According to a recent US Census Bureau survey, only half of the individual landlords reported net income in 2018. The rest suffered losses and high vacancy rates as economic factors impacted the tenants' ability to pay.
Another factor contributing to such vacancy rates is poor property management. Some landlords neglect to address tenants' issues, and with more available properties, tenants have no problem shopping for another place to rent. To address this, here are key property management tips for landlords and newbie property managers.
1. Stay organized with technological tools
Landlords have a range of tools that they can use to streamline daily operations or automate repetitive tasks that take their time away from tenants. Some of these tools focus on one task, like collecting monthly rent, while others are comprehensive enough to cover tenant communication, rent collection, and managing electronic copies of leases and other legal documents.
Besides landlord productivity, tenants also appreciate being provided with additional payment options like online platforms. Others like receiving payment notifications because it allows them to budget better—a feature that you can easily automate through communication tools.
At Intrigue, we use top-of-the-line, industry-leading cloud-based software to serve the properties we manage. You can also count on us for an effective platform for easy tenant communication.
2. Set up after-office-hours communication
It's easy enough to answer a tenant's questions if they contact you during office hours. But some problems would still show up after office hours. For this scenario, it's essential that you set up a means to capture the tenant's issues even when you're not available.
You can set an automated voicemail and then check them first thing in the morning. If you can afford to invest more, hire a staff who will be able to answer payment issues and other questions at any hour. These steps can ensure that your tenants feel heard; on the other hand, you get the opportunity to address problems before it escalates.
Here at Intrigue, our tenants have our team's phone numbers so that you can reach us anytime, 24/7.
3. Screen tenants diligently
Building trusting relationships with tenants starts as early as the screening stage. This stage is critical in weeding out fraudsters in the tenant pool. From a prospective tenant's perspective, it's essential that they feel comfortable about discussing the process thoroughly because this involves sensitive personal information, like credit reports and identity checks.
Another means to a successful screening is availing property leasing services that cover screening. Such services typically utilize technologies and tenant screeners who can provide you with a recommendation (for qualified tenants) and supporting information, such as credit and employment data.
4. Prepare a clear lease
One of the oft-forgotten property management tips for landlords is providing tenants with a clear lease. A lease agreement is a legally binding document representing a renter's or property owner's legitimacy. In other words, a lease with unclear stipulations and too much jargon can signal a red flag for tenants.
A standard lease includes clauses for credit checks, parking, lease violations, security deposits, utilities, and automatic lease renewals. Besides preparing a clear lease, it is best practice to provide tenants with ample time to review it and for you to give answers or clarifications.
5. Avoid unnecessary delays in maintenance
Keeping strong tenant retention isn't possible for properties with a leaky ceiling, faulty plumbing, or pest infestation. Ideally, tenants shouldn't have to raise maintenance requests because it's your maintenance team's job to inspect properties and facilities regularly.
Hire maintenance professionals with experience working in leased or rental properties to address this common tenant issue. Incentivize quick tenant response to minimize long waiting times for tenants. This approach helps improve the property's standard of habitability as well as boost the tenant's satisfaction level.
6. Hire a property management company
No matter if you own one rental property or a large portfolio, hiring a property manager can be a great solution to provide all of the necessary services as outlined above. For instance, you can let them deal with advertising or handle evictions while you focus on what you do best, like screening tenants or resolving tenants' issues.
With the range of property management services, you can choose the extent to which specific tasks are outsourced without fear of compromising the overall benefit to tenants and profits for real estate investors.
Mastering Property Management In 2023
Juggling through several properties and different types of tenants can be draining without the best practices and some handy property management tips for landlords. Whether it's drafting straightforward leases or answering tenants' questions, taking the time to incorporate these tips into habits can make a massive difference in the lives of your tenants and real estate investors.
Consider working with the experts from Intrigue Indy for complex property management issues. As an Indianapolis-based property management and leasing services provider, we commit ourselves to delivering tailored solutions for landlords managing duplexes and residential and commercial buildings with zero maintenance fees.