How to Take Care of Rental Properties

Protect your investment with maintenance.

Owning rental property can be a profitable experience. Your skillful management of your tenants and maintenance of the property is key to protecting and growing your investment. Jonna Lewis, a longtime Napa, California realtor and investment property owner, offers helpful steps for maintaining your rental properties.

Instructions

1. 

   Build a good relationship with key people.

   Maintain good relationships. An open relationship with your tenants will be key to knowing about potential problems with your property. "If your tenant trusts that you will act quickly and appreciate their diligence, they'll make sure to be more proactive when things are not working properly," offers Jonna Lewis, drawing from years of experience owning and managing rental properties of her own. She adds, "It is far less expensive to maintain things in your rental than to replace them once they're shot. Make sure your tenant knows that you really care and want to work with them to assure that everything is well maintained." Other key relationships include befriending neighbors and area handymen.

2. 

   Home warranty plans can save money.

   Maintain the inside of your rental. Consider home warranty programs that make household repairs less expensive for you and your tenant. A typical warranty plan covers appliances in addition to larger ticket items like the plumbing, heating, and air conditioning units. If your tenant has a plumbing issue, the service call will have a service fee, typically about $60. The warranty plan really comes in handy when there are larger issues. Jonna Lewis advocates home warranty plans on all residential real estate. "A water heater went out on a rental last month," Lewis shared. "The service call was $60. The new water heater was covered by our plan which saved $400, about the cost of one year in the warranty program."

3. 

   Have clear expectations for yard maintenance.

   Maintain the outside of your property. Hire a good yard maintenance company if your property has complex or expensive landscape features. Many tenants may not have the proper experience or tools to maintain it correctly. If your tenants can maintain your simpler yard, discuss your requirements and offer written information on how and when to do the maintenance so everyone is clear on what is required. "Pay for the water as part of the rent," Lewis offers. "When finances are tight, the lawn at your rental could be the big loser if your tenant is trying to save money."

4. 

   Keep good records.

   Maintain good records. Good record-keeping allows you to take proactive maintenance steps. Keep an annual schedule to check and perform routine maintenance. Know when your roof should be inspected, when to review your pest control plan, and other larger projects that are often ignored. Budget ahead for these larger repairs by setting aside part of your monthly rent for future repairs. Most importantly, let your tenants know upfront that you will schedule set maintenance and inspection ahead with them.

Tips & Warnings

• Make sure to research local, state and regional laws governing rental property. Know your rights and responsibilities.

• Protect your investment with a good rental contract. A handshake does not offer you the protection of a well-written contract that clearly spells out your expectations as a landlord and the responsibilities of your tenant.

Resources

• Jonna Lewis
• American Home Shield