Key Takeaways
- Stay Proactive to Maximize ROI: Regularly renewing leases, updating rent, and maintaining your property are essential annual tasks that minimize vacancies and protect your investment.
- Conduct Annual Safety and Maintenance Checks: Test smoke and carbon monoxide detectors, inspect for plumbing leaks, and clean gutters to prevent costly damage and ensure tenant safety.
- Keep Tenant Information Current and Communicate Clearly: Verify updated tenant contact details yearly and clearly outline maintenance responsibilities in the lease to avoid disputes and improve tenant relations.
Procrastination can be costly for any business, and landlords are no exception. Staying proactive with lease renewals, maintenance, and rental inspections should be your top priority to protect your investment and maximize returns.
Too often, property owners overlook essential annual tasks that directly impact their ROI. To help you stay ahead, here are six crucial actions you should be doing every year but probably aren’t.
Partnering with experts like Real PM Services can make these easier to manage and ensure you get the most from your rental property. Keep reading to learn more!
Re-Up Short-Term Leases
Vacancies can quickly cut into your rental income, while you continue to cover expenses like mortgage payments, property taxes, and repairs. Minimizing vacancy periods is essential to maintaining a strong return on investment.
One way to reduce vacancies is by encouraging short-term or month-to-month tenants to sign longer, year-long leases. This helps ensure steady, predictable rental income.
Make sure to notify tenants well in advance of their lease expiration. Early communication gives you time to prepare for either renewing the lease or finding new tenants.
Update the Rent Amount
The rental market is quite dynamic. And with this fluidity means certain things are bound to change with time, such as the market rents.
With that in mind, make sure to conduct a market analysis every year to ascertain that you are charging the right rent amount. Otherwise, it’s possible that you could be undercharging tenants and leaving money on the table.
One way to verify market rent is by checking with local property managers renting out comparable units. You could also take your research online by browsing reliable rental listing sites like Zillow and Apartment.com.
The right rent amount is neither too low nor too high. It’s the one that allows you to pay your expenses comfortably and remain with a decent profit.
According to industry experts, the ideal ROI should fall between 5% and 12%. This, of course, will depend on things like the property’s location and type.
Check the Working of the Smoke and Carbon Monoxide Detectors
This is a crucial annual task for landlords. State and local habitability codes require that tenants have functioning smoke and carbon monoxide detectors. It’s your responsibility to ensure these devices are working properly to keep your property safe and compliant.
Make it a point to test the alarms every year. Alternatively, you can include a lease clause making it the tenant’s responsibility to maintain and test the detectors regularly.
Check for Plumbing Leaks
Plumbing leaks can cause significant damage and increase water bills if left unchecked. According to the EPA, an average home can lose around 10,000 gallons of water annually due to leaks.
When inspecting your rental, watch for signs like:
- Water stains or discoloration (yellow, brown, or dark spots) on walls, ceilings, or floors.
- Bubbling, peeling, or flaky paint or wallpaper caused by trapped moisture.
- Visible wet spots near plumbing fixtures.
- Buckling, warping, or soft spots in floors indicating water accumulation underneath.
Addressing leaks early can save you from costly repairs down the line.
Ask the Tenant for Updated Contact Details
Tenant contact information can change over time, so it’s important to verify and update these details annually. Make sure you have their current phone number, email address, and emergency contact information.
Having accurate contacts ensures you can reach tenants when needed. Always initiate communication during normal business hours unless it’s an emergency.
Inspect the Gutters and Downspouts
When was the last time you cleaned the gutters and downspouts? If you can’t remember, it’s time to take a closer look—neglecting them can lead to costly damage.
Over time, gutters and downspouts become clogged with dirt, leaves, and debris, especially if there are trees near the property.
Their primary job is to direct water away from your home’s foundation. When they fail, several problems can arise:
- Soil erosion around the foundation, potentially causing structural damage.
- Water backing up under roof shingles, leading to roof damage.
- Leaks that damage ceilings and walls from water infiltration.
- Stagnant water creates breeding grounds for pests like mosquitoes, which carry diseases.
To avoid confusion and protect your property, clearly specify in the lease whether gutter and exterior maintenance, including landscaping, are the tenant’s responsibility.
Defining these duties upfront helps prevent disputes and keeps your property in good shape.
Conclusion
Performing these important tasks each year is key to maximizing your return on investment (ROI) and keeping your rental property in great condition.
Regular upkeep and clear communication help you attract and retain quality tenants, those who follow lease terms, care for the property, and pay rent on time.
By staying proactive, you reduce costly repairs, avoid vacancies, and build a strong landlord-tenant relationship that supports long-term success.
If you have questions or need expert assistance managing your rental, Real PM Services offers reliable and affordable property management in Lubbock County. Contact us today to learn how we can help you protect and grow your investment.
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