5 Super Helpful Landlord Property Management Tips

Buying a property to rent to tenants is relatively straightforward. However, managing tenants is another thing altogether. You need to understand and follow legal requirements and keep the occupancy rate high—i.e., vacancy low—so your investment makes a profit.

The good news is that plenty of information and support are available online for self-managing landlords, including our discussion forums. Plus, as more people rent longer, the property management industry is growing—i.e., more people are becoming property managers.

In 2019, the property management sector revenue rose to $75 billion. Homeownership rates are dropping, and home affordability is beyond reach for many. More rental properties and property managers are needed, so read on for our tips if you plan to manage properties.

If you’re concerned about what you need to do to become a landlord, this post will help. Read to learn five landlord property management tips to help you better care for your properties.

1. Screen Your Tenants

You hear plenty about bad landlords when talking to renters. But how often do you hear about bad renters?  They exist, and unfortunately, some renters seem to make it their job to cause problems for rental property owners.  However, when you are prepared and have the law on your side, you can take action to get the right outcome.

First, research when screening prospective tenants for your rental property. You’ve held your open house and have a stack of applications; now it is time to make sure you screen every applicant. Never take shortcuts when vetting applicants before they become your tenants, and be prepared to send a tenant rejection letter if needed.

Taking your time in the tenant selection process helps ensure you get a tenant who will follow the tenancy agreement rules.

2. Require Renter’s Insurance

As the property owner, you will have building insurance; however, accidents and incidents the tenant causes can still happen. Your insurance may not cover them, so it’s essential to require renters to purchase renter’s insurance. This gives both of you peace of mind. If an incident occurs, their insurance company may cover the damages.

3. Have a Written Rental Agreement

Talking about responsibilities to a tenant isn’t enough if you want to protect yourself. Remember, you are running an investment property business with income and expenses.

Always use a tenancy agreement relevant to the region of your rental properties. Your tenant will appreciate that everything is done according to the law and that their rights and yours are protected.

A tenancy agreement creates a paper trail if something goes wrong.  For example, your tenants may miss some rent payments.

A paper trail lets you take action if your renter doesn’t follow their part of the agreement. You’ll be able to do what you need to solve the problem.

4. Make Use of Technology

We live in a digital world. If you try to do things the old way, you’ll only create more work.

You can use software services to keep records and take payments online. This will reduce your work and give you a way to organize and keep records.

5. Make Use of Smart Home Gadgets

It’s best to take advantage of every tool when managing your home. The good news is that innovative home hardware and software can make your life easier. You can use these products to monitor your home for problems.

Take your plumbing, for instance. You can use water-saving technology and sensors to manage the water in your home. Water conservation is on most people’s minds, so using tech to lower your tenants’ water bills and help you monitor for leaks makes sense.

Most electricity providers also have apps that show kWh usage, so you can see your peak times and where you can cut back to save money. Off-peak use is also cheaper, so plan your schedule around it.

Landlord Property Management Isn’t Simple

You’ve probably heard people say having rental properties is passive income. Think again. All investments require management. If you choose not to use a property manager and manage it yourself, you must know tenancy laws and the remediation process.

Landlord property management requires knowledge and skill. You are managing people, and it pays to put in the work to set up systems and processes that keep you covered if something goes wrong. Follow the tips above to get started the right way.

Do you want to learn more about investing in and managing real estate? Keep reading our blog to get everything else there is to know.