Do's and Don'ts of Residential Property Management

Residential property management involves managing rental properties like detached single-family homes, townhouses or condominium units. Property managers must have strong customer service skills, as they communicate with residents and vendors on a daily basis.

They also have to be familiar with local laws regarding tenant screening, and eviction proceedings. A property manager is also responsible for logging repair requests and finding local contractors to carry out these repairs.

Rent Collection

Residential property managers Dundee must be able to collect monthly rent payments from tenants and apply them as outlined in the lease agreement. This helps the landlord cover mortgage payments and other business expenses.

Many landlords use electronic funds transfer or direct deposit to receive rent payments from their tenants. This is a good option for investors who live out of state or have multiple rental properties and don’t want to have to pay employee wages.

It is also important for landlords to be able to collect service charges from their tenants and chase up any arrears. This covers the cost of maintaining common areas and facilities.

Landlords may also decide to collect rent payments on a weekly or bi-weekly basis instead of monthly. This can be beneficial for both the tenant and the landlord if it is easier to make smaller payments. If a tenant is delinquent on their rent payment, the landlord can contact a professional debt collection agency such as Rent Recovery Services. They can report the delinquent amount to the credit bureaus and collect the lost payments for a flat fee.

Tenant Screening

Tenant screening is a key tenant management function that helps ensure your property is occupied by a responsible and safe resident. It involves a thorough process that includes requesting an application, credit checks and background checks. It also includes personal interviews, calling references and verifying income. Screening must be done carefully to avoid discrimination based on protected classes such as race, religion, sex, national origin and familial status.

Landlords can save thousands in repairs and legal fees by selecting a quality tenant. They can also protect their investment by avoiding tenants who will damage the rental, pay late or fail to comply with agreed-upon maintenance. In addition, landlords can avoid wasting time by eliminating applicants who are unlikely to be good tenants. Tenant screening should focus on positive criteria such as high credit scores, stable employment and a clean criminal record. It should also be consistent and documented to reduce the risk of litigation. This can help avoid costly mistakes that can lead to a wrongful denial of a rental agreement or even evictions.

Repairs

Providing regular maintenance to keep properties up to standard is one of the primary duties of residential property management. This may include addressing structural problems such as cracked walls or roofs, or arranging for tenant-initiated repairs.

If a tenant notices a problem at their rental property, they should notify their landlord immediately. If the property is managed by a property management company, the tenant will typically fill in a repair request form. This will typically ask for specific details about the issue and whether it falls within the company’s responsibilities.

Property management companies often have their own in-house team of maintenance professionals that they can call on when needed. Alternatively, they will usually have a list of contractors that they work with and can recommend based on quality of work, cost and customer reviews. They will also negotiate with outside service providers on behalf of the landlord. This can help save the landlord money on costs and ensure the best quality of work is carried out.

Accounting

Accounting in residential property management involves providing clients with accurate and timely accounting statements. It also means keeping up-to-date with federal and local landlord-tenant laws, especially those regarding eviction procedures.

Residential property managers are responsible for identifying structural problems like cracked walls or roofs and arranging payment to have them fixed promptly. This is an important aspect of the job because if such problems are left unchecked they may get worse and become more expensive to repair in the long run.

One of the most important aspects of residential property management is setting up a reserve fund to cover expenses that are expected or unexpected. This allows you to avoid having to raise resident fees or pay out of pocket for unforeseen repairs. It is also good practice to keep personal and rental property accounts separate in order to simplify your bookkeeping. This will help you avoid misreporting or missing income and expenses, as well as locating any bank errors like duplicate entries or missed transactions.