5 Must-Have Property Management Tips for Beginners

property management tips

Current statistics reveal that rental units comprise about 30% of the housing market. But with the rise of short-term rentals like Airbnb, lots of people are joining the ranks of property managers. 

If you’re new to property management, there are a few things you must know! Keep reading for 5 must-have property management tips for beginners. 

1. Do Your Due Diligence

Most of the problems you’ll run into when it comes to property management are due to bad tenants. Make sure you understand leasing laws in your state. Then set high standards and screen your applicants. 

Be aware that you can’t discriminate based on age, race, and other factors. But you can deny potential tenants for bad credit. If a potential renter’s story doesn’t add up, be wary. 

2. Use a Written Lease Agreement

Never rely on a verbal agreement. Always have a written lease signed by both parties. It’s worth paying a real estate lawyer for an iron-clad lease. 

Make sure the lease is based on your state since every state has different rental laws. Both you and the tenant should defer to the lease if any questions arise. Spell out all potential issues in the lease. 

3. Make Payments Easy

Make rent payment easy for your tenants by setting up an online payment system. The easier it is, the more likely the rent will arrive on time each month. Beware of shoddy online rent collection agencies. 

Do your homework and find a reputable company or another easy way for your tenants to pay. You can require online payment in the lease unless you live in California. 

4. Inspect Quarterly and Make Repairs

Inspect your property every 3-4 months. The key to keeping any home in good repair is regular maintenance. Don’t expect your tenants to do any maintenance on the home. 

Respond to maintenance requests as soon as possible. It’s not fair to keep tenants waiting on repairs. 

When it comes to inspecting, know the law. You can’t enter the premises without giving your tenants “proper notice.” Each state has its own laws. 

5. Never Withhold Deposit Without a Good Reason

The deposit is for actual damages. Never withhold the deposit without a documented reason. 

You can withhold the deposit for excessive damages beyond normal wear and tear. If the tenant owes you rent or late fees, you can use the deposit.

Make sure you can document actual material or financial damages if you keep any of the deposit. 

Welcome to the World of Property Management

These five tips will take you a long way in the world of property management. Always screen your renters by running at least a credit check or using a screening company. 

Always use a written lease and require online payment in the lease. Online payment is easier for your tenants too. 

Inspect the property on a regular basis and do any repairs or maintenance. Never enter the premises without first giving notice to the tenants. At the end of the lease, always refund the deposit unless there are documented damages. 

Does property management sound overwhelming? If you need some help, give us a call.