Managing a rental property is a lot of work and investment (both in time and money), but it can be very rewarding and pay dividends in the long term. If you are a real estate investor who wants to become a self-manging landlord, key steps should be taken to ensure your management success.
If you are a DIY landlord who wants to self-manage your rental property, there is a lot you will need to learn and do. Whether you’re a first-time landlord or an experienced landlord who is taking over the management of your rental property or simply seeking to grow your portfolio, these key first steps can help you successfully self-manage your rental business.
1. Join a Landlord Association or Online Forum
These associations can also be known as a landlord association, rental housing association, property management association, or real estate investors association and whatever yours may be called, it can provide key insight for anyone interested in investing in real estate with rental properties in mind.
For seasoned landlords and new landlords alike, a landlord association can be a major source of key local, state, and federal knowledge when it comes to owning a rental business. Through meetings, newsletters, and events, rental owners and property managers can enjoy the opportunity to network and build relationships with associates and peers in a way that allows members to enhance and protect their investments, as well as learn business best practices.
These associations do charge membership fees, but they can be vital connections to:
- Resources and services helpful for managing your properties
- Including contacts for vendors, lawyers, and CPAs
- Up-to-date information on current or incoming rental and real estate legislation
- Networking opportunities (including conferences and events)
- Advanced training for property management professionals
Learn more: Why Join a Rental Association?
If you are looking for a cost-effective way to stay abreast of industry trends and make connections, consider joining an online forum for landlords and real estate professionals in addition to or in place of a landlord association. These forums can also prove valuable opportunities for engagement with peers in the rental industry who can offer essential tips on effective rental management strategies they have personally implemented.
2. Set Financial Goals With the Help of an Accounting Professional
Financial and tax planning are essential for any successful business, and real estate is certainly no exception. Understanding your own financial goals and your current financial state, as well as how to analyze a potential real estate deal, is vital for your ROI.
However, it doesn’t end there. Savvy investors understand that navigating financials when it comes to owning rental properties goes beyond simply collecting rental income. There are tax advantages, deductions, savings, and ownership strategies designed to maximize your profits for years, and an accounting professional can help you capitalize on these and other financial opportunities.
Learn more: Tax Planning for Landlords and Real Estate Investors 2024: Webinar Recap
3. Find a Great Lawyer to Reach Out to When Needed
There will be times when a real estate attorney is necessary to ensure that your property, your general assets, and your tenants are all adequately protected. An attorney familiar with real estate and rental laws in your area is the only one fully qualified to help you form an ironclad lease agreement, make lease recommendations or addendums, and create a legal tenant screening process. Having a trusted contact to turn to whenever you have rental legal issues or questions is imperative for landlords who self-manage rental properties. Your landlord forums or landlord associations should have a network of recommendations to help you get started.
4. Find a Good Landlord Software or Property Management Software
You’ll find it incredibly difficult to self-manage your rental without the tools you need to organize your financials, track rent and maintenance, and keep in touch with your tenants. You’ll find it nearly impossible to do so without the proper tools if you want to grow your rental portfolio.
Landlords who do not utilize landlord-specific business software often find themselves scattered between multiple spreadsheets, document storage systems, and generic accounting software. Landlord software (also known as property management software) can save you a lot of time and stress by automating the tedious tasks and even giving you the ability to connect more easily with your tenants.
Here are some vital features that the best property management software options will have:
- Full bank, property, and tenant accounting
- Ability track income and expenses
- A mobile app for tenants
- Ability to accept online rent payments
- Market property vacancies
- Tenant screening report options
- A mobile app for you as the landlord
Learn more: Best Property Management Software for 2024
5. Stay Updated on Top Industry News
Understanding rental laws as a landlord is a crucial aspect of the job. Your municipal or county laws, state laws, and federal laws will all directly impact and inform the way you manage your rental properties. Likewise, it’s vital to stay abreast of the rental and real estate market and projections for the future.
Both the rental market and landlord-tenant law are always changing, which means self-managing landlords and investors need to be aware of any top industry news that could impact them. Newsletters and blogs from industry leaders such as the ones below can all be helpful tools to stay informed as relevant industry trends or news makes the headlines.
- BiggerPockets Blog
- Forbes Real Estate Council
- Multifamily Executive
- The Clever Blog
- Rentec Direct Blog