How to Effectively Maintain a Rental Property (2024)

How to Effectively Maintain a Rental Property (1)

One of the responsibilities of rental owners is to ensure that the properties are well-maintained and habitable at all times. Such efforts not only help in saving money that would have gone to endless repairs but also aids in enhancing the aesthetics and perceived value of the assets. Well maintained rental properties tend to attract and retain high quality tenants. If you are struggling with your property’s maintenance, below are tips to get you on top of your game.

7 Important Maintenance Tips

1. Qualify your tenants

How to Effectively Maintain a Rental Property (2)

The most efficient way to ensure the property remains in a healthy state is to have quality renters who will take good care of it. In fact, if you get such occupants, you might not need to worry about carrying out costly upgrades. On the contrary, landlords who have problematic residents will always end up with worn-out and old-looking properties irrespective of how frequent they conduct the maintenance. For this reason, you should take the time torun background checks on every potential tenantand only admit those who have remarkable referrals from their past or current landlords.

2. Insert a maintenance clause in the lease agreement

Even if you have the perfect tenant who boasts of impressive landlord referrals, it is in your best interest to insert a property maintenance clause in yourlease agreement. Through such a clause, rental owners can emphasize to the leaseholder the importance of taking good care of the property, and clarify the property maintenance roles and responsibilities of each party. Once a resident is cognizant of the fact that he or she is liable for any resulting damages, they will proactively take good care of it.

3. Establish a definite property maintenance routine

Having aperfectly maintained propertyinvolves a lot of work ranging from inspection, servicing, and repairs. Staying on top of all these can be tasking and intimidating at the same time. However, property owners can effectively keep everything in tiptop condition by breaking down the entire maintenance exercise into small manageable tasks. The good news is that different sections of the house have varying servicing and maintenance requirements. Which means that you can schedule the maintenance into weekly, monthly, semi-annually and annual tasks.

For example, you can schedule your cleaning to be weekly, your window washing to be done semi-annually, andbringing in the outdoor furnitureto be done annually. Having this all well organized will help facilitate the process of keeping your rental property well maintained.

4. Contract qualified vendors

To get a well-maintained property, you need maintenance and repair contractors like plumbers, carpenters, landscapers, electricians, roofing specialists, flooring experts, locksmiths, cleaners, or air-conditioning technicians. Irrespective of which maintenance service you want, you should interview and screen each vendor that you want to contract. Only settle for the qualified, licensed, insured, and affordable vendors who can offer the required services in a sound and reliable manner. It is also judicious to hire contractors who provide full-time emergency response services.

5. Use quality supplies

How to Effectively Maintain a Rental Property (3)

Many rental owners take their time to look for competent property repair and maintenance contractors, only to jeopardize their efforts by giving the technicians inferior quality materials. For instance, a landlord might give an HVAC technician low-quality air filters. Even though the AC units will work correctly for a few weeks, it will soon break down, necessitating endless repairs. Such efforts will be costly to you in the long run. Avoid frequent expenses by using superior quality parts and materials, which will give you the benefits you desire, and extend your property’s life.

6. Act immediately

When it comes to property maintenance, the adage “a stitch in time saves nine” holds true. If you notice a minor defect or flaw on your property, correct it as quickly as possible. Such a swift response can prevent you from incurring massive repair costs. For instance, fixing a missing roof shingle on time can prevent structural damage to ceiling or walls. Similarly, fixing leaking faucets will not only prevent property damage but will also safeguard your renters from incurring hefty water bills.

7. Be proactive

At times being proactive is the best way to ensure a well-maintained property. For instance, instead of waiting until something goes wrong, you can preempt and take preventative measures. For example, you could replace the batteries in the smoke and carbon monoxide detectors even before they wear out, to prevent malfunction. Or, you could service the HVAC systems to ensure their efficiency just before summer. Other examples include unclogging the guttering and drainpipes before the rainy season, as well as mowing the lawn, pruning the hedges, and cutting overgrown bushes to prevent pest and insect infestations.

If you need additionalassistance with your rental propertywe would be happy to answer any questions you have. You can call us at (208) 377-8889 or send an email [email protected].

How to Effectively Maintain a Rental Property (2024)

FAQs

How to Effectively Maintain a Rental Property? ›

The 1% rule of real estate investing measures the price of an investment property against the gross income it can generate. For a potential investment to pass the 1% rule, its monthly rent must equal at least 1% of the purchase price.

What is the 1 rule for rental property? ›

The 1% rule of real estate investing measures the price of an investment property against the gross income it can generate. For a potential investment to pass the 1% rule, its monthly rent must equal at least 1% of the purchase price.

What is routine maintenance on a rental property? ›

Routine Maintenance

This maintenance includes things smaller things that can be done relatively quickly and easily, and on a routine basis. This could include landscaping, picking up trash, or other things around the property. The maintenance cost of this rental maintenance is often very easy to calculate.

What is the rule of thumb for maintenance on a rental property? ›

50% Rule: Set aside half of your rental income each month for repairs, maintenance, taxes, insurance, and other costs related to your property. 1% Rule: Maintenance will cost about 1% of the property value per year. So, if a unit is valued at $250,000, then maintenance will cost around $2,500.

How do you manage a lot of rental properties? ›

Tips for Managing Multiple Properties Effectively
  1. Automate as Much as Possible. ...
  2. Develop a Standardized Screening Process. ...
  3. Utilize a Maintenance Tracking System. ...
  4. Implement a Clear Rent Collection Policy. ...
  5. Familiarize Yourself with Local Laws and Regulations. ...
  6. Hire Local Experts. ...
  7. Prioritize Communication.
Feb 17, 2023

What is the 50% rule in rental property? ›

The 50 Percent Rule is a shortcut that real estate investors can use to quickly predict the total operating expenses that a rental property investment is likely to generate. To work out a property's monthly operating expenses using the 50 rule, you simply multiply the property 's gross rent income by 50%.

What is the 80/20 rule for rental property? ›

In the realm of real estate investment, the 80/20 rule, or Pareto Principle, is a potent tool for maximizing returns. It posits that a small fraction of actions—typically around 20%—drives a disproportionately large portion of results, often around 80%.

What is considered maintenance expense on a rental property? ›

Routine repairs and maintenance include tasks such as repairing water leaks, caulking door and window seals, patching a worn carpet, replacing tile or roof shingles, and fixing a broken landscape sprinkler head. Conducting periodic property inspections can help catch minor problems before they become big and expensive.

What should a maintenance schedule include? ›

A preventive maintenance schedule should contain clear details about the maintenance task, who is responsible for it, how they should perform it, and when they should perform it.

What is considered a maintenance activity? ›

Maintenance activity means basic repair procedures aimed at maintaining facilities in a safe operational condition. This may include activities like cleaning, sweeping, repairing concrete joints, mending potholes, and installing or repairing utilities such as water or sewer lines.

How do you calculate repairs on a rental property? ›

Strategies For Estimating Average Maintenance Costs

First is the square footage rule, which involves setting aside $1 per square foot of the property toward annual maintenance costs. For example, a 2,500-square-foot home will need about $2,500 in maintenance using this method.

How do you calculate property maintenance? ›

Square Footage Formula

What you need to do here is use $1 per square foot for all maintenance activities throughout the year. For example, if your property is 5000 square-foot, then you will need to set aside around $5000 annually for maintenance expenses.

How much rental income should be set aside for maintenance? ›

Property managers have rules of thumb for estimating annual rental property maintenance expenses. Using the 50 percent rule , set aside half the annual property rent. Using the 1 percent rule , set aside 1 percent of the property value per year. Using the square footage rule, set aside $1 per square foot per year.

How can I maximize my rental income? ›

Table of contents
  1. Rent Out Fully Furnished Apartments and Rooms.
  2. Offer Additional Storage Space.
  3. Minimize Resident Turnover.
  4. Offer Additional Services and Amenities.
  5. Reinvest Your Rental Income Into More Rental Properties.
  6. Implement Dynamic Pricing Strategies.
  7. Optimize for Energy Efficiency.
  8. Explore Short-Term Rental Options.
Jan 23, 2024

How do you manage income from rental property? ›

Actionable Tips on Managing Your Rental Property Finances
  1. Choose your rental business structure. ...
  2. Keep a clear line between rental property finances and personal finances. ...
  3. Set prices and expectations on your rental prices. ...
  4. Track rental revenue and expenses. ...
  5. Allot a budget for repairs and maintenance.

How can I make my rental stand out? ›

How to Make Your Rental Property Stand Out: A Comprehensive Guide
  1. First Impressions Matter: Enhance Your Curb Appeal. ...
  2. The Value of Natural Light: Upgrade Your Windows. ...
  3. The Heart of the Home: Enhance Your Kitchen and Bathroom. ...
  4. A Fresh Look: Repaint the Property. ...
  5. Emphasize Unique Features. ...
  6. Cleanliness is Key.
Oct 10, 2023

What is the 2 rule for rental property? ›

The 2% rule is a rule of thumb that determines how much rental income a property should theoretically be able to generate. Following the 2% rule, an investor can expect to realize a positive cash flow from a rental property if the monthly rent is at least 2% of the purchase price.

What is the 1% rule when leasing? ›

It's a common rule of thumb to adhere to the 1% rule. This rule dictates finding a monthly lease payment equivalent to 1% of the car's purchase price. For example, a $60,000 car would be a steal if you leased it for $600 monthly. You cannot negotiate acquisition fees, residual value, registration costs, or sales tax.

Is the 1% rent rule realistic? ›

Is The 1% Rule Realistic? Many people find the 1% rule helpful, but there are some shortcomings with using this strategy. For one thing, properties that fail to meet the 1% rule are not necessarily bad investments. And likewise, properties that do meet the 1% rule are not automatically good investments either.

Why doesn't the 1% rule work? ›

The 1% Rule is actually very limited because it only deals with the total rent or the gross rent that you actually collect, and it doesn't take into account all of the expenses that you could have on that rental property.

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