As a new landlord with an investment property, sometimes it makes sense to also play the role of property manager. This can be especially true if you have the right skill sets or are trying to save some money by not contracting a property manager. With that said, the role of property manager is not always easy. Especially if you don’t have a lot of experience or tools when you are first getting started. To help you out, we’ve collected some of the best property management tools for first time landlords. Keep reading to learn more about them and how to download them for for your own use.
3 of the Best Property Management Tools for First Time Landlords
There are a few important things that all landlords want out of their investment property. First and foremost, they want to make a profit from their investment. They are diligent in tracking their income and expense to make the best business decisions possible. Another important key is that they select the best tenants that will respect their property. Screening and selecting for good tenants can eliminate a lot of problems when it comes to managing the property. This includes avoiding damage to the property.
Select the Best Tenants with a Tenant Application
Your rental application should include all of the information and questions you need to know to make the best decision for selecting a tenant. An application creates a fair process that helps evaluate tenant criteria equally based on your application questions. Our tenant application includes many of the same questions that are found here in our Complete List of 30 Questions to Ask Potential Tenants.
The application is actually just one small part of the tenant screening and selection process. In our own rental business we found out the hard way how important it is to take your time selecting tenants. We got anxious to rent our unit and took the first applicant that applied even though there were some red flags. It can be hard to be patient when you are carrying a property without a tenant and expenses are adding up. But trust me there are times when no tenant is better than a bad tenant. It pays to be patient.
As I was saying, the application is just one part of the tenant screening and selection process. The processing includes multiple steps in which you continue to gather more information about the tenant to determine if they will be a good fit for your property. Below is a brief overview of our process for screening tenants. For a more full description of each step make sure to check out the full post here: Complete Guide to Screening and Selecting Tenants.
- First Communication with Applicant via Property Listing
- Showing the Property
- Collecting Tenant Applications
- Review of Tenant Application
- Review of Contract Terms with Applicant
- Signing of Contract
Make a Profit – Rental Property Financial Excel Spreadsheet
Accurate record keeping is the only way to know if your business is profitable. It can also reveal which properties make you the most money or alternatively are losing money. This information is super valuable as it can help you make business decisions moving forward.
Our template spreadsheet includes space to record information on up to five properties. It also has four primary tracking areas that include:
- Tenant Information
- Security Deposit Information
- Rental Income
- Expenses
The tenant information area includes space to record the tenant’s name, contact information, rent amount and lease renewal date.
The spreadsheet also has an area to record the date the security deposit is collected and how much was collected.
In the rental income area, you can track the date you collect rent each month, how much you collect, and if you charge a late fee.
The last section is for rental expenses. There is an area to record common rental expenses like your mortgage, utilities, and insurance by month. Also included is an area for miscellaneous expenses per property.
All of the spreadsheet columns are formatted so that the expenses total automatically. So you can easily view where you’re at financially at any given point in the year. This also makes it easy to view your gross income, expenses and net income. And finally since it’s in an Excel spreadsheet you can easily reformat any sections you wish.
Avoid Property Damage with an Inspection and Inventory Record
As a landlord all you want for your property is for it to be taken care of and respected. And the majority of tenants do just that by taking good care of their unit. There are some exceptions though and these may leave you wondering how to prevent damage to your rental property.
What is an Inspection and Inventory Record?
So what is an Inspection and Inventory Record? An Inspection and Inventory Record is a tool that landlords and tenants can use to agree upon the condition of the property before and after occupancy. It works by the landlord and tenant inspecting the property room by room together and noting any imperfections or damages. If there is any furniture or appliances included with the unit, those are also inventoried and inspected. In addition to the record, I would also recommend taking pictures of anything worth noting to include with the record.
Why is an Inspection and Inventory Record Important?
An Inspection and Inventory Record is important because it creates a signed agreement between both parties around the condition of a rental property before the lease even begins. It creates much more objectivity and documentation to the state of the property especially if you include pictures. Overall it can help eliminate the blame game between landlords and tenants by making sure everyone is on the same page.
When do you use an Inspection and Inventory Record?
As mentioned earlier, the first time to pull out an Inspection and Inventory Record is before the tenant moves in. This is when you will walk the property together and note any pre-existing issues. Once you have done your inspection, each party should sign the document.
You will use the same report again at the end of the lease when the tenant moves out. Landlord and tenant can do the same process of walking the property and noting any new damages not present at the start of the lease. Any damages incurred above normal wear and tear should be noted and deducted from the security deposit.
Not sure what is considered “normal wear and tear”? Here are a couple websites that go into more detail about normal wear and tear verse property damage when it comes to returning a security deposit.
Landlord’s Guide to Normal Wear and Tear in Rentals
What Can a Landlord Deduct from a Security Deposit?
Get the Best Property Management Tools for First Time Landlords Below 👇🏼
You can grab copies of all of these tools (Inspection and Inventory Record, Rental Property Financial Excel Spreadsheet and Tenant Application) by subscribing below. Not only will you receive these property management tools but you’ll have unlimited access to our entire Investment Property Resource Library. Subscribe for a limited time for just $2.99 per month to this growing digital collection.
It’s the perfect low-cost toolkit for anyone looking for a little more guidance to kick-start their passive income potential. No obligation – opt-out of the Investment Property Library at any time.
Subscribe Below for Your Property Management Tools and Access to the Full Investment Property Resource Library
Some of the printable resources in the Investment Property Resource Library include:
- Sample Inspection and Inventory Record
- Sample Rental Applications
- Rental Business Financial Spreadsheet – Excel Spreadsheet
- Rental Property Cash Flow Worksheet
- Newsletter Updates
Additional resources are added all the time so check back often! We hope these property management tools will help you as a new landlord. And we wish you the best of luck on your new investment property!
