Do you own rental properties? If so, I have some good news for you. You are about to learn the best ways to manage your rentals and make more money from them! In this blog post, we will discuss how to properly screen tenants, choose a management company, and more. So what are you waiting for? Let’s get started!
- Management Software
- Tenant Screening
- Communication
- Documentation
- Maintenance
- Evictions
- Rental Property Insurance
- Rent Collection
- Tax-Compliant Management
Management Software
The most important tool for an investor is appropriate accounting software. There are many free and paid tools available, but the best way to keep track of your rental properties is through a cloud-based solution that can be accessed at any time from anywhere.
Property management software can take care of many functions from tenant screening to generating professional rental contracts. They also allow the ability to have a single software for small landlords that is accessible through any device with an internet connection. Being able to keep track of rental properties gives landlords added visibility into their financial standing.
Tenant Screening
Tenant screening is a crucial step for any landlord. Rental applications should be run through an online tenant verification tool, such as Tenant Assured, which allows landlords to screen renters based on credit history and rental payment reliability. Other options include using social media or employment data to verify applicants before going forward with the application process. This not only helps you avoid complicated legal issues by enrolling tenants who have a past of eviction proceedings but can also save time and money spent on finding good candidates for your properties.
Once a renter has been accepted into one of your units, it’s important that they feel taken care of from the very beginning—which means having all their questions answered in advance whenever possible.
Communication
Keeping communication open with tenants can make all the difference in avoiding eviction proceedings. Empathy goes a long way when it comes to good tenant relations, and showing that you are willing to work with them is an important part of keeping their trust.
Remember, not every problem will be solved immediately. Sometimes problems simply take time—and your patience—to resolve. The vast majority of issues between landlords and renters can be resolved through clear communication, so always do your best to keep things cordial throughout the process! Always put yourself in their shoes before taking any steps forward as well – it could save you both money by preventing future surprise charges or expenses down the road.
Documentation
The more paperwork you have for your properties, the better. Make sure all contracts are signed and kept with written documentation of any problems that arise during the tenancy. If there is an issue with repairs or property damage, this will help document exactly what was done to resolve it—and by whom! This becomes especially important when dealing with tenants who may be looking to sue landlords in the future over illegal eviction proceedings.
Evictions can be a lengthy process, so make sure you always check state laws before taking action on anything related to the termination of tenancy. Legal issues aside, evicting tenants takes time and money which could otherwise be invested into finding new renters for vacant units (which compounds if they stay empty too long). Follow all legal proceedings to the letter and make sure you always have a paper trail for every document signed.
Maintenance
Maintenance is one of the most critical parts of being a landlord. If you do not keep on top of regular maintenance and repairs, your renters will eventually begin to notice that their requests are going unfulfilled. This can lead to even more problems down the road which might include damage to rental units or decreased rent payments due to issues with cleanliness or sanitation.
For example, if you have a tenant who is dealing with an infestation of cockroaches then they are probably not going to want to stay in the unit for much longer. If their requests continue being ignored by management this will lead them to consider legal action against the landlord. This usually means that they are considering withholding rent or moving out before their lease has expired which might leave you without any income at all from your rental property!
On the other hand, if you do manage to keep on top of regular maintenance and repairs, there’s no reason why your tenants should ever feel neglected as it could also mean better word-of-mouth advertising for future renters looking into leasing through your company. Every time someone hears about what great service you provide, they are more likely to want to rent through you in the future.
Evictions
Realistically, every landlord will go through an eviction at some point in their life. The key to doing this as smoothly as possible is by keeping a positive relationship with the tenant until that time comes. For example, if you have any problems or concerns about your renter’s behavior and try to address them early on then there shouldn’t be any issues further down the line.
It’s always better for both parties when things can remain civil throughout the entire process of leasing out a rental unit because it minimizes hostility and potential animosity between everyone involved which might lead toward much more difficult conversations later on. These types of situations are never pleasant but they’re also not impossible to overcome either! If presented properly, all landlords should feel confident that they can handle any issues that arise during the eviction process!
Rental Property Insurance
To protect your rental properties from any unexpected damages or losses, it’s always a good idea to invest in property insurance. This will ensure that you’re able to keep on top of maintenance and repair costs as well as replace anything that might become damaged due to natural disasters such as fire damage, water damage, mold problems, etc. You can also opt for landlord insurance which provides coverage against potential lawsuits filed by renters – this is usually an affordable form of protection if implemented properly! In most cases, having the right amount of rental property insurance can be incredibly helpful during those rare but still possible worst-case scenarios where everything has gone wrong with your unit(s).
With proper planning & preparation, owning multiple rentals doesn’t have to be a stressful process. In fact, with the proper guidance – it can help you learn more about your investment as well as provide those extra benefits that every landlord is looking for such as passive income from rental fees or appreciation in property value. As long as you keep these steps in mind during each step of the leasing and management processes then there’s no reason why anyone should ever feel overwhelmed by owning properties!
Rent Collection
The last thing any landlord wants is to be dealing with late fees or skipped rent payments. This issue isn’t just frustrating but it can also cause you to fall behind on your mortgage payment as well! To avoid these issues, always try and implement a reliable method for collecting monthly rental income. For example, some landlords choose to collect all of their tenant’s security deposits upfront to hold them during the period between leases – this way they know that everyone will have enough money set aside until the next contract has begun.
On top of this, having an online system available (such as Tenant Cloud) where renters can pay rent through convenient electronic means like debit cards, credit card transactions, e-checks, etc. can help to make your life a lot easier as well! In most cases, offering these types of payment options will only result in increased levels of rent collection so it’s definitely worth the time and effort you’ll put into setting things up from the start.
Tax-Compliant Management
Tax compliance is a big deal, and it’s something that you need to be aware of as an investor. The IRS has very strict rules about what counts as income for your purposes, so don’t assume anything. This doesn’t mean that you should be worried about every penny, but it does require attention.
For example, if your tenant pays their rent through PayPal or Venmo (or another online payment processor), make sure to take note of this in the accounting records for tax purposes. You can use a quick reference guide like this one to help keep track of what needs to be recorded when something is being paid with virtual currency.
Another common mistake that investors make is assuming that because they’re not receiving a W- or Form K-l at the end of each month, it means there’s no need to keep track. This isn’t true, you still need documentation showing how much rental income you received and when during the year, even if your tenant pays via bank transfer. It all needs to be accounted for somewhere on your tax return. If you don’t do this correctly (or worse, forget altogether), then the IRS may come knocking after months or years have passed!
In conclusion, being a landlord isn’t an easy process but there are plenty of ways around any issues or problems that might arise along the way – if you’re willing to keep each step in mind then success should always follow shortly after! Just remember all of these steps when leasing out units & managing properties and everything else will fall into place over time!