How to Manage a Rental Property

Appfolio Websites • January 26, 2021

source:  Apartments.com


Becoming a landlord begins with buying property and is followed by tasks such as learning the laws, determining the cost of rent, and advertising your rental property. But what about managing your property? Being familiar with every aspect of your business is crucial to becoming a successful landlord, and a major part of that business is knowing how to manage your rental property. Whether you plan to manage your own property or hire a professional property manager, it’s important that you know how to manage tenants, maintain your property, and manage your finances.

DIY Management vs. Hiring a Property Manager

Being both the owner and manager of a property is known as DIY (do it yourself) management. As the landlord (owner) of your property, you will simultaneously manage tenants and maintain the property without any assistance from a professional property manager. Although property management is a job all its own and hiring a property manager is a terrific option, it’s entirely achievable to manage your own property. There are pros and cons to each situation:

Pros of DIY management

  • You’ll save money by not paying property management fees
  • You’ll have control over every aspect of the property
  • You can screen and select the right tenant yourself

Pros of hiring a property manager

  • They will make your life easier and lessen your stress when it comes to managing tenants and maintaining your property
  • They can help you get optimal return on your investment due to their knowledge of the rental market
  • Property managers may be better equipped for dealing with tenants, especially in sticky situations such as late rent payments

Cons of DIY management

  • Managing your own property takes a significant amount of time and effort
  • You may not be as up to date on local real estate laws as a professional property manager
  • You may not have a list of reliable, professional contacts for contractors, inspectors, landscapers, or a maintenance team

Cons of hiring a property manager

  • A property manager may be overwhelmed due to managing more than just your property and therefore not manage it as well as you would like
  • The property manager may be dishonest about how much they are charging for rent and maintenance, pocketing some of the extra funds themselves
  • Hiring a property manager may lessen your rental income due to property management fees

If the property you own is out of state, it may be in your best interest to have a property manager in the same location as your property. However, it is possible to own and manage the property from afar, as long as you make yourself available to tenants when they have questions or maintenance requests. If you are managing the property remotely, be sure to have professional, reliable contacts for various repairs that may arise with your property.

Managing Tenants

One of the most important aspects of managing a rental property, whether you’re doing it yourself or hiring a professional, is the ability to properly manage tenants. This includes:

Screening applicants and approving applications

Many issues can arise during a lease term, including property damage, late rent payments, or even an eviction. The best way to avoid any negative scenarios is to properly screen tenants. Tenant screenings should include a full background check, which pulls a tenant’s credit, rental history, employment history, and criminal history.

Scheduling move-ins and move-outs

Managing your tenants involves creating a legal lease document signed by both parties that states the tenant’s move-in and move-out dates. Knowing the exact date the tenant will be leaving the property (if they don’t renew their lease) allows you time to advertise your property as available so that you may find a new tenant. A manager will also deal with scheduling move-in and move-out inspections.

Keeping tenant turnover low

Although managing tenants doesn’t always end in long-term tenants or renewed leases, it’s important to make a tenant’s stay comfortable and pleasant. Having tenants renew their leases means less time spent advertising your property, screening new tenants, and scheduling move-ins and move-outs. Attracting long-term tenants and reducing tenant turnover is a great way to receive positive reviews and lessen your workload. 

Handling maintenance requests

The property manager will handle all maintenance requests. Whether your property is lined up with a professional maintenance team specially for your property or you hire outside vendors to get the work done, the property manager will schedule repairs based off of maintenance requests from tenants. Maintenance also refers to weekly, monthly, seasonal, and yearly tasks that are required by your state and local laws.

Maintaining Your Property

First and foremost, the property you own and manage must be habitable. To avoid any legal issues with tenants, it’s in the best interest of you, your tenants, your property, and your finances to maintain the property properly. Maintaining your property includes both interior and exterior features:

  • Regularly mow the lawn (if applicable) and maintain landscaping
  • Pest control (bi-weekly or monthly)
  • Check that fire extinguishers are up to code (yearly)
  • Test smoke and carbon monoxide detectors (yearly)
  • Clean the gutters (especially during the fall)
  • Inspect the roof for potential damage after storms
  • Trim tree limbs that hover over power lines, vehicles, or other structures
  • Check unit for water damage and leaks (once or twice a year)
  • Check for mold in bathrooms and kitchens (once or twice a year)
  • Change air filters (once or twice a year)
  • Flush your water heater (yearly)

Although we’ve provided an estimate of how often these maintenance tasks should be completed, how often you are required to do each of these items is dependent upon your state laws. Check your local laws on maintaining your rental property so you can create a timeline for yourself of what needs to be done and when. Keeping your property and everything in it in great shape is the best way to reduce tenant turnover.

Although there are requirements to keep a property habitable, you may also find that you want to upgrade your property every few years. Installing new flooring, appliances, fixtures, countertops, and windows are great options if you are interested in increasing the value of your rental property and your rental income. 

Financial Management

It’s crucial to have your finances in order as a landlord and property manager. The financial and accounting responsibilities of landlords/managers may include:

  • Researching and setting the cost of rent
  • Collecting rent, move-in fees, and late fees
  • Researching and communicating rent increases with tenants
  • Handling security deposits
  • Dealing with the cost of property damages
  • Filing taxes and taking account of all property expenses

Documents to keep on hand

Managing a property is more than approving a tenant and collecting rent each month, so if you intend to practice DIY property management, it’s important that you prepare yourself for the task at hand. Owning and managing properties requires a lot of paperwork as well. To stay organized, you can simplify the process by keeping the most important rental documents stored in a safe place (along with digital copies). These include:

  • The signed move-in/move-out checklist by both tenant and landlord/property manager
  • Rental applications
  • Tenant emergency contacts
  • Lease agreements
  • Addendums to the lease agreement
  • Property mortgage and improvements
  • Utility providers
  • Lease renewal letter template
  • Move-out letter

As a landlord, you have an important decision ahead of you: choosing to self-manage your property or hire a third party (a professional property manager). If you believe that you are the best person to manage tenants, maintain the property, and manage the finances, then hiring a professional property manager won’t be necessary. However, if you feel that the workload will overwhelm you and you’re not interested in taking it on as a full-time job, then hiring a pro is the best next step to ensure that everything is handled efficiently. If you need assistance with screening tenants, collecting rent, and lease signings, remember that Apartments.com Rental Tools are here for you!


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Considering Buying a Rental Property? Here’s What You Need to Know About Property Managers

By The Lighter Side of Real Estate • July 21, 2025
Considering Buying a Rental Property? Here’s What You Need to Know About Property Managers If you’re considering purchasing a rental property, here’s the good news: they can be a great investment. But they can also be a lot of work, and some homeowners don’t have the skills or desire to put in the work necessary to both take care of their property and ensure it brings in steady income. That’s where property managers come in. A good property manager can bring a ton of value to rental property owners, so if you’re considering buying a rental property, you may also want to consider hiring an experienced, trustworthy property manager. But what, exactly, do property managers do—and how does that help the property owner? A recent article from realtor.com outlines some of their main responsibilities, and the value they can deliver to property owners, including: Market your property. Finding new renters can be a hassle. Property managers leverage a variety of channels (including social media, paid ads, and the MLS) to get your property in front of qualified potential tenants. Vet potential tenants. Once they’ve marketed your property and generated interest, property managers will vet all potential tenants (including running a credit check, checking for past criminal history, verifying employment and income, and calling former landlords for references) to ensure you rent your property to qualified, responsible tenants. Perform property checks. If you live in a different area than your rental property, it can be hard to stay on top of the home’s maintenance and condition. Most property managers do regular home checks (typically, once per quarter or twice per year) to ensure the tenants are taking good care of the property—and will report back if any major repairs or maintenance tasks are necessary to keep the property in good condition.

The Five-Year Rule for Home Price Perspective

By KCM • June 25, 2025
The Five-Year Rule for Home Price Perspective Headlines are saying home prices are starting to dip in some markets. And if you’re beginning to second guess your plans based on what you’re hearing in the media, here’s what you need to know. It's true that a few metros are seeing slight price drops. But don't let that overshadow this simple truth. Home values almost always go up over time (see graph below): While everyone remembers what happened around the housing crash of 2008, that was the exception – not the rule. It hadn’t happened before, and hasn’t since. There were many market dynamics that were drastically different back then, too. From relaxed lending standards to a lack of homeowner equity, and even a large oversupply of homes, it was very different from where the national housing market is today. So, every headline about prices slowing down, normalizing, or even dipping doesn’t need to trigger fear that another big crash is coming. Here’s something that explains why short-term dips usually aren’t a long-term deal-breaker. What’s the Five-Year Rule? In real estate, you might hear talk about the five-year rule. The idea is that if you plan to own your home for at least five years, short-term dips in prices usually don’t hurt you much. That’s because home values almost always go up in the long run. Even if prices drop a bit for a year or two, they tend to bounce back (and then some) over time. Take it from Lance Lambert, Co-Founder of ResiClub: “. . . there’s the ‘five-year rule of thumb’ in real estate—which suggests that most buyers can buffer themselves from mild short-term declines if they plan to own a property for at least that amount of time.” What’s Happening in Today’s Market? Here’s something else to put your mind at ease. Right now, most housing markets are still seeing home prices rise – just not as fast as they were a few years ago. But in the major metros where prices are starting to cool off a little (the red bars in the graph below), the average drop is only about -2.9% since April 2024. That’s not a major decline like we saw back in 2008. And when you look at the graph below, it’s clear that prices in most of those markets are up significantly compared to where they were five years ago (the blue bars). So, those homeowners are still ahead if they’ve been in their house for a few years or more (see graph below): The Big Picture Over the past 5 years, home prices have risen a staggering 55% , according to the Federal Housing Finance Agency (FHFA). So, a small short-term dip isn’t a significant loss. Even if your city is one where they’re down 2% or so, you’re still up far more than that. And if you break those 5-year gains down even further, using data from the FHFA, you’ll see home values are up in every single state over the last five years (see map below): That’s why it’s important not to stress too much about what’s happening this month, or even this year. If you’re in it for the long haul (and most homeowners are) your home is likely to grow in value over time. Bottom Line Yes, prices can shift in the short term. But history shows that home values almost always go up – especially if you live there for at least five years. So, whether you’re thinking of buying or selling, remember the five-year rule, and take comfort in the long view. When you think about where you want to be in five years, how does owning a home fit into that picture? Let’s connect to get you there.

Newly Built Homes May Be Less Expensive Than You Think

By KCM • June 25, 2025
Newly Built Homes May Be Less Expensive Than You Think Do you think a brand-new home means a bigger price tag? Think again. Right now, something unique is happening in the housing market. According to the Census and the National Association of Realtors (NAR), the median price of newly built homes is actually lower than the median price for existing homes (ones that have already been lived in): You read that right. That brand new, never-been-lived-in house may cost less than the one built 20 years ago in a neighborhood just down the street. So, if you wrote off a new build because you assumed they’d be financially out of reach, here’s what you should know. You could be missing out on some of the best options in today’s housing market. Why Are Newly Built Homes Less Expensive Right Now? 1. Builders Are Building Smaller Homes Builders know that buyers are struggling with affordability today. So, instead of building big houses that may not sell, they’re building smaller ones that will. According to the Census, the average size of a newly built single-family home has dropped considerably over the past few years (see graph below): And as size goes down, the price often does too. Smaller homes use fewer materials, which makes them less expensive to build. That helps builders keep prices lower so more people can afford them. 2. Builders Are Offering Price Cuts and Incentives In May, according to the National Association of Home Builders (NAHB), 34% of builders lowered their prices, with an average price drop of 5% . That’s because they want to be sure they’re selling the inventory they have before they build more. On top of that, 61% of builders also offered sales incentives – like helping with closing costs or buying down your mortgage rate. These are all ways builders are making their homes more affordable, so these homes sell in today’s market. Your Next Step? Ask Your Agent What's Available Near You If you're trying to buy a home right now, be sure to talk to your agent to find out what builders are doing in and around your area. They can find new home communities, as well as builders who are offering incentives or discounts, and hidden gems you might not uncover on your own. Plus, buying a newly built home often means there are different steps in the process than if you purchase a home that’s been lived in before. That’s why it’s so important to have your own agent who can explain the fine print. You want a pro in your corner to advocate for you, negotiate on your behalf, and make sure your best interests come first. Bottom Line You could get a home that’s brand new, with modern features, at a price that’s even lower than some older homes. Let’s talk about what you’re looking for and see if a newly built home is the right fit for you. If buying a home is on your to-do list, what would stop you from exploring newly built options?
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