Most landlords consider the rent money they collect to be steady, passive income. But, the truth is that there’s a lot of stuff that goes on behind the scenes.

You can’t just sit by and expect to be successful. Here are five of the best tips for successfully managing your rental properties.

1) Prioritize Rent

When you phrase it like this, it seems like a greedy, blunt approach. But, if you want to be a successful landlord, you have to prioritize rent. Here’s what we mean:

• Make sure your tenants know you are serious about on-time payments and late fees
• Be persistent about collecting
• Keep an open line of communication if they fall behind

If a tenant is consistently late with payments or ignores your calls, don’t feel guilty about eviction. The first eviction might be hard but remember that this will prevent you from wasting time and money when you could be renting to someone else.

2) Educate Yourself on Fair Housing Laws

Landlords have a responsibility to educate themselves on fair housing laws. This will ensure they avoid discrimination and treat all tenants equally.

Some of the fair housing laws might seem obvious. Of course, you cannot deny a tenant based on their sex, race, etc.

But other regulations aren’t as well-known. For instance:

• You cannot evict a tenant for hoarding. This is because hoarding is classified as a disability, and fair housing laws prohibit discrimination based on disability.
• You cannot ask a protective resident how many kids they have. Fair housing laws also prevent discrimination based on familial status.

So, it’s best to brush up on these federal laws. You should also make yourself aware of local laws as they may offer additional protections.

3) Allow Pets

There’s a lot of discourse on whether or not you should allow pets. Ultimately, it’s up to you, but allowing pets can expand your pool of potential tenants.

If you do allow pets, make sure you collect a pet deposit to cover potential damages. Also, consider charging a monthly pet fee. This is a good source of extra income.

Service Animals and Emotional Support Animals

Note that some potential tenants may have emotional support animals. Owners should provide you with a legitimate ESA letter or other documentation to show that the animal assists with their disability.

If they have the letter, then you must allow these animals, even if you have a no-pet policy. And, you cannot charge a monthly pet fee.

4) Screen Tenants

Some landlords are desperate to rent out their property. They may decide to go with the first tenant that shows interest.

This is a huge mistake. You don’t want to rent to just anybody. You want a tenant who is responsible and trustworthy.

Some things to look for during the screening process include:

• Rent references
• Credit score
• Background check
• Whether or not they have a steady source of income

This will help you find the perfect tenant—one who pays on time and never causes any problems.

5) Use Discretion When Renovating

Landlords want their property to be in good condition and look nice. This will ensure tenants actually want to live there.

The problem is that some landlords get renovation happy. They’ll put tile in every bathroom or rip out perfectly good countertops and replace them with marble.

Only make renovations that will justify the cost. Think of the less obvious things related to the property, think outside the "box" if you will. Consider adding more refuse storage to the exterior so the tenants can more effectively manage their waste. If there's a pest problem, consider pest control for apartments (or houses if this is more applicable) in order to reduce the spread of pests and disease.

There may not be justification to raise the price for this, but if the tenant is living somewhere cleaner than they are more likely to stay for longer, saving you the headache of finding a new tenant. When it comes to redoing the inside, take note of suggestions from the tenants if possible. It is important to keep in mind however if the rent can’t reasonably cover the renovations, then you’re just wasting money. This may be a time when you have to look at adjusting your rental rates to cover the costs of a renovation if it is extensive.

Bottom Line

As you can see, there’s a lot more to being a landlord than just collecting rent every month. We hope these tips help you better manage your properties and serve your tenants!