Here’s the truth: your landlord’s policy only covers the building itself—not your personal belongings or liability. That’s why renters insurance is so important. At Upstate’s Choice Insurance, we help renters across South Carolina, North Carolina, and Georgia get the protection they need at an affordable price.

What Your Landlord’s Insurance Covers

Your landlord’s insurance is designed to protect their property, not yours. Typically, it covers:

• Damage to the structure of the building (walls, roof, foundation)
• Common areas (like hallways, stairwells, or parking lots)
• The landlord’s liability if someone gets hurt on the property due to negligence

That means if a fire, theft, or storm damages your belongings inside your unit, you’re on your own unless you have renters insurance.

What Renters Insurance Covers

A standard renters policy usually includes three essential protections:

1. Personal Property Coverage

Covers your belongings—furniture, clothes, electronics, appliances, and more—if they’re damaged or stolen due to fire, theft, vandalism, or certain weather events. Some policies even cover belongings outside your home, like items stolen from your car.

2. Liability Protection

If someone gets injured inside your rental (like slipping on a wet floor) or you accidentally damage someone else’s property, liability coverage helps pay for legal fees, settlements, or medical bills.

3. Loss of Use (Additional Living Expenses)

If your apartment becomes unlivable due to a covered loss (like a fire), renters insurance helps pay for hotel bills, meals, or temporary housing until you can move back in.

Common Gaps Renters Don’t Realize

• Flooding – Standard renters policies usually don’t cover floods. You may need separate flood insurance depending on your area.
• Valuables – Jewelry, collectibles, or high-end electronics may need extra coverage beyond standard policy limits.
• Roommates – Policies typically only cover the named insured and relatives—not unrelated roommates, unless specifically added.

Why Renters Insurance Is Worth It

The best part? Renters insurance is affordable. Most policies cost less than a dollar a day—a small price for protecting thousands of dollars’ worth of belongings.

Without it, you could be forced to replace everything you own out of pocket after a fire, burglary, or storm. With it, you get peace of mind knowing both your property and your liability are covered.

Why Renters Choose Upstate’s Choice Insurance

• We’re an independent agency, so we compare policies from multiple carriers to find the best coverage for your budget.
• We help you bundle renters and auto insurance for even bigger savings.
• We provide local support in Greenville, Simpsonville, and across the Upstate—you’ll talk to real people who care about protecting you.

Get Protected Today

Don’t rely on your landlord’s insurance to protect your belongings. At Upstate’s Choice Insurance, we make renters insurance simple, affordable, and tailored to your needs.

👉 Call us today or request a free renters insurance quote online for South Carolina, North Carolina, or Georgia.

There are many different tasks property managers must juggle in a single day. With so many different responsibilities, it’s easy to get overwhelmed or feel like you aren’t succeeding in your role. Fortunately, there is plenty of advice for property managers that will help improve efficiency, self-confidence, and performance in job duties.

If you’re new to the industry or are looking to pursue a career in property management, these tips are for you. Read on to learn several 10 pieces of advice for property managers and the many responsibilities they have to their residents.

In this post, we’ll cover:

• What is the hardest part about being a property manager?
• What are the 5 different roles and responsibilities of property managers?
• 10 pieces of advice for property managers

What is the hardest part about being a property manager?

The hardest part about being a property manager is retaining and attracting residents.

Property managers must keep their current residents happy to boost retention rates — after all, it costs less to retain residents than to acquire new ones. This can be done by maintaining and improving the property, communicating frequently, and fostering a community.

Of course, some turnover is inevitable. So, property managers must also work hard to attract new residents. And marketing to prospective residents is not as easy as it may seem. Traditional marketing tactics alone won’t cut it. Instead, you’ll need to offer the right amenities, leverage your online reputation, and optimize your website for the best online experience.

Watch and learn how much you should charge for rent:

What are the 5 different roles and responsibilities of property managers?

Property managers have more than five roles and responsibilities, but the most important involve:

1. Marketing to and screening prospective residents: Turn your property into a place people want to live with attractive amenities, friendly staff, and clean units. Once you have them drawn in, make the application process as easy as possible so it doesn’t scare them away.
2. Maintaining and improving the property: While marketing to prospective residents, you’ll also need to keep your current residents satisfied. You can do this by upgrading the current amenities or units. Take requests or poll the community for ideas.
3. Communicating with residents: Keep your residents in the loop regarding maintenance or construction in or around their units. In addition, address any questions or concerns they have without delay. Be available during your office hours to meet or via phone and email.
4. Managing operating costs: Keeping residents happy is essential, but you must also keep the property owner happy. Streamline daily duties to save time and upgrade your units to be as energy-efficient as possible.
5. Setting and collecting rent: You can set rent by performing market research based on your property and area. Simply collect rent by creating an online portal for your residents to pay without visiting the office.

10 pieces of advice for property managers

Being a property manager isn’t easy, but this advice for property managers will certainly help.

Here are 10 property manager tips:

1. Keep a positive attitude
2. Communicate regularly
3. Streamline your workflow
4. Foster a community
5. Be organized
6. Remain dependable
7. Update yourself on market trends
8. Know the law
9. Maintain a clean property
10. Invest back into the property

1. Keep a positive attitude

One unlikely piece of advice for property managers is to stay positive. The many duties a property manager takes on can be extremely stressful, which can cause your mood to degrade quickly.

We encourage you to keep a positive attitude even in the worst or most stressful situations. No matter if you’re dealing with resident disputes or overwhelming maintenance requests, staying positive helps with decision-making. As a result, you’re able to provide a positive experience for everyone involved.

2. Communicate regularly

Communicating with your residents and staff regularly is key to effective property management. There are a handful of methods to reduce miscommunication, such as setting up standard operating procedures and establishing policies and rules.

Make sure documentation of these details is available to your staff and residents. You can do this by adding the documents to an online portal for residents and in a file storage system in the office for staff.

If issues arise with the property or maintenance, be sure to let your residents know as soon as possible. Otherwise, the event could affect how they perceive your property and make them less likely to renew their lease.

3. Streamline your workflow

It’s cost-effective for property management duties to be completed as efficiently as possible. So, work closely with your staff to ensure your staff has been trained appropriately. If you have more than one staff member, cross-training can help them understand each other’s jobs. In turn, they can work together smoothly and with fewer mistakes.

Furthermore, take a few days to analyze how you complete your tasks. Look for ways to cut down on time without sacrificing quality. Is there a way you could be doing things more efficiently?

4. Foster a community

A critical piece of advice for property managers is to make residents feel like they’re part of a community. Residents are more likely to renew their leases when they feel at home.

There are many ways to foster a community:

• Plan community events regularly
• Invest in communal amenity spaces
• Create a blog or networking page
• Get to know your residents by name
• Welcome resident feedback

5. Be organized

Staying organized will help you tackle the most daunting job duties. Good organization also helps put out the many fires a property manager will handle. The greatest tool to help stay organized is technology.

Many technologies help property managers market their property, settle resident disputes, collect rent, and more. Not only does technology help you stay organized, but it helps you be efficient. That way, you spend more time on more important tasks that need your attention.

Other advice for property managers to stay organized includes:

• Minimize paperwork by going digital
• Develop a contingency plan
• Inform staff and residents of any property issues or changes
• Outsource work when necessary
• Communicate with the property owner

6. Remain dependable

Be available and dependable when your residents need something from you. Part of a property manager’s job is working with a variety of personalities and keeping them happy. Make sure you answer phone calls or emails from residents with questions or concerns. A timely response can go a long way. 

Further, inform residents of all changes within management, especially if a new property manager is hired. 

The office isn’t the only place you should be available. Take a stroll through the community every day at different times. That way, residents can catch you to bring up anything they want to discuss.

7. Update yourself on market trends

Maintaining and updating your real estate market knowledge is some of the best advice for property managers. Staying up to date on the latest trends and news will help you better market to your target audience and maintain your current property.

There are many avenues in which you can stay updated on the real estate market:

• Subscribe to weekly or monthly newsletters
• Follow market leaders and organizations on social media
• Network with other real estate professionals
• Read popular real estate publications
• Attend local real estate events

8. Know the law

A serious piece of advice for property managers is to know the law. You should have a wealth of knowledge regarding local and federal laws. Even if your state doesn’t require a license to be a property manager, it’s essential you don’t violate housing laws.

So, educate yourself on any changes that may occur to laws or regulations. You want to avoid getting into legal trouble or losing residents from laws you were responsible for following. Along the same lines, make sure you know what’s in your residents’ leases. You don’t want it to violate any laws or regulations set at the state and federal levels.

9. Maintain a clean property

Keeping your property clean and well-maintained is essential for drawing in new residents and keeping current ones. You likely won’t be able to perform all the necessary maintenance yourself, so hire experienced staff for the job. Have them perform any preventative maintenance and take on maintenance requests from residents. Even before showing a unit or moving in a new resident, ensure it’s clean and that everything is in working order.

10. Invest back into the property

Maintaining the property isn’t enough to retain and attract residents. You must also invest back into the property by making upgrades.

Consider upgrading or adding an amenity space, such as a dog park, coworking space, or fitness center. You may even consider investing in proptech to satisfy residents and further increase the safety and security of the property.

Become a successful property manager

Advice for property managers goes a long way, especially when it’s implemented into daily responsibilities. Implement the advice we outlined above to run a successful multifamily property. You’ll not only satisfy current residents but attract future residents too. Plus, the property owner will be satisfied with a happy community.

Luckily for you, Foremost^® Insurance has you covered. After reading this article, we hope you’ll have a better sense of what topics to research before you make your decision.

So, what makes a state landlord friendly?

• Low crime rates.
  As a landlord, you can decrease your chances of facing unnecessary problems if you invest in an area with low crime rates and take steps to decrease the risk of burglary on any of your investment properties. If you do experience a burglary, the resulting liability and responsibilities can fall on you. Do your research and know what to expect before you invest in an area.
• Low property taxes.
  Many landlords overlook the cost of property taxes and don’t factor in this expense. Property taxes are controlled by local governments, and you’ll pay significantly less in some states than others. You can research what property’s owner pays in taxes by accessing the county’s tax assessor or municipality website.
• Rent control laws.
  Rent control laws regulate the amount landlords can increase rent for tenants each year. While this law is meant to protect tenants, there are many reasons a landlord may want to raise the price of rent, such as inflation or increases in taxes. Always be sure to research these laws before purchasing a property to avoid any hardships in the long run.
• Fast eviction process.
  Ideally, you’ll never have to evict a tenant. If you do end up in this situation, however, you’ll likely want to get through it as quickly as possible. Some states have a more direct eviction process than others. There are also states that have varying requirements which depend on the reason for the eviction, such as failure to pay rent, noise complaints or any signs of illegal activity.
• Insurance rates.
  Some states and municipalities have lower insurance prices on average. Before purchasing a home, be sure to get an insurance quote to make sure your budget can cover the expense.
• Landlord and tenant laws.
  Every state has laws that apply to both landlords and tenants, and these laws vary. Be sure to perform due diligence on a state’s regulations before purchasing an investment home.

Now that you know what to look for to see if a state is landlord-friendly, you might want to check out these states, which are often considered some of the most landlord-friendly:

1. Indiana
2. Georgia
3. Alabama
4. Arizona
5. Texas

Rental properties come in all shapes and sizes and can be found literally anywhere in the U.S. No matter what is going on in the real estate market at large, investors can still find residential rental property with relatively low risk and the potential for high rewards.

The fact is that some types of rental properties can be better for investors than others. In this article we’ll look at some of the pros and cons of different rental properties and explain how to choose the type of rental property that could make the best investment option for you.

Common Types of Rental Properties

When you’re looking for rental property to invest in there are a lot of different types to choose from. The most common types of rental properties include:

• Single-family houses that are detached from neighboring properties
• Luxury property targeted toward the high-end renter
• Vacation homes for short-term stays such as Airbnb or VRBO
• Townhomes or row houses that share a connecting wall, entryway, or front yard
• Condominiums and cooperatives that are privately owned units in a multi-tenant building
• Small multifamily buildings such as a duplex, triplex, or fourplex
• Apartment buildings built as a walk-up, low-rise, mid-rise, or high-rise

These common rental property types can also have sub-types. For example, single-family houses can be located in middle-class areas suitable for workforce tenants, condos can be designed as lofts or small studio units, and apartment rentals can be ground floor units with access to a small garden in an urban setting or a penthouse unit with countless amenities.

Different types of rental properties also have their own unique benefits and drawbacks. 

Depending on the market you’re investing in, millennials and families may be willing to pay a higher rent for a single-family house because they see the property as a home that they can live in for several years compared to a small, cramped apartment.

There are also significant differences in the construction and size, cost of ownership and property management, and the investment and exit strategy among the various types of rental property.

The 3 Most Popular Types of Rental Properties

The real estate market – along with the overall economy – moves in normal up and down cycles. In fact, since 1800, the real estate cycle has moved in steady 18-year rhythms, according to the Harvard Extension School.

Some real estate investors enjoy the adrenaline rush of trying to time the market by fixing-and-flipping, at least until they try to flip into a down market. On the other hand, more conservative rental property investors opt for the buy-and-hold strategy, focusing on recurring passive rental income from monthly rents and gradual appreciation in property market value over the long term.

Successful investors understand that when the right type of real estate is purchased at the right price in the right market, risk is minimized and yields are more predictable. 

Single-family rental houses

Investing in single-family rentals are a popular choice of many real estate investors for several reasons:

• Asset type that everyone – owners, tenants, property managers, lenders – is most familiar with
• There are more than 70 million single-family houses in the U.S., according to the U.S. Census Bureau, so it’s easy to find a house to buy and rent to a tenant
• Online sources investors use to find good rental property include Zillow, the local MLS, Realtor.com, and the Roofstock Marketplace for turnkey single-family rental houses
• Demand for single-family rental property should continue to see very strong demand from investors and renters
• Financing options for houses are plentiful, including conventional mortgages from Fannie and Freddie, FHA loans, VA loans, self-directed IRAs, along with blanket mortgages and portfolio loans for owning multiple rental properties
• Managing and maintaining a single-family rental home is cost-effective, in part because tenants view living in a house at the top of the “rental food chain” and usually take better care of the property
• When the time comes to sell a rental house, investors have multiple exist strategies such as selling to an owner-occupant, selling to another investor, structuring a rent-to-own agreement with the current tenant, or doing a 1031 tax deferred exchange

Workforce multifamily apartment buildings

The National Association of Realtors (NAR) describes workforce housing as housing that is affordable to workers and close to their jobs. However, workforce housing isn’t the same thing as subsidized housing or Section 8.

In the same report, the NAR notes that the Urban Land Institute defines workforce housing as: “housing that is affordable to households earning 60 to 120 percent of the area median income.” Another way of thinking about workforce housing is that the housing costs are not more than 30-40 percent of the tenant’s household income.

People who rent workforce housing include teachers, police officers, young professionals, construction workers, and tenants employed in service trades such as retail and restaurant. In urban areas or denser suburban submarkets, workforce housing is typically found in “bread and butter” apartment buildings in middle class areas.

However, investing in workforce multifamily apartments can be problematic for a couple of reasons. 

First, even for the smallest of buildings, investors often find themselves competing with well-capitalized private equity firms who are willing to pay more while accepting lower cap rates and yields. Secondly, managing a multi tenant property can be difficult because the more units there are the greater the potential for problems.

Of course, single-family houses can also be rented to workforce tenants, depending on the location and market rent. In fact, several years ago, the Urban Institute had the foresight to note that single-family homes could be considered a key part of an affordable housing strategy.

NNN property leased to a single tenant

In the commercial real estate industry, triple-net property (NNN) is often the preferred type of investment for passive income investors. 

That’s because NNN property is leased to a single tenant who pays a base rent plus all of the operating expenses in the building. Examples of triple-net properties include freestanding banks and gas stations, car washes, and fast food locations.

NNN property offers some clear advantages to experienced commercial real estate investors, but there are also some big potential drawbacks as well. 

The first disadvantage is that business tenants are affected longer and harder during a recession than residential tenants are. When money is tight, people drive less and eat out less frequently, which reduces the commercial tenant’s cash flow and makes it harder for them to pay the rent.

Selling a single tenant NNN investment is also much more difficult. Triple-net properties are usually built for a specific use. For example, a gas station can only be sold to another gas station operator, and a bank building can only be used by a different bank.

Those may be some of the reasons why commercial real estate investors are diversifying their real estate portfolios by investing in single-family rental property. Houses have some of the same investment benefits that NNN commercial property does, and may be more resilient through the different phases of the normal real estate cycle.

Six Factors Help Make a Rental Property Profitable

The words “best” and “good” can be very subjective, with the definition of each varying based on an investor’s strategy and goals. But when everything is said and done, real estate investors want to make a profit.

Here are six important factors that can help make a rental property investment profitable:

Market trends

Population and job growth have a direct influence on how strong the demand for rental housing is in the marketplace. When more people move to an area to work, housing prices generally rise and the demand for investment property increases. 

Supply and demand

On the other hand, an area with a large number of “For Rent” signs could mean the rental market is cycling downward. When vacancies rise, market rents go down. The most qualified renters have more to choose from, forcing landlords to compete for the tenant with incentives and concessions.

Location of property

Factors that make the location of one property better than another include the quality of the neighborhood, how good the local schools are, nearby amenities such as parks and shopping, and the crime rate. The Roofstock Neighborhood Rating makes it easy to find all of this data simply by entering a property address. 

Cash flow and appreciation

Recurring cash flow and market value appreciation over the long term are two of the biggest reasons for buying rental real estate. Market rents, property taxes, and growth potential all have a significant impact on how profitable a rental investment is. 

If rents in the marketplace aren’t high enough to pay for the mortgage and operating expenses, the value of the property will be less and the growth potential lower.

Landlord tenant laws

Real estate markets can be landlord-friendly, tenant-friendly, or neutral, depending on how the landlord-tenant laws are written for each state and municipality. For example, many markets on the east and west coast where affordable housing is hard to find limit the amount of rent a landlord can charge. 

Property management

A good property management company can be worth its weight in gold. Even in the same neighborhood, some rental houses have a higher yield than others and generate outstanding returns. The reason why often has to do with the property manager. Experienced professional property managers understand the market, have an established network of cost effective vendors, and know how to get vacancies filled fast.

Wrapping Up

The best type of rental property depends on your investment strategy and objectives. 

Different property types attract different tenants, and some types of rental property are much easier to manage than others.

Top 10 Property Amenities List For Rentals

1. Washer and Dryer
2. Air Conditioning
3. Washer and Dryer Hookups
4. Furniture
5. Patio
6. Hardwood Floors
7. Dishwasher
8. Fireplace
9. Walk-in Closets
10. Wi-Fi

1. Washer And Dryer

If your rental property has hookups, this may be the single best investment you can make for your property’s image.
If you want to buy the appliances yourself, make sure you get high-efficiency ones to cut down on the water bill.
When a new washer and dryer is not in the budget, consider checking out a rent-to-own store and working out a rental agreement.
There’s no reason that you can’t take the rental fee for a washer and dryer and build that into the rent. If your rental property doesn’t have hookups, it all depends on the property’s layout, plumbing and more to see if it’s is feasible to do the remodel. However, some property owners are surprised at how affordable it can be.

2. Air Conditioning

This amenity is especially desirable in hot and humid climates, so if your rental property doesn’t include air conditioning, it could be that adding it might separate the good applicants from the great ones.
Of course, you’ll need to consult with an HVAC specialist to get air conditioning installed properly and you can also explore other options, like a window unit in the bedroom or something similar like a swamp cooler.
Either way, being able to include AC in your vacancy ad is sure to bring in more interested parties.

3. Washer/Dryer Hookups

If a unit doesn’t come with a washer and dryer, most tenants are perfectly willing to either buy or rent their own in order to avoid spending time at the laundromat.
If your rental property includes hookups, make sure to mention it in your advertising and when giving tours, you can provide info on nearby rental companies.
If you don’t have hookups but want to see what it would cost, check with a licensed plumber or contractor about what it would take to upgrade.

4. Furniture

Many people who are just starting out in life don’t have the means to buy a bunch of nice, comfortable furniture. When it comes to renting a place with no furniture and having to scrounge around yard sales and thrift stores, many renters want to eliminate the hassle and look for a place that comes furnished.
Especially attractive for young singles or couples, furnished apartments can mean the difference in them having pride in their home and making do with old stuff. If buying furniture isn’t in your budget, check out a rent-to-own company to see what it would take to offer a furnished rental property.

5. Patio

Many property owners forget about including the outside space when advertising or showing a property. When there is a nice outdoor area like a patio, porch or balcony, it can increase what the renter feels is livable space as long as the weather is nice.
For single-family homes, adding a patio, pergola, porch area or similar outdoor nook isn’t all that expensive and may really boost the quality of applicants you get.
Even if you don’t have funds to create a proper patio, there are many ways to create a usable outdoor space that is cozy and inviting, like setting up a patio set in a shady spot, building a fire pit area or installing an awning.

6. Hardwood Floors

Few people will argue that the look and feel of hardwood floors are superior to just about anything.
The warmth and durability that wood flooring brings are second to none and if you can advertise that your rental property has wood floors, then you are ahead of the competition.
While pure hardwood flooring is costly, there are all kinds of affordable wood laminates that give the look, feel and durability of true hardwood. Another more affordable option is to put in wood flooring in key areas, like an entryway, kitchen or bedroom.

7. Dishwasher

It’s hard to imagine a rental property that doesn’t include a dishwasher because these are so much a part of daily life that it’s no wonder that renters will avoid places that don’t include one.
If your rental property doesn’t have a dishwasher, it’s not difficult or too costly to get that setup. You can consult with a contractor to see if there is some lower cabinet space to take out to fit one in and get pipes in place.
Or, there are dishwashers that can be stored nearby, then rolled into place and hooked up to the sink to run. When kitchen spaces are simply too small to accommodate one, consider including a compact, portable dishwasher that fits right onto the countertop.

8. Fireplace

There’s something cozy and inviting about a fireplace in your living space, and renters across the country have put this amenity in the top 10 of features they’d like in a rental property.
Efficient fireplaces can really cut down on heating costs during cold weather, and there are a range of options, from true fireplaces to gas varieties and wood-burning stoves.
While putting in most of these options may be out of reach for you, gas fireplace units are surprisingly affordable in many instances and are worth checking out.

9. Walk-In Closets

Few people are so disciplined that they have with them only the things they need. The rest of us need lots of storage space, and walk-in closets are highly desirable for many renters.
If you are in a position to do some small remodeling of a bedroom, consider expanding the closet space as needed to give renters plenty of room. You might even knock out a wall between a large room and a small room and create a walk-in closet space that might attract renters looking for such an amenity.
Even if you can’t change the layout of your rental property, you can maximize closet storage space by installing closet organizers or including an additional wardrobe if the unit is furnished.

10. Wireless Internet

In this wired world, it’s no wonder that renters are interested in properties that offer free wireless internet. The good news is that this is one of the most affordable things you can do to boost the attractiveness of your rental property for applicants and tenants.
Many internet companies have affordable monthly rates and offer blazing fast service and full customer support. All you have to do is make the arrangement for installation and call the company if there is trouble.
It’s a small thing that will make a big impact when you are advertising a vacancy and your current tenants will really love this amenity you are providing.
According to Washington Post, these are 10 amenities that applicants and renters searched for the most.

According to some market estimates, the average cost of a vacant property can reach $1,750 a month, making it crucial to do everything you can to rent your empty property quickly. That includes hosting a successful showing. Without one, you might be stuck in a situation where you can’t pay your own bills.

To attract renters, your property needs to be attractive—from start to finish. After you entice potential applicants with a great rental ad, it’s time to win them over with a flawless unit showing. After that, you just need to make sure you’re truly compatible with a tenant through comprehensive online screening with a service like TransUnion SmartMove.

So, get ready to woo great renters. And with the help of this guide, your unit will be irresistible in no time.

Should I host an open house or schedule individual appointments?

Choosing between a rental open house or scheduling individual appointments is the first big decision to make when showing your property. Doing it the right way can help you attract the quality tenants you’re looking for. Both options have their benefits and drawbacks.

PROS AND CONS OF A RENTAL OPEN HOUSE

A rental open house is a specific window of time, during which all interested renters can check out the unit and meet the landlord or property manager.

Benefits of a Rental Open House

Hosting a rental open house may save time. You can show the rental to multiple people at once and you don’t have to go back and forth from the rental property each time you schedule a showing.

An open house may also create more competition, even if the rental market in your area is slow. If applicants see that other people are interested, then they may be more inclined to apply right away.

Drawbacks of a Rental Open House

One drawback of an open house is the inability to get a good read on prospective tenants. You’ll be talking to multiple applicants and might not be able to spend too much time getting to know them individually.

PROS AND CONS OF SCHEDULING INDIVIDUAL SHOWINGS

An individual requires communicating with applicants ahead of time and arranging specific appointment times for them to come see the property. This method allows you to ask screening questions before meeting the prospective tenant in person and it may help you narrow down your pool of applicants early on.

Benefits of an Individual Showing

You can focus on each applicant and make a more in-depth first impression. For example, it might be easier to spot tenant warning signs in their communication and behavior.

An individual open house showing also enables you to spend more time highlighting amenities that are tailored to each applicant. For example, when families are touring the rental, you can emphasize the game room. When you’re showing the rental to young professionals, you could mention the proximity to commuting options.

Drawbacks of an Individual Showing

Individualized showings take more time and effort. You need to schedule separate showings for each interested person, which can be a burden. However, it might be the right route if you have fewer applicants. If you do opt for individual showings, be diligent with your scheduling process to ensure you don’t miss any appointments and can prepare the property accordingly.

HOW TO HOST A RENTAL PROPERTY OPEN HOUSE IF CURRENT TENANTS STILL LIVE THERE

If you’re renting out your home because the current tenants have decided to leave at the end of their lease, then you’ll need to consider their presence in the space before showing the property.

PROS OF HOSTING A RENTAL OPEN HOUSE AFTER CURRENT TENANTS HAVE VACATED THE PROPERTY

If the tenants have already left the property, then you can ensure it’s in great condition and potentially have a better showing. You also don’t have to work around the current tenants’ schedule and instead can set up showing appointments at your leisure.

PROS OF HOSTING A RENTAL OPEN HOUSE WITH TENANTS STILL THERE

If you start showing your property before the current tenants move out, then you have a better chance at preventing costly vacancies. This is essential, as even a small gap in tenants can have a huge financial impact on independent landlords.

In addition, it is simpler to transfer utilities from tenant-to-tenant rather than tenant-to-landlord-to-tenant. Getting involved in such utility transfers can quickly become a pain.

If you decide to show the house while the current tenants still live there, then you must give them enough notice. It’s not only courteous—it’s generally the law (be sure to check the legal requirements applicable to you and/or consult legal counsel). Landlords usually are legally required to provide written notice to the tenant anytime they enter the property.

Typically, a landlord must give notice at least 24 hours before entering, but it’s a good idea to double-check your state’s and local county regulations. Make sure you include this provision in your lease regarding future showings, which is sometimes formally known as the “right to entry.”

Arranging entry times with your current tenant also gives them time to prepare the space for viewing.

BEST PRACTICES FOR SHOWING A RENTAL PROPERTY WITH A CURRENT TENANT STILL LIVING THERE:

• Ask what time is convenient: It’s best if your current tenant is not in the home while you show the property. Work to find a time that is convenient for everyone.
• Offer an incentive: A gift card or discount on the last month of rent is courteous and may entice the tenant to better prepare the space for viewing.
• Hire a professional cleaner: You may want to consider hiring a cleaning service to come in to prepare the space. Your current tenant can enjoy it for the rest of their lease and it will ensure the property is ready for prospective tenants to view.
• Be timely: You can’t force your current tenant out of the unit for an entire day. If you schedule individual appointments, make them a half-hour or less. If you host a rental open house, try not to exceed a few hours

Get the House Move-In Ready

First impressions matter. Landlords should only show a move-in-ready rental property. If the property is empty, dummies.com suggests that landlords :

Perform any necessary repairs:

• Fix holes in walls/doors
• Replace broken windows/screens
• Replace or repair damaged flooring
• Fix or replace faulty appliances
• Make sure the property is spotless. Consider hiring a professional cleaner
• Deep clean all carpets

Performing maintenance checks, including:

• Plumbing
• Heating
• Appliances
• Hardware, especially latches and catches

Make your property look great; it is easier for renters to imagine themselves living in a space if it is clean and smells nice. It will also show that you are an attentive landlord, making it more likely that they will apply.

Advertise Your Rental Open House

Once the house is ready for viewing, it’s time to advertise. Do so at least a week or two before you want to schedule appointments or host an open house.

An effective rental ad is crucial to attracting a healthy pool of great applicants. Creating a high-quality rental listing will attract applicants quickly, making it easier for you to fill your vacancy.

Make sure to consider including the following on your listing:

• Basic property and lease information
• Rent amount
• Security deposit
• Monthly income requirement
• Application fee
• Duration of lease
• Move-in date
• Pet policy
• Utilities included if any.

You may also want to include your tenant screening requirements, so applicants know what to expect from the outset. For example, you might want to say on your rental listing:

• All applicants are required to submit a rental application
• All applicants are required to provide a rental history report
• All applicants are required to complete a credit and background check

In all instances, you should review the laws applicable to you and/or consult legal counsel.

If applicants are unwilling to meet any of the conditions outlined in your listing, then it could give you the chance and ability to remove them from the applicant pool right away in the early stages.

You should also include high-quality photos of the property. Use both interior and exterior shots to give prospective tenants an idea of features before the open house. Make sure the space is well-lit, free from clutter, and looks welcoming.

Finally, you’ll want to close out your rental listing by highlighting any popular amenities offered. After all, there are 43,378,800+ rental-occupied households in the United States, according to the National Multifamily Housing Council. How are you going to make your property stand out?

If your property offers amenities tenants want, then identify them in your rental listing to entice open house attendees. Examples may include:

• Additional on-site storage
• Air conditioning
• Location (proximity to schools, stores, gyms, nightlife, etc.)
• Washer/dryer in unit
• BBQs on site
• Pool or gym
• Utilities included
• Pet policy

Post your listing in as many places as possible to attract the attention of local community members as well as prospective renters looking to move into the area:

• Online sites such as Hotpads.com, Apartments.com, etc.
• Local bulletin boards at community spaces
• Social media posts and ads
• Signage at the property itself

Tips for the Day of Your Rental Property Showing

Whether you choose to host a rental open house or schedule individual showings, keep the following tips in mind:

• Smell: It should smell nice and welcoming. Use air fresheners or bake cookies right before prospective tenants arrive.
• Open up the space: Open windows or doors to increase natural light. If furnished, then consider getting rid of heavy drapery that can darken a room.
• Small touches: Using flowers or decorative items can make the unit seem cozier and may help tenants envision themselves in the space better.
• Comfortable temperature: Make sure the indoor temperature is comfortable. If the showing is going to happen during hot summer months, then go early to turn the AC on. Likewise, if the showing occurs over the winter months, make sure the heater is running.
• Show off the exterior: Some tenants may be looking for a rental property that boasts a nice front yard or backyard. Show potential tenants any outdoor living spaces.
• Features: Highlight the marketable features of your rental property. Think back to your listing and talk about the selling points that may entice a prospective tenant.
• Be courteous and respectful: While this is your chance to start screening potential applicants, it’s also the time to make a good first impression of yourself. A good landlord-tenant relationship starts from the first day, so conduct yourself accordingly.
• Have applications ready: Some tenants may be ready to apply immediately. Have applications available for interested parties.

What to Look for During the Showing

As you show the property, consider your prospective tenant’s behavior. It can reflect their motivations, trustworthiness, and other relevant character traits.

It could be a major red flag if your applicant:

• Shows up late or reschedules at the last minute
• Avoids answering questions
• Hesitates or is unwilling to give you basic information or references
• Refuses to authorize a background check

If you do spot any of the above during your rental property showing, you may want to move on to another candidate. Always check the laws applicable to you and/or reach out to legal counsel about your obligations and responsibilities.

Get the Right Tenants through the Door with Comprehensive Screening

Showing your rental property in the best light possible may translate to quicker tenant placement, so you can start getting paid sooner. That said, you must be extremely careful about who you select to live in your property. After all, anyone can show up to an open house: know exactly who you’re renting to with comprehensive tenant screening.

With TransUnion SmartMove®, you can run a background check almost instantly.

SmartMove’s credit report, you can verify an applicant’s financial history. Backed by TransUnion, a reputable credit reporting agency for over 40 years, trusted reports are sent to you in minutes. And, with our proprietary Income Insights report, landlords can analyze an applicant’s income in minutes to determine if further income checks are needed. Knowing that your applicant is capable of paying the rent could help you avoid future non-payment issues—and the expensive headache of having to evict a tenant.

Even if an applicant made an excellent first impression at your open house, there could still be some major red flags looming just under the surface. SmartMove tenant screening can help you to identify potential red flags and verify that your rental applicant is just as great as they look.

So, smile for the camera. Get your unit ready. Put in the effort and you’ll be well on your way to hosting a successful open house—and finding your next best renters—in no time.

Below are tips on how to screen prospective tenants in five steps. Our infographic can help you visualize the process, while we go into further detail in the following sections.

1. Set Your Requirements

INCOME

A TransUnion survey found that payment problems ranked as the top concern by 84 percent of landlords, which is no surprise when the cost of an eviction resulting from nonpayment can run up to $10,000 in court costs and legal fees. An ideal tenant should have enough income to cover their rent, even when unexpected expenses arise. If they don’t earn enough money, they may have trouble paying their bills, surpirse exspenses, and the rent fee.  Keep in mind that the industry standard is a ratio of three times the income to rent.

A way to measure to determine an applicant’s ability to pay rent is based on some simple math. A rent-to-income ratio calculator can help weed out unqualified applicants before a landlord goes through a comprehensive screening and employment verification process.

The most powerful resource that landlords can use to analyze their prospective tenant’s income is Income Insights, a SmartMove feature that estimates tenant income in minutes. Income Insights estimate is based on the applicant’s spending behavior from their credit report, it is designed to estimate total income, inlcuding non-work related soucrces, like retirement distributions and pensions. Landlord will receive the following information for an Income Insights report:

• An estimate of whether or not the applicant’s credit behavior aligns with self-reported income.
• An estimated variance between the applicant’s self-reported income and the Income Insights estimate.
• A recommendation of whether or not to request additional proof of income from an applicant, such as a recent paystub.

LANDLORD AND EMPLOYMENT REFERENCES

A tenant should have positive personal, landlord, and employment history references.This helps to verify that they have provided accurate information on their application, left their previous rental in good condition, and are currently employed. In addition to speaking to an employer on a company line, you may wish to ask for current pay stubs. 

CREDIT HISTORY

A credit score may be one of the most important criteria when evaluating an applicant’s ability and willingness to pay their rent on time. A high credit score indicates a positive financial history of making payments on time, and therefore a tenant with good credit is more likely to be on time with rent. However, if you’re considering renting to someone with poor credit, there are a few things you can check to help with your decision.

Even more accurate in predicting positive outcomes than a typical credit score is a ResidentScore from TransUnion SmartMove. The rental industry calculates risk differently than other models, and ResidentScore is specifically built to look at the outcome of a lease. It predicts evictions 15% more often than a typical credit score, making it more accurate for tenant screening than a credit scoring model geared towards predicting insurance claims or mortgage risks. This is part of the reason why three out of every four landlords prefer ResidentScore to a typical credit score when screening tenants.

EVICTIONS

Every landlord should know how to check if a tenant has been evicted. TransUnion data shows that evicted residents have nearly three times as many prior evictions and rental-related collection records as non-evicted residents. If that isn’t enough to sway you, consider that on average, evictions average $3,500 per unit and can take up to four weeks for the entire process to run its course.

CRIMINAL HISTORY

A tenant criminal background check can help you answer questions to help avoid putting your property or your neighborhood at risk. Skipping a background check could be an expensive mistake if you end up with a tenant you have to evict later. When reviewing criminal records, it’s important to take an individualized approach to each applicant and consider whether or not a prior conviction is relevant. 

2. Do an Initial Screening

Setting expectations starts with the rental ad. Disclosing all necessary information in the body of the advertisement helps you initially-screen renters and save time. If you have small closets, be honest about it, so you don’t waste time showing the property to someone who needs ample storage space. Since many renters are pet owners, you should include your pet policy. List any deal breakers such as prior evictions or smoking inside the unit.

Once you’ve narrowed down the field, talk to them over the phone and ask qualifying questions such as why they are moving and how long they intend to stay. Schedule a meeting in person if they seem like a good fit. Ask additional tenant screening questions during your face-to-face meeting to determine if they are serious about renting and if you want to continue the screening process.

3. Create An Application

Using the same application form for every prospective tenant can better help you evaluate tenants and keeps you in compliance with fair housing laws. This is where you collect information such as current and prior landlords, employment history, references, and prior evictions. Make sure you have a place for a signature and retain your copies to protect yourself in the case of a future dispute.

4. Screen Your Tenant

At this point, you’ve already done a lot of the work involved in the tenant screening process. You’ve set your criteria and prescreened applicants. Now you need to verify the self-reported information the applicant has provided in conversation and on the written application. Since you need to spend time calling references and verifying current income, it makes sense to simplify the process of running credit, criminal and eviction history reports. To make the most effective use of your time, TransUnion SmartMove rental screening provides comprehensive credit, criminal, eviction and Income Insights reports in a matter of minutes and allows you to manage all of your rental properties with one tenant screening system. You will also receive a credit-based ResidentScore, which can predict evictions 15% better than a typical credit score because it is designed specifically for the rental industry.

5. Make A Decision

Go back over your initial criteria to determine whether or not a prospective tenant is a match. Ultimately, you’re the one who knows your property best. As an independent landlord, you have the ability to be flexible but don’t feel you need to rush the process. With an easier screening process from SmartMove, you can screen more potential tenants so you find the right fit without compromising on any of the important steps.

Choosing the right online tenant screening service means getting the reliable information you can trust. SmartMove offers you a tenant credit report, criminal report, eviction check, and Income Insights report and ResidentScore so you can feel more confident about your tenant decision.

With all of the necessary steps you need to take to properly screen a tenant, make things easier by taking your tenant screening process online. SmartMove provides a quick and secure way to screen your prospective tenants, and you can easily manage all of your applicants for multiple properties with just one system.

Abandonment: A tenant’s conduct that demonstrates his or her intent to give up the right to reside in the rental property, without the landlord’s authorization or agreement. For example, if the tenant hires a moving company, removes all of his or her personal property from the rental unit, and has not been seen on the premises for two weeks, the tenant can be said to have abandoned the rental property.   

Constructive Eviction: A process through which a landlord’s actions (or failure to act) interfere with a tenant’s possession of rental property to such an extent that the property is made unfit for reasonable occupation by the tenant. 

Eviction: A court-based process through which a landlord may remove a tenant from rental property, with good cause and after following a number of procedural requirements.  The eviction process is also called “unlawful detainer” in some states.

Fixture: In the residential rental context, a fixture is personal property owned by the tenant, but made a permanent part of the rental property so that removal would be impossible or impractical. For example, a tenant’s installation of custom double-paned windows would amount to a fixture. Ordinarily, a fixture remains in the rental property upon termination of the lease or rental agreement, although landlord and tenant may agree to some form of compensation. 

Landlord: An owner of real property who, through a lease or rental agreement, promises to rent all or a portion of the property to another person (a “tenant”) for his or her exclusive use — usually for a set period of time and in exchange for an agreed-upon amount of money.

Lease: A written agreement entered into between a landlord and tenant, through which the tenant is granted the right to exclusive use and occupation of the landlord’s residential property for a specified amount of time, and in exchange for an agreed-upon sum of money. Also called a “rental agreement.”

“Property”:  A lease or rental agreement should give a full description of the property being leased.  This description should include the street address, city, state, and zip code.  It should also include the number of square feet in the space and the means by which the square footage is measured.

Quiet Enjoyment: A tenant’s implied right to the enjoyment and use of rental property without obstruction or intrusion from other building residents, the landlord, or other persons.

Renewal: An option for the tenant upon termination of a lease or rental agreement, giving he or she the choice to renew the agreement during a certain window of time.

Rent:  The payment of a specified amount of money for the right to exclusive enjoyment of residential property, usually via periodic (i.e. monthly) payments.A residential lease or rental agreement should state the amount of rent, and when and how the rent is to be paid.

Rent control: Found mostly in urban areas, rent control laws limit the amount of rent that a landlord may charge tenants, subject to certain restrictions. Most rent control laws allow annual rent increases in a certain amount, i.e. 2.5%.

Right of entry: A landlord’s (very limited) right to enter premises that have been leased to a tenant, usually only in emergency situations, to show the unit to a prospective tenant, or make repairs (in the latter two situations proper notice to the tenant is required).

Security deposit:  Refundable money paid by a new tenant to the landlord at or before the move-in date, to guarantee the tenant’s performance of lease obligations, i.e. no damage to the property beyond wear and tear, and payment of rent. Most states have set limits on the amount of money a landlord may demand for a security deposit. A lease or rental agreement should state the amount of the security deposit, and should also state what the security deposit will be used for, where it will be held, and whether it will earn interest.

“Subletting or assignment”: Gives the tenant the right to sublease or assign the property if the tenant cannot fill out the term of the lease or wants to rent part of its space to someone else.  This clause will specify under what conditions the tenant can avail itself of this right.  Under a sublet, the original tenant is still responsible for honoring the provisions in the lease. In an assignment, the original tenant is out of the picture and has no further liability under the lease.

Tenant: A person who has been given the right to use and occupy rental property owned by another person, usually through a lease or rental agreement. The tenant’s right to exclusive enjoyment of the property is typically granted in exchange for an agreed-upon amount of money, and is limited to a fixed time period (usually set forth in the lease).

“Tenant improvements”: Indicates whether the tenant has the right to make improvements to the property and the extent to which the landlord will allow such improvements.

“Termination”:  Imposes an obligation on the tenant to return the property in a certain condition at the end of the lease.

“Termination date of lease”:  Specifies the lease’s ending date.

“Term of the lease”:  Identifies in months or years the duration of the lease.  It should also state when the tenant is entitled to possession.

“Use of premises”:  Specifies any restrictions on the use of the premises.

Warranty of habitability: A residential landlord’s obligation to provide his or her tenant with a rental unit that is reasonably fit for human occupation, including as to basic living conditions and the performance of timely repairs. What is “reasonable” in one area may not be so in another, however. For example, a California landlord’s failure to properly insulate pipes may not violate the warranty of habitability, but a Minnesota landlord’s failure to do so may result in liability if the pipes are constantly freezing overnight.

In this article:

• Buy an investment property
• Budget for unexpected costs
• Understand landlord tenant laws
• Purchase landlord insurance
• Get your property move-in ready
• Determine how much rent to charge
• Market the rental property
• Screen prospective tenants
• Sign tenants to a lease agreement
• Maintain the property
• Stay organized
• Decide if you want to hire a property manager

Whether you’re considering renting out a home you currently own or purchasing an investment property, becoming a landlord requires time, money and a thorough understanding of laws and best practices. This landlord guide provides tips and advice on how to become a landlord, so you know what to expect before you start managing tenants and property.

Note: This guide is for informational purposes only. Zillow Group, Inc. does not make any guarantees about the sufficiency of the information in or linked to from this guide, or that it’s compliant with current, applicable or local laws. Landlord-tenant laws change rapidly and may be regulated at the federal, state and local levels. This resource is not a substitute for the advice or service of an attorney; you should not rely on this resource for any purpose without consulting with a licensed attorney in your jurisdiction.

Here are the 12 steps to becoming a landlord:

1. Buy an investment property

Before purchasing an investment property or renting out one you already own, make sure it has the potential to produce positive cash flow in current market conditions. Here are some things to look for in an ideal rental property:

• It’s within your financial budget.
• It’s in good condition (no major repairs are needed).
• It offers a potentially high return on investment.

If you’ve found multiple properties that make for an attractive investment, here are some factors to help you choose one:

• The property is close to your home.
• The property is in a walkable neighborhood — according to the Zillow Group Consumer Housing Trends Report 2019, 56% of renters find this important.
• The neighborhood feels safe (77% of renters find this important).
• The property offers an easy commute to the city’s center (57% of renters find an easy commute to work or school important).

Many landlords own single-family homes, condos and multi-unit buildings. The type of property you end up purchasing will determine the amount you’ll have to finance, budget for repairs and — most importantly — the profit you’ll make. However, the larger the property, the more labor-intensive it may be, and the more it may cost to make repairs.

2. Budget for unexpected costs

Decide how much you want to earn to make the investment property worth your time and effort. Budget out any financial projections for the property, and prepare for surprise expenses and missed rental payments. This is especially important for a first-time landlord who may be using a chunk of their life savings to purchase an investment property.

Common expenses for a rental property:

• Landlord insurance for accidents, sudden loss and liability
• Maintenance and repair costs
• Rental licensing, mandatory inspections and annual registration fees
• Property and rental income tax

Expenses to pay even if your rental sits vacant:

• Mortgage payments
• Utilities
• Property taxes
• Marketing or advertising fees

Additional expenses to budget for:

• Bookkeeping or accounting fees (if you don’t do them yourself)
• Property management fees (if you choose to hire a property manager)
• Legal fees for lease review and in the event of an eviction

3. Understand landlord-tenant laws

One of the most important steps to become a landlord is understanding landlord-tenant laws. These landlord requirements are set by states, so they vary across the country. Familiarize yourself with your state’s landlord-tenant laws to prevent unnecessary litigation or extra paperwork.

4. Purchase landlord insurance

Landlord insurance will protect your property from accidents and sudden loss and protect you and your financial assets in the event of a liability claim. If you’re a first-time landlord, check with your insurance agency to see what type of coverage you need — it will likely be different than the coverage required if you lived on the property. Landlord insurance typically covers:

• Your property’s structure
• Legal costs associated with your property
• Medical expenses associated with your property
• Loss of rental income if repairs are needed

One important thing to note is that a landlord is typically not responsible for a tenant’s belongings — so always encourage your tenants to purchase renters insurance.

5. Get your property move-in ready

Your rental needs to be livable— at the very least — but in good condition ideally. Make sure you fix any known issues and install any upgrades that make the rental more attractive and comfortable to renters. Here are some tips to prepare your rental property:

Clean the property. Vacuum or sweep the floors and wipe down all floorboards, walls, counters and cabinets. Eliminate any bad odors, and landscape the yard if it’s in rough condition.

Ensure the property is up to code. Test smoke and carbon monoxide detectors and have the electrical system professionally checked. Make sure all doors, windows and gates function and latch properly.

Make any needed repairs. Fix any broken fixtures, railings, stairs, holes or water leaks. You’ll also want to make sure all appliances are working, and replace any damaged or worn flooring.

6. Determine how much rent to charge

It’s important to charge a reasonable amount of rent. Set the rent too low and you’ll miss out on potential profit, but too high and you won’t attract renters. Fortunately, figuring out how much rent to charge isn’t too hard. Get started by checking the cost of similar rentals in your area then factor in utilities and budget for repairs. Make sure to stay on top of changing market conditions, and work with a legal professional to be sure you give the appropriate amount of notice for any rent increases.

Did you know that 58% of renters say they want to pay their rent online, but only 36% are given that option? Aside from being a preferred option by renters, online rent collection makes it easy to keep track of your rental income — and you can even set up automatic payments.

7. Market the rental property

One of the steps to becoming a landlord is listing and marketing the property. You’re responsible for filling vacancies by posting ads, hosting open houses and using other methods to attract renters. However, since most rental property marketing can be done online, this step is easier than you might think.

Advertise the property for rent

With Zillow Rental Manager, you can create one property listing that gets posted across Zillow, Trulia and HotPads. All you need to do is:

• Take high-quality photos of the interior and exterior.
• Write a rental ad that highlights policies, features and upgrades.

Host a rental open house

In addition to online listings, you may choose to host an open house for prospective renters. If you do, it’s a good idea to:

Stage the property. This lets potential tenants picture themselves living there and gives them an idea of how much furniture can fit in each room.

Have rental applications handy. Set up a tablet with internet access in the living room or kitchen so interested renters can complete an application.

Hand out flyers. Give potential tenants something to take with them — include a couple photos and features of the property, along with instructions on how to apply.

8. Screen prospective tenants

The screening process is where you determine if a renter will be a reliable tenant. You’ll collect rental applications and run credit and background checks on each prospective tenant over the age of 18. As a landlord, you must comply with all applicable fair housing laws throughout this process.

Considering many renters live with others, you should be prepared to review and screen multiple tenants for your property. Rental applications provide you with a renter’s background and history, including:

• Personal information like their name, phone number and email address
• Household information like additional occupants and pets
• Current and previous residences
• Employment and income
• Prior evictions or bankruptcies

If an applicant meets your basic requirements, you can proceed to run a background and credit check to verify the information in a prospective tenant’s application.

9. Sign tenants to a lease agreement

The lease agreement sets rules and expectations for both the tenant and the landlord. It’s important to ensure your lease complies with all applicable laws. Here’s our recommended process for finalizing lease agreements:

• Customize your lease.
• Run the lease by a legal professional.
• Review the lease with your tenant.
• Have you and your tenant sign and date the lease.
• Provide your tenant with a copy of the lease, and store your copy securely.

You can use a tool like Zillow Rental Manager to build a custom lease online, or you can hire a property manager to handle the lease agreement. Either way, there are standard policies and terms that all leases should have.

10. Maintain the property

Maintaining the property not only keeps your tenants happy, but it ensures you’ll be able to keep renting to future tenants without having to do major upgrades or repairs. Consider performing these tasks regularly:

• Pest control
• Cleaning gutters
• Servicing HVAC units
• Property walkthroughs
• Confirming and updating your landlord insurance

It’s a good idea to set a portion of your rent aside for maintenance and repair tasks. Many landlords use the 50% rule, where they set aside 50% of their rental income for repairs, maintenance, taxes and insurance. For example, if you charge $1,200 each month for rent, set $600 of that money aside to cover the above costs. Over the course of a year, you should expect to spend around 1% of the property’s value on maintenance.

11. Stay organized

Managing a rental property is a lot of work — especially for a first-time landlord. It’s one thing to figure out how to start renting property and another to stay organized and turn a profit. Here are some tips:

• Document all communication with tenants, maintenance people, and anyone else who uses or works on the property.
• Securely store all rental applications, lease agreements, repair bills and insurance documents.
• Create receipts for rent payments and security deposits.
• Create a filing system for receipts from advertising costs, tenant reimbursements and utility bills.
• Keep digital and printed copies of all your documents.

If you have a method for organization and stick to it, you’ll find it easier to list deductions and file taxes. You’ll also be able to settle any financial disputes between you and your tenant or contractor.

12. Decide if you want to hire a property manager

If you’re looking to avoid many of the issues that landlords must deal with, you can hire a property manager to handle the entire rental process or just a part of it. 

If you plan on professional management from the start, you can negotiate your property purchases and rents to cover the added cost. It will cost you a percentage of the rent — in many cases 8% to 10% — but it could be well worth it. Plus, it’s a deductible expense.

Read more articles and tips on being a landlord at our Rental Resource Center.

Get started with these 13 must-know tips for first time landlords:

1. TREAT YOUR RENTAL PROPERTY LIKE A BUSINESS

Managing your rental property may not be your primary job, but it is still a business and a source of extra income. It’s important to remain professional with your tenants, keep your finances intact, and perform d thorough tenant screening prior to renter move in.

In order to conduct good business, you need to comply with federal, state, and local laws. It’s important to make sure your business follows all necessary laws in order to maintain a positive reputation and avoid potential legal problems. Real estate and rental investments often come with regulations, so be sure to take the time to conduct research and understand all federal and state specific laws before plunging in.

It’s also important to protect yourself from potential accidents or liability claims: one way to do so is by purchasing landlord insurance. If an unfortunate situation arises, like a pipe bursts or theft occurs, landlord insurance can protect you from bearing the loss. This means you won’t have to pay thousands of dollars if a tenant should sue you.

Conducting good business also means preventing problems before they happen. The best way to avoid problems is to keep your unit and building in good condition with.

Before renting to tenants, double check that your rental property is a safe place to live. It’s worthwhile to spend money to make sure everything is up-to-code and all utilities work. For example:

• Test smoke and carbon monoxide detectors
• Make sure all vents are free of buildup (debris, moisture, etc.)
• Check internal and external pipes for combustion

Once you have tenants living in your unit, you should have a plan as to how you will fix dangerous problems immediately. For example, how will you fix the furnace if it breaks, or help a tenant who locks them self out? The best way to prepare for problems like these is to have a plumber, locksmith, and contractor on call.

Being professional, keeping your finances in mind, following your city and state’s laws, protecting yourself from liability, and preventing tenant problems are the best ways to manage a good rental property business.

2. FIND TENANTS ONLINE

The majority of tenants search online for their next apartment, which means the most effective way to find tenants is to create an online rental listing. Promote your listing on sites such as Trulia and be sure to

The key to finding tenants is to create an online rental listing that tells tenants what they want to know about your rental property. They’ll want to know the rent price, the address, number of bedrooms and bathrooms, amenities, and nearby attractions—the more informative the listing, the better. It’s also a good idea to upload clear photos of every room and common space, as tenants will likely be more interested if they can easily visualize the space.

An appealing rental listing that highlights your best features and announces your requirements is the best way to attract quality tenants who will pay rent on time and take care of your property.

3. CONSIDER HIRING A PROPERTY MANAGER

Hiring a property manager can be a worthwhile investment if you’re looking to save on the time and hassle involved in owning a rental property, such as marketing your property, colleting rent payments, and dealing with tenant issues. A good property manager can also help manage multiple rental properties if you find yourself overwhelmed with landlord responsibilities.

Hiring a property manager is a great avenue to explore if you don’t live near your property or don’t want to fully commit to the hands-on role of managing the rental. By putting the responsibility of owning a rental home on a third party, you’ll have peace-of-mind that your property is being maintained in a professional and timely matter.

Keep in mind, you’re legally responsible for maintaining a habitable space for your residents, so if you don’t have the time or resources to dedicate to this important task, it may be time to consider hiring help. Whether your property’s roof is in need of some TLC, or the walls need to be repainted, a property manager may have to take on a great deal of responsibility, or hire the right person to do so.

If you can afford the expense, a property manager can help to streamline your landlord duties and facilitate a more hassle-free rental process. Similar to the procedure for finding the right tenant, make sure that you properly screen potential property managers. . Don’t forget to ask for local references and interview multiple people before settling on any final candidates.

4. SET THE RIGHT RENT PRICE

To set the right rent price, we recommend researching your market to learn what the fair market rent price is in your area. Pricing your rental at the rent price that makes sense in your location can mean the difference between vacancies and attracting good tenants so you can rent your property quickly. You can also use online applications such as Rentometer to help guide your rental rates.

As you set your rent price, you should keep in mind how it affects your financials. After all, rent payments are your main source of income on your rental property. To compare your rental income to your rental expenses, you should list your fixed and estimated expenses. Fixed expenses are your mortgage payment, property taxes, insurance fee, and HOA fees. Your variable expenses are utilities, repairs, and property improvements. By comparing income to expenses, it’s easier to see how rent price affects your monthly revenue.

There’s no point in setting the right rent price if you have tenants who don’t pay on time, which is why the next tip is critical.

5. CREATE AND FOLLOW A TENANT SCREENING PROCESS

The main goal of tenant screening is to help find quality tenants who will pay rent on time and take care of your property as if it were their own. To select responsible tenants, it’s important to filter out good potential tenants from the mountain of applications you might receive.

You should look for a tenant who can pay in full each month, doesn’t have a criminal history, and has a good rental background.

6. REQUIRE A RENTAL APPLICATION

A good rental application will give you quick information about your prospective tenant: name, current address, reason for their move, employer information, income, and landlord references. It’s important to ask the right type of questions so you have all of the information you need to make a smart decision about who will live in your property.

7. REQUIRE RENTERS INSURANCE

We live in a lawsuit-laden land, so it’s important to arm yourself with knowledge and encourage your renters to do the same. By requiring renters insurance, you help avoid litigation if the renter’s belongings are damaged. In addition, renters insurance is generally low cost, so it’s a small financial burden most tenants can easily (and willingly) take on.

Note: it’s important to consult a legal professional before adding a clause to your rental agreement about mandatory renters insurance. Laws regarding this issue differ state to state.

8. REQUIRE A CREDIT AND BACKGROUND CHECK

Credit checks are among the best ways to learn if an applicant is financially responsible or not. When reviewing your prospective tenant’s credit and background reports, look out for these red flags:  notable debt, undue payments, bankruptcy filing, and prior eviction history. A solid financial and background history is a predictor that a tenant will pay rent on time, is free of a relevant criminal history, and will treat the property with respect.

Note: it’s always a good idea to rent to someone with good credit. Even if an applicant is otherwise perfect, bad credit may indicate financial imprudence–and no amount of personality or charm can substitute for that.

9. HAVE A WRITTEN RENTAL AGREEMENT

Having a written rental agreement is the best way to communicate your expectations and protect yourself in legal situations. While oral agreement are legal in some instances (usually for agreements that are less than 12 months), they’re less effective than a written document signed by both parties. Without a written document, it may be difficult to prove what was agreed upon prior to tenant move-in.

All of your rules and clauses must adhere to state specific laws. Our lawyer-reviewed rental agreement makes this easy for you. It’s state-specific, meaning your rental agreement will automatically comply with your state laws.

A useful rental agreement is also specific. You should thoroughly think through what rules you want to include: Are pets allowed? Will there be a late rent fee? What is the specific security deposit amount and how does the tenant receive it back in full? Do you want a noise restriction rule? Make sure your rental agreement is customized for you Note: remember, HOA regulations are not a suggestion. If applicable, make sure your HOA’s regulations are specified in your rental agreement. Examples include: quiet hours, snow removal expectations, and guest parking rules.

A clearly written rental application can forge a strong landlord-tenant relationship. If something breaks, who pays for the repairs? It can provide timeline stipulations and set up a process for your response to residents that have property issues.

For example, should tenants expect a 24-hour maximum wait time when there’s a pressing issue?  Will you be available during the entire day, or only from nine to five pm? Make sure these answers are clear and concise, and ensure your timeline follows local, state, and federal laws. Having a rental agreement that is specific to your rules and expectations can help to make communication with your tenant easier. If everything is mapped out in the rental agreement, there is likely to be less confusion down the road.

10. ENFORCE AND FOLLOW THE RULES

You need to enforce the rules in your rental agreement, otherwise your agreement loses its importance. Tenants will notice if you do not enforce rules and may take advantage of your leniency. The most important rule to enforce is your late rent fee. You can allow a grace period, but after that, you should make sure your tenant pays his or her late fee.

Tenants are more likely to follow rules if you do too. An example of a rule you should follow is the Notice of Entry rule, which typically requires 24-hour notice before entering the unit. It’s best to be respectful of the rules. Tenants appreciate this, too.

11. COLLECT RENT PAYMENTS ONLINE

Online rent payments are more convenient and more secure. Money magazine reports that millennials pay 61% of their bills online, and older generations pay 42% of their bills online. The easier it is to pay rent, the more likely your tenant will pay. Tenants can even set up scheduled payments so their rent is automatically taken out of their account. Tenants love the convenience that online payments offer, and you will love getting your payments on time every month.

Collecting rent online also provides clarity. You can immediately know when a tenant schedules a payment, what day it withdraws from his or her account, and when it will be deposited in your account. With online payments, you never have to hear, “The check must have gotten lost in the mail.”

Furthermore, it’s risky for tenants to mail checks. Their check can get lost, or worse, their bank account details can end up in the wrong hands. Personal information is encrypted in online transactions. An online payment will rarely be lost in translation like a check.

With added convenience and security, paying rent online is the best way to make sure you get paid every month on time.

12. KEEP DIGITAL RECORDS OF EVERYTHING

As a landlord, you should keep records of everything: deposit receipts, rent receipts, maintenance receipts, and a record of all landlord-tenant communication. Digital records can be securely organized without creating paper clutter.

Holding onto receipts and communication records is a good idea in case legal issues emerge. If you have records of transactions and communications, then you are more likely to prove you’re right in court. Having evidence to support your claims is always a good idea.

Professionally manage your business by keeping good records. Storing records digitally is the most organized, up-to-date way to do it.

13. KEEP GOOD TENANTS

After spending time finding tenants, screening tenants, and signing a rental agreement, you don’t want all of that effort to go to waste. Constantly repeating this process can be exhausting, sothe best way to preserve your time and money is to keep good tenants.

If you have a tenant who pays rent on time and takes good care of your property, then you should ask him or her to renew their rental agreement about 90 days before it expires. Renewals will help you avoid a vacancy and save you time by not having to search for new tenants.

CONCLUSION

From managing your rental property business, finding and screening tenants, and collecting rent, every step along the way matters. We want you to manage a top-notch rental business without sacrificing unnecessary amounts of time, money, and stress. TransUnion SmartMove is an online tenant screening service that is designed for the busy, independent landlord. Credit, background, Income Insights, and eviction reports are delivered to your inbox in minutes, so you can fill your vacant rental property quick.  With the right tips and landlord tools, being a landlord doesn’t have to be so hard.