Property management can be a lot of work, whether you are managing a property yourself or hiring someone to assist you. Owning a home or investment property is at the top of many people’s list of success markers. MY SMART COUSIN is here to help you get into the property ownership game and do what few others can—buy a house for the price of a car! As Real Estate Investment coaches we specialize in assisting aspiring investors, especially Black and Brown folks and women, to learn how they can reach their goals quickly, while also leveraging homeownership resources to lower down payments and maximize low-cost financing options.
If you are already a landlord, then you know that property management requires discipline and attention to detail. Between finding tenants, collecting rent, and dealing with repairs, there’s always something to do. That’s why it’s important to have a property management checklist to help you stay organized and run your business smoothly. In this blog post, we’ll share a checklist to help ensure you manage your property or your property manager, more effectively.
WHAT IS A PROPERTY MANAGEMENT CHECKLIST?
A property management checklist is a useful tool for landlords and property managers. It helps keep track of maintenance tasks, rental payments, and other important details. The checklist can be used to create a schedule of when certain tasks need to be completed. For example, a landlord may want to check smoke and carbon monoxide detectors every six months to ensure they’re operable or change the air filters on a furnace each Fall to maximize the performance of the furnace. Even with the best of intentions, meeting these goals consistently can be hard to do without a calendar and formalized process.
A CHECKLIST FOR PROPERTY MANAGEMENT
· HAVE AN EMERGENCY FUND TO COVER SCHEDULED AND UNEXPECTED REPAIRS
As a property owner, you should always have a reinvestment fund and an emergency fund set aside to cover routine maintenance, replacement of systems that can no longer be repaired cost-effectively (for instance, an old hot water heater), and unexpected repairs.
– Establishing and replenishing these funds will help you avoid dipping into your personal savings or taking out a loan to pay for property upkeep.
– In addition, having a maintenance fund and emergency fund will help keep your property in good condition and avoid withheld rent when tenants make repairs themselves after unmet responses or potential legal problems that could arise from deferred maintenance.
To put together these funds, start by setting aside at least $100 each month per fund from rent payments or other income sources. Once you have built up a healthy reserve, you will be able to breathe a little easier knowing that you can cover both scheduled and unscheduled maintenance without putting your finances at risk.
· SCREEN POTENTIAL TENANTS CAREFULLY
As a property owner, you know that screening potential tenants are one of the most important steps in managing your investment property. After all, uncollected rent, damage to your unit, or refurbishing the property to a rent-ready state for another tenant, can leave you unable to cover your mortgage or earn returns for many months. When screening tenants, there are a few key rules to follow:
– First, be sure to check the person’s rental history to see if they have any red flags. If more than one adult will be living in the home, check the rental history of each person.
– Next, run a credit check to see if the person is financially responsible. As part of the credit check, determine if any judgments have been ordered (for instance, due to a past eviction or vehicle repossession) and if the judgments have been satisfied.
– Finally, do a criminal background check to make sure there is no history of violence or other serious offenses. If the person owns a pet, keep in mind that many property insurance companies will not provide insurance for certain breeds of dogs (and other animals such as pet snakes) that the insurer classifies as ‘dangerous’. As such, you will want to add a no-pet clause for these breeds to the lease agreement.
By following these steps, you can help ensure that you find the right tenant for your property.
· INSIST ON RENTER’S INSURANCE
As a property manager, it’s important to keep your property and your tenants safe. One way to do this is by requiring tenants to get renter’s insurance.
– Renter’s insurance protects tenants in case of damage to their belongings, or if they are held liable for damages to the property.
– Renter’s insurance also provides some financial protection in case of a natural disaster or another emergency.
– Lastly, renter’s insurance gives tenants peace of mind knowing that their personal possessions are covered and enables them to reach out to their insurance, rather than to you, if the furniture, keepsakes, or other items are damaged due to a leak, for instance.
· INSPECT THE PROPERTY REGULARLY
By regularly inspecting the property, you can identify problems early and resolve them before they become major issues. Here’s what to include on your inspection checklist:
– Check the condition of the exterior of the property, including the roof, any large tree limbs on or near the roof, gutters, siding, and sidewalks in front of the property, and the driveway.
– Inspect all windows and doors to make sure they are in good working order. Housing authorities and rental licensing departments will require that windows open and lock. and will disallow certain kinds of door locks and burglar bars that are unsafe in the event of a fire.
– Walk around the perimeter of the property to look for signs of water or physical damage, pests, overgrowth of trees or bushes, pets that are not permitted per the lease, and signs of excessive wear and tear on gates, fencing, porches, and decks.
– If the property is a multifamily unit, check the condition of all common areas such as porches, deck fences and mailboxes, hallways, stairways, and lobbies.
– Inspect all units to make sure they are clean and in good repair.
· CREATE AND ENFORCE RULES AND REGULATIONS FOR TENANTS
As a property owner, it’s your responsibility to make sure that your tenants are following the rules and regulations that you’ve put in place. To make sure that your tenants are staying compliant, you should create a checklist for them to follow.
This can include items such as keeping the property clean, paying rent on time, and disposing of trash properly. By going over this checklist with your tenants regularly, you can help to ensure that your property is well-maintained and that everyone is happy.
– EVICT TENANTS WHO ARE NOT FOLLOWING THE RULES
– One of the most important things you can do is to evict tenants who are not following the rules. This can be a difficult decision to make, but it is important to protect your property and the other tenants who live there. The checklist for evicting a tenant includes several key steps:
– Give the tenant a written notice, sent through certified mail, that they are violating the terms of their lease. Check your city or state to determine the minimum notice period, which often ranges from 30 to 60 days
– If the tenant does not address the problem within the specified time frame, file an eviction notice with the court.
– Determine whether a lawyer is needed to represent you in court proceedings. Many municipal court hearings and documents are structured to enable both landlords and tenants to represent themselves.
– Strictly adhere to the ruling issued by the judge along with any follow-up actions required to obtain possession of the unit and collect the awarded judgment.
FINAL THOUGHTS
You now have a property management checklist to help you every step of the way. Of course, these steps are not exhaustive and there may be other things you need to do, depending on your specific situation. But this list will get you started. Are you feeling confident about managing your property? If not, don’t worry – we can help you every step of the way. Just give us a call or shoot us an email and we’ll be more than happy to assist.
YOU CAN ALSO READ: HOW TO ESTIMATE YOUR RENTAL PROPERTY EXPENSES
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