So you’re a new property manager? Here is a quick introduction to how to manage rental properties:
1. Know the Difference Between a Rental Agreement and Lease Agreement
Rental agreements tend to be short-term, usually lasting 4 weeks and automatically renewing. This allows the property manager to increase or decrease rent on a monthly basis, and allows the property managers to change the terms of the rental agreement at any time.
Lease agreements, on the other hand, tend to be long-term, usually lasting one full year. During the time of the lease agreement the property manager or landlord cannot change the rent cost or any terms of the lease agreement. Property managers do, however, retain the right to terminate the lease at any time if the tenant does not uphold the terms originally stated in the agreement.
2. Know the Notice Requirements For Your State
The notice requirements for entry of an occupied unit varies from state to state. Many have a 24-hour requirement but there are also a surprising number of states without any at all. Checking to make sure you know your state’s requirements ensures smooth operations and a good relationship with your tenant.
3. Make Sure Contracts Are Up-To-Date
As a property manager you negotiate the contracts for janitorial, security, groundskeeping, trash-removal, and specialist contractors. You should solicit bids from multiple contractors and send your recommendations to the owner.
4. Disclose Lead-Based Paint
Title X is a law that requires properties to disclose lead-based paint to their tenants, and applies to all rental properties built before 1978. A fine of up to $10,000 can be imposed on properties that do not disclose this information to tenants.
5. Be Up-To-Date With Payment Options
Nowadays, fewer and fewer paper checks are used, due to people not wanting to waste time at the bank or delivering a check to their property managers. Rentigo, a free app, allows property managers to communicate with their tenants, receive rent payments and receive maintenance requests from their tenants. No more chasing down tenants for paper checks or cash!
With these tips under your belt, you’re sure to be the most up-to-date and organized property manager out there!