Property Management Skills — A Landlord’s Blueprint To Success

The Big Picture On Property Management Skills:

• • Successful landlords set boundaries, communicate effectively, and take a proactive approach to tenant management to protect their investments.
  • Improve your property management by focusing on prevention, from aggressive tenant screening to decisive eviction handling.
  • Learn the skills that separate top-tier landlords from the rest to ensure your rental properties remain profitable and well-managed.

Think you’ve got what it takes to be an elite landlord?

There’s more to being a landlord than advertising for tenants and collecting rent. But for those who are willing to roll up their sleeves, owning and managing rental properties can be extremely profitable.

In fact, the best landlords and property managers ultimately see the greatest returns. That’s because they’ve perfected the art of landlording—and with some hard work and diligence, you can, too.

Whether you’re an experienced landlord or a newcomer just starting out, here are the top property management skills that separate the best landlords from the middle of the pack.

1. Aggressive Tenant Screening

It starts with the “prologue” to the rental cycle: tenant screening.

Elite landlords don’t take any shortcuts when it comes to finding the perfect tenant to rent to. Along with a complete rental application, they run tenant screening reports, including credit reports, criminal background checks, and eviction reports. Then, they pull out the magnifying glass and actually read them. (Feel free to start with a free tenant background check to kick off your next tenant screening.)

But even beyond the typical tenant screening and background checks, expert property managers evaluate rental applicants from a more holistic angle, paying attention not only to their financial credibility but also to their cleanliness and trustworthiness.

After all, being financially stable doesn’t make a rental candidate a surefire yes. Look at the big picture of a potential tenant; that includes info you won’t necessarily find on a rental application, such as:

• How long they’ll likely stay
• How well they treat their current home
• Whether they’re polite or argumentative when being interviewed
• How communicative they are, e.g., whether they respond immediately or several hours later

To find out about these details, experienced landlords consult rental references and cross-reference different reports to confirm that their applicant is being honest. They listen to their gut and don’t shy away from digging deeper when something seems fishy.

Of course, just remember there’s a difference between aggressive tenant screening and outright discrimination. Expert property managers don’t practice the latter.

2. Maximum Property Management Automation

How do you handle the administrative side of property management?

If you’re still fumbling around with a print ledger and waiting on checks to be mailed from your tenants every month, you’re making it harder than it needs to be.

Welcome to the 21st century, where automating much of property management with an online landlord app is possible. Property management software can make rent collection, income and expense tracking, tax reporting, tenant screening, leasing, and more a piece of cake.

Who wants to mess around with paper checks, mailed envelopes, and bank runs? Online rent collection is as easy as a five-minute setup, then rent is automatically deposited right into your account. Beyond moving the rent money monthly, good landlord apps (like, ahem, ours!) automatically store and organize these financial records, removing the need to track them manually.

Checks are quickly becoming obsolete, and for good reason.

Among elite property management skills are delegating and automating to minimize labor and maximize returns.

Major Benefits of Property Management Automation

For a better picture, here are some of the benefits if you embrace property management automations, instead of sticking to prehistoric ways of doing it.

3. Legal Preemption

You can never be too safe protecting your investment from careless and destructive tenants. Even applicants who pass their tenant background check with flying colors can cost you money; landlord-tenant disputes always pop up, and it’s the landlord’s job to address common disputes in their lease agreement preemptively.

In other words, to prevent disputes from ever arising.

Elite landlords can start protecting themselves and their properties by including specific lease clauses in their rental agreements that leave no room for argument or interpretation. For example, landlords can include lease clauses that cap the number of residents and overnight guests or specify who is responsible for precise maintenance tasks.

Remember, each state has its own landlord-tenant laws, so a clause required in all lease agreements in one state may be prohibited elsewhere.

Besides using lease contract hacks, expert property managers also protect themselves by keeping records of their rental property’s condition before and after tenants move in.

Property damage, big or small, can lead to costly legal disputes. To avoid this, be thorough about documenting your property’s condition. Do a move-in and move-out walk-through with your tenants and fill out a Move-In/Move-Out Condition Statement with them.

Take plenty of photos, as photo evidence helps to resolve any he-said-she-said issues with adamant tenants who deny responsibility for any damage. (As a bonus, our online landlord app lets you upload and store these move-in condition photos for each rental unit, plus each signed lease agreement.)

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4. Understanding of Landlord-Tenant Laws

Legal pitfalls are something you’d never wish to happen in your real estate investment journey — they can be extremely time-consuming and costly. For that matter, staying up-to-date with both state and local regulations governing everything—from security deposits to eviction procedures—is essential for every landlord.

Elite landlords familiarize themselves with fair housing laws to ensure they’re not inadvertently discriminating against tenants. They also study the legalities around lease agreements, tenant screening, property maintenance, or any other crucial elements that can help them draft bulletproof contracts and enforce them effectively.

While it may seem daunting at first, this legal knowledge will protect you against lawsuits. Below are some of the laws that every landlord in the US must know.

• Fair Housing Act (FHA): This federal law prohibits housing discrimination based on race, color, national origin, religion, gender, familial status, and disability.
• State Security Deposit Laws: The specifics vary by state. However, these laws regulate how much landlords can charge for security deposits, where and how the deposits must be stored, and the timeline for returning deposits after a tenant moves out.
• Warranty of Habitability: This implied warranty requires landlords to maintain their rental properties in a livable condition. It typically covers essentials like working plumbing, heating, electricity, and a structurally sound building. 
• Eviction Laws: These laws outline the legal process landlords must follow to remove a tenant from their property. It’s also worth knowing that “self-help” evictions (like changing locks or shutting off utilities) are illegal in most states and can result in severe penalties for landlords.

5. Setting and Defending Boundaries

Perhaps your tenant has a similar background to you, or they simply seem “cool.” Whatever the case, it can be tempting to befriend your tenant.

However, the landlord-tenant dynamic is ultimately a professional relationship and should thus be treated as one. After all, managing a rental property is a business.

When you cross professional boundaries, tenants may feel more comfortable with asking for leeway about paying rent or violating your lease terms. And though you have no obligation to acquiesce, you may simply feel guilty if you’re particularly chummy. Or, alternatively, should your tenants want to renew their lease, you may feel pressure not to raise their rent even though you’re perfectly justified to do so.

That’s why experienced landlords set clear boundaries with their tenants. Along the same lines, they also avoid renting to existing friends.

As a property manager, it’s important to establish professional boundaries between your tenants and yourself. Doing so helps maintain a respectful relationship and positive rapport, with none of the pressures of being nice to preserve a friendship.

6. Being Proactive with Eviction Filings

By proactivity, that doesn’t mean that pro landlords are heartless—just that they’re wise about taking immediate action when any grounds for eviction have emerged.

What counts as grounds for eviction?

• Defaulting on rent
• Causing significant property damage
• Unapproved subletting
• Engaging in illegal activities on the property
• Any other lease violation

Remember that rental properties are long-term investments like 401(k)s, annuities, and stocks, which also all involve some level of risk. You can thus think of renting out to tenants much like how investors take risks when picking stocks. However, unlike traditional financial investments, managing a property requires regular physical maintenance and upkeep.

Consequently, tenants who breach rental contracts in any way present a greater risk to your investment, especially those who seriously damage your property.

The eviction process is long and tedious, so if a tenant crosses a line, you’re perfectly justified in preparing to file for eviction. Getting the ball rolling sets expectations for your tenants and still allows them plenty of time to rectify the violation before the actual removal date.

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7. Modern Marketing Strategies

The real estate rental market, especially in the US, is scorching hot, and intelligent marketing is the only way to attract tenants and minimize vacancies.

But what is modern marketing anyway? Do you still place a huge “For Rent” sign on your face or lawn? While this approach isn’t necessarily negative, sticking to it and not advertising the property online is where landlords get left behind.

Elite landlords take advantage of a mix of online and offline strategies to showcase their properties. You can start by creating eye-catching listings on popular rental websites with high-quality photos and virtual tours. And don’t ever underestimate the power of social media — platforms like Facebook Marketplace alone can get you high-quality tenants.

Also, come up with enticing property descriptions highlighting unique features and nearby amenities — remote work-friendly, pet-friendly, nearby cafes, etc. You know what I mean.

8. Tenant Pruning

The average tenant turnover rate nationwide is 47.5%. In other words, 1 in 2 tenants moves out every year, meaning you’ll need to:

• Spend time searching for and screening new rental applicants
• Prepare your unit for rent, e.g., by cleaning and restoring it
• Lose income while the property is vacant

Tenant turnovers are extremely costly.

Your tenants’ quality determines your returns and the work required of you as a property manager. With that in mind, elite landlords make an effort to retain good tenants and, conversely, non-renew bad tenants.

To keep tenants happy, the best property managers:

• Treat tenants cordially and respectfully
• Abide by fair housing rules and offer reasonable rental prices
• Respond promptly to maintenance needs
• Consider lease renewal incentives, like gift cards, ecards, or smaller rent hikes

As for the bad tenants, they do not non-renew their lease agreements when the term ends.

Proactive tenant pruning—that is, working to retain solid tenants and non-renew bad ones—protects your investment in the long run by ensuring that only the most responsible tenants stick around.

9. Good Financial Management

Mastering the numbers is the first step in turning your rental property into a profitable venture. Elite landlords implement robust financial management practices because they treat their properties like businesses, and you should, too! 

Although I admit that financial management is an essential skill yet difficult to master, it’s not impossible. You can start by up separate bank accounts for each property to track income and expenses accurately or download landlord apps, like ours. 

In addition, develop a thorough budget for regular maintenance, property taxes, insurance, and a healthy reserve for unexpected repairs. Also, stay on top of market trends to ensure your rental rates remain reasonable while maximizing your ROI.

Word to the wise: Don’t shy away from professional help – a good accountant can be worth their weight in gold when it comes to tax deductions and structuring your rental business.

10. Responsive and Recorded Communication

Last but certainly not least, expert landlords communicate promptly and openly with their tenants.

Just as good tenants are responsive, so are good landlords. The best property managers immediately address tenants’ issues and concerns—even for non-urgent matters. Whether it’s a leaking roof or a clogged drain, landlords promptly respond attentively to their tenants’ needs. (And this, of course, helps with good tenant retention!)

Beyond responsiveness, elite landlords are also mindful of renters’ smaller concerns and complaints; they listen carefully rather than brushing them aside. This kind of communication helps to mitigate any potential misunderstandings that might come from property woes that are perhaps out of their control, such as a sudden power failure.

Because memories are faulty, and some tenants may change their tune over time, elite landlords track all communication. The best landlord apps on the market include messaging and communication tracking as a service. Just as landlord apps consolidate property financials into one convenient location, they also provide a messaging service to prevent any disputes over who said what.

Final Takeaways

Notice any commonality uniting these property management skills?

They all focus on some aspect of prevention.

Elite landlords and property managers think several steps ahead when it comes to tenant screening, drafting a lease agreement, and actually renting out a property. Doing so helps them dodge professional tenants, avoid the headaches of tenant turnovers and evictions, and ultimately get the greatest returns on their investments.

These property management skills don’t come naturally. When a tenant approaches them with a sob story, most people are naturally inclined to give their tenant “one more week” for their rent payment.

But the best landlords become the best through training, experience, and learning from other landlords’ mistakes rather than having to make them all firsthand.

How are you improving your landlord skills? Which skills do you currently practice, and which can you improveu get better at?

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