Effective Tips to Manage a Rental Property for Landlords

Renting out properties is a great way to create a primary source of cash flow or supplement the same. However, managing your own rental property without professional help can be tricky, especially if you are new to it. As a landlord, your profitability largely depends on the kind of tenants you attract, the relationship you forge with them, the rate you fix, how you manage different costs, and how efficiently you collect rent. 

So, here are 11 tips to manage a rental property and make the most of the real estate market. 

1. Leverage Property Management Software 

As a landlord, you must track various tasks and responsibilities, such as property advertisement, tenant screening and communication, rent management, and property maintenance. The right software solution can make this easy and save you precious time you can devote elsewhere.

From assessing tenant applications, collecting rent online, scheduling tasks, and managing important documents, a digital tool can help you with everything. It can improve operational efficiency. You can also track cash inflow and outflow, identify gaps, and avoid human errors.   

2. Zero in on a Fair Price 

Fixing appropriate rates is integral to managing rental properties since you want the right tenants without long vacancy periods. Hence, you need to take some time to research similar properties in your area and check the prices being charged and the facilities being offered. You can use online comparison tools to do the same. After determining a fair rent, you can market your property on multiple listing sites. 

3. Screen Tenants and Connect with the Right Ones 

Unless you are careful with tenant selection, you might end up with people who don’t pay on time, damage your property, or disturb the neighbors. So, once you receive applications, one of the best landlord tips is to conduct a background check on the potential tenants’ income, employment status, credit score, etc. 

Find out if they have ever been evicted or have any criminal history. Ask them to share references from family members, friends, or colleagues. However, remember that you cannot screen based on gender, religion, race, color, nationality, or disability. 

4. Prepare an Online Lease 

One of the top tips to manage a rental property involves creating a lease agreement online. Include the lease terms, rent per month, security deposit, general house rules, grounds for legal action or eviction, and clauses meant to protect both you and the tenant. Get a lawyer to review the agreement, approve it, and ensure it aligns with local ordinances. This way, you will have a legally binding document for resolving any conflict or dispute in the future. 

5. Provide a Checklist to Ease Move-In   

If you are looking for tips for landlords that can get you started with a tenant on the right foot, this one will surely be useful. Apart from cleaning the property and making it fit for habitation, share a checklist of facilities or amenities you provide and the location of nearby stores, pharmacies, banks, etc. Include information on newspaper delivery, laundry service, and garbage collection. 

6. Communicate with Tenants Effectively 

Let your tenants know how to reach you and clearly explain your expectations about how they should keep the property. Listen actively to their concerns and offer solutions where possible or express empathy. If any lease terms or rules change down the line, convey them on time. All this can promote a healthy relationship between you and the tenants, encourage timely rent payments, and minimize misunderstandings. 

7. Make Lease Renewal Attractive 

Retaining high-quality tenants is the holy grail of residential property management. It can help you save screening time for new tenants and reduce advertising expenses. So, how can you encourage lease renewal? Upgrading the property with a touch of paint or new lights is one way to go. You can also offer gift cards to sweeten the deal or a grace period for delayed rent payments. 

8. Schedule Maintenance and Inspections 

It is essential to conduct periodic checks of your rental property to ensure everything is in shape if any repairs are required, and if the tenant is adhering to the lease terms. However, scheduling your visits is one of the crucial tips to manage a rental property so that the tenant isn’t annoyed or inconvenienced. Ensure your inspections are compliant with the local laws as well. Let the tenant know in advance about your visit and allow them to choose a suitable date and time if possible. Also, inform them about how much time it will take. 

9. Find Reliable Contractors 

When managing your own rental property, you must have a list of reliable local contractors handy for maintenance and repair jobs. Research multiple options and compare their services and rates to make an informed choice, whether you need cleaners, woodworkers, plumbers, or electricians. Ensure they are licensed and insured, and ask potential contractors to share referrals and portfolios before you take a call. 

10. Get Landlord’s Insurance 

No one can predict accidents, damage to property, physical injury, or financial losses. So, taking out insurance that will protect you financially in case of any untoward incident caused by natural disasters, fires, thefts, etc., is best. Compare different insurance providers and policies before you choose one. 

11. Manage Your Income 

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One of the most essential tips for landlords is to manage rental income by opening a separate bank account. If you have multiple properties to let out, you might need different accounts to easily track your profitability for each. Remember to set aside security deposits and ensure they are easily accessible if a tenant chooses to move out. 

Seek Expert Guidance for Managing Rental Properties 

While following the above tips to manage a rental property can help you kick-start and even handle your rental business efficiently, it can be challenging if you live far from your properties, have a demanding primary job, or cannot devote enough time. 

Hiring an experienced and reputed rental management company can be extremely helpful in such a scenario. Guardian Property Management can be your best bet in the Greater Twin Cities if you need end-to-end property management at a reasonable price. 

Call 651-287-2011 or email info@guardianprop.com to set up a consultation today.