKS & REFERENCES

Episode 119  Roommate Tenants and Why We Don’t Prefer Them

KwikSet Halo Smart Lock Touchscreen & Deadbolt: 

Kwikset Halifax Passage Doorknob

QR Code Generator

Emergency Gas Shutoff Wrench

Front Load Washer Door Prop

Garbage Disposal Hex Key

Clean Dryer Lint Trap Sign

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Transcript

Stacie 0:00

I keep coming back to this idea of tenant independence because I genuinely think it's one of the most undervalued concepts in self-managing your rentals. We spend so much time reacting. The unit binder, it's proactive. You're giving tenants the tools to handle things before the problem escalates.

Speaker 2 0:25

Welcome to Your Landlord Resource podcast. Many moons ago when I started as a landlord, I was as green as it gets. I may have had my real estate license, but I lack confidence and the hands-on experience needed when it came to dealing with tenants, leases, maintenance, and bookkeeping after many failed attempts. Fast forward to today, Kevin and I have doubled our doors and created an organized. Professionally operated rental property business. Want to go from overwhelm to confident if you're an ambitious landlord or maybe one in the making. Join us as we provide strategies and teach actionable steps to help you reach your goals and the lifestyle you desire. All while building is streamlined and profitable rental property business. This is Your Landlord Resource Podcast.

Stacie 1:14

Hey, hey landlords. Welcome back to the Your Landlord Resource Podcast. I'm your host, Stacie Casella and joining me as always is my husband, business partner, and the man who takes full credit for systems he had zero hand in building. Kevin Kilroy.

Kevin 1:32

Hey, come on, I provide moral support. That's a system. I'm very involved.

Stacie 1:40

For most things you are. Not too much administratively though. Anyway, it doesn't matter. I want to jump right in because today episode is, well, we're trying to make it one of our shorties, which is nice and focused straight to the point. And the topic is something I genuinely love talking about because it has made such a difference in how we operate our properties. Today we are walking you through our unit binder, what it is, what's inside, how we use it, and honestly why we think every self-managing landlord should have some version of this. Kevin and I have been doing these for a long time, and I will tell you that the unit binder is easily one of the best systems that we've put in place. It has saved us countless hours, a lot of unnecessary maintenance calls, and probably a few headaches on both our end and our tenant's end. So let's get into it.

Kevin 2:34

Alright, so let's start at the beginning. What even is a unit binder? I know it sounds very official and very landlord professional, but I promise you the concept is generally pretty simple. In every single one of our rental units we leave a one inch three ring binder, so it's nothing big or intimidating. It lives in the unit and it is essentially a custom quick reference guide for that specific unit or property. Every common question a new tenant has when they move in, every maintenance question we used to get texted to us at nine o'clock at night is answered in the binder. The cover of the binder has a photo of the building with the unit number on it, and both Stacie's and my contact information. You know, like phone numbers, emails, all of it. So right from day one, tenants know exactly who they're dealing with and how to reach us. And here's a little evolution moment for you. Back in the day, we used to include a full physical copy of the lease in the binder, because we wanted tenants to have it handy. Well, our lease is now over 50 pages long. Fifty, 5 0. So that idea is long gone. Now there's just a note reminding them that their signed copy was emailed to them and they can access the electronic copy anytime by visiting their email. Much cleaner, and we save a few trees along the way too.

Stacie 4:10

And I wanna give you the before picture here, because I think it really illustrates why we built this thing. So before we had these binders, we were getting texts and emails from new tenants for weeks after they would move in. Which trash bin is picked up on which day? Why is my dryer showing an error? How do I set the ceiling fan speed? And, you know, a lot of these things were all very valid questions, but multiply that across every unit and every new tenant and every new lease renewal, and you guys, it, it adds up pretty fast. The binder answers all of that before they even have to ask us. And this is the whole philosophy behind it, tenant independence. We want our tenants to feel confident and capable of handling everyday things without immediately reaching for their phone to text us. Okay, so let's talk about what's actually inside the binder. The first major section is titled Important Information About the Property, and this is kind of the meat of it. This is all the stuff that you as a landlord know by heart because you've owned the property forever,, but your brand new tenant has zero clue about it on day one. Let's start with trash. We know where the dumpster is, what the pickup schedule is, what the lock code is, and because our particular dumpster lock is honestly a little quirky, we include a QR code right there in the binder that links to a how to video on exactly how to open and lock it. I'll talk more about how we do the QR codes and videos in a bit, but just know that this kind of thing is a game changer. Then we cover the back patio, which key opens the gates, that the furniture needs to be covered when it's not used. And please for the love of all things good, clean the grill before you cover it back up. Nobody wants to fire up a cresty grill that's left over from the last tenant. We note where the internet and the phone access panels are, where the electrical meters are in case of a power interruption and maybe they have to reset it. Where the gas meters are and that we actually keep a gas shutoff tool hanging right on the meters in case of the need for an emergency shutoff. We note exactly where all this stuff is in the binder. And that cool gas shutoff valve that we leave there is only$4.50. So if you guys have gas to any of your units, you'd need this on the meter in case of an emergency. You know, for us, we're in earthquake country. Some of you might be in wildfire areas, or hurricane or tornado zones. Shutting that gas off can make the difference between the place blowing up to smithing or not. And for$4 50 cents, we kind of think that's a no-brainer. So we'll link that one in the show notes for you guys to check out. Then we get into garbage disposal care. And I kind of love this section because it's very specific and it prevents a lot of damage. We tell the tenants to only run cold water when using it because cold water keeps the motor from overheating. We tell them to run the disposal every single day that they rinse a dish, because if food particles sit in the base of that disposal too long, the bottom's going to rust out and you've got a serious leak issue underneath your kitchen sink. And we've had this happen multiple times. Why do you think we have this information in the binder? Most people do not know general care of household items, much less a garbage disposal. So we leave a hex key taped inside the kitchen sink cabinet. And this is something that you can use on the bottom of a garbage disposal to clear it when the blades get jammed. We'll also link that in the show notes so you can check it out. Also, we do include a list of what cannot be put in a disposal as well. Things like artichoke leaves, onion skins, asparagus, celery, eggshells. Those are common items that are fibrous and will wrap around the blades and it is a royal pain to clean out. And we have a list of other foods that can't go down the drain like grease and fats and oils or starchy things like oatmeal, pasta, and rice. Oh, and coffee grounds. Between the fat solidifying and the starches and the coffee grounds creating a sludge, we are giving it our all to avoid getting those pipes clogged or backed up. And if the disposal blades get jammed, we tell them clearly, do not stick your hand in there. That is why there is a hex key under the sink. And there's a QR code in the binder linking to a video walkthrough of exactly how to clear a jammed disposal and also reset it if needed. The section also covers how to clean appliances, the sinks, the tub, the shower surrounds. And we specifically, we tell them, do not use a green and yellow abrasive sponge because that scratches everything. We also address flooring because some of our units have flooring that is not waterproof. It's just water resistant and people genuinely need to know that before they leave a wet rug sitting on it for days. Then we cover the washer and dryer care, like cleaning the lint trap after every load. You know this is gonna help reduce the fire hazard and increase the motor longevity. And recently we started to place these acrylic plaques on the front of our dryers that remind tenants to clean the lint trap. We will link'em in the show notes, they're actually very nice. And if you have a front load washing machine. We provide a little magnetic prop to keep the door open between uses so that the rubber seal doesn't mildew. Those are very difficult and expensive to replace. Ask us how we know.

Kevin 10:16

Just last year we tried to DIY that at kid two's duplex. Let's just say that did not go well. Water started leaking because the seal was, well, it wasn't sealing, so we had to call a professional, and that ended up being around a$250 expense for him.

Stacie 10:34

And that little door prop is what, like 10 or 15 bucks, right?

Kevin 10:39

Exactly. That's a small price to pay to keep the front loader from getting all nasty and smelling bad. We will link that in the show notes for you guys to check out. The air filter section is one of my favorites because it's such a simple thing that makes a real difference. We give them the exact filter size for their unit and then tell them specifically where to buy it. Ace hardware, Home Depot, Lowe's. I think they can even get them on Amazon now. And here's the deal. Our lease states that they are responsible for changing those. Do they? Very rarely. But on occasion we will go in and one person has changed it. I know that after California had some pretty harsh wildfires in the area a few years ago, those filters were nasty. And even though they were changed only a month or two before many of the tenants had changed them out. Filters are how the HVAC system breathes. If those filters are clogged, your mechanicals will have to work a lot harder and not be as efficient. They will eventually lead to the system failing, so we usually do change the filters twice a year when we go in for inspections. But we offer them all the information in case they're responsible enough to handle it themselves. The goal of the binder is to prevent problems before they start. That's the level we're working at. Alright, continuing through the binder. We have a solid section on our keyless entry locks. All of our units use Kwikset Halo smart locks. And while they are genuinely great locks, there was one very specific thing tenants need to know about changing the batteries. If they accidentally press the wrong button while the inside panel is open, it can wipe out the entire electronic configuration. Meaning the electronic or quote unquote smart part of the lock just doesn't work, at least until one of us drives up there and resets it. So we put full step-by-step battery replacement instructions right in the binder, and a link to a video demonstration as well. We will link the Kwikset Smart locks we use in the show notes. There is a learning curve to the installation, but we are very happy with them. We cover the mail and packages too. Where the building mailbox is, which key opens it, how to access the USPS parcel boxes that are used for larger package deliveries. Then we address non USPS packages, like from UPS, FedEx, Amazon, because we've had tenants experience package theft at our properties before. So we proactively tell tenants in the binder to consider using Amazon Hub Lockers or UPS or FedEx access points instead of shipping directly to their door. I'd much rather get ahead of that than deal with a frustrated tenant whose package is gone. Parking is all in there too. Our properties are street parking only, with a two hour limit unless you register with the city for a free unlimited permit. We include the exact website link so they can go do that, and we remind them about the Thursday morning street cleaning restrictions. Again, these are things they'd have to learn the hard way otherwise. We just put it in front of them.

Stacie 14:11

Yeah, the inspection section is one that I feel strongly about including, because I know probably that some landlords worry that talking about inspections up front are gonna make tenants nervous or defensive. But we found the opposite to be true. When you explain it clearly, here's when we do it, here's what we're checking, and here's why, it removes all the suspicion. We do our inspections usually twice a year. We're checking water lines under the sinks, the toilet, the washing machine connections for leaks. We're also servicing the HVAC each spring. Replacing air filters, testing smoke and carbon monoxide detectors, and checking windows and door locks, and the weather stripping as well. And we tell them all of that in the binder. We're not snooping, we're maintaining. And when they already know that going in, there's no drama when we reach out to schedule this. After all that property information, the binder is organized into tab divider sections, and this structure keeps everything really clean and easy to reference. So our first divider is simply titled Rent, and it's the amount, when it's due, what late fees apply and when. That we use QuickBooks to send out invoices and what to do if an invoice hasn't shown up by the 25th of the month prior to your rent being due. Because we would always rather get a heads up call rather than have a tenant just not pay because they didn't receive the invoice.

Kevin 15:44

Which has happened. And then they get pissed when we tack on the late fee. Just recently, someone tried to tell us that they didn't get their invoice, so they didn't know how to pay. So Stacie pulled up their lease and referred to the unit binder, all which clearly stated where to send the rent on the first.

Stacie 16:05

Yeah, and I likely would've given him a little break, but they didn't contact us until the third of the month. So what, you contact us on the last day before a late fee starts and expect us to start jumping on that invoice. And for clarification, this tenant's lease expired and they opted to roll into a month to month agreement because they're moving out of state in a few months. Well, on QuickBooks I have a preset invoice that is delivered for the term of the lease, and when they renew or rolled a month to month, I have to go in and reset that, you know, make any updates to the rental rate or charged amenities. Anything that might have changed. And this one fell through the cracks. And also their text to me, on the third, was on a Friday night. I was not gonna run home to my computer to get that invoice sent out. They had wait till Monday.

Kevin 17:02

Yeah. But even when you sent it Monday, they didn't pay it until Friday.

Stacie 17:07

Right. And then they called and bitched me out about the late fee, which I had discounted by the way. Just so you know, on QuickBooks, I can see exactly when an invoice has been clicked on and viewed by the tenant. So they can't come back and say that they didn't get it or it went to spam. Yes, you did. And you clicked on it here, here and here. And then in this case, they waited four more days to pay it. I mean, geez, you gotta be kidding me.

Kevin 17:36

And you called them out on that too.

Stacie 17:38

Damn straight I did. You know, it's total crap to try and make me feel bad that you didn't pay your rent because you were not prompted to do so by an invoice. Rent is due on time, whether you pay an invoice or send a check or drop it directly to my house. Anyway, enough, the divider titled rent handles all of that. The second divider is our legal and compliance section. So California requires us to provide certain disclosures to tenants, and some of them are really long documents. The lead based paint pamphlet alone is about 20 pages. So we do email all that when we send the lease and we include hard copies of the longer ones in the binder. Sacramento also recommends, does not require, but recommends, a residence rights flyer, and we include that as well. We're not duplicating every single disclosure from the lease itself. Just the ones are substantial enough to warrant their own home in the binder.

Kevin 18:41

Okay. The next divider is trash sorting guidelines. Sacramento, like a lot of cities, has specific mandates about what goes in trash versus recycling versus green waste. And if tenants sort it wrong, we can get fined. The city actually provides printed flyers on this, so we just include them right there in the binder. Easy fix. And then there's the roommate agreement divider. Now we have a whole separate episode on why we're not particularly fans of the roommate tenant setup. And I'd encourage you to check it out, it's episode 119 and you can find it at yourlandlordresource.com episode 119. It will also be linked in the show notes. But the reality is roommates happen. And when they do a written roommate agreement between the tenants can make a big difference. We are completely clear in the binder that we are not a party to that agreement. It doesn't affect the lease, and we are not getting in the middle of their disputes. But the tenants themselves benefit from having something in writing. It covers how rent is divided, who pays which utilities, what happens with the security deposit, guest policies, cleaning responsibilities. And what happens if one person wants to leave early? We include a page explaining why it matters and a sample template that they can use as a starting point.

Stacie 20:13

And the last divider is my personal favorite, the appliance section. So the first page is a list of every appliance in the unit with the manufacturer name and model number. And this serves two really important purposes. First, if something breaks and we need to call a repair person, we have all that information right at our fingertips. No hunting around trying to remember what brand the dishwasher is, or pulling out appliances from the wall to try to find that sticker on the back. Second, if a tenant breaks a knob or a handle, or needs to order a replacement part, they have everything they need to find it themselves. But here's where it gets good. In addition to stuffing thick paper user manuals into the binder that nobody actually reads anyway, we created a custom QR code for each appliance that links directly to a PDF of the user manual online. Tenants can scan the code with their phone camera, the manual opens right up on their screen, and they can reference it from anywhere. It takes about two minutes to set up per appliance, and the result is a binder that is genuinely useful. I mean, I love it. Okay, so we've mentioned QR codes a few times now, and I wan pull back the curtain a little on that because I know it sounds technical, but it truly is one of the simplest things that we do. We use a free website called QR Code Generator, just Google it'll come right up. And what I do is I find the document or the video I want to link to, copy the URL, paste it into this QR generator and it creates a QR code instantly. I don't do anything fancy with it, no custom colors or borders or branding. Just download it as a jpeg. We drop it right into our binder template that's in Word, or you maybe you guys use Google Docs and then we print it out. Done. Any smartphone camera can scan it. It costs nothing and it takes like two minutes per code. You know, think about the ROI on that two minutes, it's enormous. Now the videos that we make, that those QR codes link to, let me explain that piece because it's a little specific. We have a YouTube channel for our LLC and the videos we make for tenants are uploaded as unlisted. That means that they don't show up in any public search. Nobody stumbles onto them. The only way to access that video is if you have a direct link, which we either text or email to a tenant when they need it, or they can find it via using the QR code that's in the binder. So it's private to our tenants, but it doesn't require any login or special account. They just click the link or scan the code and the video plays. What kind of videos do we make? Very practical ones. So after we installed the smart locks, I filmed a quick how to on changing the batteries the right way without wiping out the system. After we noticed tenants struggling with the garbage disposal, I filmed Kevin doing a walkthrough. He showed them here's how to clear a jam and here's how to reset it, and here's where the hex key is. For our midterm rental unit, we actually did a full video walkthrough of the entire property. Where everything is, how to access the mailbox, the trash area, the patio, where the binder is, all of it. We send that video in their welcome email, so by the time the tenant arrives, they've already had a tour and are familiar with things. Because we're never there for their move in day, so having that video is very important.

Kevin 24:04

I will say as the person who benefits from all of this and did not build any of it, it's genuinely impressive. I don't know how the QR code works, I don't touch the YouTube channel, what I do know is that my phone is not blowing up with tenant questions the way it used to be. And that is priceless. Stacie you've basically created a self-serve tenant support system out of a binder and a free website. I take full credit for encouraging you.

Stacie 24:35

Yeah, he absolutely did not encourage me, but thank you, honey. All right, so now let's be honest about something. That binder that we create is not sitting on the kitchen counter next to the tenant's cookbooks. It's somewhere in the unit and tenants do forget that it exists. And this is completely normal and totally fine because we have a system for that too. When a tenant texts us something like, Hey, the garbage disposal's acting funny, which used to mean we'd either go over there or send Jim our maintenance guy out to take a look. Now I just respond with the link to the troubleshooting video. That's literally it. And 90% of the time, 20 minutes later, I get back a text that says something like, oh my gosh, I did it. That video was so helpful. And that moment, that's the whole point. That's when doing some hard work upfront really pays off literally and figuratively. Think about what I just described. The tenant solved their own problem. They feel capable and confident. Maybe a little proud of themselves honestly. We didn't have to drive an hour and a half to Sacramento. Jim didn't have to bill us for a service call on something that wasn't broken. Everybody wins. And I keep coming back to this idea of tenant independence because I genuinely think it's one of the most undervalued concepts in self-managing your rentals. We spend so much time reacting. The binder, the QR codes, the videos, all of it, it's proactive. You're giving tenants the tools to handle things before the problem escalates.

Kevin 26:15

There used to be these great public service announcements on NBC, The More You Know... there it is. You know, a little shooting star, a quick message, boom. And I keep thinking that is basically the unit binder in a nutshell. The more you share with your tenants about how their home works, how to use the appliances, how to avoid common issues, who to call and when, the less guessing they're gonna do. And you really, really do not want them guessing. Because guessing turns into a garbage disposal with a hand in it, or a dryer that's been running with a full lint trap for two months, or a lock that's been completely wiped out because someone pushed the wrong button. Knowledge prevents problems and problems are expensive in time, in money, and in the landlord tenant relationship. Having a unit binder protects all three.

Stacie 27:18

Okay, landlords, that is what is in our binder. And we hope what you're taking away from today isn't just a content checklist, although please steal the content. That's why we do this. But it's really the mindset behind it. The binder exists to make your tenants more independent, to cut down on the number of calls and texts that you're fielding, to prevent maintenance issues before they become expensive, and to make your tenants feel like they're living in a professionally run property because they are, and that matters. If you want to build one of these for your own rentals, start simple. Think about the top 10 questions that you get from new tenants or something that you might be going over when you're doing a walkthrough with them. If they're responsible for doing any maintenance or landscaping or anything like that, and you have a checklist, put that in the binder. If you have tools for them to use to do certain things in a storage shed or a garage, put that in the binder. If there are any locks or anything on your property that might be kind of tricky to use, put it in the binder. Organize the material, and put it behind a tab in the binder. And if you wanna add QR codes and videos down the road, I promise it's easier than it sounds and it's very, very rewarding.

Kevin 28:45

And if you have questions or you want to share what's in your own welcome binder, we really want to hear from you. Find us on social media, shoot us an email or text the number in our show notes. We would also love it if you would leave us a review wherever you listen to our podcast. We actually do read every single one, even the not so nice ones. Mostly we love the nice ones, but we appreciate all of them.

Stacie 29:12

Hey, thank you guys so much for spending time with us today. We do not take it lightly that you trust us to be a part of your landlord journey, and it really is one of our favorite things. So, until next time, you've got this landlords.