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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Are Big Investors Really Buying Up All the Homes? Here’s the Truth.

By KCM • January 28, 2026

Are Big Investors Really Buying Up All the Homes? Here’s the Truth. It’s hard to scroll online lately without seeing some version of this claim: “Big investors are buying up all the homes.” And honestly, if you’re a homebuyer who’s lost out on a few offers, that idea probably sounds believable. When homes are expensive and competition is tight, it’s easy to assume giant companies are scooping everything up behind the scenes. But here’s the thing: what people assume is happening and what the data actually shows aren’t always the same. Let’s look at what’s really happening with large institutional investors in today’s housing market – because the numbers tell a much different story than the headlines. The Number Most People Won’t See Online Let’s start with the most important stat. According to John Burns Research & Consulting (JBREC), large institutional investors – those that own 100 or more homes – made up just 1.2% of all home purchases in Q3 of 2025 (see graph below): That’s it. Out of every 100 homes sold, only about 1 went to a large institutional investor. And here’s an important point that often gets missed: that level of investor activity is very much in line with historical norms. It’s not unusually high, and it’s actually well below the recent peak of 3.1% back in 2022 – which itself was still a small share of the overall market. So, while it can feel like big investors are everywhere, nationally, they’re a very small part of overall home sales. Why Investor Activity Gets So Much Attention There are two main reasons this topic gets so much attention: Investor activity isn’t spread evenly. Investors are more active in certain markets, which can make competition feel intense for homebuyers in those areas. As Lance Lambert, Co-Founder of ResiClub, explains:“On a national level, “large investors”—those owning at least 100 single-family homes—only own around 1% of total single-family housing stock. That said, in a handful of regional housing markets, institutional and large single-family landlords have a much larger presence. ” Investor is a broad term. Part of what makes the share of purchases bought by investors sound so big is because many headlines lump large Wall Street institutions together with small, local investors (like your neighbor who owns one or two rental homes). But those are very different buyers.In reality, most investors are small, local owners, not massive corporations. And when all investors get grouped together in the headlines as a single stat, it inflates the number and makes it seem like big institutions are dominating the market (even though they’re not). Yes, big investors exist. Yes, they buy homes. But nationally, they’re responsible for a very small share of total purchases – far smaller than most people assume. The bigger challenges around affordability have much more to do with supply, demand, and years of underbuilding than with large institutions competing against everyday buyers. That’s why it’s so important to separate noise from reality, especially if you’re trying to decide if now is the right time to move. Bottom Line If you want to talk through what investor activity actually looks like in our local market, and how it impacts your options (or doesn’t), let’s connect. Sometimes a little context makes all the difference.

Why January Is the Best Time to Kickstart Your 2026 Home Search

By Inner Circle • January 22, 2026

It’s a new year, and if buying a home in 2026 is on your mind, there’s one simple piece of advice worth hearing first: get started now. Not in March. Not in spring. Not “when the weather gets better.” Now. Why? For starters, buying a home takes time. A recent Realtor.com article suggests getting started at least six months before you plan to close. That doesn’t mean starting in January automatically puts you on track for a June closing. In fact, if you get started now, there’s a good chance you could be in a home much sooner than that. On the flip side, even if you don’t plan to move until later in the year, beginning the process early still puts you in a far stronger position when you’re ready to make offers. You’re almost always better off starting sooner rather than later. There’s a lot involved beyond simply finding a house you like. Financial preparation, getting pre-approved for a mortgage, understanding what you can truly afford, getting a handle on the existing inventory, touring homes, writing offers, negotiating terms, and finally closing — all of that takes time. And that’s before factoring in local competition and inventory. But as we head into this new year, there’s another reason starting early matters even more — and it has everything to do with what’s happening in the market right now… It’s Finally a Buyer’s Market in Many Areas… But It Might Not Last One of the biggest reasons to begin in January is where the market stands right now. In many areas, conditions are unusually favorable for buyers — and that’s not something to assume will stick around. According to recent housing market data , there were roughly 37% more sellers than buyers across the U.S. in November 2025, one of the largest gaps on record going back to 2013. A gap that large can give buyers more negotiating power. It often leads to more options, more time to consider choices, and greater leverage when it comes to price, terms, and requests for seller concessions. But that gap can easily close. Many buyers put off looking for a home until the spring market “officially” begins. That’s in quotation marks because there really is no official date for when the spring market begins. But at some point in the next few months, there will likely be a surge of buyers entering the market. When that happens, competition will increase and many of the advantages buyers enjoy early in the year will likely begin to shrink. Buyers who wait may find themselves facing more multiple-offer situations, tighter negotiations, and less room to ask for concessions. Getting started in January doesn’t just give you a head start — it gives you a shot at taking advantage of conditions that may look very different just a few months from now. The First Thing to Do After the First of the Year If you’re even just thinking about buying a home in 2026, the most productive first step after the new year isn’t scrolling listings or heading out to open houses — it’s having a conversation with a local real estate agent. National headlines are helpful for understanding broad trends, but real estate is extremely local. Conditions can vary dramatically from one city to the next, from one neighborhood to another, and even from one price range to another within the same town. An agent can walk you through what inventory looks like right now, how competitive buyers are in your target price range, and whether sellers are negotiating or still holding firm. They can also help you come up with a timeline and strategy based upon your personal situation and the current market conditions. The Takeaway: Buying a home almost always takes longer than people expect. That’s why many experts recommend starting the process at least six months before you plan to move. That doesn’t mean it has to take that long — plenty of buyers find and close on a home much sooner. But it does mean that giving yourself time is rarely a bad idea. Starting as early in the year as possible is always smart, but starting early in 2026 may be even smarter. With roughly 37% more sellers than buyers — the largest gap we’ve seen since 2013 — today’s market is offering buyers opportunities that may not last once more people jump in later this year. Waiting until spring could mean more competition and fewer advantages than buyers see right now. If you’re even thinking about buying in 2026, getting the ball rolling in January can put you in a much stronger position. And the best first step isn’t browsing listings — it’s talking with a local real estate agent who can explain what’s happening in your market, help you set realistic.

Leased Solar Panels Could Impact Your Buyer’s Ability to Get a Mortgage

By Inner Circle • January 20, 2026

Most homeowners who consider adding solar panels are thinking about a few common goals: They’re environmentally conscious and want to reduce their carbon footprint. They’re looking to save on rising utility costs. They believe solar will increase the value of their home when they sell it. But how they think about paying for the installation is an entirely different conversation. If you have enough cash saved up, are willing to take out a home improvement or solar loan, or have access to other financing options (HELOCs, personal loans, etc.), you can buy and own the system outright. For many homeowners, though, that upfront cost feels daunting — which is exactly why leasing a solar system has become so popular. Solar companies often make leased systems sound almost irresistible: little or no money down, monthly payments that are offset by anticipated savings on your electric bill, and assurances that a future buyer will assume the lease with ease. Many sales pitches even imply that simply having solar is a selling point and adds value to the home. But whether you already took a solar company up on a lease offer, or are considering doing so, you may want to think about how that could impact whether or not your future buyer can buy your house when you go to sell. Some Lenders Will Treat Leased Solar Panels Like Debt One of the more common concerns people raise about how solar panels will impact the future resale of a home is in terms of aesthetics. Some buyers simply don’t like how they look and won’t consider a home with them, which can obviously impact the number of buyers your home will appeal to, and potentially the selling price. However, a leased system can create another issue that goes beyond preference: it can affect whether they can buy your home at all. When a buyer applies for a mortgage, lenders look closely at their financial obligations. Depending on the situation, some mortgage underwriters will treat a leased solar system like a monthly debt payment because the buyer must take over that contract as part of buying the house. So even if your future buyer loves the fact that you have solar panels installed, the lease payments can still count against their debt-to-income ratio (DTI) — one of the core metrics lenders use to determine how much a buyer can borrow. If the lease payment pushes their DTI too high, they might not qualify for the mortgage amount they need, or in some cases, prevent them from qualifying at all. Some lenders and loan programs are more flexible than others, but there’s always a risk that a lease payment can be counted against the buyer’s ability to qualify for the home price you want in certain underwriting scenarios. It’s also worth noting that appraisers typically don’t assign value to leased equipment the way they do for owned solar. If a buyer doesn’t own the panels, an appraiser generally won’t add dollar value to the home based on their presence alone, which may impact the value you and your buyer agreed upon, forcing price renegotiations. What to Do Before Installing a Leased Solar Panel System If you’re still in the decision-making stage — or even if you already have solar installed — and you’re thinking about the resale of your home, it’s worth getting informed before moving forward. One helpful resource many homeowners aren’t aware of is this consumer advisory from the U.S. Department of the Treasury that outlines what to consider before installing solar panels. It covers financing options, ownership vs. third-party arrangements, tax credits, and — importantly — how solar systems can interact with loans and future home sales. It’s a neutral, plain-English guide designed to help homeowners understand the long-term implications of their choices, not just the short-term savings pitch. Reading through guidance like that can help you ask better questions, spot potential red flags in contracts, and understand how different solar arrangements may affect you later, but speaking with a local real estate agent can also be extremely helpful. An agent doesn’t sell solar, and they don’t benefit one way or another from how you finance it — which makes their perspective especially useful. They can help you understand how leased systems are typically received by buyers and lenders in your market, whether similar homes with solar have faced financing hurdles, and what impact (if any) a lease might have on your buyer pool or sale timeline. Real estate is hyper-local. What works seamlessly in one neighborhood or price range may create friction in another. Before installing solar — or before listing a home with a leased system already in place — having an agent weigh in can help you avoid surprises and make decisions that align with both your lifestyle goals and future resale plans. Sometimes, a quick conversation upfront can save you from a much bigger headache later. The Takeaway: Leasing a solar panel system often sounds easier and more appealing than paying outright for it to be installed. However, when you lease, lenders might treat that monthly obligation as debt, which can affect a future buyer’s ability to qualify. If resale matters — whether next year or years down the road — understand your lease terms, explore buy-out or ownership options, and consult with a local agent before installing or listing.