Generally, a proactive landlord is a successful landlord! By staying on top of things, you can stay organized and efficient.
Keeping up with repairs and maintenance, lease renewals, and prevailing market rents, among other things, can seem stressful and time-consuming. And this is where property management comes in! A good property manager can help you minimize stress and maximize your ROI.
Otherwise, in this guide, Foothills Properties will share some of the things you should be doing every year but probably aren’t.
6 Essential Annual Tasks Landlords Often Overlook: A Must-Do Guide
Renewing Leases
Lease renewals are key for optimum ROI. It saves you from the costs of re-renting the unit, including advertising and screening expenses. This ensures optimum return on investment.
However, to avoid such expenses, you need to be proactive when it comes to lease renewals. Don’t wait until the last minute to ask the tenant whether they will be staying or leaving.
Ideally, you should offer the tenant the option of lease renewal at least 90 days before it expires. This way, you’ll be able to know whether to start the re-renting process or another term with the tenant.
If the tenant won’t be staying for another term, at least you’ll have enough time to find a replacement.
Check Market Rates
The rental market is ever-changing. That’s why it’s important to check the prevailing market rates every year to ensure you remain competitive. The last thing you’d want is either overcharging or undercharging your tenants.
Undercharging tenants will mean leaving money on the table. Overcharging tenants will make your property less desirable in the eyes of prospective tenants. These are two things that are bound to cost your bottom line.
So, how exactly should you go about checking prevailing market rates? You can do so in multiple ways. One, you could interview local landlords or property managers. These should be renting out similar units as yours. That is, in terms of square footage, amenities, and number of bathrooms and bedrooms.
The other route you could take is simply browsing the internet. A rental listing site like Zillow can provide you with valuable insights to see what other landlords are charging for similar units.
And if looking to hike the rental rate, make sure to do your due diligence. Look at things like market conditions, maintenance costs, recent upgrades, inflation, and rent control laws.
Test Smoke and Carbon Monoxide Detectors Annually
Most states require landlords to provide tenants with working smoke and carbon monoxide detectors as part of the habitability requirements.
If your state requires this, make sure to check them at least once each year. The following are some of the things to include in your annual checklist in this regard:
Ensure their mounting to the wall or ceiling is secure.
Check for signs of physical damage, cracks, or excessive wear and tear.
Remove any dirt, dust, or debris that could be causing an obstruction.
Ensure the ventilation openings are clear and unobstructed.
Ensure the test button is loud and clear by activating it.
Replace the batteries.
Doing this will ensure you abide by your state’s safety codes as enshrined in the local landlord-tenant laws. This can minimize the risk of fires and other safety-related issues.
You could also include the tenant’s responsibilities for maintenance in your lease. For example, reporting anomalies on time and replacing dead batteries when the beeping starts.
Check for Water Leaks
This is another thing that landlords should be doing every year but probably aren’t. Not checking for water leaks can be costly to your bottom line.
Every year, you should make a point of going round the property checking for any water leakage. Water isn’t cheap, and any leakages can lead to significant losses every month. In addition to the surging water bills, the leakages could also cause significant damage to floors and walls.
When it comes to water damage, prevention is always better! Every year, make a point to do the following:
Thoroughly inspect the roof for any damage, such as missing or loose tiles or shingles. Also, clean the gutters and downspouts to ensure a smooth flow of rainwater.
Inspect all plumbing fixtures, including toilets, sinks, and faucets, for signs of leakage.
Inspect washing machines, dishwashers, and refrigerators for leaks around connections and hoses.
Look for signs of mold or mildew growth on walls and ceilings. You could do the inspection yourself or simply hire a professional plumber for a thorough assessment.
Ensure Property Access
As a landlord, you have a right to access your rental property for several legitimate reasons such as:
inspecting the unit
responding to an emergency
showing the unit to prospective buyers or prospective tenants
making repairs or replacements.
As such, make sure that you always have working keys. It may be possible that the tenant may have changed the locks, inadvertently denying you access to the property.
Also, it goes without saying that you should always notify the tenant before entry to protect their privacy. A notice of 24 hours beforehand should suffice.
Change Furnace Filters
These need to be changed as often as possible. As a landlord, it’s your responsibility to ensure they are replaced for the efficient working of the furnace. And even if you have delegated the responsibility to the tenant, be keen on follow-ups.
An unmaintained furnace can pose several hazards, endangering the home and the tenant’s health. Clogged vents can lead to a fire outbreak. Poor ventilation can also cause carbon monoxide buildup.
Fortunately, replacing furnace filters is relatively cheap ($10). The installation is also something relatively easy to do.
Conclusion
As a savvy landlord, there are certain responsibilities that you cannot afford to ignore! Each year, make sure to include these as part of your general property upkeep.
But if you find property maintenance to be a chore, Foothills Properties can help. We are a trusted and reliable property management company in Tucson, AZ. Get in touch to learn more!
