Property Management Blog

1. Setting the right rental rates: While looking through the classifieds to see what other landlords are charging for similar properties is a fine way to ballpark your rent price, a good property management company will conduct a thorough market study in order to set a rental price for your property, ensuring that you achieve the perfect balance between maximizing monthly income and maintaining a low vacancy rate.

2. Collecting and depositing monthly rent payments on time: If you've ever worked in a billing department, you know that securing payment from clients can be difficult, not to mention awkward. Property management companies have efficient, tried-and-true systems in place to effectively collect rent and maintain on-time payments. You'll find this particularly important if you have a limited number of properties, and collecting payments on time is crucial to maintaining your cash flow.

3. Marketing and advertising your property: Through long experience, a property manager will know exactly where to market your property and how to craft compelling advertising materials---a significant advantage when it comes to filling your properties quickly and avoiding long vacancies.

4. Finding the right tenants: Experienced property managers are experts at finding good tenants, and will take care of all the details, including the securing all criminal background and security checks, running credit reports, verifying employment, and collecting previous landlord references.

5. Managing tenants: In addition to finding good tenants, a property management company will manage all aspects of the tenant-landlord relationship. The property manager will handle both routine and emergency maintenance, take care of routine inspections, and manage any situations where conflict resolution is required.

6. Managing vendor relationships: Property management companies have relationships with maintenance workers, tradesmen, contractors, suppliers, and vendors that it's almost impossible for an independent landlord to duplicate. Not only will your property manager get you the best work for the best price, they'll oversee any necessary maintenance projects.

7. Ensuring that you're in compliance with housing regulations and property laws: There is a multitude of applicable laws and regulations to abide by when renting and maintaining your rental property. These include local, state and federal regulations, as well as fair housing regulations (such as the ADA). A property manager can help you avoid lawsuits by keeping your property up-to-date and in compliance with these regulations.

8. Enabling you to invest in geographically distant properties: If you manage your own properties, you're pretty much limited to investment opportunities within a tight radius of your own home. By hiring a property manager, you can take advantage of investment deals in any location you wish.

9. Maximizing the profitability of your time: By having a property manager take care of the day-to-day aspects of running your income property, your free to spend your time identifying further investment opportunities or otherwise furthering your career.

10. Maximizing the profitability of your money: Most property managers charge a percentage of your property's monthly rental rate in exchange for their services. The rate typically runs anywhere from 6-10%, which is generally less than the money you save by hiring a professional to take care of your property.

1. Read your lease. No, seriously read it. It won’t be the most exciting night table material but you’ll thank yourself when you do read it. A lease is a binding legal contract. It creates a binding relationship between you and your landlord. What are you agreeing to? If you don’t understand, ask questions before you sign it.

2. If you don’t know if it’s allowed, get permission. “These rooms could use a fresh coat of paint in a new, exciting color.” “Hey, we should get a puppy!” “Let’s replace the light fixtures in the dining room.” These all seem like tasteful upgrade, so clearly they are improvements to the place. Get the landlord's written permission first. If the lease says "DON'T," you must get the exception in writing (not a verbal, not a handshake — in writing) to make it a "DO." Save the signed letter and keep it in a file. You'll need it later when you move out and your landlord has forgotten.

3. Put it in writing. If you have a non-emergency request such as a leaky faucet, submit the maintenance request to the landlord in writing. You can also follow up with a phone call. You can write a note to the landlord and submit it with your rent check. Or, you can fax or email the request as well. While landlords appreciate being notified of maintenance issues right away, keep in mind there are some small issues you need to take care of yourself. For example, if a light bulb goes out or the smoke detector needs a replacement battery — grab a step stool and swap it out on your own. No need to bother the landlord.

4. Treat ‘em how you want to be treated. Be a respectful and courteous neighbor and tenant. Landlords don’t like mediating arguments between tenants. Many of these issues can be resolved without involving the landlord. If you have problems with a neighbor, don't be passive-aggressive. Address the problem directly with the offending neighbor. The goal is not to argue or prove your point, but to create an environment where both parties can live peacefully.

5. Respect your home. Keep your house in clean and sanitary condition. If you have pets, pick up after them (inside and outside).

6. Pay your rent on time. Many tenants believe they have a "grace" period. Most leases will not charge a late fee until three to five days after the due date. Though this appears to create a grace period, it does not. If you pay rent three days late every month, you may never incur a late fee. However, when you move out and you need your landlord's reference, he can state you were late every month on rent. Make sure to get your rent in on time.

1. Run Your Property Like a Business. Some landlords do a terrible job at running their business. It might be because they see it as a “side-gig” or a hobby” more than a business. However, when you treat your business with the respect, systems, and organization that you would treat any other business venture, amazing things can happen. What contingency plans do you have in place so maintenance concerns can be resolved without your direct involvement (in case you happen to go on vacation the day something major happens)? When you shift your view as a landlord to a “business owner” — and treat your company as such - you will find far greater success.

2. Don’t discriminate, but screen, screen, screen. Perhaps the biggest error a landlord can make is letting in the wrong person. This can lead to late rent, trashed homes, and evictions. Do you think a car lot would give you a zero interest loan if they knew you didn’t have any income and a deathly low credit score? Make sure tenants have a stable income, no recent evictions, no recent felonies, and good reference from past landlords.  Be careful not to screen out tenants based on any of the protected classes, or you could find yourself in a lawsuit.

3. Treat Your Tenants with Respect. Look — we don’t have to like our tenants. However, don’t allow personal feelings to get in the way of business. Tenants want to be treated fairly and be seen as an equal human, because they are (no matter your personal feelings toward them.) Just because you own some rental property doesn’t make you a better person — so don’t act like it. Treat each tenant with dignity and respect and it will come back to you in success.

4. Don’t Be Too Nice. Your job as a landlord is to be fair, not to be nice. Being too “nice” will give your tenants and others the invitation to take advantage of you. If the lease says rent is due on the first, expect your tenants oblige. By allowing your tenant to break the rules, you open yourself up to years of struggle and compromise that will ultimately lead to huge financial losses. There is a difference between respectful and being nice.

5. Ask questions & get help. I’ve been in the property management business for 10 years and I still learn something new every day. I don’t expect that to stop either. Ask questions. Get opinions. Whether it’s a phone number for a service provider, help with an eviction, or just advice, reach out to other landlords for help. I love to talk to other property managers! We always walk away from the conversation smarter than we were when we began it.