One property alone generates more responsibilities than one landlord can handle. Simply add up the costs of tenant placement, marketing, and maintenance. Think about the time it takes to create and process applications.
You also have the legal side which entails lease contracts, compliance, and evictions.
Where do you start?
Discover the benefits of hiring a property management company in Kansas City.
The Application and Evictions Process
Printing and distributing a rental application may sound simple enough, but you're bound to run into pitfalls handling it this way.
Like lease contracts, you should have a real estate professional create an application with all necessary information fields and disclaimers. This, too, requires knowledge of legalese.
Every application should ask for personal information like social security numbers, contact information, and copies of government IDs like licenses, passports, or state ID cards. This data also includes current (and past) addresses.
Employer information is a financial indicator. The application should also ask for recent and past work information, including job titles, annual salary, and location.
Other financial data includes bank statements, pay stubs, asset information, and other records that prove financial stability.
Leave fields open for references. Applicants should include names and contact information of past landlords and tenants.
Next, you need a processing protocol protocol.
Your property manager will apply processing fees and use a filtering method that ensures the best applicants stand out. These applicants will be contacted about the next steps, including in-person interviews. References will also be contacted.
Lease Management
When an applicant is chosen to move into a unit, they go through the lease management process. This step includes viewing the entire lease contract. Applicants should have access to this contract during the initial application phase.
This contract must include:
- The rent amount
- Rules and regulations
- Rules for pets (if applicable)
- Arbitration protocol (if applicable)
- Terms of eviction
- Water and garbage information
- Inspection information
Make sure you have a lawyer who can write and review your lease contract before getting a signature. One of the roles of a property manager is to work with real estate lawyers who can draw up airtight lease contracts.
Lease Renewal Strategy
The right contract will also lead to more lease renewals. A solid renewal strategy will help you save money on tenant procurement costs, application processing, marketing, and maintenance coordination.
That's why it's paramount to attract the right tenants from the start, and this process starts with a professionally-crafted application.
Incentives are also a part of the process.
Talk to your top tenants to see what they would like improved in their living experience. You may learn they need kitchen upgrades, like new appliances, countertops, or flooring.
You may want to consider discounts on the first month's rent.
Fresh interior paint, new HVAC systems, and better WIFI are also incentives to consider. This strategy also speaks to the importance of conducting periodic upgrades to retain the best tenants.
Property Management Matters
Whether you're creating a maintenance strategy or considering your evictions protocol, you need a professional every step of the way. Consider the above points when researching the right property manager for your goals.
SCUDO wants to be your property management partner. Book an appointment to learn more about our philosophy!
