Thinking about renting out a property that you own? Good idea! While rent price growth is cooling, it is still a great way to get the most out of your real estate investment. Managing real estate can also be a huge time investment. It’s smart to think about what’s best for you and your lifestyle. This guide will help should you decide to become a landlord.

There are pros and cons to managing your own properties. The biggest ‘pro’ is more money in your pocket. Most property management companies charge between 8 and 12 percent of monthly rent. If you feel up to the job that can mean a few thousand extra dollars for you and your family.

The cons are pretty much everything else. It’s hard work that requires a great deal of your attention. Professional property managers offer many services. Because of this, it can be difficult to compete with them if you are working another full-time job.

We'll make this blunt. Your residents won’t like to hear that you can't fix their air conditioner until after you get back from work. And your boss won’t like to hear that you’ll be coming into work late because you had to fix your resident’s leaky roof.

It’s possible to be a great DIY Property Manager though. Here are a few practices that you should follow to stay ahead of problems and keep your residents happy!

Regular Check-In’s

Like a person going to a physician for routine check-ups you should be checking in on your property. We recommend quarterly visits. Even if you think there’s nothing wrong, this is your first line of defense against a crisis. Keep an eye out for leaks, cracks, and signs of wear.

Routine inspections are important because they reduce the chance of a crisis. Catching problems before they are problems can prevent you from scrambling. It also is a gesture to your tenants that you are willing to go above and beyond.

If you aren’t ‘handy’ you can hire professionals to do this for you. One pragmatic benefit of this service is it can provide you with legal documents. These documents detail the condition of your property and could prove useful if a dispute arises. And they know how to fix a leaky sink, which not everyone (present company included) knows how to do.

Screening Tenants

 Another great way to get ahead of problems is to screen tenants. The tenants can make or break your experience and a property manager. There are two parts of this to do it right.

The first is an official screen. This is how you know that your tenant will be able to pay rent every month. We recommend appfolio.com to do this but there are plenty of websites out there that offer this service.

You can ask applicants for a few key documents such as an employment verification, a credit check and past landlord references. These documents will inform you if a tenant is able to pay rent.

 The second is a vibe check. You should have an idea in your head an ideal tenant-partner relationship and who would fit in with that. Remember, it is illegal (and wrong) to discriminate against applicants based on race, national origin, sexuality, disability or familial status. It's recommended, though, that you do what we call a "vibe check."

To do a vibe check, have a conversation with the most promising tenants. Talk to them over the phone or invite them out to coffee. Get a sense of who they are and trust your gut.

Good Cop vs. Bad Cop

You are going to need to find a balance between how you interact with your tenants. Everyone has a horror story where they were at odds with their landlord. Don’t be that landlord. This makes every rent collection, every drop-in, and every showing a battle. Contentious relationships make your tenants less likely to resign a lease. We don't have to tell you twice that it is better when people stay longer than a year. Happy tenants make happy landlords.

On the flip-side, don’t be soft. You have to be able to hold your tenant’s accountable when necessary. Sometimes they break things and it is their fault, sometimes they don’t pay rent on time, the list goes. You have to approach them with respect and professionalism to address these issues.

Although you may not be working in a suit and tie, a tenant-landlord relationship should be professional. You should treat it as such. If you hold up the end of your contract, your tenant’s will respect theirs as well.

Follow the Law

Every state has different certifications to be a property manager. For example, in DC you must have a Basic Business License. No fear, they are easy to get online. Rentjiffy.com is a good site to use to get a BB License in DC.

Make sure you have this. Please. Don’t get sued.

Stay Organized

Bookkeeping is another important aspect of managing your property. This is important for legal, tax and headache reasons.

Microsoft Excel and Google Sheets are popular services that many industries use. There are a handful of apps or website services that could help you with this too. But, we recommend you familiarize with a traditional spreadsheet first though.

Staying organized helps you pay your bills, collect rent and access information.

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You Got This, With Some Help

Overall, it's important to stay diligent. Take pride in your property and, more often than not, your tenants will respect that. This is an industry where, "give an inch and they'll take a mile" couldn't be more true. Don't let this intimidate you. All it means is that you need to figure out a system where you have some support when the responsibility gets overwhelming. Your solution cannot be procrastination.

Many landlords have a team of friends and family to come in the clutch when they simply can't face an angry tenant another time. This is effective because it'll help you get a mini-vacation from what is a 24/7 job, however, it only works if you trust your friends.

If you take one thing away from this post is that if you hold up your end of the contract, your tenants will too.

Good luck Landlords and Landladies.