Property Management Essentials

Self-Management Pros: - Save 8-12% of rent in fees - Direct control over decisions - Faster response to issues - Build landlording skills - Know your properties intimately

Self-Management Cons: - Time-consuming (5-10 hours/property/month) - Emotional decision-making - Must be available for emergencies - Learning curve with legal requirements - Harder to scale

Professional PM Pros: - Truly passive income - Expert tenant screening - Legal compliance handled - 24/7 emergency response - Scales easily

Professional PM Cons: - 8-12% of rent cost - Less control - Quality varies significantly - May not treat property like you would

Marketing: - Professional photos - Detailed descriptions - Multiple listing platforms - Competitive pricing

Screening Process: 1. Pre-qualify over phone (income, timeline, pets) 2. Show property to qualified prospects 3. Collect application and fee 4. Run credit check 5. Verify employment and income 6. Call previous landlords 7. Check criminal background 8. Make decision consistently

Minimum Standards (Adjust for Your Market): - 600+ credit score - 3x rent in gross income - No eviction history - No felonies - Positive landlord references

Fair Housing Compliance: Apply same standards to everyone. Never discriminate based on protected classes.

Critical Lease Terms: - Rent amount and due date - Late fee policy - Security deposit amount - Lease term length - Pet policy and deposits - Maintenance responsibilities - Entry notice requirements - Renewal terms - Termination conditions

Addendums to Consider: - Pet agreement - Lead paint disclosure (pre-1978) - Mold disclosure - Crime-free lease addendum - Utility responsibility

State-Specific Requirements: Laws vary significantly. Use state-specific lease forms and consult local attorney.

Annual Increases: Include clause allowing annual rent adjustments. Even if you don't raise rent, the option is valuable.

Preventive Maintenance: - HVAC filter changes (quarterly) - Gutter cleaning (biannual) - Water heater flush (annual) - Smoke detector batteries (annual) - Pest control (quarterly)

Repair Response: - Emergency (no heat, flooding, fire): Immediate - Urgent (no hot water, AC out in summer): 24 hours - Standard repairs: 3-7 days - Cosmetic issues: Next vacancy

Contractor Network: Build relationships before emergencies: - Plumber - Electrician - HVAC technician - Handyman - Appliance repair

Document Everything: Photos before and after repairs. Keep all receipts and invoices. Communication in writing.

Hire a PM When: - You own 5+ properties - Properties are far from your home - You have a demanding job - You're scaling quickly - Tenant interactions stress you out - You want truly passive income

Interviewing PMs: - How many properties do they manage? - What's their vacancy rate? - How do they handle maintenance? - What's their fee structure? - How do they communicate with owners? - Can you contact current clients?

Fee Structure: - Monthly: 8-12% of collected rent - Leasing: 50-100% of first month's rent - Maintenance markup: 10-20% - Other fees: renewal, inspection, eviction

Managing Your Manager: - Regular communication - Review monthly statements - Annual property visits - Understand your rights - Don't be afraid to switch if underperforming