Property rental management involves the responsibilities of listing and advertising properties, screening and selecting tenants, creating leases, collecting rent, handling maintenance, etc. Landlords and property managers work to maximize their real estate investments by keeping properties in optimum condition.
The best property managers know local landlord/tenant laws. They also use their experience to reduce vacancies and increase profits.
Managing Tenants
Managing tenants is a major component of property rental management. Landlords must learn how to advertise properties in the right places, run tenant screening reports, check references and establish a lease agreement that meets landlord tenant laws.
Tenants must be given clear instructions about rent payments including payment options and due dates. It is also important to ensure that the property stays in good condition, so landlords must perform regular inspections to identify and address issues before they become bigger problems.
If the property is not well maintained, it will be hard to attract quality tenants and maintain cash flow. This may result in unpaid rent, which can lead to legal action. To avoid these situations, landlords should stay up to date on local and federal landlord-tenant laws. They should also know how to screen tenants, run credit checks, verify income, request background and eviction histories and conduct a thorough home inspection before giving the keys to a new tenant.
Managing Leases
Managing leases in property rental management isn’t as easy as it sounds, especially when it comes to dealing with different markets and their specific rules and regulations. Whether it’s accounting for rent escalations and adjustments as a result of consumer price index changes or CAM reconciliations (which are used to determine whether tenants have been overcharged for common area maintenance) property managers are responsible for ensuring their companies meet all of their lease-related obligations.
Finding high-quality tenants who will pay their rent on time requires diligent follow-up, detailed tenant screening, and an understanding of Fair Housing laws. Property managers also use a variety of marketing channels to get the word out about available units, including online classifieds and popular rental websites.
Rent collection is another important task property managers take on, and it’s essential for owners to offer their tenants convenient methods of payment. Some property management companies even offer online payments so that tenants can make their payments whenever they want.
Managing Maintenance
Managing maintenance in rental properties is one of the biggest challenges that landlords face. It requires year-round attention and can be expensive if neglected. In order to minimize costs, property managers should take a proactive approach by building a maintenance schedule for their rental property. This includes routine inspections to catch issues before they become disasters and seasonal tasks like cleaning gutters annually to prevent water leaks.
A well-trained property manager should also have a list of trusted contractors or in-house maintenance techs that can perform work quickly and affordably. The ability to complete maintenance requests in a timely fashion is important for tenant satisfaction and retention.
This can lead to higher rent payments and better renewal rates for landlords. It can also help them stay compliant with landlord-tenant laws. This can protect them from claims of discrimination or violations of the habitability standards that are regulated by each state. It can also help preserve the value of a home by keeping it in good condition.
Managing Evictions
Eviction services are an integral part of property rental management. A property manager that knows the local laws will be better equipped to handle any issues that may arise. For example, some areas have strict rules regarding how much a landlord can charge for a security deposit. A property manager will be able to advise the landlord when it is necessary to evict a tenant due to lease violations or bad behavior.
Depending on the problem, tenants can be served anywhere from 3- to 60-day notices to vacate. This is another area where a property management company can provide steep-by-step instructions for landlords.
Landlords who want to avoid the expense of eviction should consider a property management company that offers eviction protection plans. These are similar to car or life insurance and cost landlords a small amount on a monthly basis. This gives landlords the peace of mind that if they do need to evict a delinquent tenant, the legal fees will be covered.