How to Manage Rental Properties: 7 Quick Tips

Did you know that 34% of U.S. households are renters?

Rental property is a business that looks good on paper, but it can be a lot to manage. Many people get sucked in by the prospect of passive income but fail to understand that they'll have to spend a lot of time and money managing their rental properties.

Here are 7 great tips to help you manage rental properties.

1. Delegate and Build a Team

As a rental property manager, it's important to delegate tasks and build a strong team. Be clear about what you expect to be accomplished and by when. This will help your team members understand your expectations and avoid any confusion.

Choose the right person for the job. Not everyone is cut out for every task. When delegating tasks, be sure to choose team members who are best suited for the job at hand.

Also, be sure to set aside some time to check in with your team members to see how they're progressing. This will allow you to provide any needed feedback or help.

When team members have questions, be available to answer them because this will help ensure that tasks are completed correctly and avoid delays.

2. Stay Organized and Keep Good Records

As a landlord, you are tasked with keeping careful records and ensuring that your rental property is well-organized. Keep a detailed ledger of all income and expenses associated with the property. This will come in handy come tax season.

Comply with all applicable laws and regulations. This includes things like collecting and remitting rent withholding taxes.

Have a good insurance policy in place because this will protect you in the event of any property damage or if a tenant is injured while on the premises.

3. Inspect Your Rentals Regularly

When learning how to manage the property, it's essential to inspect rentals regularly. Doing so can catch any potential problems early and prevent them from becoming bigger, more expensive problems.

Screen potential tenants carefully. Be proactive in communicating with your tenants, as this will help build a good relationship and avoid potential problems. This will help you avoid any tenant problems in the future.

Be quick to respond to any issues or other problems tenants may have. This will help keep them happy and reduce their chances of moving out.

4. Hire a Property Management Company

Hiring a property management company is a great place to start if you're looking for tips on how to manage rental properties.

Make sure you're clear on what services the property management company will and won't provide. Ask for a detailed proposal, including what the company plans to do to market your property and screen tenants.

Be sure to get references from past clients. Inquire about the company's policies on repairs and maintenance, rent collection, and evictions. Also, ask about the property management company's fees and what they cover.

Finally, trust your gut. If you don't feel comfortable with a property management company, move on to another option. Be sure to know more about the benefits of investing that can help you manage rental properties well.

5. Have a Solid Plan for Maintenance and Repairs

Before you purchase rental properties, be sure to have a realistic view of the property’s condition and what it will take to keep it in good shape.

Plan for routine maintenance, like painting and landscaping, as well as larger repairs that may be necessary from time to time. Set aside monthly money so you’ll have the funds when needed.

Ensure that all appliances are in working order and that there are no safety hazards. Test all the doors and windows to ensure that they are adequately secured. Be proactive about maintaining your rental property, and you’ll avoid many costly problems down the road.

Take a close look at the condition of the property's exterior, including the roof, gutters, and foundation. Pay attention to small details that could indicate more significant problems, such as cracks in the walls or peeling paint.

6. Be Proactive With Problem Tenants

Be proactive with problem tenants; don’t wait for them to come to you with an issue.

If you see something that needs to fix or could become a problem, take care of it immediately. This will show your tenants that you’re on top of things and that you care about their living situation.

Another way to be proactive is to do regular walk-throughs of your rental properties. This way, you can quickly catch any potential problems and nip them in the bud. Walk-throughs also allow you to get to know your tenants better and build a good relationship with them.

Lastly, don’t hesitate to evict a problem tenant. They must go if someone is constantly breaking the rules, destroying property, or causing problems. It’s not worth keeping them around and risk having more significant issues down the road.

7. Have a Strict Lease Agreement

One of the most important things you can do when renting your property is to have a strict lease agreement.

Make sure the agreement is in writing and includes all pertinent information, such as the names of the landlord and tenant, the address and description of the property, the lease term, the rent amount, and any rules or restrictions.

This document will outline the property's expectations and rules and help prevent any potential legal issues down the road.

Have the agreement reviewed by an attorney to ensure it is legally binding. Be clear and concise in your expectations and rules, and ensure the tenant understands and agrees. Make sure all changes or additions to the agreement are in writing and signed by both parties.

Learning How to Manage Rental Properties

As a landlord, you must be aware of your many responsibilities to manage rental properties effectively.

Additionally, remember to maintain good communication with your tenants and be responsive to their needs, and by providing a safe and comfortable home for your tenants, you can help create a lasting relationship that benefits both parties.

Following these quick tips can help ensure that your property is well-maintained and attractive to potential tenants.

Be sure to read more on our website for more tips like this.