By John Triplett
The single biggest challenge facing property managers in 2024 is dealing with aggressive or abusive tenants and residents, according to a new study from the National Apartment Association (NAA).
The “Voice of the Property Manager” NAA Research, sponsored by MRI Software, surveyed nearly 1,000 industry professionals from July 9–22. The analysis in this report represents the voices of more than 850 property managers and regional managers across the United States, a majority of whom are women.
“The most frequently cited challenges in 2024 were dealing with aggressive and abusive residents (22%) and the inability to disconnect after hours (16%). These findings indicate that confrontational interactions and the struggle to separate work from personal time are major stressors for property-management staff, potentially contributing to mental-health concerns,” the report says.
Other challenges relate to maintaining staffing levels (14%) and managing workload (13%). There were also concerns about employee retention and reinforcing the ongoing battle to balance workloads within the industry.
“Other issues such as dealing with residents at risk of eviction, inadequate communication and support from upper management, managing staff, keeping up with legislative changes and addressing fraud were cited less frequently, but still affect a notable portion of the workforce,” the report says.
Who responded to the survey?
Of those professionals surveyed, 32% were between the ages of 35-44, while another 29% were in the 45-54-year-old age group. Nearly half of respondents worked for owner/operators and 88% indicated that their companies owned or managed conventional multifamily properties. Just over half of those companies managed fewer than 5,000 units, while nearly one in five operated more than 30,000 units.
“Overall, property managers are happy in their jobs, particularly with their co-workers and with the flexibility offered to them. A slight majority have been in their current positions for more than seven years, while 22% have tenure of two years or fewer,” the report says.
About 60% feel they have the training they need to do their jobs. Nearly three-fourths expect to be in the industry three years from now, which appears to be at odds with some 39% not recommending a career in property management to their friend or colleague. See more detail on this in the full report linked at the bottom of this article.
Need a Lease Agreement?
A FREE account gets you access to over 200 free forms. Upgrade to a paid account (monthly, annually, or lifetime)
EZLandlord Forms Is Offering 15% 𝙊𝙛𝙛 For New Customers!
We cannot recommend these guys enough!
👉 State Specific Leases 👉 400 Forms to make your landlord-tenant relationship top notch 👉 200 FREE forms for those not ready to purchase 👉 4.8 Rating with over 5000 Reviews 👉 Pro Members get access to ALL leases and forms for $12 per month OR $75 if you purchase the annual membership 👉 YOU CAN BUY LIFETIME FORMS for $399
USE CODE 𝐒𝐓𝐀𝐂𝐈𝐄𝟏𝟓 to get 15% OFF ALL first-time purchases, EVEN THE LIFETIME FORMS!
Conclusion: Transparency And Technology
“While owners and operators should be encouraged by this year’s “Voice of the Property Manager” survey results, there is certainly room for improvement in providing a work environment that will not only retain existing employees, but create more promoters of the industry, potentially helping with recruiting efforts as well.
“Managing workloads, maintaining proper staffing levels and providing tools and resources that help property managers do their jobs more effectively will go a long way in improving work-life balance,” the report says.
When it comes to technology, transparency is important as “open communications, and change management will be key as the industry continues to embrace technology, which stands to disrupt operations, roles and responsibilities all while remaining a people-first business.”
Read the full report from the NAA and MRI Software here.
Did you enjoy this article?
This is an example of what is included on our FREE weekly newsletter, Landlord Weekly.
Subscribers get access to our free forms, email templates, and guides! As well as…
▪️Landlord Tips ▪️ Early Access to Our Blogs ▪️ Landlord Specific Articles by Other Industry Pro’s ▪️ Podcast Links
To check out a sample of our newsletter, click one of the links below👇
By Ryan Squires
In the booming world of property management, investors and landlords increasingly manage properties far from home. Previously, property owners would pay a management company to oversee their property. Now, technology has made it possible for landlords to do it themselves remotely.
In this guide, we’ll look at how to manage rental property remotely with property management software, the tools available, and how to navigate potential challenges.
Key Insights
- For landlords who wonder how to manage rental property remotely, it’s never been easier to do so than today; software has made becoming a virtual landlord a breeze.
- Remote property management requires software to streamline tasks and stay up-to-date on property maintenance, lease tracking, and online rent payments.
- TurboTenant offers many features that online landlords need to manage their rentals properly from afar. It allows you to seek investment opportunities across the country, no matter where you call home.
Understanding Remote Property Management
More and more landlords rent out properties across the country, far from where they spend most of their time. With the advent of property management software, it’s become less important to be close by. Now, investors can diversify their portfolios and seize nationwide opportunities.
While managing property remotely has never been more accessible, that doesn’t mean it’s without its own unique challenges and risks. Figuring out how to show properties to potential renters, maintaining good communication with tenants, and ensuring the properties are well-maintained can be tricky when far away.
Also, compliance with local laws and guidelines can become overwhelming if you’re unfamiliar with the laws of the land. Luckily, there are tools and technologies for online property management that make being a virtual landlord easier than ever.
Tools and Technologies for Remote Property Management
Cloud-based software accessible from anywhere is the most efficient and cost-effective way of remotely managing rental property. Here are the key tools to consider for remote property management.
Tool 1: Property Management Software
Solid property management software (like TurboTenant) typically offers features like online rent payments, tenant screening, lease templates, and mobile apps for landlords and tenants, allowing easy and quick communication between parties.
By running your rentals through one platform, you can get a complete overview of every property’s status, track maintenance and repairs, and visualize a full accounting rundown of your expenses and cash flow.
Tool 2: Virtual Tours and Digital Leasing Tools
One of the trickiest parts of managing a property from a different location is showing the unit to potential renters. However, software like TurboTenant allows landlords to schedule and manage showing appointments directly in the app. You just set up a schedule of available times, and tenants can choose the appointment that works for them.
Once you’ve found the perfect tenant, you can easily send a digital lease for all parties to review and sign. Once signed, the dashboard makes tracking and finding leases simple.
Tool 3: Online Rent Collection and Payment Platforms
The most important part of property management is collecting rent payments from tenants. With online rent collection, landlords can easily track payments for each tenant and unit — from anywhere. Then, they can filter that information directly into a rental accounting suite, like REIHub.
Tenants typically prefer an online rent payment system, whether landlords are nearby or far away. By collecting rent online, landlords don’t have to worry about finding and depositing checks each month.
Tool 4: Remote Maintenance Management Systems
Another common worry for remote landlords is how to repair and maintain units during, before, and after occupancy. Of course, keeping up with maintenance is critical to every stage of the rental term. So, how can you manage maintenance across state lines and beyond?
As a virtual landlord, leaning on digital tools is an amazing way to manage and track the rental process without leaving your desk. Tenants can log maintenance requests directly in the app (if you’re using TurboTenant as your property management software). We partner with Lula, who handles scheduling the maintenance, finding the repair staff, and ensuring the vendor completes your repair within the budget you set.
A landlords one stop shop for tenant management…for FREE
You can’t beat free and the only time you pay is if you want to purchase a lease or have expedited rent deposits. Most everything else costs zip, zero, zilch.
How to Manage a Long-Distance Rental Property
When considering how to manage rental property remotely, it’s critical to make sure that every aspect of the process is easily handled, just as if you were there in person. As we’ve discussed, utilizing property management software is the first step, but here are some additional landlord tips to consider:
- Screen tenants carefully: The more qualified and stable your tenants are, the less risk of sudden problems arising that could be inconvenient to manage from afar. Conduct detailed tenant background checks for some added peace of mind.
- Automate rent collection: Landlords can directly include payment requirements in the lease agreement and require tenants to pay online. These requirements reduce the risk of checks getting lost in the mail and set clear expectations for when tenants need to pay.
- Stay updated on local laws and regulations: Even if you don’t live in the town or state where the rental property is located, it’s crucial to know the ins and outs of landlord-tenant laws.
- Maintain communication with tenants: It is critical to stay on top of any issues your tenants might be experiencing with the property and address them as quickly as possible. Happy tenants make for happy landlords.
How do you manage income from a rental property?
Managing income from rental properties can seem overwhelming no matter how many properties you manage, but tracking finances carefully, utilizing software tools, and addressing issues promptly can help keep the cash flowing.
- Track expenses and rental income with accounting software: As stated above, REIhub is a great partner and tool for fully managing expenses and cash from anywhere.
- Plan for known expenses: Property taxes, insurance, and regular maintenance are known expenses that can be anticipated and planned for.
- Consult with a financial advisor: Understanding the opportunities available to you as an investor and how best to maximize your profit is critical to long-term success as an owner, so consulting with a professional could provide some great insight and advice.
How to run a vacation rental remotely?
While TurboTenant doesn’t offer a vacation rental feature, running one isn’t too different from renting a long-term property. Short-term rentals have some unique challenges, but depending on the area of the unit, the income potential of shorter-term stays is worth exploring.
Managing a vacation rental requires a reservation system, easy check-in for guests, and the ability to monitor the property remotely. A local cleaning company with online scheduling options is also a must to ensure a tidy unit for the next guest.
Several software platforms, like Guesty and Lodgify, automate much of the process for short-term rentals, so explore your options to find the best suite of tools for your situation.
How can I make my rental home more secure?
Making sure your long-distance rental property is safe and secure isn’t too different from what you’d do if you lived nearby.
Step one is to ensure that all locks on doors and windows are functioning and of high quality so vacant properties don’t attract unwanted guests and tenants feel secure after moving in. Security cameras placed around the property’s exterior could also be a good idea, but landlords need to be aware of local laws regarding their use. Lastly, a video doorbell facing the street can help deter trespassers and keep you notified when anyone approaches the unit.
How TurboTenant Supports Remote Landlords
Once you sign up for TurboTenant, you’ll never have to wonder how to manage rental property remotely again.
TurboTenant is a fully featured property management platform designed to take as much off a landlord’s plate as possible. We provide tools for every step of the rental process. From the ability to collect rent payments online to legally reviewed, state-specific online lease agreements to landlord and tenant mobile apps, TurboTenant has everything you need to remotely manage your properties from wherever you want to be.
Did you enjoy this article?
This is an example of what is included on our FREE weekly newsletter, Landlord Weekly.
Subscribers get access to our free forms, email templates, and guides! As well as…
▪️Landlord Tips ▪️ Early Access to Our Blogs ▪️ Landlord Specific Articles by Other Industry Pro’s ▪️ Podcast Links
To check out a sample of our newsletter, click one of the links below👇
Source: GlobeSt.
Apartment rent fraud is rapidly emerging as a major concern for property owners and managers in the real estate industry. This deceitful practice involves applicants using fake documents to misrepresent their financial status, affecting all types of multifamily properties, from affordable units to luxury apartments.
The financial repercussions are significant, with eviction costs averaging between $20,000 to $25,000 per apartment. Despite these high costs, only 17% of multifamily property owners have implemented comprehensive fraud prevention systems, underscoring a critical need for improved measures.
The Evolution of Rental Fraud
As Mendowa Martin, senior vice president at JLL, explains in a podcast, rental fraud has evolved dramatically over the years. Initially, fraudulent activities were low-tech, involving simple falsifications like fake employment verifications.
However, with technological advancements, fraudsters now have access to sophisticated tools that make it easier to create convincing fake paycheck stubs and bank statements. Remarkably, there are even online communities dedicated to teaching individuals how to bypass income requirements for apartment rentals.
Kent Simpson from Yardi Systems, also a speaker in the podcast, notes that the sophistication of rental fraud increased notably during the COVID-19 pandemic. As leasing offices closed and processes moved online, fraudsters operated anonymously, making it easier to deceive property managers.
Simpson emphasizes the dual challenge of creating a seamless application process for genuine applicants while deterring fraudulent ones.
Types of Rental Fraud and Prevention Strategies
Rental fraud encompasses various tactics, including document falsification, income misrepresentation, and identity fraud. Martin stresses that verifying an applicant’s identity is a crucial first step in preventing fraud. This involves using technology to authenticate identities before delving into other aspects like income verification.
Simpson highlights the need to move away from reliance on easily forged documents. Instead, he suggests using automated asset verification systems that require applicants to log into their bank or payroll provider, reducing the chances of fraud slipping through. This approach not only enhances security but also improves the user experience by minimizing the need for document uploads.
TransUnion SmartMove – Where Millions of Landlord’s Screen for Great Tenants
Online tenant screening for property owners
TransUnion’s Smart Move is FCRA compliant and provides Tenant screening reports in 4 easy steps. Just create a FREE account, enter applicant information, select which reports you want, and select who pays!
No subscriptions: Enjoy free membership with SmartMove’s pay-as-you go tenant screening. Only pay for the reports you need.
Fill your property vacancies quickly. Reports are often back to you within minutes of paying and submitting the order. Choose who pays, you or the applicant!
Get critical info from a trusted source. TransUnion is one of the three major credit reporting agencies in the United States.
Financial Impact and Industry Response
The financial impact of rental fraud is substantial, with costs associated with attorney fees, lost rent, and re-renting adding up quickly. Martin points out that while most applicants are honest, a small percentage of fraudulent ones cause the most financial damage. Therefore, it’s essential to approach the screening process with a balance of skepticism and positive intent, ensuring that genuine applicants are not unfairly penalized.
The industry is gradually recognizing the need for robust fraud prevention measures. Martin mentions that while only a small percentage of operators currently have comprehensive plans, there is a growing trend toward budgeting for fraud prevention as a line item. This shift is crucial as it allows operators to invest in technologies and processes that can effectively mitigate fraud risks.
The Human Element in Fraud Detection
While technology plays a vital role in preventing rental fraud, the human element remains equally important. Property managers must be vigilant and trained to recognize red flags, such as applicants who claim to be victims of identity theft or insist on submitting paper documents due to alleged technical issues. Martin shares an anecdote about a manager who was moved by an applicant’s story of identity theft, only to find inconsistencies in the provided documents.
Ultimately, having a plan is crucial for property owners and managers to effectively combat rental fraud. As Martin succinctly puts it, “the firms that don’t have a plan, or the firms that lack in a plan, become a target.” The industry must continue to adapt and evolve, leveraging both technological advancements and human intuition to stay ahead of fraudsters. As Simpson aptly noted, “We will never eliminate all risk, but we can continue to mitigate more of it as time goes on.”
Did you enjoy this article?
This is an example of what is included on our FREE weekly newsletter, Landlord Weekly.
Subscribers get access to our free forms, email templates, and guides! As well as…
▪️Landlord Tips ▪️ Early Access to Our Blogs ▪️ Landlord Specific Articles by Other Industry Pro’s ▪️ Podcast Links
To check out a sample of our newsletter, click one of the links below👇
Listen On:
Effective communication is key for landlords in maintaining a positive relationship with tenants and ensuring smooth rental operations.
Different situations require different communication methods, and landlords should be mindful of when and how to use each one.
There is a time and place to be casual and absolutely a time when being professional is of utmost importance.
In this episode, we are discussing the different forms of communication you, as landlords, can use and in what situation you should use them.
We also address the tone, the language, and in what instances it’s important to be communicating with your tenants.
LINKS
👉 Clean Dryer Lint Trap Sign, Acrylic (Available in White or Black), 5 x 3.7 Inches, 2-pack, $8.99
👉 Check out the How to Clear Jammed Garbage Disposal Video we recorded for our tenants. Feel free to use it for your own tenants and units!
👉 Episode 4: The Importance of Rental Property Inspections
👉 Product: Our 6 Page Inspection Checklist, $9.99
👉 Course Waitlist: From Marketing to Move In, Place Your Ideal Tenant
👉 Text Us a Question! Two methods available: SMS text to 650-489-4447.
OR https://www.buzzsprout.com/twilio/text_messages/2143553/open_sms
This text system is one way only, you need to include your email for a response.
Please allow 1-2 business days for us to get back to you regardless of method.
👉 Download our FREE Forms and Documents!
👉 Help other DIY landlords discover what we have to say… Please leave us a review of our podcast!
On Apple Podcast or ITunes, please scroll to the bottom of our main page (with our logo) and click “Write a Review”.
On Spotify, please click the 5.0⭐ on our the front page of our podcast page.
👉 Join our Private Facebook Group! A space to ask questions and network with other DIY landlords.
👉 Follow us on Instagram
👉 Like us on Facebook
👉 Want the podcast link emailed to you weekly? Subscribe to our FREE newsletter, Landlord Weekly!
▪️Landlord Tips ▪️ Early Access to Our Blogs ▪️ Landlord Specific Articles by Other Industry Pro’s ▪️ Podcast Links
Check out samples of our newsletter👇 If you love it, you can subscribe from there!
*This post contains affiliate links. We may earn a very small commission (at no additional cost to you) if you purchase from here. These small commissions are to benefit our business so thank you for your support.
Listen On:
You often hear us discussing the importance of inspections and preventative maintenance.
Where we do this in the Spring season, one of the best times of the year to perform these tasks is during Fall, in preparation for the winter months.
This week on the podcast, we are discussing what landlords should focus on to winterize their rental property.
We also dive deep into year-end business preparations in the office, which is something that really should not be overlooked. Budgets, analysis, planning, and tax prep are just a few of the items we will be discussing.
We know this is a busy time of year, but the peace of mind knowing we have done what we can to mitigate risk for our rental properties as well as our business, goes a long way.
LINKS
👉 Outdoor Water Spigot Covers/Socks for Winter Freeze Protection. Set of 2, $6.89
👉 Fall Maintenance Checklist FREE Download! Checklists: Winter Preventative Maintenance for Your Rental Property and End of Year Business Preparation
👉 Episode 67: Renters Insurance: Why Landlords Should Require It
👉 Property Management Software We Recommend:
👉 Episode 39: Part 1, The 50+ Must Ask Questions When Hiring a PM
👉 Episode 40: Part 2, The 50+ Must Ask Questions When Hiring a PM
👉Property Management Questionnaire when hiring a PM
👉Episode 35: How Small Gestures Make a Big Difference with Tenants
👉 The Fair Housing Institute: Fair Housing Courses and Certifications. Use code: YLR2024 for 15% OFF any course!
👉 Course Waitlist: From Marketing to Move In, Place Your Ideal Tenant
👉 Text Us a Question! Two methods available: SMS text to 650-489-4447.
OR https://www.buzzsprout.com/twilio/text_messages/2143553/open_sms
This text system is one way only, you need to include your email for a response.
Please allow 1-2 business days for us to get back to you regardless of method.
👉 Download our FREE Forms and Documents!
👉 Help other DIY landlords discover what we have to say… Please leave us a review of our podcast!
On Apple Podcast or ITunes, please scroll to the bottom of our main page (with our logo) and click “Write a Review”.
On Spotify, please click the 5.0⭐ on our the front page of our podcast page.
👉 Join our Private Facebook Group! A space to ask questions and network with other DIY landlords.
👉 Follow us on Instagram
👉 Like us on Facebook
👉 Want the podcast link emailed to you weekly? Subscribe to our FREE newsletter, Landlord Weekly!
▪️Landlord Tips ▪️ Early Access to Our Blogs ▪️ Landlord Specific Articles by Other Industry Pro’s ▪️ Podcast Links
Check out samples of our newsletter👇 If you love it, you can subscribe from there!
*This post contains affiliate links. We may earn a very small commission (at no additional cost to you) if you purchase from here. These small commissions are to benefit our business so thank you for your support.
By Kathleen Williams
Occupancy limit policies are crucial for managing apartments, whether located in a
densely populated city or a quiet suburb. However, developing and revising these
policies can be complex. Not only do you need to be aware of fair housing laws,
but also know local laws and municipal ordinances on occupancy limits.
How could you hope to balance it all? Better yet, balance it all while trying to avoid that fair housing violation? This in-depth look into not only building your policy but also enforcing it can help you achieve that balance. First, let’s take a look at how occupancy limit policies differ depending on the type of housing.
NAVIGATING OCCUPANCY POLICIES: FEDERAL GUIDELINES VS. PRIVATE SECTOR
Starting with federally funded housing, occupancy policies are already predetermined. You can
review the Keating Memo from HUD, which further explains the two person per room rule for this type of housing. However, this rule does not apply to housing such as private market or tax credit.
In all actuality, this rule has been labeled by HUD as possibly discriminatory based on familial status. Because of this, other forms of housing face the challenge of having to create their own occupancy policy and having to undergo constant revision.
BALANCING OCCUPANCY POLICIES: GUIDELINES, LEGALITIES, AND FAIR HOUSING
The best rule to follow when revising or creating your own occupancy policy is that of balance. Using the term balance as your foundation can be a little confusing, so let’s break it down.
A Balanced Policy:
First off, you need to decide upon clear guidelines without creating too much restriction. Top priority must be given to any local laws or any municipal code your property is governed under. Ensure your policy meets their minimum requirements for residents per unit or individuals per room.
The second step is to take a look at your units and your property as a whole. What can the size
and layout of the unit accommodate? Another great tip when revising or creating a policy is
resident details. This may include details such as whether a unit is occupied by all adults or if
there are children residing there as well.
There is an important note to remember when it comes to details for your residents within the
policy. You need to ensure that you do not mention specifics, such as age and gender, in order to avoid a fair housing violation. Sex is a protected category and in many states, age is a protected class.
What NOT to do: A recent example of a property forgetting these details resulted in a fair housing discrimination case. An apartment complex in Louisiana had a policy in place stating that two children of the opposite sex could not share a room. Leasing agents falsely claimed that the property’s policy was based on state law when, in fact, they were discriminating against both age and sex, inciting a fair housing violation.
ENFORCING OCCUPANCY POLICIES: STEPS AND FAIR HOUSING CONSIDERATIONS
Now that you know the foundations of a good occupancy policy, it’s time to understand how to enforce it without inciting a violation. The key first step: make sure you have all the information before proceeding with a lease violation. Once you can confirm that the resident is indeed breaking your property’s occupancy policy, there are a few follow-up steps to take.
- First off, have a discussion with the resident of the unit, being clear about the guidelines of why the violation was cited.
- Second, follow up on disciplinary measures as laid out by your property’s policy. This may be the requirement for the resident to move to a larger unit or simply cite a violation in the lease agreement.
Remember, as a landlord, you are permitted to enforce your policy. However, there is one fair housing hurdle you and your team should be aware of.
HANDLING ACCOMMODATION REQUESTS WITHIN LEGAL LIMITS
Accommodation requests are inevitable. This includes requests from residents that break policy, including those on occupancy limits. While you want to do your best to ensure
that your residents’ needs are met, there is one factor that needs to be considered. No
reasonable accommodation can supersede local law or municipal codes. As an example, let’s say a resident submits an accommodation request stating that they need to break policy on a certain unit’s occupancy limit. If that policy is based on local laws stating how many individuals can be in that size unit, you will have to find a different solution for that
accommodation. If the request does not break any local laws, then it is safe to follow your
property’s procedures to accommodate that resident.
TenantAlert provides the ONLY instant tenant screening service with LeaseGuarantee. The credit screening company with options and guarantees.
▪️ Select from a number of reports including credit background check, nationwide criminal, and nationwide eviction.
▪️ Add up to 4 applicants in one order to screen multiple roommates.
▪️ Use your application or send off the TenantAlert application when vetting tenants.
▪️ You can pay for the credit screening or send a link to your tenants for them to pay for the service.
▪️ TenantAlert has easy to read reports with summaries to help you determine if the applicant meets your qualifications or not.
▪️ They rate the applicant on a scale of 100 and offer a lease guarantee for up to $10,0000 of protection against damages, lost rent, or legal fees that you OR the tenant can pay (starting at $199/year).
KEY TAKEAWAYS FOR EFFECTIVE OCCUPANCY POLICY MANAGEMENT
In short, balance is key when it comes to any kind of policy. In the case of occupancy limits, balancing both fair housing standards and local laws and ordinances when taking a look at your policy is the best course of action. If you’re starting a new policy or revising one currently in place, there are a few key steps that should be on your checklist:
✓ Ensure your policy is clear and concise but not too specific. Take care to avoid
discriminating against certain protected categories and classes. As shown in the court
case discussed earlier, these kinds of details in your policy can lead to a fair housing
violation.
✓ As a property manager, it is your responsibility to enforce your policies. Be careful when
investigating, documenting, and explaining any lease violations you carry out.
✓ Reasonable accommodations that violate your property’s policy can happen. Ensure that
whatever the request, it doesn’t break your state’s laws on occupancy limits.
Remember, balance is key to any property with these policies, no matter the location. Let this guide help you to ensure that your occupancy limit policy meets Fair Housing standards, keeping your residents safe in their homes and locking in that property management win.
Did you enjoy this article?
This is an example of what is included on our FREE weekly newsletter, Landlord Weekly.
Subscribers get access to our free forms, email templates, and guides! As well as…
▪️Landlord Tips ▪️ Early Access to Our Blogs ▪️ Landlord Specific Articles by Other Industry Pro’s ▪️ Podcast Links
To check out a sample of our newsletter, click one of the links below👇
Provided by Avail
Knowing how to be a good landlord requires extensive knowledge of renting, as well as the right tools to make the process easier. But if you’re a first-time landlord, managing both a rental property and tenants can easily be overwhelming if you’re not sure where to start.
To help you become a successful landlord, we share expert tips on landlording to help you manage your first property, as well as resources to take advantage of right away.
9 Landlord Tips for First-Time Landlords
As a first-time landlord, it’s important to know the basics of managing a rental property for an overall positive experience. From tools to have on hand to best practices to keep in mind, we outline nine tips to consider when being a landlord for the first time:
1. Utilize a Property Management Software Platform
Managing a rental comes with tons of responsibilities, all of which can be time-consuming without a property manager. Luckily for you, property management software platforms have streamlined the process of advertising your rental, finding quality tenants, screening them, collecting rent, and more.
Avail (part of Realtor.com®) offers free rental property management software that helps landlords easily manage their rental online, hassle-free. You can create a free landlord account to set up your tenants, collect rent online, track rental property accounting, as well as explore an extensive library of educational content on landlording. Avail is free for unlimited units, but you have the option to upgrade to Unlimited Plus for $9/unit per month to create custom leases or a website for your rental business.
Plus, you can earn up to $500 in account credit with the Avail Referral Program by inviting 10 fellow landlords to Avail to create an account. Get started today by creating a free account in less than five minutes.
2. Determine a Fair Rent Price
Your rent price will determine whether or not a tenant will be interested in renting your property. Although protecting your investment is the first priority, it’s important to determine a fair market rent based on other rentals in your designated area. This ensures you find tenants that can afford to rent your apartment and reduces the chance of long vacancy periods.
To complete this step, you can research local properties with similar features for their rent price or invest in an Avail Rent Analysis report that shows how your rental compares to similar properties in your area, as well as rental benchmarks from the lowest to the highest rent.
Once you’ve established a rent price that you’re comfortable with, then you can begin advertising your rental property online to find potential tenants.
3. Find Quality Tenants
In order to find quality tenants, you’ll need to advertise your rental property across various websites to generate rental leads. Since most tenants search for their next apartment online, it’s important to find landlord software that syndicates your rental listing across more than one site to get your property in front of tenants.
When advertising your rental listing on Avail, your listing is syndicated out to Zillow, Trulia, HotPads, Zumper, Apartments.com, Realtor.com®, PadMapper, Apartment List, Walk Score, and Doorsteps all at once. You can also manage any generated leads directly through your landlord dashboard for less back-and-forth communication.
You’ll want to describe the unit in a few sentences with the address and set rent price, as well as take accurate and eye-catching pictures of the property.
4. Screen Potential Tenants
Once enough qualified leads have been generated, you’ll want to begin the tenant screening process. In addition to having tenants complete an online rental application, it’s best practice to include credit, background, and eviction checks to get factual information on who they are. However, some states put limitations on how much landlords can screen potential tenants, so you’ll want to do some research on local landlord-tenant laws before adding this to your application.
An Avail online rental application allows landlords to include custom questions, as well as advanced reporting such as a TransUnion credit report and background check for a one-time fee. Instead of paying out-of-pocket for the cost of screening a tenant, the cost can be offset to the applicant.
5. Create an Online Rental Lease
As a first-time landlord, it’s important to put together a rental lease agreement that complies with local ordinances and is reviewed by a lawyer before sharing with tenants. Not only does this ensure it’s a legally-binding agreement, but protects all the parties involved.
The lease agreement should include the monthly rent amount, security deposit amount, terms of lease, and clauses that protect both the landlord and tenant. Many of these clauses and disclosures will be dictated by the standard lease within your city, but it is a good idea to make sure the lease fits the needs of your rental, as well.
With Avail, landlords can easily create a lawyer-approved lease agreement for free or upgrade to Unlimited Plus to create a customized lease that can be cloned for later use. The lease agreement can be signed online for free and is stored in each parties’ dashboard to reference in the future.
6. Share a Move-In Checklist
Your rental property should be habitable and clean before moving in new tenants. To help document the condition of your property before and after they move in, you can use a downloadable move-in checklist to access on any device.
Tenants should be notified on how garbage, laundry, and newspaper delivery work in the area, along with any other amenities that the building or property provides. The more thorough you are with explaining the starting conditions of your unit, the less surprises you’ll have at the end of the lease.
7. Contract Your Contractors
If you’re not a handyman yourself, you’re going to need help handling maintenance at some point. If you don’t know of any good contractors in the area, try to find local contractors that can quickly and efficiently handle repairs for you. .
Talk to friends and family about finding a contractor, and look up contractors in your area online. Compare and contrast different options when hiring a contractor as this could become a good long-term relationship, so don’t be afraid to spend some time looking around.
Make sure to get referrals, proof that the contractor is insured, and a guarantee on the work. Allow your tenants to submit maintenance tickets online, so you can record issues, store photos, and communicate with your tenant online.
8. Manage Your Rental Income
Being a landlord is equivalent to owning your own business, even if you’re only managing one unit. If you treat it as a business, you’ll have the right frame of mind when making decisions.
As a first-time landlord, it’s advised to manage any income you’re generating from the rental in a separate bank account than your personal account. Not only will you need to store a tenant’s security deposit separately, but you’ll need a platform that can help you collect rent online and manage any other fees tenants are responsible for covering. Avail allows you to easily track payments for all your properties online, which can later be accessed during tax season.
9. Invest in Landlord Insurance
Just like tenants have renters insurance to protect their belongings, it’s important to invest in landlord insurance to protect you from property damage, loss of income, and liability. Landlord insurance premiums can cost anywhere from $800 to $1,200 annually, depending on the type of coverage you want.
Manage Your Rental With Avail
Becoming a first-time landlord is an exciting venture to take on and is less daunting than you think. Now that you know how to be a landlord with the tips we’ve shared, the next step is managing your rental with confidence by using landlord software like Avail.
Create an account to begin the process of managing your rental property like a seasoned professional.
Did you enjoy this article?
This is an example of what is included on our FREE weekly newsletter, Landlord Weekly.
Subscribers get access to our free forms, email templates, and guides! As well as…
▪️Landlord Tips ▪️ Early Access to Our Blogs ▪️ Landlord Specific Articles by Other Industry Pro’s ▪️ Podcast Links
To check out a sample of our newsletter, click one of the links below👇
By Ryan Squires
When setting the rental rate for a rental property or looking for a new place, landlords and tenants frequently ask: “Are landlords required to pay for water and garbage?”
Typically, landlords aren’t required to pay for these utilities. However, different states and cities have their own laws dictating what utilities a landlord may be required to pay for, so it’s critical to understand the rules governing the area where you operate your business. And for tenants, finding properties that cover, or at least partially cover, utilities can sweeten the deal.
Our comprehensive guide examines whether landlords are required to pay for water and garbage.
Key Insights
- Are landlords required to pay for water and garbage? In most cases nationwide, landlords are not responsible for paying these utilities.
- Some localities, including New York City, require landlords to cover water and garbage collection. Always check your local laws to understand your responsibilities as a landlord or tenant.
- The property type often dictates who pays for what.
- TurboTenant has state-specific leases from all fifty states and a robust maintenance and repair tracking system so landlords and tenants can communicate clearly about any issues that may arise.
Understanding Landlord Responsibilities for Utilities
Most landlord-tenant disputes regarding utility bills occur when the lease agreement contains ambiguities. This often comes up when no clear language specifically dictates who is and isn’t responsible for each utility, including electricity, phone and internet, water, garbage, sewer, and anything else that could qualify as a utility.
However, a few other things might arise while renting a home that might raise questions for either the landlord or the tenant.
Utility Usage and Fairness
In multi-unit buildings where tenants split the cost of the utilities, a dispute could occur regarding each tenant’s responsibility. For instance, if one unit uses an extraordinary amount of electricity compared to others, a landlord could require the offending unit to cover a high portion of the bill to maintain fairness among all renters. This solution isn’t allowed everywhere, so check your lease and local laws to see if you live in an area where this kind of dispute could arise.
A landlords one stop shop for tenant management…for FREE
You can’t beat free and the only time you pay is if you want to purchase a lease or have expedited rent deposits. Most everything else costs zip, zero, zilch.
Maintenance and Repairs
In certain instances, a tenant could claim that a landlord should be responsible for a portion of a utility bill if regular upkeep and maintenance are lacking and the cost of using the utility increases because of it. Additionally, outdated appliances or other features in a unit could also increase utility costs, and a landlord might be responsible for addressing the issue or could offer to cover a portion of the related utility.
In all cases, tenants and landlords should keep detailed records of any dispute, and tenants should always continue paying rent in accordance with the rental agreement terms so that a minor dispute doesn’t become a larger one.
How TurboTenant Can Help with Utility Management
So, are landlords required to pay for water and garbage? As you’ve seen above, the answer can get a little complicated. In most cases, no, but there are situations where landlords may be required to cover certain utilities.
TurboTenant can help.
As part of TurboTenant’s all-in-one property management software, landlords can create iron-clad lease agreements demonstrating who is responsible for paying what and when. And with rental maintenance management, tenants can quickly spot a leaky faucet, create a maintenance request from their smartphone, and get the water bill under control.
TurboTenant makes solutions for renting and managing property for the modern age. Sign up for a free account today or invite your landlord to check it out and see how TurboTenant makes life easier for renters and landlords.
Did you enjoy this article?
This is an example of what is included on our FREE weekly newsletter, Landlord Weekly.
Subscribers get access to our free forms, email templates, and guides! As well as…
▪️Landlord Tips ▪️ Early Access to Our Blogs ▪️ Landlord Specific Articles by Other Industry Pro’s ▪️ Podcast Links
To check out a sample of our newsletter, click one of the links below👇
Listen On:
We all pay someone to do work for us at some point or another. But did you know that how you classify those funds paid (code and book that payment accounting wise), can determine if you think they are a 1099 worker or a W-2 employee?
This week on Your Landlord Resource we are discussing the two rules that the Federal government and potentially your state government use to determine the difference between the two.
It’s a short episode that’s packed with a lot of good info to keep your business out of trouble in case you are ever audited…and we are seeing a lot of people we know go through this right now and its NO FUN!
LINKS
👉 Episode 5: The Advantages of Employing Your Children in Your Business
👉 US Department of Labor: Myths About Classifications of Employees as Independent Contractors
👉 Course Waitlist: From Marketing to Move In, Place Your Ideal Tenant
👉 Text Us a Question! Two methods available: SMS text to 650-489-4447.
OR https://www.buzzsprout.com/twilio/text_messages/2143553/open_sms
This text system is one way only, you need to include your email for a response.
Please allow 1-2 business days for us to get back to you regardless of method.
👉 Download our FREE Forms and Documents!
👉 Help other DIY landlords discover what we have to say… Please leave us a review of our podcast!
On Apple Podcast or ITunes, please scroll to the bottom of our main page (with our logo) and click “Write a Review”.
On Spotify, please click the 5.0⭐ on our the front page of our podcast page.
👉 Join our Private Facebook Group! A space to ask questions and network with other DIY landlords.
👉 Follow us on Instagram
👉 Like us on Facebook
👉 Want the podcast link emailed to you weekly? Subscribe to our FREE newsletter, Landlord Weekly!
▪️Landlord Tips ▪️ Early Access to Our Blogs ▪️ Landlord Specific Articles by Other Industry Pro’s ▪️ Podcast Links
Check out samples of our newsletter👇 If you love it, you can subscribe from there!
*This post contains affiliate links. We may earn a very small commission (at no additional cost to you) if you purchase from here. These small commissions are to benefit our business so thank you for your support.
When you start them early enough, your investments can perform shocking feats of strength. They can even keep pace with the runaway cost of college tuition—which has more than doubled since 2000. The average cost of private college tuition and fees has reached $38,768, according to the Education Data Initiative, and you can expect that to keep skyrocketing between now and when your little one reaches college age.
Fortunately, real estate can help. Try these creative approaches to paying for your kids’ college education so you can stop worrying and start getting excited about your children’s university years.
1. Let Your Tenants Pay for Tuition
Imagine that the year your child is born, you buy a rental property for $360,000 and put down 20% on it. You borrow the rest ($300,000) with a 30-year mortgage at 6% interest.
After 18 years, you now have $554,870 in equity. That’s a tidy sum to pay for tuition, hopefully with plenty left over to go toward your retirement.
Your tenants have paid down your mortgage balance even as your property has appreciated in value. I assumed a 4% annual appreciation rate. For context, U.S. home prices appreciated an average of 4.8% annually from 1987-2023.
Oh, and that says nothing of your cash flow. Your rents have risen alongside inflation, even as your mortgage payments remained fixed. Your rental property should be paying a princely sum each month by now. It probably cash flows so well that you won’t want to sell or refinance it.
If you want to get even more aggressive with paying down your loan balance, you could buy with a 15-year mortgage. Just beware that your cash flow will take a hit.
2. BRRRR: One Down Payment to Rule Them All
If you wanted to get more aggressive with your rental strategy, you could follow the BRRRR strategy (buy, renovate, rent, refinance, repeat). The idea is that you force equity through renovation, then refinance to pull your initial down payment back out.
In the example, you still had to plop down $60,000 plus closing costs—no trivial amount. Imagine instead that you buy that property’s run-down neighbor for $240,000, put $50,000 into renovating it, and borrow the same $300,000 mortgage.
You end up with all the same long-term numbers for appreciation and rental cash flow. But now you don’t have a penny tied up in the property. You can reinvest that money in stocks, syndications, or more rental properties.
In fact, you could repeat the same BRRRR process indefinitely to generate infinite returns. Because there’s technically no limit on how many times you can recycle and reinvest the same capital, there’s technically no limit on your returns.
3. Infinite Returns on Real Estate Syndications
The BRRRR strategy comes with a huge drawback: It requires a lot of labor. Sure, you can get your money back out of each property, but your time? That’s gone forever as a less visible but no less real part of your investment in each property.
Some passive real estate syndications follow a similar strategy, just on a far larger scale. A syndicator buys a dilapidated apartment complex, renovates and repositions it as a higher-end property, and leases the units for much higher rents. They then refinance it and return passive investors’ initial capital—but all the passive investors retain their ownership interest.
In other words, you and I get our money back, which we can reinvest elsewhere. But we also keep collecting cash flow from the original property.
Many syndications target annualized returns in the mid-teens or higher. “Uh, don’t most syndications require a minimum investment of $50,000-$100,000?”
They do indeed—if you invest by yourself. That’s why I don’t. Our Co-Investing Club meets every month to vet deals together, and members (including me) can go in on them together with $5,000 or more. I use it as a form of dollar-cost averaging, a way to consistently invest more manageable amounts each month in high-performance real estate investments.
And the math shifts even more to your favor when you get your principal back to reinvest again and again. But that’s messier to project forward into the future, so we’ll leave the graph at the standard compounding rate.
Besides, we invest in other types of passive real estate investments, such as private partnerships, private notes, debt funds, and more. Infinite returns sound great on paper, but I’m more interested in finding asymmetric returns.
Your Landlord Resource has teamed up with Toggle, a division of Farmers Insurance that offers competitive pricing of renters insurance for tenants.
Policies can start as low as $5 a month!
Copy and share our link with your tenants to get them started: http://go.gettoggle.com/SH1E
Download this PDF to present to your tenants with your renters insurance request! Toggle Renters Insurance Flier.pdf
4. Flip Houses with Your Teens
As your kids get closer to college, you can involve them in paying for their own higher education.
Flip a few houses with them. The profits from each house you flip could cover the cost of tuition for a year or more.
Even better, your teen will learn real-life skills such as forecasting ROI, negotiating, budgeting for projects, managing contractors, navigating bureaucracy such as permits and inspectors, and home improvement.
And maybe they’ll actually show up for those 8 a.m. classes if they helped pay for them by swinging a hammer and sweating all summer.
5. Kiddie Condo House Hacking
It turns out there’s a loophole for owner-occupied mortgage financing: Your adult children can satisfy the occupancy requirement.
That means you can buy student housing for them and their roommates with a primary residence loan. And their roommates can cover the mortgage payment for you, removing the need for either you or your child to pay for housing.
Again, your kids can learn some real-life skills, such as property management. Just make sure you only partner with them if you can trust them to manage an asset worth hundreds of thousands of dollars.
When they graduate, you can decide whether to keep the property as a rental or sell it and hopefully walk away with some profits.
6. Roth IRA Real Estate Investments
Roth IRAs offer more flexibility than any other retirement account. You can withdraw contributions at any time, penalty- and tax-free. You can even withdraw earnings early if you put them toward qualified education expenses, such as:
- Tuition and fees
- Books and other school supplies
- Equipment required for attendance
- The cost of special needs related to attendance
Imagine you invest in passive real estate investments for those 15% returns in the chart through a self-directed IRA. After 18 years, you decide you have enough to spare to help your kids with tuition—and so you do, tax-free.
Just make sure you actually can spare it. Your kids have dozens of ways to pay for college. You only have one way to pay for retirement.
Look Into Creative Combinations of Real Estate Investments
You can mix and match all these strategies, like Lego sets, to build an education fund. And these are just the tip of the proverbial iceberg.
Have you considered house hacking your own residence? You don’t necessarily need to move into a multifamily or bring in a housemate—my cofounder at SparkRental and her husband hosted a foreign exchange student, and the stipend covered most of their mortgage payment. Or you could add an ADU. Or you could rent out some or all of your home as a short-term rental, perhaps even when you’re not using it.
As mentioned, it helps if your kids have some skin in the game. Make them contribute in some way and make your help contingent upon performance. That could mean a minimum GPA or some other metric to make sure they don’t take your help for granted.
Get creative with paying for college with real estate. It doesn’t have to take a huge bite out of your net worth, but it does require advanced planning, thoughtful strategizing, and clean execution.
Did you enjoy this article?
This is an example of what is included on our FREE weekly newsletter, Landlord Weekly.
Subscribers get access to our free forms, email templates, and guides! As well as…
▪️Landlord Tips ▪️ Early Access to Our Blogs ▪️ Landlord Specific Articles by Other Industry Pro’s ▪️ Podcast Links
To check out a sample of our newsletter, click one of the links below👇