Think of the classic sitcom trope of a boy who invited two different girls to the same dance. How is he going to manage both agreements at the same time?
Lease administration with multiple properties can feel like that. The tenants within the property are the dates you have to keep happy.
Having so many and remembering what you promised each one can be difficult. Read on to learn tips for successful lease administration.
Have Clear Lease Terms
Write lease terms that cover everything, including:
- Rental amount, due date, and payment methods
- Late payment penalties
- Lease duration
- Process for breaking the lease
- Tenant and landlord obligations and rights
- Security deposits
You can also change these terms as needed. Create a new agreement or add an addendum to the original.
Clear lease agreements are like a well-written user manual. They prevent fights or misunderstandings later.
Organize Your Documents
Lease administration for multiple properties is like being a student taking multiple classes. You search for one class's homework among papers for all the others.
Prevent this by creating a unified system for all your important paperwork. This includes lease documents, payment records, and maintenance details. Using software and outsourcing helps keep them in one place, streamlines the process, and reduces errors.
You and your tenants will appreciate the time it saves. It's also a lifesaver during tax time.
Perform Maintenance and Inspections
Property inspections and maintenance are a part of lease administration. They prevent small issues from becoming large ones. It also makes tenants feel like you care.
Keep a log of all inspections and maintenance calls. This helps you plan future maintenance and solve complaints quickly.
Schedule Important Dates
Your tenant might forget when the day to renew their lease comes around. That's okay as long as you don't.
Mark renewal deadlines on your calendar. Keep track of other important dates as well such as:
- Rental increases
- Maintenance or upgrade projects
- Due dates for rent payments
Start talking about renewing a lease with tenants before the renewal date comes up. Doing it as early as possible puts the idea in their head before they start looking for another place.
Communicate But Ensure Compliance
A positive landlord-tenant relationship is one of the keys to getting tenants to renew leases. Communicate with them in a way that feels welcoming and helps get issues fixed promptly.
That doesn't mean that landlords have to be doormats. Lease administration means enforcing the rules so tenants know there are consequences for breaking them.
Start with written warnings and posted notices. If you do have to go as far as a tenant eviction, follow the rules set by state and federal law. Make sure you have a legal reason and give the tenant a notice within the right timeframe.
Outsource Lease Administration
Lease administration requires clear terms, organization and scheduling, regular property maintenance, and careful enforcement.
PMI First Choice Property has over 19 years of industry experience. We seek to deliver exceptional full-service property management to residential and commercial properties.
We treat your investments like you'd treat your investments, protecting them to the best of our ability. We also help increase their profitability now and in the future. We even offer discounts for multi-property portfolios. Check out our full list of services today.
