Owning multiple rental properties in the thriving city of Orlando is an excellent source of income and a highly lucrative venture. It is also a time consuming one. Owning and operating a successful rental property requires extensive knowledge and dedication, and owning multiple requires diligent planning. While managing multiple Orlando rentals can be challenging at first, the outcome is quite worth it!
At The Listing Real Estate Management, our expertise lies in managing hundreds of Orlando and Tampa rental properties. As a successful Orlando property manager, here are my top six tips for managing multiple rental properties in Orlando.
1) Use Property Management Software
As a property owner managing multiple rental properties, property management software is one of the most efficient ways to maintain your operations. Whether you have two or hundreds of properties, it is crucial that you remain organized and have all of your business in order.
Property management software allows landlords to keep track of important information, communicate effectively, and operate each rental property swiftly. Property management software like Buildium provides each resident with their own portal. Tenant portals give tenants the ability to:
- Access lease information and documents
- Submit rent payments
- Communicate with the landlord
- Submit maintenance requests
- Provide proof of insurance
- Access information like rules and regulations
With the use of property management software, landlords do not have to rely on themselves to keep track of each individual property and tenant. The days of relying on printed documents and file cabinets are over, and thankfully so. When managing multiple rental properties, the organization and efficiency provided by a property management software will make the management process easy and successful. Maintenance requests, leases, tenant information, and rent payments are all essential items that cannot get lost. Instead of storing these items in a cabinet or on a scrambled computer desktop, property management softwares will store all essential information in a portal for easy access and safekeeping.
In addition, property management software allows landlords and tenants to have all maintenance requests in writing. Having a record of maintenance requests and tasks helps landlords tend to each request and keep track of whether or not it was completed. Without a system like this, maintenance requests could be forgotten about or missed. Failing to complete maintenance requests will not only result in conflict with tenants, but can and even end in lease termination if the lease agreement is violated.
As a rental property owner, the last thing you want is to put yourself in a position to lose documents or fail to effectively communicate with your tenants. With a property management software, the operation of multiple rental properties can be smooth and successful.
2) Effective Tenant Screening Process
Screening tenants is one of the most crucial steps in the process of managing multiple Orlando rental properties. Screening tenants helps avoid total chaos; if you have an issue with one tenant, it may disrupt the flow and upkeep of multiple properties. A thorough and strict screening process allows landlords to find reliable and financially stable tenants — the most ideal tenants for your rental properties.
Landlords who manage multiple rental properties will find themselves in a tough situation if one, or multiple, tenants are causing conflict. Unreliable tenants may fail to pay rent, disrupt neighbors, violate the lease agreement, or cause damage to the house. Continuous or serious lease violations may put you in a position to have to evict your tenants. As evictions lead to lost rental income and the need to find new tenants, it is essential that each applicant is screened and proven to be reliable.
What does a tenant screening process include? At The Listing Real Estate Management, our screening process is extensive and effective. Our screening process includes:
- Credit history check
- Debt to income ratio check
- Nationwide eviction search
- Background check
- Income & employment verification
- Previous two years rental verification
Be sure to set a certain criteria that all tenants must meet. Instead of prioritizing filling your vacancy as fast as possible, prioritize a tenant who has the means to uphold their end of the lease agreement. I recommend using our minimum tenant selection criteria as a guide for your own:
- Each adult over the age of 18 who will occupy the property will need to submit a separate application
- Applicants must have a credit score above 550, no outstanding collections
- Applicants must have a positive rental history
- Applicants must have verifiable employment or a signed offer letter.
These tenant screening steps ensure reliable and quality tenants that lead to long-term rental success and cash flow throughout your properties. At The Listing we say it’s not about the fast tenant, it’s about the right tenant.
3) Financial Management and Maintenance Reserve Account
A maintenance reserve account is an account with funds dedicated to maintenance, repairs, and emergencies regarding your rental property. A maintenance reserve account allows rental property owners to have money readily available for any emergency or routine repairs that may be needed. Having funds set aside for maintenance and repairs is crucial; it’s likely that maintenance will be necessary at least once throughout the lease term.
As a property owner with multiple Orlando rental properties, you do not want to put yourself at risk for being short on funds which could restrict your ability to tend to any of your properties. The landlord’s responsibility to pay for maintenance and repairs should be outlined in the lease agreement. Unless there is proof of damage by the tenant, the landlord or property owner will typically be financially responsible for mending the issue.
How Much Money Should I Have in a Maintenance Reserve Account?
How much money you have in your maintenance reserve account depends on a variety of factors including property size, condition, location, and age. Older properties tend to pose more frequent maintenance issues, however, that doesn’t mean you won’t have an issue with a newer property as well.
If you are managing multiple rental properties, it is not necessary to have separate reserve accounts for each property; one is sufficient. As an Orlando property manager, I recommend setting aside 1-3% of each rental property value for maintenance. For example, if your property is worth $400,000, you should set aside between $4,000-$12,000.
A maintenance reserve account makes managing multiple rental properties worry-free and efficient when it comes to maintenance and repairs. No property owner should be scrambling to collect funds for maintenance — this account will provide stability and an overall satisfactory rental experience for you and your tenants.
4) Establish a Reliable Vendor Network
When it comes time for maintenance or repairs, it’s essential for property owners to work with reliable vendors. Similar to how you don’t want just anyone to live in your property, you don’t want just anyone fixing it either.
Many inexperienced rental property owners will run into vendors who take advantage of their lack of knowledge and upcharge their services. If it is your first time scheduling maintenance for a specific issue, be sure to get quotes from multiple vendors to compare the pricing.
While managing multiple rental properties, I highly recommend establishing relationships and creating a reliable local vendor network. Finding vendors that you trust to get your work done efficiently and at a fair price will improve your rental experience, save money, and help provide your tenants with the comfort and security of a safe home.
At The Listing, we work with a network of licensed and insured local vendors who provide solid communication and dependable service, consistent work, and do the job right the first time to ensure quality home maintenance and property protection. Working with the same reliable vendors is a must for managing multiple rental properties.
5) Promote Tenant Retention
One of your main goals as an Orlando rental property owner should be tenant retention. Tenant retention is when your tenants decide to renew the lease agreement once their initial lease term is up. When you find reliable tenants, it is ideal to keep them. Tenants who pay rent on time and uphold the lease agreement provide you with a steady rental income and help you build long-term wealth.
Landlords and property managers can make all the difference in a tenant’s experience and their decision to renew their lease. It is important to keep in mind that your tenants are the source of your income; prioritizing their needs and living experience is essential.
Some factors that will help promote tenant retention are:
- Fair rent price
- Consistent and reliable communication throughout the lease term
- Handling maintenance requests in a timely manner
- Respect and privacy
Some property owners even offer incentives for lease renewals whether it is a discount on rent for one month or a guaranteed returned security deposit. Although some rental property owners do not like to offer incentives, they can be highly effective in promoting tenant retention.
6) Hire an Orlando Property Manager
The most effective way to successfully operate multiple rental properties at the same time is to hire an experienced property manager. At The Listing Real Estate Management, we have years of experience working with rental property owners throughout the Orlando and Tampa Bay areas.
Owning and managing multiple Orlando rental properties takes time and dedication, and handling it on your own may not be for everyone. The effort it takes to manage multiple rental properties should not be underestimated; doing so could lead to stress, inefficiency, and costly mistakes.
With the help of an Orlando property manager, the stress of managing multiple rental properties is lifted, and success is significantly increased. Not only will your stress be gone, but the insight of a property manager will streamline operations and maximize your return on investment.
At The Listing Real Estate Management, our comprehensive property managers offer the best service through a personal, proactive, and dynamic approach to residential management. Our services include marketing and leasing, tenant screening, rent collection, maintenance and repairs, and rental property accounting, allowing our clients to take a step back from the day to day responsibilities of managing a rental property.
Our team’s experience and unique skill sets maximize our clients’ ROI. We execute on the little things, and our attention to detail directly affects your bottom line. Our clients appreciate the accessibility and communication our team delivers — two key aspects for success.
To experience the difference in working with a professional Florida property manager, contact us today at The Listing Real Estate Management, your boutique property manager!
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