RENTAL MANAGEMENT GUIDE: EFFECTIVE STRATEGIES FOR MANAGING RENTAL PROPERTY

Rental property business has always been tedious. A lot of things should be considered to ensure that all types of rental property is a successful business. If you’re searching for the most effective strategy to keep your rental property business running smoothly, you need to understand all the different areas of a rental property that needs to be managed. As a landlord or property owner, here are the three key management responsibilities that you should embody:

1. Managing Tenants 

This is the part of rental property management that is most immediate and most obvious. However, being a successful landlord involves a lot more than just collecting rent. You have to manage the following : 

• Rent Collection: Setting due dates. Collecting rent each week or month. Establishing late fees and grace periods. Dealing with unpaid rent. 

• Lease Agreements: Verifying that lease includes all legal terms required by your state’s landlord tenant law. Making sure the lease is up to date with the most recent version of law. Managing lease start and end date of all tenants. 

• Tenant Screening: Advertising vacancy. Setting up appointments. Verifying information on applications. You may also determine if certain tenants are a good fit. 

• Move-In Procedures: Signing lease agreements. Going over rules, requirements and regulations. Collecting security deposit and first month’s rent. Walking through and noting the current condition of rental unit. 

• Move-Out Procedures: Verifying that the lease term is actually over. Checking the condition of the rental unit for any damage. Beginning the process to find a new tenant for an apartment. 

• Tenant Complaints: Fielding complaints. Setting up a game plan to fix the problem. 

• Repair Requests: Responding to requests quickly. Prioritizing the importance of repair. Doing the repair yourself or hiring someone to do it. 

• Tenant Evictions: Sending tenant legally required notices before eviction. Filing for eviction with the court. Preparing your evidence which supports the reason for eviction. 

2. Managing Property Maintenance and Inspections 

The second main part of rental property management is the property itself. The physical structure needs to be maintained for the health and safety of the tenants. Your insurance company may also require certain parts of the structure, such as the roof, to meet certain standards or they will refuse to insure the property. 

• Maintenance: Cutting the grass. Picking up leaves. Shoveling snow. Taking out the garbage. Keeping all common areas clean. You have to make sure that tenants have access to running water at all times and heat in the winter. Fixing roof leaks, plumbing leaks, cracked tiles, loose handrails, faulty door or window locks. 

• Inspections: You have to deal with inspections from the town and even from your lender and insurance company. The town inspections are to make sure your property is following certain health and safety codes. The lender and insurance company inspect the property to make sure the property is worth the amount they are lending or the amount they are insuring it for. 

3. Managing Finances 

The third part of management that you will have to deal with when owning a rental property involves the finances. You need to understand how much money is coming in each month and how much money is going out. 

• Rent Payments: How much you collect in rent each month. 

• Mortgage Payment: What you pay each month on your mortgage. 

• Insurance: How much you pay to insure your property. 

• Taxes: What your yearly property taxes are. 

• Utilities: If tenants are not responsible for paying for utilities, how much the water, gas and electric bills are each month for the property. 

• Fees/Fines: Fees you may have to pay for property inspections or court costs. Unexpected fines for maintenance issues at the property. 

THREE RENTAL MANAGEMENT STRATEGIES

Now that you understand the various areas of a rental property that need to be managed, you can determine how you want to manage these areas. There are three main approaches: 

1. Do-It-Yourself Management 

In this management approach, you are responsible for everything, hence, DIY. You are the one who is collecting rent, shoveling snow and filing your taxes. 

2. Half Do-It-Yourself/Half Outsource 

This kind of  approach for managing rental property, you manage the areas that you feel you have expertise in and then outsource the areas that you do not feel as comfortable with or simply do not have the desire to manage. 

• Outsource Legal Issues 

• Outsource Maintenance Issues 

3. Outsource Management Completely 

This kind of management strategy, you own the property, but have no desire to be a hands-on manager. You feel that your strength is in property selection, not managing the daily operations. You will hire a property manager or property management company. Property management companies can handle everything including, tenant screening, tenant move-in, rent collection, maintenance and repairs, tenant move-out and tenant eviction. 

Also read this moving company