Successful rental owners follow these keys to rental success to ensure their property’s performance and maximize their ownership experience.
If you’re ready to put these principles into action, our team at Keyrenter Naples is here to help.
13 KEYS OF RENTAL SUCCESS
In the ever-evolving world of property management, success doesn’t happen by accident—it’s the result of smart planning, financial awareness, and a long-term mindset. Whether you’re a first-time landlord or a seasoned investor, these 13 keys to rental success will help you unlock the full potential of your rental property.
1. Treat your rental property like a business!
Because it is a business! Operating with professionalism and strategy is essential for long-term success.
2. Have a financial reserve set aside for the “unexpected.”
Set aside at least 3 months of rental income in a separate account. This emergency fund gives you a cushion when the unexpected happens.
3. Expect the “unexpected.”
In Collier County, where summer storms can surprise even the most prepared landlord, having a reserve for repairs is crucial.. At some point, something will happen that disrupts your monthly cash flow. It’s inevitable – whether it’s a major repair, capital improvement, or a tenant that loses their job. If you’re financially prepared, with funds set aside, it’s not a big deal.
4. Budgeting.
Savvy investors put 10-15% of the annual rental income back into the property. Think of it as investing into your retirement account. Except in this case, it’s upkeep, maintenance, tenant turnover, etc. It is recommended in this industry that investors budget 10-12% of their rental income for management fees and leasing costs. Any discount property managers will likely give discount services. Savvy investors recognize that professional property management is a critical part of having a successful rental property.
5. Plan on maintaining the property.
Attractive well-maintained properties allow your property manager to quickly place high quality tenants and keep them happy. Long-term tenancies and low vacancy rates are simple ways to maximize income and eliminate expenses that occur each time a property is turned over to new tenants.
6. Pay the mortgage a month ahead of collecting rent.
If there is an underlying mortgage, use June’s rental income to pay July’s mortgage payment. Staying a month ahead is simply financial common sense. Being setup on “Full-Month Accounting” is a great way to follow this guideline.
7. Maintain a good Rental Liability Insurance policy that additionally insures your property manager.
A homeowner policy does not offer the protection you need. Oftentimes, insurance premium discounts are available for having a professional property manager in place.
8. Keep Landscaping Simple.
Remove anything that’s a hassle for tenants to maintain. Flower and vegetable gardens can be replaced with bark or rock. This simplifies turnovers and reduces costs for you and your tenants.
9. Clean Slate: Don’t leave stuff behind.
Owners sometimes think that tenants will want to use the hutch, the couch, the washer/dryer (some markets allow this), or other items in or around the house for the tenant’s “benefit.” The truth is, it’s usually an inconvenience and those items will most certainly be lost or damaged over time.
10. Disconnect emotionally from the property.
This can be difficult if you have lived there at some point. In order to make the best financial decisions, remember that your former home is now a money-making business.
11. Allow your property manager to do their job.
When you sign the agreement with your property manager, they become the landlord and are now responsible for the day to day. They free you of this burden and allow you to enjoy passive rental ownership. Trying to manage your property manager is a recipe for a failed management strategy. Remember why you hired them in the first place.
12. Focus on results – not details.
As the owner, you should know the key financial and performance metrics. Let your property manager handle the rest. Learn to be okay with not knowing every detail.
13. Remember that your property is subject to Fair Housing and other laws.
Professional property managers cannot discriminate against protected classes. The same set of qualification criteria must be used to screen all applicants for your property. Your property manager will know the laws surrounding the leasing and management of your property.
Following these 13 Keys will lead you to success.
Ready to Unlock Your Property’s Potential?
At Keyrenter Naples, we live and breathe these 13 keys every day. Our full-service management approach helps landlords throughout Collier County achieve consistent results—with less stress.