The Top 5 Successful Landlord Processes
Hey everyone! Spencer Sutton here with gkhouses, and I want to talk to you about the top 5 successful landlord processes.
If you are a successful and growing property management company, you are more than likely practicing some of these without even realizing it.
If you are a landlord and growing your portfolio, these processes will be extremely helpful to you as well.
The first process that we have found to be extremely helpful is our leasing process. We have rented out thousands of properties and through that we have pretty much perfected our process.
There’s most definitely an order to follow. We go and inspect the house, take pictures, market the house on our website as well as other websites. We then show the house, collect feedback and start accepting applications. All of these steps need to be done in order to get a qualified tenant.
The whole leasing process takes time and effort from everyone involved. When you have a house that is vacant and you are trying to get a lease, we have a process for every single thing that needs to be done in that time period. This way we can do it as efficiently as possible, and move a tenant in quickly.
The second process that successful landlords or property managers use is having a set move-in process.
This is very important because you want to start this relationship off on the right foot. The move in day is where this relationship really begins. There is nothing worse than a tenant moving in and things not being ready for them.
The way we handle it is we go back to the house once we have a lease signed. We make sure the tenant is not able to move in for a few days after signing so we have time to check everything is functioning properly. This also gives us buffer time to fix anything that may be broken.
For example, we had one property manager doing a move-in walk through and the garbage disposal did not work. There was also a light or fuse broken too. So, we had two separate work orders and had to find somebody to come out and fix them before the tenant moved in. If he had not gotten those fixed, the tenant would have complained and the relationship would have been off to a rocky start.
The third most important process that successful landlords and/or property managers use is having a maintenance response process. This being some type of process to handle a maintenance request.
We mention this a lot, but whether you own 1 property or 100 properties, you are in business. And not just any business, but customer service. Because of this, it is important to very clear with your tenant and make sure they know how to handle work orders.
gkhouses is dealing with hundreds of owners and thousands of tenants, so we have a process. We have processes in place when someone puts in a word order, how we get that to the tech, how the tech responds and gets in touch with the tenant, etc.
It has to all work in unison. Sometimes it can take longer being a property manager because you have to get permission from an owner before starting work.
Having a follow-up system will work wonders. It is important to not leave the tenant in the dark. Make sure they feel heard and know that you will get in touch to fix the problem. If you do not communicate, the tenant will begin to think you do not want to fix anything. This is a much tougher conversation to have than one about a problem that is probably easy to fix.
Number four on our list is your rent collection process. You have to collect every single month. This makes collecting rent a big deal and having a process will make it simple for you and the tenant.
If you are a landlord with one house, this will be simple. But if you are an investor with multiple rentals, collecting rent is very important.
Knowing the lease and when rent is due each month is a good start. Also know what happens when rent is late and how to handle that.
Because of how many properties we manage, we have to have systems and processes in place to collect rent. We check on the collections report weekly, making sure that everything is running smoothly.
Unfortunately, there will be instances where tenants cannot pay rent. Maybe they had a life circumstance where they lost their job or had a personal crisis. If they are unable to pay rent you must figure out a way to handle it. Being prepared for anything is key, especially as you are growing your rental portfolio.
After finding a process that will work for you, make sure you understand your local law. Understand the eviction process if that becomes necessary, and other important rental topics.
And the last really important process that all successful landlords have and is the move-out process.
And why is this big deal? Well, because you need to treat your tenant fair. Whether they have been in your home for 1 year or 5 years you need to treat them with respect throughout the move-out process.
Going back through the house to assess if there is tenant related damage versus just normal wear and tear. This is important because it affects the security deposit.
You need to know how soon to return the security deposit after the tenant is moved out. One of the steps of this is collecting data and evidence. Taking pictures of the damages and figuring out if it is tenant caused or just normal wear and tear.
After doing all of this you send the tenant a disposition letter. This informs the tenant of the condition the house was in and what you consider to be tenant related damage. You would send the security deposit back to the tenant, minus the cost of tenant damages.
If they did not agree with the charges, they would make their feelings known and we would take it from there.
Having a process is crucial because they are laws that govern how quickly you need to get that back to the tenant.
Those are the top 5 successful landlord processes to have.
Our whole company is run on systems and processes and we are always working to try to make a process easier for everyone involved.
If you have any questions you can reach out to me, and I can direct you to somebody in our operations department.
Feel free to email me [email protected] Thank you!