Managing rental properties, whether they are single-family homes, condos, multifamily homes, or apartment complexes, is not an easy task. Property managers often face challenges dealing with tenants. The key to a successful property management is good tenant management.
You can reduce the tenant turnover rate by implementing good property management practices. To help you become an effective property manager, we’ve compiled a few tips you can use.
Screen tenants carefully
Finding the right tenant is the first step in tenant management. A good property manager will have a strict tenant screening process in place before a rental property is rented out. Begin by asking your potential tenants to fill out an application before screening them. You can then determine whether the applicant qualifies as a tenant using the information provided. Here are some questions you can ask:
- How do you make a living?
- What is your monthly income?
- What is the expected number of occupants?
- Do you have any pets?
- Did you ever get evicted before?
Contact their employer and former landlords to verify their responses. Also very important in the screening process are credit checks and criminal background checks.
Make billing easier for both of you
Most landlords pay for the upkeep and maintenance of the property. In comparison, utilities are paid by the tenants, either directly or as part of a rent-inclusive payment. If the tenant leaves without paying their utility bills, the expenses will fall on the landlord. However, if they can prove that the tenant is at fault, they will not be held liable. As a result, many property managers manually calculate tenants’ bills using complex methods. Most fail to factor in changes in utility rates and tenant consumption.
By using an efficient utility billing system, you can offer an alternative to utility billing that is fair. It will give your tenants a sense of control over their overhead costs and an incentive to conserve energy.
Prepare a detailed lease agreement
Lease agreements play a crucial role in tenant management. A lease outlines the rights and responsibilities of tenants and landlords and what will happen if the lease terms are not followed. A lease should be written in simple terms so that anybody can understand what is being negotiated. The lease should cover things like parking, landscaping, property modifications, pest control, pet clauses, and subletting.
In addition to the monthly rent and utilities, your lease should specify who is responsible for what in the event that repairs are required. Be clear about who will maintain the yard if it is included in your rental agreement. Include the consequences of not paying rent in the agreement, as well.
Handle rental properties professionally
As a property manager, you must interact professionally with your tenants. Keep in mind that the way you gesture and how you speak have a great deal of impact. Whether you communicate with tenants via email, phone, or face-to-face, make sure you are professional, courteous, and clear. Renters need to know that the property manager is serious from the beginning. Keep all the lease terms in force, such as maintaining the rental property, collecting the rent on time, and taking eviction action as necessary.
Clearly define the process of collecting rent
It is necessary from the onset to establish a clear procedure for collecting rent. Clearly explain when and how rent is due. You may offer bank deposits, mobile payments, or online renting. You can automate reminders a week in advance, mentioning the exact day when rent is due.
Find ways to retain good tenants
Good tenants are hard to come by. When you find a great renter, you should find a way to keep them. One way to increase resident retention is to upgrade the rental property. Consider painting, replacing the flooring, building a kids’ play area, or installing new lighting. Allowing tenants to choose what they want to replace or upgrade increases their sense of ownership.
Insist on renter’s insurance
Regardless of whether you have property insurance, it is a good idea to ask your tenants to obtain their own renter’s insurance. As a result, their belongings will be protected, and the property owner will be offered extra liability protection.
Be respectful of the tenant’s privacy
A tenant has a right to privacy once he/she moves into your rental property. If you want access to the rental property, ask the tenant first. Be sure to give at least two weeks’ notice when performing an inspection or making repairs. The only exception to entering the property without permission pertains to emergencies. Check with your local rental laws to determine if and when the landlord is allowed to enter.
Increase your rent in a way that won’t disrupt your tenants
Rented properties typically increase in rent over time. Factors such as increased property taxes, repair costs, and insurance fees may influence your rent prices. Make sure you check your state’s rent control laws before you hike your rent. For example, some states restrict the increase in rent during the first year.
After a rent increase, you should do what you can to keep your tenants. Be sure to notify the tenant of your intention to increase rent and explain the increase.
Remove bad tenants as soon as possible
You may still have a problematic tenant in your rental property despite thorough screening. They may be someone who blares loud music after midnight, behaves in a disorderly manner, or is involved in the illegal drug trade. If you fail to deal with such a person swiftly, they will likely drive your other tenants away. Reporting criminal activity to the police and evicting troublesome tenants promptly should be the priority.
Evict the tenant in a proper manner
Evictions may not be the most enjoyable part of tenant management, but they are necessary when a tenant breaks the lease. To begin with, you need to understand the eviction laws in your region. One location may take longer to evict a renter than another. Some states allow tenants to remain in their rental unit for 60 days following an eviction notice. Knowing the eviction laws in your area can help you avoid unnecessary court battles.
Conclusion
It takes time to develop better tenant management strategies. As a rental property manager or as a property management company, you will probably make a few mistakes at first. But, as you improve your tenant management system, dealing with renters will become much easier. These tips might help property managers boost occupancy rates to increase their return on investment.
