Property Management: 10 Tips for Landlords

Chicago Property Management Firm :: Northern Illinois Commercial Property Management
Landlords need to keep an eye out on their real estate investment properties just as much as the property management firm does, and while it is the job of the property management firm to handle certain aspects of the building, it is up to the Landlord to keep tabs on tenants, contracts and the overall state of their real estate properties. A few things Landlords should be doing:

1. Always Screen Tenants
Never rent out space to anyone before checking credit history, references, and background. Inconsistent screening and tenant selection too often results in problems -- a tenant who pays the rent late or not at all, trashes your spaces, or lets undesirable people move in. Use a written rental application to properly screen your tenants for warning signs.

2. Get Leases in Writing
Always use a written lease or month-to-month rental agreement to keep track of the important events and agreements of your professional relationship with your tenants -- including when and how you handle complaints and repair problems, notice you must give to enter a tenant's apartment, and anything else significant.

3. Handle Security Deposits the right way
Establish a fair system of setting, collecting, holding, and returning security deposits to tenants. Inspect and keep track of the condition of the rental unit before the tenant moves in, to avoid misunderstandings and disputes over security deposits when the tenant moves out.

4. Make Necessary Repairs
Stay on top of maintenance and repair needs and make repairs when your tenant's request them. If the property is not kept in good repair, you'll alienate good tenants, and tenants may gain the right to withhold rent, repair the problem and deduct the cost from the rent, sue for injuries caused by defective conditions, and/or move out without needing to give you notice.

5. Provide a Secure Property
Don't let your tenants and property be easy marks for a criminals or other undesirable peoples. Assess your property's security and take reasonable steps to protect it. Often the best measures, such as proper lights and trimmed landscaping, are not that expensive. If you can justify the extra expense, a gated entry may be a great selling point for security.

6. Before Entering, Provide Notice!
Learn about your tenants' rights to privacy. Notify your tenants whenever you plan to enter their unit, and provide as much prior notice as possible, at least 24 hours or the minimum amount required by state law. If you do not handle notice properly, your tenants may be able to use what's known as 'Tort' and receive monies from you. Note: Landlords are only allowed to enter a rental unit without notice in the event of an emergency such as fire.

7. Disclose Environmental Hazards
If there's a bio or environmental hazard such as lead or mold on the property, tell your tenants right away. Landlords are increasingly being held liable for tenant health problems resulting from exposure to environmental toxins in the rental units.

8. Oversee your Property Managers
Choose and supervise your property manager carefully. If a manager commits a crime or is incompetent, you may be held financially responsible. Do a thorough background check and clearly spell out the manager's duties to help prevent problems down the road. If you're using a reliable Property Management Firm, many of those responsibilities can be loaded onto the firm rather than having to oversee an onsite manager.

9. Purchase Liability and Property Insurance.
Purchase enough liability and other property insurance. A well designed liability or other property insurance program can protect you from lawsuits by tenants for injuries or discrimination and from losses to your real estate rental property caused by everything from fire and storms to burglary and vandalism.

10. Always Resolve Disputes.
Try to resolve disputes with your tenants without the involvement of lawyers and lawsuits. If you have a conflict with a tenant over rent, repairs, your access to the unit, noise, or some other issue that doesn't immediately mean an eviction, meet with the tenant to see if the problem can be resolved without outside help. If that doesn't work, consider mediation by a neutral third party before resorting to legal help.

If you are in need of advice from a professional Chicago Property Management Firm, call MK Asset Management for top notch assistance with your Residential or Commercial Real Estate Properties.