Creating A New Year's Resolution List For Your Rental Business

With the holiday season in full swing and the new year rapidly approaching, it is time for many to create a new resolution list for 2018. While your list might include classic personal growth goals such as weight loss or health improvement, don't forget to add a new year's resolution list for your rental business.

While you might add a personal flair to your list, the following are some resolutions to consider for the upcoming year.

#1: Screen Tenants

If you aren't already screening tenants, 2018 is the year to begin doing so. Thorough tenant screening can save you countless headaches down the road. Good tenant screening should be multi-stepped.

You should begin with pre-screening tenants. Ask interested applicants questions about their employment, why they are moving, who will be living with them, and other simple questions.

Next, your screening process should include a formal application. Not only should you collect an application, you should also take the time to read the application completely. You might be surprised at how much applicants will reveal in their application.

Lastly, you should run a background check, credit report, and eviction history report to ensure you have a complete and honest picture of your applicants. 

Pro Tip: Be sure you create solid criteria for acceptance prior to screening. For example, record what your credit score requirements will be. This can help protect you from claims of discrimination.

#2: Spend Less Time Managing

Being a landlord can quickly become a full-time job. Odds are high that operating your rental business is not your only job. Whether you have another full-time job or you only manage your properties, you should focus on spending less time in 2018 actually managing your rental business and more doing time doing the things you love.

Take time at the end of 2017 to review your processes and determine what components eat up the most time. For example, if marketing your properties is what drains your time, streamline the process and utilize an online platform for marketing that allows you to create one property listing and post it on the web easily. 

Whatever it is that takes up most of your time, find a more efficient and organized method for it. There are countless tools available online to help make managing properties easier. Utilize them to your advantage and be honest with yourself. If there are areas of weakness in your rental business, reach out for advice from a mentor and accept the feedback you hear.

#3: Create A Rock-Solid Lease

A lot of the issues surrounding the tenant/landlord relationship are the result of a poorly written lease. If you haven't invested in creating a rock-solid lease, now is the time to do it. 

Going forward, you can establish a clear understanding of both you and your tenants of expectations. For example, does your lease contain information about yardwork responsibilities? Every single small detail matters. The more sound your lease is the less chance of you facing issues with tenants. Consult with a local attorney who specializes in landlord-tenant law to ensure your lease is legally binding as well.

Pro Tip: Not only should you commit to having a solid lease in 2018, also be sure you take the time to go over the details of your lease with new tenants. The better you communicate up front, the fewer isuses you will face with misunderstood expectations down the road.

#4: Spruce Up On Your Knowledge

Whether you are a new landlord or have been in the business for years, use 2018 to commit to improving your knowledge and understanding of the industry. Brush up on local laws and regulations. Attend a local meet-up to connect with other knowledgeable landlords. Purchase books that will help you learn how to manage better.

Investing in knowledge will always pay back. The better educated you are as a landlord, the easier managing your properties successfully will be. Landlords who do not invest in education will waste time, energy, and resources. Remember, treat your landlording like the business it is.

Keep The List Going

What about you? What resolutions are you making for your rental business in 2018?