Owning a rental property can be an exciting investment, but it also comes with many moving parts—especially when you’re new. Preparation is imperative to minimizing risks and maximizing returns, from selecting the right neighborhood to figuring out how best to screen tenants.
At the same time, it’s essential to understand today’s rental market: more than a third of U.S. households currently rent, and median monthly rent has risen above $2,000 in many places in the past few years. As costs continue to climb, many renters are dedicating a larger share of their income to housing, highlighting the importance of thoughtful, well-informed property management.
To help you hit the ground running, we’ve compiled 22 essential tips that address everything from drafting a solid lease agreement to handling maintenance requests. Whether you want to maintain a portfolio, find reliable tenants, or ensure steady returns over the long haul, these guidelines will set you on a path toward success. Let’s get started!
Before buying a rental property, define your financial goals. Are you seeking long-term appreciation, cash flow, or tax benefits? A clear investment strategy helps you stay focused and make informed decisions.
Investing in real estate can mean different things—from purchasing residential homes for passive income to flipping properties for quick profit. If you aim to hold the property, due diligence (like reviewing property conditions, researching local zoning, and projecting accurate operating income and expenses) is crucial.
This level of preparation allows you to identify risks and develop a realistic return-on-investment timeline, whether a few years or decades.
Location is crucial for both attracting quality tenants and ensuring property value growth. Look for neighborhoods with high housing demand, good school networks, and reliable public transportation options.
Properties near shopping centers or workplaces can command higher rents, while walkable areas appeal to a broad range of renters, especially millennials, who value easy access to amenities. Consider zoning regulations (residential vs. commercial or mixed-use) as they can affect your rental investment strategy.
If you plan on going the appreciation route, consider scouting out areas that are on the rise, where you can benefit from long-term growth. The best investment spots often strike a balance between consistent rental revenue and property appreciation potential.
Once your property is ready, create an appealing listing highlighting its unique features. Include high-quality images, clear descriptions, and details about amenities, or recent renovations and upgrades
Soft skills, such as effective communication and negotiation, come into play here. Knowing how to position your property and interact with prospective tenants or agents can give you a competitive edge. If you’d rather not handle tenant screening or property showings the old-school way, you can use property management software like ManageCasa to save you time and effort.
By ensuring your listing is comprehensive and visible across multiple platforms, you’ll reach a wider audience and enhance your property’s overall appeal.
Use multiple platforms and social media to make your rental listing visible to prospective tenants. Invest in immersive virtual tours, which today’s tech-savvy renters increasingly expect. The more appealing and accessible your listing is, the faster you'll find the right tenant.
Reach out to your network and real estate agents. Consider platforms that cater to millennial renters who value convenience and quick online communication. Hosting virtual or in-person open houses can also effectively showcase your property.
Tap into online rental platforms, SEO-optimized listings, and paid ads to reach qualified leads. Due to the rising median rent in the rental market, most renters intensively shop around and compare rent. Reviews, updated photos, and fast response times can influence their decision.
Offering pet-friendly accommodations can significantly widen your renter pool and increase profitability. Demand for pet-friendly short-term rentals is so strong that they tend to command higher prices. In 2022, the average daily rate for pet-friendly rentals in the U.S. was $379, 9% higher than the $346 average for non-pet-friendly rentals.
This pricing gap has been growing since 2020 and is especially attractive if you target millennial and Gen Z renters, who prioritize their pets’ needs.
To maximize this opportunity, consider adding features like a small fenced yard or animal park. Clarify pet policies and deposits in your lease agreement to protect your investment while appealing to a broader market.
Use a standardized form to gather employment history, references, and authorization for credit and background checks. With rental fraud on the rise, getting verified info is essential. Collecting consistent information ensures fairness and helps in making informed decisions.
In 2022, 42 million U.S. households—nearly one-third of all—were cost-burdened, paying more than one-third of their income on housing. This figure has grown by 1.5 million since 2021 and by nearly 5 million since 2019, signaling rising financial pressure on renters nationwide.
Given these trends, it’s more important to ensure prospective tenants can reliably meet rent requirements. Conduct thorough credit and background checks and speak with previous landlords to identify any red flags, such as late payments or eviction history. This careful vetting can help protect your investment and foster a positive rental experience for everyone involved.
In recent years, fraudulent applications have increased dramatically, with some tenants falsifying bank statements or pay stubs. Tools like Snappt can detect document tampering and verify connected payroll, giving you peace of mind. A little due diligence upfront can save you a lot of trouble later.
Familiarize yourself with landlord-tenant laws in your state. These include legal rights and responsibilities, eviction processes, and habitability requirements. Keeping abreast of the latest legal changes ensures you remain compliant and avoid costly legal battles.
Be well-versed in fair housing laws to avoid discrimination claims. Fair housing is not optional, and you must. understand what questions you can and cannot ask during the application process.
Draft a comprehensive lease that protects you and your property. Include clear clauses on payment schedules, deposits, maintenance, and pet policies. Tailor it to your property and consult a legal expert to ensure enforceability.
Encourage or require renters’ insurance to reduce conflict over damages and ensure tenants are protected. It’s a small cost for tenants that provides significant protection for both parties in case of theft or accidents.
Secure landlord-specific insurance to cover rental income loss and liability issues. It is especially critical when managing multiple properties. Policies that cover damage from natural disasters or tenant negligence can give you additional protection.
Recent data shows that cities such as Columbia, SC, experienced year-over-year rent increases of around 8%, while places like Cincinnati, OH (7.0%) and Louisville, KY (6.9%) weren’t far behind.
Meanwhile, Austin, TX, recorded a 3.2% decrease, underscoring how rental markets can vary dramatically from one area to another. Setting a competitive rental price is vital, whether you’re in a hot market or a more moderate one.
Overpricing a unit often leads to prolonged vacancies and a higher unit turnover rate, which reduces your profits in the long run. Underpricing might secure a tenant faster, but can leave money on the table. A balanced, well-researched pricing strategy ensures you cover expenses, remain attractive to quality tenants, and keep occupancy levels high.
Track cap rate, net operating income, and cash-on-cash return. In today’s market, data-driven decisions matter more than ever. These metrics help you evaluate property performance and identify areas to improve profitability.
Always factorize variable costs when you calculate cash flow. With the increasing interest rate, which leads to a higher mortgage payment, you must plan for an emergency fund for unexpected repairs or vacancies.
Offer secure and convenient payment options, like automated billing platforms. Tenants expect tech-savvy landlords who value ease and transparency. Communicate payment terms clearly and enforce them consistently to avoid confusion.
Take advantage of mortgage interest, depreciation, and property tax deductions. With rising operating costs, tax planning is a must. Work with a qualified accountant to maximize benefits and stay compliant.
Preventive maintenance reduces long-term costs. With increased competition for quality rentals, your responsiveness to repair requests can retain tenants. Schedule regular inspections and maintain good records of all work performed.
A property manager can be invaluable if you’re not ready to juggle every aspect of rental property ownership. They cover everything from marketing your unit and screening tenants to managing maintenance and rent collection. Plus, many property managers use tech platforms like ManageCasa to streamline tracking, facilitate communication, and automate routine tasks.
Read on to learn more about how our one-stop solution platform can simplify the process and allow you to focus on growing your investment!
Stepping into property management for the first time can feel overwhelming—especially if you’re trying to handle everything from tenant screening to accounting. That’s where ManageCasa comes in. Our platform makes rental management more manageable and cost-effective by streamlining everything from rent collection to maintenance coordination.
Instead of relying on spreadsheets or multiple apps, you get one unified interface that helps you save time, reduce stress, and grow your rental business.
Ready to streamline your property management? Schedule your free DEMO today!