Managing rental properties can feel like spinning plates—accounting, maintenance, legal compliance, tenant issues—there’s a lot to juggle. But here’s the good news: you don’t have to figure it all out alone.
Whether you’re managing your first unit or your fiftieth, these seven tips will help you build a strong foundation, stay organized, avoid costly mistakes, and keep tenants happy.
What Is Rental Property Management?
Rental property management is the day-to-day operation of residential or commercial rental units. It includes everything from finding and screening tenants to collecting rent, handling maintenance, and ensuring compliance with local laws. Property managers act as the go-between for property owners and tenants, ensuring that both parties are satisfied and that the property remains profitable and well-maintained.
Why Rental Property Management Is Important
Good property management protects your investment, ensures steady income, and builds long-term tenant relationships. Poor management, on the other hand, can lead to high turnover, legal issues, and financial losses. By mastering the basics, you set yourself up for long-term success and scalability.
In this post, we’ll cover 7 basic steps you should be taking to build that success.
1. Set Up Proper Accounting Practices
Accounting is the backbone of your rental business. Without a reliable system, it’s easy to lose track of rent payments, mismanage security deposits, or miss tax deadlines.
That means moving beyond spreadsheets. Manual tracking is prone to errors and can become overwhelming quickly as your portfolio grows. Instead, use property management software that automates key tasks like bank reconciliations, rent tracking, and tax reporting.
For example, Buildium allows you to generate owner statements, track income and expenses, and stay compliant with IRS requirements—all from one dashboard. This not only saves time but also ensures accuracy and transparency.
Pro Tip: Set up recurring rent tracking and monthly financial reviews to catch discrepancies early and stay on top of your cash flow.
2. Build a Fair & Thorough Tenant Screening Process
A reliable tenant can make your job easier, while a problematic one can lead to late payments, property damage, or even legal disputes. That’s why tenant screening is one of the most important steps in the leasing process.
Start by creating a consistent screening checklist. This should include a credit check, background check, rental history, and income verification. These elements help you assess whether a prospective tenant is financially responsible and likely to respect your property.
Equally important is compliance with Fair Housing laws. These laws prohibit discrimination based on race, religion, gender, disability, and other protected classes. Always apply the same criteria to every applicant to ensure fairness and avoid legal trouble.
Pro Tip: Use a screening tool integrated into your property management software to streamline the process and reduce bias.
3. Set Up a Reliable Maintenance Team or Vendor Network
Maintenance issues are inevitable—but how you handle them can make or break your reputation as a property manager.
New managers should start by building a network of trusted vendors or hiring a dedicated maintenance team. This team should be capable of handling routine inspections, preventive maintenance, and emergency repairs.
Preventive maintenance—like checking HVAC systems before winter or cleaning gutters in the fall—can save you from costly repairs down the line. It also shows tenants that you care about their comfort and safety, which can lead to higher satisfaction and longer leases.
Pro Tip: Use a resident portal to allow tenants to submit maintenance requests and track progress in real time.
4. Create Clear Communication Channels
Communication is the glue that holds your property management operation together. Without it, misunderstandings can lead to missed payments, delayed repairs, and unhappy tenants.
Establish clear and consistent communication channels from day one. This could include email, text messaging, or a resident portal. The key is to be responsive and transparent.
Automation can help here, too. Use your property management software to send rent reminders, lease renewal notices, and maintenance updates. This keeps everyone informed and reduces the chance of miscommunication.
Pro Tip: Set expectations early by including communication guidelines in your welcome packet or lease agreement.
5. Consult a Legal Professional
Before you scale your business, it’s crucial to consult a legal expert. Real estate laws vary by state and municipality, and what’s legal in one area may not be in another.
A legal professional can help you draft leases, eviction notices, and other documents that comply with local, state, and federal laws. They can also advise you on best practices for handling security deposits, late fees, and tenant disputes.
This small upfront investment can save you from costly legal battles down the road.
Pro Tip: Schedule an annual legal review of your documents and policies to stay current with changing regulations.
6. Build Positive Tenant Relationships
Happy tenants are more likely to renew their leases, take care of your property, and refer others. That’s why building strong tenant relationships is key to reducing turnover and maintaining a steady income.
Start by being responsive to maintenance requests and respectful in your communications. Small gestures—like a welcome note, birthday card, or holiday gift—can go a long way in making tenants feel valued.
Creating a sense of community also helps. Consider hosting occasional events or sending out newsletters to keep tenants engaged and informed.
Pro Tip: Use your CRM or property management platform to track tenant milestones and automate appreciation messages.
7. Automate the Leasing Process
Vacant units cost money. The longer a unit sits empty, the more revenue you lose. That’s why it’s essential to streamline your leasing process.
Automation can help you move faster and more efficiently. Use a platform that allows you to list units online, accept digital applications, run background checks, and send leases for e-signature—all in one place.
This not only speeds up the process but also creates a better experience for prospective tenants.
Pro Tip: Set up auto-listing syndication to push your vacancies to multiple rental sites with one click.
Managing rental properties doesn’t have to be overwhelming—especially when you have the right systems in place. These seven tips will help you build a strong foundation, reduce risk, and create a better experience for tenants and owners alike.
Ready to put these strategies into action? Try Buildium’s 14-day free trial—no credit card required—or schedule a demo to see it in action.
FAQ
What is the best property management app for accounting?
Buildium offers automated accounting features that help track rent, expenses, and owner distributions.
How do I screen tenants fairly?
Use consistent criteria like credit, background, and income checks, and follow Fair Housing laws.
What kinds of property management maintenance apps are there?
Apps like Buildium allow tenants to submit requests and managers to track repairs in real time.
How can I automate the leasing process?
Use platforms that support online listings, digital applications, and e-signatures.
Why is legal compliance important in property management?
It protects you from lawsuits and ensures your leases and notices are enforceable.
