How to Manage Rental Properties the Right Way

Being a landlord certainly isn’t for the faint of heart. It takes a special breed to cater to your tenants, yet focus on what’s best for the properties that you manage/own.

Fortunately, it’s a profession that allows you to grow your skillset as you gain more experience.

Still, you’ll want to learn how to manage rental properties effectively to accommodate the needs of your tenants and yourself.

Here are several property management tips that you can use to build your reputation as a landlord. Be sure to keep all these tricks in mind as you determine how to perfect your craft as a property manager.

Set the Right Price

One common mistake that many landlords make is setting the wrong price on their property. Doing so can leave you tied to a situation that you’re unhappy with for the next year (or longer).

You need to take the time to carefully consider the price you’re going to set for your properties. One of the most effective practices is to focus on the market around your property for answers.

Take the time to consider the average family size in properties like yours, and the average rental price for those properties.

Next, try to get some information on the average income per household in your market. Whatever number that ends up being, you should aim to find a tenant with the same level of income.

Lastly, consider the amenities that you have at your disposal. Do you (or your community) have a pool? Extra parking? A new deck? Are there any recent renovations that were done? Does it have hardwood floors?

Think of all the benefits and perks that a new tenant will get upon finalizing a lease. From there, set the price according to the research you’ve found.

Manage Your Tenant’s Expectations

When it comes to managing rental properties, you can never know too many property manager tips on how to manage the tenants that you have.

The biggest thing is always to find ways of managing their expectations. The more you set expectations on each situation, the happier that your tenants will be with the outcome.

Many landlords find rent collection to be one of the most painstaking tasks of dealing with tenants. But if you set out concrete due dates for rent, as well as reminders, then you’re setting yourself up for a higher chance of receiving on-time payment.

Even if you don’t always receive on-time payment, setting the expectation for late fees will help build the level of trust between you and your tenants. You might even give grace periods to those that are late for the first time on their rent.

Communicate Early and Often

This tip goes hand-in-hand with managing the tenant’s expectations. Maintaining constant communication with your tenants can help you both avoid a lot of grief.

Be sure to communicate every aspect of the lease before getting them to sign it. Talk through your processes for moving in and moving out, as well as how they can communicate with you.

For example, let them know if you prefer to receive customer complaints via email. If you’re okay with receiving texts or calls, be sure to establish a rule of only receiving them during business hours.

More communication with your tenants results in fewer frustrations and a stronger relationship. Don’t ever assume a tenant knows things such as proper move-out procedures or how to pay rent. Always walk them through it to avoid conflict.

Respond Quickly

At the end of the day, you’re managing the livelihoods of each tenant. That’s why tenants often express frustration or concern, because the issue with their “home” may make them feel unwelcome or vulnerable.

As the landlord, it’s your responsibility to make sure they are as comfortable as possible. It’s what you signed up for, isn’t it?.

One of the best ways to make them feel protected is by responding to their issues or questions as quickly as possible.

That doesn’t mean you will have to be on-call 24/7 for your clients. One of our top landlord tips is to set ground rules on business hours (unless it’s an emergency, of course) and respond first thing the next morning. If you need to perform repairs, then work with them to see when the work can be done.

If they can’t take off work to be present during the repair, ask them if they’d be comfortable with you being there while it’s performed. The quicker you respond to their problems, the more trust you’ll build with your tenants.

Outline Rules and Expectations for Proper Maintenance

It doesn’t matter whether your tenant is a first-time renter or a couple that owns several properties of their own, you should always discuss maintenance details. Take the time to discuss which party will be responsible for which types of maintenance issues.

For example, lawn care, pest control, and taking out the trash are some of the tasks the tenant will do. Meanwhile, things like HVAC repairs, roof repairs, and home appliance maintenance will always fall on the landlord’s shoulders.

Try to keep an open mind with which responsibilities will fall on your tenants. Some duties might be a bit too much for that tenant to handle. Have an open discussion about what they’d be comfortable with, then go from there.

How to Manage Rental Properties With Communication and Open-Mindedness

When it comes to how to manage rental properties effectively, you must have both diligence and communication skills.

Be sure to manage your properties on a tenant-by-tenant basis. No two clients are the same, so make sure to take the time and nourish each relationship that you have.

Make sure to browse our website for more articles on property management, as well as many other helpful topics.