Key Takeaways
- Stay Proactive with Annual Reviews and Inspections - Landlords should annually verify rental rates, conduct plumbing and seasonal inspections, and review insurance policies to prevent costly issues, remain competitive, and maintain the property’s value.
- Maintain Strong Communication and Organization - Effective communication with tenants helps reduce vacancies and foster positive tenant relationships. Keeping detailed financial and maintenance records ensures smoother operations and better tax outcomes.
- Build Tenant Loyalty and Seek Professional Support - Showing appreciation to tenants and maintaining responsive management practices improves retention and property performance. Partnering with a professional property management company like Propertycare can help landlords stay organized and maximize returns.
Landlords have to wear many hats at once. At any time they could take on the role of a financial expert, inspector, or maintenance specialist, all while navigating the legal requirements associated with property ownership.
Staying on top of your landlord responsibilities and ensuring the rental property runs smoothly is a lot of work. So, it’s no surprise that sometimes landlords get overwhelmed and forget to pay attention to some critical aspects of their business.
To help busy landlords, we at Propertycare Property Management have created a list of critical things that you should be doing every year but probably aren’t. These tasks can look small, but failing to do them can have consequences on the performance of your rental property.
Here are some tasks you should be doing on an annual basis to ensure the continued success of you rental properties:
Verify Current Rental Rates
Market trends affect rental rates positively and negatively. You want to avoid making your property uncompetitive by charging above the current market rate of similar properties in your area. You also don’t want to weaken your investment returns by charging lower than what other landlords.
With this in mind, each year, it’s vital that you survey similar homes in your area to know what the average rent in your location is. If the market is experience a downturn, you may need to pause rent increases and seek alternative methods for maximizing income. However, if the market is trending upwards, this could be a good time to look into fair and competitive price adjustments.
Use Pre-Leasing Communications to Improve Vacancy Rates
At least 60 days before a tenant’s lease reaches the termination date, initiate conversations about a possible renewal. This should be in the form of a written reminder with details of the proposed terms for a new lease. Early communication helps undecided tenants make up their minds. It also removes uncertainties about whether a tenant will move out or renew their lease agreement.
If the tenant declines your offer to renew the lease, you can start marketing the unit at once. This ensures shorter turnover periods and smoother transitions from one tenant to another. To encourage existing tenants to renew their lease, consider include incentives in your offer.
Scheduled Plumbing Inspections
Water leaks are a nightmare for landlords because they can go on for months without you or the tenants ever knowing of the problem. When the issue is finally detected, it will have caused damage that may cost thousands of dollars to fix.
The best way to fix water leaks in your rental property is not to have them at all. You can prevent water leaks in your building with scheduled plumbing inspections. This should be done by a professional plumber. You should also educate tenants on the water damage warning signs so they can remain vigilant, catching issues early.
Seasonal Inspections and Annual Maintenance
Seasonal inspections of the units in your building let you assess a tenant’s use of the property and catch maintenance issues early. These inspections should be included in the lease agreement. At the start of each new season, make sure to do a detailed inspection of the rental. Remember to give your tenants enough notice and conduct checks during appropriate hours.
Seasonal inspections save you money and shield you from lawsuits. Some of the features of the rental that you should pay attention to during these inspections are:
- Smoke and carbon monoxide detectors.
- HVAC systems and filters.
- Roof, gutters and downspouts.
Pay Attention to Insurance Rates and Financial Records
The chief reason why most landlords don’t maximize their tax deductions is they don’t maintain proper records. A common mistake is failing to separate personal finances from those of the investment property. It takes discipline to maintain proper records, but all that work pays off come tax season.
Another thing you want to pay attention to is your insurance rates. Insurers often raise their rates slowly. But you won't know this if you don’t keep your eyes on what other insurance companies are offering. If your rates are going up, looking into alternative plans or seek to renegotiate terms. This can keep your property protected, without impacting your long-term financial goals.
Adopt the Best Communication Practices
Rental properties that run smoothly employ communication systems that are easy to use. This system should combine email, texts, chat, and telephone. Every tenant should have a dedicated online portal where they can check the details of their tenancy and progress on maintenance requests.
That said, effective communication shouldn’t overwhelm tenants. Only necessary details should be communicated in a concise manner. You should also have a system in place to ensure that questions and requests are acknowledged promptly. Even if you can’t follow through on something right aways, tenants need to know that you’re looking into the matter.
Appreciate Your Tenants
Letting your tenants know that they are valued is a strategy that can help you minimize vacancy rates and also lower the maintenance costs of your rental. Make it a practice to send a thank-you note your tenants at the end of the year. You can also encourage feedback to improve the overall management of your rental.
Bottom Line
Landlords with robust, proven, and flexible systems are better able to manage their rental properties to ensure real value for tenants and sustained profits for themselves. One of the best ways to ensuring all your responsibilities are met is to partner with a local property management company. Our team at Propertycare Property Management can help you manage your rental properties effectively. Contact us today to learn about our diligent services!
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