Landlord Software

How much should I Charge for Rent? A Landlord's Guide to Setting the Right Price

2024-12-15T15:58:09+00:00

How Much Should I Charge for Rent? A Landlord’s Guide to Setting the Right Price

When it comes to owning and managing rental properties, one of the most common questions landlords face is, “How much should I charge for rent?” Striking the perfect balance between attracting quality tenants and maximizing rental income can be tricky. Luckily, modern landlord software and rental property management software solutions—like those offered at www.schedulemyrent.com—can help streamline your decision-making process. In this guide, we’ll walk you through key considerations for setting your rental rates, along with tips on leveraging software tools to simplify rent collection, tenant screening, and market analysis.

1. Research the Local Rental Market

The first step in determining how much to charge is to benchmark similar properties in your neighborhood. Browse online listings, attend open houses, and consult local property management groups to understand the going market rate. Some rental property management software has built-in market analysis features can help you quickly access rent estimates based on factors like property type, number of bedrooms, amenities, and location. Software that shares and recommends prices across users is currently under legal price-fixing investigations, so it is better to do the work independently.

2. Factor in Your Expenses

Before finalizing a rental rate, calculate all your costs, including mortgage payments, property taxes, insurance, maintenance, and potential vacancies. A good rule of thumb is to ensure the rent covers these expenses while providing a reasonable profit margin. With a landlord software platform, you can track expenses, view historical cost data, and run profit/loss reports to identify a rate that’s financially viable. This makes it easier to arrive at a number that’s both competitive and profitable.

3. Consider Rent Control and Local Regulations

In some regions, rent control laws or local ordinances limit how much you can charge or by how much you can raise rent each year. It’s crucial to stay updated on these laws. Quality rental property management software solutions often include legal compliance reminders and helpful resources, ensuring you’re staying within the legal framework while optimizing your rental income.

4. Evaluate Property Amenities and Services

Additional amenities—such as in-unit laundry, off-street parking, upgraded appliances, and on-site storage—can justify charging higher rent. Similarly, top-notch management services, like 24/7 maintenance requests or the ability to collect rent online, can enhance your property’s appeal. By offering convenient features like online rent payment through www.schedulemyrent.com, you can position your property as a premium option in the marketplace and potentially command higher rent rates.

5. Test and Adjust

The real estate market is ever-changing, so it’s wise to stay flexible. If you’re having trouble finding tenants or notice an uptick in vacancies, it may be time to adjust your pricing strategy. Using landlord software dashboards, you can easily monitor vacancy rates, tenant inquiries, and lease renewal patterns. This data helps you understand when it might be appropriate to adjust rent—whether that means lowering it to attract more applicants or raising it if demand is high and the property is consistently occupied.

6. Communicate Your Value

When negotiating or justifying rental rates to prospective tenants, highlight what sets your property apart. Mention features like reliable maintenance service, secure online lease agreements, and the ability to collect rent online seamlessly through your chosen rental property management software. Clear communication about the value tenants receive can reduce pushback on your rent price and attract renters who appreciate convenience and service quality.

7. Streamline Management with the Right Software Tools

With so many variables at play, having the right digital resources makes all the difference. Utilizing a platform like www.schedulemyrent.com ensures you have all your landlord tools in one place: online rent collection, automated payment reminders, and integrated tenant screening. By leveraging these capabilities, you’ll be empowered to make data-driven decisions, keep vacancies low, and maintain a steady cash flow from your rental portfolio.

Final Thoughts
Determining how much to charge for rent involves thorough market research, expense analysis, and consideration of legal constraints. With the right landlord software at your fingertips, you can simplify this process, offer convenient services like collecting rent online, and enhance your property’s value proposition. By combining smart pricing strategies with cutting-edge technology, you’ll create a winning formula that keeps both your tenants and your bottom line satisfied.

Streamlining Your Rental Process: A Landlord's Guide to Collecting the First Month’s Rent Online

2023-11-14T15:39:48+00:00

As a property manager or landlord, the initial collection of rent from new tenants is a fundamental task that sets the stage for a smooth tenancy. With the right approach and modern landlord software, this process can be seamless and secure.

Introduction to Online Rent Collection

The act of collecting the first month's rent often marks the beginning of a new landlord-tenant relationship. The first rent payment is often made with a payment that can't return for non-sufficient funds or by accepting the payment a few days early so the landlord knows if it bounces before the tenant moves in.

Understanding the First Month’s Rent

Typically, the first month's rent and a security deposit is the amount a tenant pays to secure their lease. Landlords have traditionally collected this payment upfront to establish financial security. In the digital age, landlord software platforms have made it possible to streamline this process, ensuring timely and full payments through systems designed for online rent collection.

What types of payments should a landlord accept for rent?

There are many different ways for a tenant to pay rent. Below are some of the benefits and issues with each payment type.

ACH (Bank Payments)
- Pro: ACH rent payments are convenient and tenants can schedule them from a phone or computer from anywhere with rental management software.
- Con: ACH rent payments can return if the tenant doesn't have enough money in their bank account or for other reasons. Most returns (non-sufficient funds, closed bank account, frozen account, unknown account, etc.) return within two banking days. Fraudulent options can return up to 60 calendar days later.
- Recommendation: ACH payments work really well for normal rent payments. When taking the very first payment, the best practice is to take this payment three or more banking days before the tenant moves in to ensure that the tenant has enough money before they move in.

Credit & Debit cards
- Pro: Credit cards are convenient for tenants and also allow a tenant to make payments over time to the credit card company if the tenant doesn't have enough money to pay right away. While the tenant may need to pay additional fees to pay with a credit card, these fees are typically lower than lease fees for being late.
- Con: Tenants can contest the credit card payment for up to 180 days and try to obtain their money back. Credit card companies usually support their cardholders and the chargeback is often debited from the landlord's bank account. Landlords will often have to resort to collecting the rent with legal actions if a tenant contests their credit card payment, even if there is a valid lease.
- Recommendation: While credit cards are often a good choice for normal payments, it is not recommended to take the first payment with a credit card. It it better to ensure that the tenant has enough money to pay the first month rent without needing to borrow money on credit.

Cash (Tenant hands landlord physical cash)
- Pro: Tenants can pay landlords directly with cash, which can't return.
- Con: Cash can be stolen or lost. It can also be very time consuming to meet a tenant at a specific location and time, especially if someone is late or doesn't show up.
- Recommendation: Cash is never a recommended payment type because of the risk of theft, chance of being lost, and the inconvenience of the pickup.
Cash (Tenant uses cash at a retailer that accepts MoneyGram)
- Pro: A tenant can pay with cash, via MoneyGram, at major retailers like Walmart and CVS. Tenants have the flexibility to pay whenever it is convenience since many retailers are open extended hours. Some tenants do not have a bank account and can't pay with other methods. Cash payments can't return so landlords know the money is always good. If you are using landlord software that supports cash via MoneyGram, a simple click is all that is required to setup this option.
- Con: Paying with cash is often convenient for tenants, but a tenant will need to go to a retailer to make the cash payment. There is often a small fee at the retailer, which is often less than $3.00.
- Recommendation: Cash is a great option for the first rental payment or any other payment since the payment can't return and some tenant's don't have a bank account.

Money Order or Cashier's Check
- Pro: Money orders and cashier's checks are drawn on the money order company or on the bank's account (not the tenant's bank account) and they can't bounce for non-sufficient funds.
- Con: There is usually a small fee for the tenant to purchase a money order. The tenant then has to give the money order to the landlord, and the landlord then has to deposit the money order into their bank account.
- Recommendation: Money Orders and Cashier's checks are a good choice for the first rent payment since they can't return for insufficient funds.

Paper Check

Pro: Many tenants still have paper checks and many older tenants still prefer them.
Con: A paper check can return. Most checks return in 2-3 days and you can see the return if you lookup the status online instead of waiting for the return in the mail, but returns could take over 30 days with a fake check.
Recommendation: Receiving a paper check is not the best option for the first rent payment since it could return. If you take a check, it is recommended to accept it a week before the tenant moves in.

Venmo or Zelle

Pro: These payments can't bounce since the account holder validates and then "pushes" money from their bank account.
Con: There may be a fee, depending on the type of account being used.
Recommendation: Venmo and Zelle are good options for the first payment since they can't return.

Wire

Pro: Wire payments can't bounce. Once the money is sent, the tenant can't obtain the money back through the wire system unless the landlord agrees to it.
Con: Depending on your bank, the process may be online or the tenant may have to go into a bank branch. There are typically fees for the person sending a wire, with a $25 national average fee for an outgoing wire.
Recommendation: Wires are good choice for a landlord, but the tenant may have a higher cost and additional inconvenience.

FedNow
- Pro: FedNow is a new way to push money, which is very similar to a wire. It is available 24 hours a day and once sent, it can't bounce or return.
- Con: The tenant's bank may have a fee and not all banks participate in the FedNow service.
- Recommendation: FedNow is a great choice since money is received real-time and it can't return.

The Benefits of Prorated Rent

When a tenant moves in mid-month, prorated rent calculations are essential. This practice, easily handled by advanced landlord software, ensures fairness by charging the tenant for only the days they occupy the property within that initial month. Property management software like Schedule My Rent allow rent to be collected weekly, bi-monthly, monthly, or quarterly and the beginning and end of each cycle can be customized.

The Optimal Time to Collect Rent

Best practices suggest that the first month’s rent should be collected before move-in. This assures the landlord of payment security and prevents any potential payment disputes once the tenant has taken residence. Different payment methods require a different amount of time to make sure the funds are good.

Leveraging Guaranteed Funds for Rent Payments

To ensure financial certainty, landlords should consider guaranteed funds, payments that can't return, for collecting the first month's rent. Otherwise, it is recommended to accept the first payment early enough to make sure the payments doesn't bounce before the tenant moves in.

Is Collecting the Last Month’s Rent Necessary?

Collecting the last month's rent upfront is a strategy some landlords employ as a safeguard against lease breaches. Review federal and state laws to fully understand the advantages and potential drawbacks of this approach.

Additional Fees to Consider

Beyond the first month’s rent, landlords often require a security deposit and may also include other fees such as pet rent or parking charges. Landlord software can assist in managing these transactions, ensuring clarity and compliance with state laws.

Concluding Advice

In conclusion, collecting the first month's rent, alongside any additional agreed-upon fees, is a vital step in establishing a firm foundation for the landlord-tenant relationship. Record-keeping is crucial, and utilizing landlord software for online rent collection can significantly ease this process, benefiting both landlords and tenants.

Do You Need a Guarantor When Signing a Lease? A Comprehensive Guide

2023-10-31T03:29:49+00:00

Securing a new rental property can be an exciting journey. But amidst the stack of paperwork, the term "guarantor" often emerges, leaving many potential tenants wondering about its significance. Do you always need a guarantor when signing a lease? This article sheds light on this common question.

What is a Guarantor?

A guarantor is someone who legally agrees to take responsibility for a tenant’s lease obligations if the tenant cannot meet them. This includes covering unpaid rent or damage to the rental property. Guarantors are typically individuals with strong financial credentials—such as steady income, good credit, and a reliable financial history—making them a source of added security for landlords.

When Do You Need a Guarantor?

There are several common situations where a landlord may request a guarantor:
Insufficient Income
Landlords often require tenants to earn 2.5 to 3 times the monthly rent. If your income falls short of that benchmark, a guarantor can help bridge the gap.
Unstable Employment History
Freelancers, gig workers, or individuals who change jobs frequently may be viewed as higher risk. A guarantor provides reassurance of consistent payment.
Poor Credit Score
A low credit score signals potential financial instability. A guarantor can help overcome these concerns by acting as a backup if payments are missed.
Rental History Issues
Past evictions, late rent payments, or disputes with previous landlords can impact your rental credibility. A guarantor can offset the perceived risk.
Students or First-Time Renters
Without rental history or consistent income, students and first-time renters often need a guarantor to qualify for a lease.

Benefits of Having a Guarantor

Increased Landlord Confidence: Makes you a more attractive applicant by offering financial backup.
Stronger Negotiating Position: A guarantor may help you secure better lease terms.
Peace of Mind: Offers an extra safety net in case of unforeseen financial difficulties.

Drawbacks to Consider

Does Not Ensure Tenant Responsibility: While financially reassuring, a guarantor doesn’t guarantee the tenant will maintain the property or follow lease terms.
Legal Complexity: In case of default, landlords may need to pursue both the tenant and guarantor through legal channels.
Potential Strain on Relationships: Asking friends or family to assume financial liability can create stress or tension.
Communication Delays: Landlords may need to follow up with both parties if rent is late, complicating the process.

Who Can Be a Guarantor?

Common guarantors include:
Parents or Family Members: Most common choice due to trust and existing relationships.
Trusted Friends: Must be financially stable and understand the responsibility.
Professional Guarantor Services: Third-party companies that provide this service for a fee.

How to Approach a Potential Guarantor:

Be Transparent: Clearly explain why you need their support.
Show Gratitude: Acknowledge the seriousness of your request.
Discuss Finances Openly: Ensure they understand the obligations involved.

Is a Guarantor Always Required?

Not necessarily. Many tenants qualify without one. However, in high-cost or competitive rental markets, a guarantor can be a valuable asset to your rental application—especially if you lack income stability or credit history.

Alternatives to a Guarantor

If you can't secure a personal guarantor, consider:
Paying More Upfront: Offer a larger deposit or several months of rent in advance.
Renters Insurance: Offers protection that landlords may find reassuring.
Using a Co-Signer: Similar to a guarantor, but typically also signs the lease and shares legal responsibility.

Does a Guarantor Need to Sign the Lease?

Yes. A guarantor typically signs a separate section or addendum of the lease agreement. This formalizes their legal obligation to cover rent or damages if needed.

Key Steps:

Submit financial and identification documents for approval.
Review lease terms carefully.
Sign the guarantor agreement.

Can You Be Your Own Guarantor?

Rarely. Most landlords require an independent third party. However, some may accept personal assets—such as savings accounts or property—as collateral. This requires landlord approval and substantial financial documentation.

What Credit Score Should a Guarantor Have?

Generally, landlords prefer a credit score of 750 or higher. A strong score demonstrates financial reliability, which reassures the landlord that the guarantor can step in if needed.

What Are the Risks of Being a Guarantor?

Credit Impact: Missed payments by the tenant can harm your credit.
Asset Seizure Risk: Legal action could result in loss of personal property or savings.
Relationship Strain: Financial disagreements can create tension with the tenant.
Emotional & Financial Stress: Carrying someone else’s financial responsibility can be burdensome.

Does Being a Guarantor Affect Your Credit Score?

Not Initially: Simply agreeing to be a guarantor doesn’t affect your credit.
If Defaults Occur: Missed payments that you're responsible for can damage your credit.
Debt-to-Income Ratio: Your guarantee might be considered when applying for your own credit or loans.

What Documentation Does a Guarantor Need?

Landlords usually require:
Identification & SSN
Proof of Income (e.g., pay stubs or tax returns)
Bank Statements to show savings and financial health
Credit Check Authorization

How Much Does a Guarantor Service Cost?

Professional guarantor services generally charge 50% to 85% of one month’s rent, as a one-time fee. Prices vary based on location, lease amount, and provider. Always read the terms and check for additional fees.

How Long Is a Guarantor Responsible?

Duration: Usually matches the full lease term.
Renewal: Guarantor must approve any lease extensions or renewals.
Early Termination: Ends their obligation unless otherwise stated in the lease.
Clear Communication: All parties should agree to terms in writing before signing.

Co-Signer vs. Guarantor: What’s the Difference?

Feature Guarantor Co-Signer
On Lease? No Yes
Legal Responsibility Only if tenant defaults Always
Rights to the Property None Equal to tenant
Involvement Passive backup Active lease participant
Choose based on the level of involvement your financial partner is willing to assume.

Feature	Guarantor	Co-Signer
On Lease?	No	Yes
Legal Responsibility	Only if tenant defaults	Always
Rights to the Property	None	Equal to tenant
Involvement	Passive backup	Active lease participant

Conclusion

A guarantor can make the difference between getting approved for your dream apartment or being passed over—especially if you're a student, first-time renter, or someone with financial challenges. While not always required, guarantors offer peace of mind to both landlords and tenants and can strengthen any rental application.

Collecting Rent Online: Your Questions Answered

2021-12-13T15:00:11+00:00

Collecting Rent Online: Your Questions Answered

Rent collection - it’s one of the most quintessential duties that come with being a landlord. In many ways, it can be a gratifying experience. After all, there’s something undeniably satisfying about marching up to one of your properties and collecting payment from your tenants. Over time, however, it’s likely that that shine will start to fade. It can get tedious to go through the same process over and over again, each and every month.

There have been plenty of rent collection methods developed over the past few years, but none of them have managed to truly simplify the process. Landlords and tenants have tried options as varied as checks, cash, and even direct bank-to-bank transfers to try and manage the rent collection process. Inevitably, though, all of these strategies come with significant drawbacks, such as additional processing fees or inefficient handling.

After years of disappointment with other methods, the ability to collect rent online has absolutely revolutionized the industry.

Collecting rent digitally removes the inefficiency that comes with every other strategy for managing payments. It provides just as many benefits for the landlord as it does for the tenant, taking the stress and unnecessary tedium out of the rent-paying process. At this point, no professional landlord should have to settle for any other payment method. If you’re ready to learn more, here are a few common questions and answers about collecting rent online.

Is It Safe to Collect Rent Online?

Yes, online rent collection is completely safe and secure. Reputable rental management platforms such as Schedule My Rent use high-level encryption software to protect every payment and ensure that every transaction works smoothly.

As a general rule, online payments are safer than paying with cash or check. By keeping financial information confidential between you, your tenants, and your respective banks, collecting rent online makes it nearly impossible for your bank information to end up in the wrong hands. Meanwhile, physical payments such as checks can present numerous security issues if they fall into the wrong hands.

How Long Does It Take to Collect Rent Online?

Depending on the software used, rent can be collected online in as little as one day. In general, though, most rental management platforms allow landlords to receive rent within a few business days of the initial payment. Some apps can expedite the process for a small additional fee.

Regardless, digitally collecting rent is significantly faster and more convenient than other, more traditional methods. It makes it simple to exchange funds without ever having to make physical contact or worry about cashing checks.

Can You Automate Online Rent Collections?

With the right app, online rent collection can be a completely hands-off, automated experience for you and your tenant. Rent software can let you customize your collection schedule, whether that’s once a week, once a month, or anything in-between.

Automated payments can take a major burden off you and your tenant’s shoulders. Tenants find it far easier to pay rent when the service is entirely digital, which makes it simple to keep up with regular expenses and stay on top of rent.

Does Online Rent Collection Reduce Missed Payments?

Paying rent online makes it significantly easier for your tenants to keep up with payments. Tenants with the ability to pay rent online are far more likely to avoid missing payments and instead pay rent on time, every month. Digital rent apps often send frequent updates to tenants and landlords that make it easy to stay on top of deadlines and expenses.

How Does Online Rent Collection Provide Flexibility?

While physical payments like checks or cash had very limited uses and functionality, paying rent online gives the tenant and landlord alike significantly more flexibility to pay how they need. For example, online rent payment platforms make it simple for tenants to split rents between their roommates or family members, or even set up specific one-time payments when necessary.

Does Collecting Rent Digitally Cost More Than Other Methods?

Not if you use the right app! Platforms like Schedule My Rent provide completely affordable and dependable payment models for collecting rent digitally. Sometimes, collecting rent online will require a nominal fee that is often as low as a dollar or two. In addition, you can save money since services like Schedule My Rent don't charge for returned payments while banks often charge from $10 to $35 to both the landlord and the tenant for returned payments.

However, even if online rent payments charge an additional cost, they also provide major savings in terms of time and convenience. Rather than having to physically collect money from a tenant or having to wait for a check in the mail, digital rent collection allows landlords to quickly receive their funds in a fraction of the time and carry on with their business duties.

What if you tenant doesn't have internet access or a bank account?

As a landlord, you want to provide the easiest way possible for a tenant to make payments. Most landlords don't accept cash directly because it is very time consuming and could be dangerous to meet tenants, collect cash, and then carry the cash around until you have a chance to go to the bank. Instead of meeting tenants directly, Schedule My Rent allows tenants to pay with cash at thousands of retailers across the United States, such as Walmart and CVS. Tenants can make payments anytime the retailer is open, so scheduling and security is not an issue anymore. Once the tenant pays, Schedule My Rent automatically sends a receipt and transfers the money to the landlord's bank account.

Will You Be Notified If Anything Strange Happens With Your Rental?

While the specific services vary depending on which kind of app you use, many platforms provide frequent updates to keep you aware of the status on your payments. For example, you may be promptly notified if a tenant misses a payment or if any other suspicious activity occurs. If any payments are denied or missed, both you and your tenants will be notified and given instructions on how to proceed.

What Are 10 Ways to Collect Rent Online?

Online Property Management Platforms: Platforms like Schedule My Rent offer comprehensive solutions for landlords, allowing them to accept rental payments online, track expenses, and generate performance reports. These platforms are user-friendly and cater to both tech-savvy and non-tech-savvy individuals.
- Tenant Payments: ACH, Credit and Debit Card, Cash at any Moneygram retail location, like Walmart and CVS
- Custom Rent Schedules: Monthly, Weekly, Quarterly, etc.
- Deposit times: From same-day, with QuickPay, to 3 business days.
- Track Security Deposits: Yes
- Autopay: Yes
- Late fees: Extensive options for one-time and daily late fees
- Real-time notifications: Yes
- Unlimited Properties: Setup as many businesses and properties as you need
- Vacancy Marketing: Automatically publish your vacancy to other websites such as Zumper and Apartments.com
- Online Rental Applications: Create custom rental applications
- Tenant Screening: Full Credit, Criminal, Eviction, and Income Insights
- Maintenance Requests: Yes
- Renters Insurance: Yes
- Expense Tracking: Yes
- Store and Share Documents with tenants: Yes
- Multi-Factor Authentication option: Yes
Apple Pay: Apple Pay is a convenient option for tenants, as they can easily set up and use the service on their Apple devices. Landlords might need to navigate certain obstacles, but tenants can transfer funds by adding their credit or debit cards to the Wallet app.
Cash App: Cash App, a mobile payment service owned by Square, enables effortless money transfers through a mobile phone app. The app is compatible with both iPhone and Android devices and can be linked to a bank account using a debit card.
ClearNow: ClearNow has been serving landlords and tenants since 2000, providing a reliable online rent payment service. It offers a seamless experience for collecting and paying rent online.
ClickPay: ClickPay is an all-in-one payment platform designed specifically for landlords and property managers. It accepts various payment methods, including online payments, online bill pay, checks, and even walk-in payments where tenants can convert cash to ACH at numerous locations.
eRentPayment: In addition to online rent collection, eRentPayment offers an online property management platform. Landlords can leverage this platform to accept applications, screen tenants, manage maintenance requests, and report payments to credit bureaus, helping tenants build their credit history.
PayPal: PayPal is a well-established online payment service used by many tenants and landlords for personal and business transactions. To collect rent from a tenant, a landlord typically needs a PayPal business account, while tenants require a PayPal account to make rent payments.
PayYourRent: PayYourRent is a comprehensive platform used by property managers and landlords for various tasks, including collecting online rent payments, processing applications, screening tenants, and managing maintenance requests.
Venmo: Venmo, owned by PayPal, is a popular mobile payment service that allows tenants to send monthly rent payments directly to a landlord's Venmo account. The app is available for both iPhone and Android users.
Zelle Pay: Zelle Pay is a digital payment network that collaborates with hundreds of credit unions and banks across the United States. Landlords can receive same-day fund transfers within minutes by using Zelle Pay.

Collect Rent Online with Schedule My Rent

At Schedule My Rent, we’ve taken time to develop a robust platform that can address all the unique needs of landlords and their tenants. With our app, it’s simple for residents to make payments however suits them best. We even allow them to pay with cash at participating retailers such as Walmart and CVS, giving your clients the flexibility they need to do business with you.

Our program also enables landlords to stay in control of the rental process, including late fees and scheduling. Whether you want to collect rent weekly or monthly, we empower you to run your business how you see fit.

4 Benefits of Using Property Management Software

2021-12-08T16:15:24+00:00

One of the simplest ways to make a landlord’s job easier to manage is utilizing the organizational and automation tools that come with property management software.

Preparing units for rent, screening tenants, determining property prices, and troubleshooting building issues are just a few of the many responsibilities that landlords and property managers have to juggle on a daily basis. This virtual tool can help landlords keep up with the many tenants and properties they look after.

What Is Property Management Software?

Property management software is responsible for streamlining all of a landlord's job responsibilities into one easy-to-use platform. This allows landlords and property managers to optimize their job performance and efficiency, creating stronger relationships with their tenants.

A few of the features to look out for that should be included in high-quality software, like Schedule My Rent, include:

Listing a property for rent

Online rental applications

Tenant screening with a full credit report and a national background check

Lease agreement management

Maintenance requests

Online and cash payments

Expense tracking

The Benefits of Using Property Management Software

To put it simply, using a tool like this makes life easier for both landlords and tenants alike. Read on to discover the top four advantages of using this software in today’s rental marketplace.

#1: Automated Communication

With limited time, it’s all too easy for landlords to forget to send rent reminders. The beauty of this software is that it automatically sends messages to all tenants letting them know it is time to pay rent. It also automatically sends late notices, adds late fees and sends notices, and sends email receipts when tenants make payments.

#2: More Convenient Rent Payment

With multiple rent payment options (bank payments, credit card, and tenants can even pay their rent with cash at Walmart and CVS) and the ability to easily track and manage deposits and rent, managing properties with this kind of software makes the financial aspect of renting convenient for both landlords and tenants. Even better, some software includes tenant screening features that help landlords review a prospective tenant’s financial status and credit reports to ensure that they are financially stable before signing a lease agreement.

#3: Hours of Time Saved

There’s no question that landlords save hours of time completing standard tasks with the automation features included in these high-quality programs. Some of these automation capabilities include listing vacant properties on multiple websites, online rental applications, online credit and background reports, online maintenance requests, and automatic late fees and rent reminders—all of which would eat up a lot of time for a landlord.

#4: Better Document Organization

Organizing piles of tenant paperwork is a difficult feat for even the most organized rental offices. With the help of using this one-of-a-kind software, landlords never have to worry about losing important documents from tenants ever again. This is because all of the private information needed from tenants—from their rental application to banking information to lease agreements—is stored in one safe, virtual place.

Streamline Property Management with Schedule My Rent Today

In today’s fast-paced digital world, this online tool is essential for running a great rental property. More specifically, Schedule My Rent’s software is constantly evolving with new technologies to create a system that fits residential, commercial, retail, and other types of property managers’ needs with ease.

Schedule a free trial or demo today to see how Schedule My Rent’s property management software can enhance your business!

A Landlord’s guide to renting with pets

2021-12-04T17:09:06+00:00

A Landlord’s guide to renting with pets

As a landlord, it is important to consider allowing your renters to have pets. Pet owners often consider their pets part of their family, so they will be motivated to search for a rental property that allows animals.

If you decide to allow pets in your rentals, you will expand the market of prospective tenants who would like to rent your units. With more applicants, you are more likely to find an ideal tenant for your property. There are also cost benefits in allowing pets in your units. Landlords can charge a nonrefundable pet deposit, pet rent, or another type of fee for pet owners.

It can be difficult for pet owners to find a rental that allows pets, and if your property is one of those rentals, your tenant may want to sign longer leases. When you have more long-term tenants it limits the time you have to spend showing your unit, screening tenants, and choosing the ideal candidate for renting your property. If you have a responsible pet owner who pays on time without damage to your unit, it is worthwhile to allow them to keep their pet.

If you decide not to allow pets in your rental, you could lose an ideal tenant because they would rather find a different property where their pet is welcome.

The key to allowing pets in your properties is to mitigate the risks. It could be helpful to place some restrictions on pets such as only allowing pets under a certain weight or size or only allowing specific breeds. If you decide to allow all pets, they could cause potential damage to walls and carpets, physical injury to a neighbor (often with larger dogs), noise complaints, and allergens in air ducts.

Here are some tips and things to keep in mind when renting to tenants and their pets.

Tips for mitigating pet risks in your property

1. Create a pet addendum on your lease

Ask your pet owners to sign a pet agreement and attach it to the end of your lease. This agreement should specify the types of animals that are welcome in your property.

Here is a link to a sample pet addendum from the animal humane society: Pet Addendum

2. Screen your tenant and their pet and ask for references

A great way to determine if your renter and their pet are a good fit for your property is to ask your potential tenant for references. You can call their former landlords to ask about the pet and if they caused any damages to the property (walls, carpets, etc.). It is also important to gather information on how responsible of a pet owner your potential tenant is. For example, if your renter doesn’t regularly let their pet out of the unit, the pet could cause damage to the unit that can easily be avoidable if the renter was more responsible.

3. Collect a pet deposit or larger security deposit

In most states, landlords renting to pet owners are able to charge a pet deposit. The pet deposit is very similar to a security deposit in that the deposit money is used to cover any damages caused by the pet and is refundable if no damages occur. If you are not able to charge a pet deposit, you can simply charge a larger security deposit to your renters with pets.

Another service you could consider requiring is professional carpet and air duct cleaning. If you decide to use these services, future renters won’t be affected by any allergens or pet dander from previous pets in the unit.

4. Charge pet rent or a higher rent rate

Many landlords can benefit financially from allowing pets in their units. There is more competition to rent from landlords who allow pets and given that competition, renters are usually willing to pay a higher rent amount each month to live with their pet.

As a landlord, you can charge your renters pet rent or other additional fees in exchange for allowing pets. One of these additional fees could be for having a pet over the standard weigh limit for pets in the unit.

It is important not to charge your renter too many pet fees. It is one thing to charge pet rent and another to nickel-and-dime your renter with numerous pet fees. Potential tenants will probably be more willing to find another rental that may be more expensive than to comply with excessive fees.

Rental property management software, such as Schedule My Rent, allows you to charge either a monthly pet rent or one-time security deposit. There is also a guide to learn more about property management software.

5. Require that pets be spayed or neutered

It is important to consider if you would like to require your tenant’s pets to be spayed or neutered. In general, pets that have had the procedure are usually better behaved. Neutered male pets don’t need to engage in fighting or other aggressive and inappropriate behavior. Spayed females also won’t go into heat which is accompanied with frequent urinating, bleeding, and loud yowling.

If you decide that you would like to require your renter’s pets to be spayed or neutered, you can ask them to show proof of the procedure.

6. Consider the pets personality over their breed

When considering if your renter’s pet is going to be a good fit for your unit, it is important to avoid stereotypes and common misconceptions about the breed of a pet. For example, pitbulls and rottweilers have a reputation for being aggressive, violent, and even dangerous. Some landlords do not accept certain breeds to limit their liability in case the dog hurts someone. There is some misinformation around many dog breeds and unwelcome behavior can be caused by a variety of things besides their breed including neglect, mistreatment, and lack of disciple by the owner.

If a prospective tenant with a pet, consider meeting the pet before finalizing your lease. When you meet the pet, you will be able to determine if they will be troublesome while living in your property. You can ask your potential tenant helpful questions such as how long they have had their pet, if the pet has caused any property damage in the past, and who will care for the pet if the tenant is away.

7. Ensure that your tenant has responsibility for their pet

It is important for you renter to be responsible for their pet and keep them behaved at all times so as not to disturb other tenants. You should require your tenants to clean up after their pets in any common areas and in their unit. Tenants should also agree to not leave their pets unattended for long periods of time (outdoors or in their unit).

Property Management Software 101

2021-11-29T20:15:37+00:00

Property Management Software 101

As more and more industries are making the switch to digital communication and technologies, property management software has become quite common for landlords to invest in. Property management software helps landlords and property owners streamline their operations into one easy-to-use platform.

What Are Some of the Best Features of a Property Management Software?

Property management software can improve the efficiency, organization, and simplicity of both landlord and tenant’s lives. This is because they provide a one-stop-shop for communication, payments, and a variety of day-to-day logistics involved in running and living in a rental property.

To learn a little more about the benefits of property management software, here are 4 of the best features found in a high-quality platform:

#1: Online Rent Payment Collection

Online rent collection makes it easy as it can be to receive all of your tenant’s payments on time without having to wait for a physical check to clear. You can even charge late fees automatically, choose the day of the month that rent is due, and send tenants reminders of when payments are needed.

Property management software can help your tenants equally, as it helps them stay on top of their payments if they choose to utilize its automatic payment features. They also have more control over choosing their method of rent payment, whether it’s from a bank account, credit card, or with cash at any MoneyGram location.

#2: Secure Document Storage

There are a multitude of documents containing private information involved in managing a rental property, including lease agreements, contracts, payment information, and so much more. The great part about property management software is that all of these documents can be stored securely and shared easily amongst landlords and tenants. There’s no need to worry about losing an important document ever again!

#3: Thorough Tenant Screening Abilities

When prospective renters are in the process of applying for your rental property, property management software allows you to thoroughly vet and screen potential candidates. By requiring credit reports, background reports, eviction information, and other helpful information with the help of this software, you can feel more comfortable and confident in who is joining your rental community.

#4: Communication Between Landlords and Tenants

Property management software gives you a platform to effectively communicate back and forth with your tenants. Tenants are automatically sent rent reminders, late notices, and payment receipts. Additionally, if a tenant is struggling with a maintenance issue or another problem with their unit, they can let landlords know to solve the concern as quickly and efficiently as possible and all communication from landlords and tenants is stored together in one place.

Easy-to-Use Property Management Software at Schedule My Rent

If you’re looking for property management software that checks all of the above boxes and then some, look no further than to the incredible technology at Schedule My Rent. To learn more about the unique features and benefits of this high-quality software, take advantage of your free software trial right now!

The Importance of A Tenant Background Check

2021-11-21T16:23:17+00:00

In the process of finding new renters, one of the most crucial steps for pinpointing a trusted tenant requires a comprehensive background check. As a landlord, you deserve to feel comfortable and confident with the people you choose to rent your property to.

What Is A Tenant Background Check?

Simply put, a tenant background check gives you a wide range of insights into a prospective renter's history. The information obtained can help you determine if they can be trusted to pay rent on time, take care of your property, and be a safe member of your building’s community. A few of the most important components you can learn in a tenant background check include:

● Credit reports

● National criminal background check

● Eviction history

● Previous employment and addresses

● Income estimates

4 Reasons Why You Need a Tenant Background Check

Here are 4 core reasons why every responsible landlord should screen prospective tenants through a background check:

#1: Stronger Property Protection

While a security deposit can somewhat protect against having to pay for damages to your property, a tenant background check gives you even more assurance that your property won’t need any expensive repairs in the first place. With the help of eviction records and other information, you can determine if renters have a background of damaging property or failing to pay rent.

#2: Greater Confidence in Financial Status and Rent Payments

The financial background of your prospective tenants says a lot about their fiscal responsibility. By requiring a full credit report that shows their credit score, trade lines, and incomes/assets estimates, you can find candidates that have enough money and financial assets to consistently pay their rent on time and deliver on their financial promises in the lease agreement.

#3: A Safer Building and Community

As a landlord, it is important to build a community of tenants that feel comfortable residing in their building. Looking into the criminal background of your prospective renters helps you weed out anyone that has a dangerous criminal history that could impact the safety and security of your building, such as someone in the most wanted database or the national sex offender public registry.

#4: Helps You Recognize Irresponsible Patterns

It is important to remember that just about everyone can make a mistake as a tenant at some point in life. While a prospective tenant might be an excellent candidate to consider despite having an eviction or late payment on their record, a comprehensive background check allows you to see if there are patterns in this type of behavior instead of just a one-time mistake.

Schedule My Rent Makes Tenant Background Checks Easy

There are many benefits that come with screening tenants with a background check, which is why Schedule My Rent’s Tenant Credit & Background Check Services make it easier than ever for landlords to select the best-fit tenants. Sign up for a free trial to see how our tenant background check can improve your vetting process today!

6 Benefits of Investing in a Rental Property Software

2021-11-11T15:01:50+00:00

6 Benefits of Investing in a Rental Property Software

In order to stay on top of their countless responsibilities and rental properties, it is important for landlords to invest in rental property software to stay as organized and efficient as possible. Switching to an online software benefits both tenants and landlords alike.

What Is Rental Property Software?

Simply put, rental property software makes rental property management and operations much easier. These types of software come with a slew of features that make rent collection and overall communication as seamless as can be.

6 Reasons Why Rental Property Software Is a No Brainer

Rental property software is an investment worth making. Below are 6 key reasons why taking advantage of this software is truly a must:

#1: Easy to Use Interface

There is no need to be a technology pro to understand the functions of rental property software. The software offered at Schedule My Rent has a dashboard where you can easily and quickly see your rental status across all of your units. You can see your payment status by unit, with the amount due and received for each unit and the numbers automatically turn red if something is overdue. You can also see if you have waiting rental applications or maintenance requests.

#2: Better Tenant and Landlord Communication

With the help of a rental property software, all of the communication between landlords and tenants is streamlined and easier than ever to keep track of. This is because it automatically sends out a variety of reminder emails, receipts, and notices to keep your tenants in the loop of the latest information and updates.

#3: Customized Solutions

The beauty of rental property software is the customizable communication options for each of your tenants. Property residents have the ability to opt out of emails that aren’t of help to them while opting into ones of importance.

#4: Saves Time

If you’re looking for ways to cut back on your never-ending to-do list, look no further than to Schedule My Rent. Tedious and time-consuming tasks are all but taken care of with a rental property software’s automation features. These features include listing a property for rent across multiple websites, online rental applications, credit and background reports, automated rent collection, expense tracking, maintenance requests, and so much more.

#5: Rent Is Consistently Accounted For

Collecting rent from tenants in an efficient and timely manner is crucial for successful property management. Some of the best features of rental property software are the ones associated with tenants paying and scheduling rent. These include the ability for a tenant to pay rent with their bank account, credit card, and even with cash at any MoneyGram location located in Walmart, CVS, and other retailers. There are also automated reminders for tenants to pay rent on time, late fee notices, return fee notices, and AutoPay reminder emails, to name a few.

#6: Helpful Free Trial

Working with the rental property software at Schedule My Rent is cost-effective, as it offers landlords the opportunity to complete a 30-day free trial. This allows landlords to test the waters of the software before shelling out any money prematurely.

Rental Software Made Easy with Schedule My Rent

Rental property software is the key to strong landlord and tenant relationships. Schedule My Rent is committed to helping clients establish a stellar property management strategy to help their business flourish. To give our tried and true rental property software a try, sign up for a free trial today!

Why All Landlords Need To Use An Online Rental Application

2021-11-09T14:40:24+00:00

Why All Landlords Need to Use an Online Rental Application

In today’s technology-driven society, businesses recognize the importance of switching the majority of their operations to be accessible through phones, tablets, and laptops in an online format. The rental market is no exception to this, as countless rental properties across the nation are opting for an online rental application in lieu of traditional written paperwork.

What Is Included in an Online Rental Application?

An online rental application is important for landlords because it is the primary screening method for prospective tenants. They ensure that future renters are trustworthy and legitimate by asking questions related to personal background information, pets, income level, residence history, emergency contact information, and much more. You also have the option of running a national background report for criminal, evictions, etc. and a full credit report.

4 Key Features of A Solid Online Rental Application

You might be wondering: why is an online rental application better for my rental property than a traditional one? Here are 4 of the many unique perks that come with an online rental application:

#1: Convenient Process for All Parties

An online rental application makes life easier for both the landlord and the tenant. So long as there is internet access and a laptop, phone, or tablet, prospective tenants can easily fill out your application at their leisure. This removes any of the pressure and time constraints associated with visiting the leasing office in person. Tenants can attach any documents they want, such as pay stubs to show income.

When an online application is completed with Schedule My Rent’s application software, landlords are immediately notified via email to help to find the best candidate as quickly as possible. Additionally, landlords have the ability to view all of their applications at once and filter their applicants by name, date, or unit as needed.

#2: Better Safety Measures

Working with an online rental application makes private data safer and more protected for your future tenants. There is no need to worry about a tenant’s private information, such as their social security number or contact information, getting leaked or lost in the shuffle of paperwork. This brings peace of mind to everyone involved.

#3: Application Customizability

The online application offered by Schedule My Rent allows you to customize your application questions and requirements to fit your building’s unique needs, disclosures, and state requirements with complete ease. The top section of the application is completely customizable with any disclosures or requirement that you want to include.

#4: Better Screening Measures

When filling out a manual application, you run the risk of prospective tenants leaving various sections blank to avoid certain questions or background information. But with an online application, you have the power to make certain questions a requirement to answer in order to submit the application. Furthermore, if you are feeling confident about an application, you can easily ask for a full background and credit check through the software.

Make the Switch to Online Applications with Schedule My Rent

To get the most vetted and qualified candidates possible, using an online rental application is a no-brainer. With the help of Schedule My Rent, making the switch to an online rental application has never been easier. To start your free trial or to schedule a demo, check out the features offered at Schedule my Rent today.

6 Essential Tips for Screening Your Tenants

2021-11-07T14:28:51+00:00

6 Essential Tips for Screening Your Tenants

You might not realize it, but tenant screening is one of the most important things you can do for your business as a landlord. Trustworthy tenants can either make or break the profitability of your property. Undependable tenants can jeopardize your entire business by missing payments or even damaging your rental property. Meanwhile, high-quality renters will equip your enterprise to flourish by respecting your property, letting you collect rent online and on time, and potentially even recommending your business to their friends.

All that is to say that tenant screening isn't a mere formality - it's a vital element to ensuring your long-term success, so it's essential to get it right. Here are a few crucial tips to help you get started screening your tenants efficiently and effectively.

1. Should You Always Perform A Thorough Tentant Background Check?

A detailed background check is easily one of the critical elements of any successful tenant screening process. A background check will give you a look at your potential tenant's employment history and help you uncover any possible criminal activity or history, too.

You'll want to make sure that your applicant is honest with the background check process. Sometimes, applicants will attempt to substitute a friend or relative's information for their background check, so make sure to watch out for any suspicious or incorrect details during a background check.

Don't forget to run tenant background checks on each person applying for your property. Each roommate, spouse, or family member should get their own background check.

2. Do You Have Solid Criteria and Qualifications for Each Application?

It's a good idea not to screen your tenants on an ad hoc basis. Instead, it's an industry best practice to develop a standardized set of criteria to use when assessing each application. Having a written, established set of qualifications and questions will make it easier to evaluate each rental application and determine whether the potential tenant will be a good fit for your property.

Of course, your specific criteria will be dependent on your unique needs and preferences in your situation. In general, though, most specific rental qualifications cover aspects such as verifying income sources, passing background checks, and meeting a particular credit score (such as a minimum of 600). Regardless of which factors you choose to focus on, the purpose of your rental qualifications should be to weed out any potentially problematic tenants.

Developing criteria is especially important for legal purposes. If you have to deny an applicant, you'll need to show your exact reasons why you had to turn them down and show that your decision did not violate any housing discrimination laws in your area.

3. Are You Considering an Applicant's Social Media Activity?

Today, social media is an important avenue into learning about someone and their personality. A tenant who may seem perfectly polite and respectful on an initial meeting might be an entirely different person online, so to get a full picture of each rental applicant, it's essential to look at their social media activity.

While you shouldn't discriminate against an applicant based on their opinions or preferences online, you should look to see if you find any troubling information or discrepancies. For example, it's worth checking to see if an applicant's employment history on LinkedIn matches with what they've already told you, or to see if they refer to criminal activity or even gangs on Facebook or Twitter. All told, you'll need to get a full picture of the applicant through your tenant screening process, and social media is a vital part of the equation.

4. Are You Verifying Income Sources?

You might think it's difficult to lie about your income sources. Still, it's deceptively simple to create a fake pay stub or paycheck in this digital age, so you'll want to take extra steps to ensure that your applicant is entirely transparent about their sources of income and employment history.

You have a few ways of going about this. You could directly contact their current employer and ask about the tenant's employment history or payment. You could also ask for tax documents or bank statements over the past few months to determine the legitimacy of the applicant's employment.

5. Do You Require Tenants to Complete a Formal Rental Application?

One of the most crucial things you can do to screen your tenants is to require a completed rental application before making any offers on leases. You should always use a thorough and legally-compliant rental application - and be sure that the applicant doesn't leave out any information, either.

A detailed application will not only give you plenty of important information about the tenant, but it will also help you see if they are trying to hide anything from you. If you ever need to evict your tenant in the future due to new information you've uncovered, pointing to an inaccurate or incomplete rental application will provide strong evidence in your favor.

6. Are You Using the Latest Rental Management Software?

Screening your tenants is a necessary process, but there's no denying that it can give you a lot to keep track of at once. Between tenant background checks and rental applications, it can provide mountains of paperwork for you to wade through. Thankfully, modern rental management software like Schedule My Rent can automate many of these tedious processes and make your job easier.

Get Tenant Background Checks & More with Schedule My Rent

At Schedule My Rent, our innovative software can take care of everything from credit score requests to tenant background checks. We also provide free, customizable rental applications for you and your applicants that can be easily tailored to your specific needs. Our program also helps streamline your work duties even after you've accepted a tenant. We automate everything from maintenance requests to rent collection so that you can focus on the many other responsibilities of your dynamic profession as a landlord.

See for yourself why Schedule My Rent is one of the industry's leading platforms for rental management, rent collection, and tenant screening. Call us at (844) 465-3339 for more information about collecting rent online today!

A Landlord's Guide to Renting Properties with a Pool

2021-11-05T16:15:55+00:00

If you are a landlord thinking of installing a pool on your property you have come to the right place! Here is your guide to renting a property with a pool including the liabilities, responsibilities, and maintenance that comes with it.

Pool Liabilities: A swimming pool for your rental can be a huge perk for potential renters and provide a fun summer activity for your current tenants, but it is also a liability that you must be conscious of. It is important to look into the state and federal laws on pool safety in order to prevent accidents and know how to proceed if they occur.

Adult Supervision
Supervision at a pool is very important for young children, and you should post signs telling renters that their children must be supervised at the pool at all times.

Pool Addendum
Additionally, you could add a swimming pool addendum to your lease to ensure your tenants will agree to and follow any pool rules you set.

Pool Safety
It is essential to create an environment where your tenants are safe, and feel comfortable. By taking proactive safety measures, you can prevent injuries and make your pool area enjoyable.

Install a Gate
It is a good idea to install a gate around your swimming pool area. It separates the pool from the rest of your property and allows adults to know when their children are at the pool in order to supervise them. When installing a gate, it is important that it is at least four feet tall and can’t be climbed.

Signs
It is important to post safety signs at your pool to ensure that everyone is aware of the rules you have in place. These signs could say children under 10 years of age must be supervised at all times, no diving, or use at your own risk. Pool signs allow tenants to stay safe by following the pool rules, and protect landlords in liability situations.

Cover and Lock
A great safety feature for your pool is a power safety cover or a pool cover with latches. A cover keeps the pool clean, and certain covers will prevent people from falling into the water when the pool is closed. Additionally, all pool chemicals, such as chlorine, should be stored and locked when not in use.

Safety Rescue Equipment
Even with safety measures in place, accidents can still occur, and it is important to be prepared for them. You should have a life ring, first aid kit, rescue tube, and other equipment at the pool area at all times and clearly marked in case of an emergency.

Pool Maintenance
It is very important to make sure your pool is up to code and kept clean. Your tenants will only want to enjoy your pool if it is kept clean and well maintained. Some landlords choose to let their tenants take care of pool maintenance, but this is only a good idea if you plan for regular professional inspection to ensure it is kept in good shape.

Clean the Pool Filter
Swimming pool filters remove dirt and debris from your pool and help to evenly distribute pool chemicals (such as chlorine) throughout the pool. If the filters are not regularly and properly cleaned, then they will get clogged and become less effective. This will result in cloudy, unclean water, and will allow more opportunities for bacteria growth in the pool. By simply cleaning the pool filter every 2-6 weeks, your pool will be cleaner and safer for tenants.

Maintain Water pH Levels
The ideal range of water pH for a swimming pool is between 7.2 and 7.8. Your pool is too acidic when the pH is below 7.0, and this could cause corroding of your pool equipment. If the water is too basic (higher than 7.0) then it could cause scaling on the pool’s surface and plumbing equipment.

Maintain Water Levels
It is important to regularly check the water level of your pool. If it is too low then there might be a problem and you might need to consult a professional. Pools do lose water through splashing and evaporation, but if you notice the levels are surprisingly low then you should contact a professional.

Pool Vacuuming
Vacuuming your swimming pool not only cleans it, but also allows for better water circulation. Chemicals will be used more effectively, and water balance will be more consistent if the pool water circulation is better. This should ideally be done at least once a week depending on how frequently the pool is being used.

Repair Leaks
As a landlord, you need to ensure that your swimming pool is safe for your tenants. Leaks can be a safety hazard for occupants, and can cause expensive problems. These problems could be very high water bills, or long term expensive damage to your pool. It is important to fix any leaks right away and consult a professional.

Skim the Swimming Pool
Pool skimming is a very simple maintenance task that involves removing all floating debris, bugs, leaves, etc. that have entered your pool. This can be done with a pool skimmer. This simple task leaves your pool looking clean and appealing to swim in.

Potential Renters
By renting out a property with a pool, you can possibly widen your market of potential tenants, and make your property more appealing. Unfortunately, a swimming pool is not always very exciting for everyone. Different renters have different preferences and a middle aged couple might enjoy hosting a pool party, while a senior citizen might instead enjoy gardening in their yard. It is important to keep in mind your target market when thinking about installing a pool at your property. Would the majority of your current and future tenants like the amenity?

Insurance
You might need to purchase extra insurance if your regular plan does not cover pools. This could be a very expensive downside to owning a pool. If you have proper safety features in place, it could also affect how much you need to pay in insurance (another great reason to ensure your pool is safe). Additionally, you should consider setting up an LLC, so that your personal assets are protected in the case that a tenant sues you. It is important to consult an insurance expert before making any large decisions such as installing a pool.

Schedule My Rent

Types of Property Management Notices for Landords

2021-10-28T19:14:43+00:00

As a landlord, you will encounter many different situations which require different legal notices. For the best results, you should send your tenant a formal notice through certified mail with a return receipt requested (via the US Postal Service). Certified mail provides proof that your tenant received the notice which will be helpful if you end up in court.

We have provided the most common notice types and some examples of the best ways to write them for all your property management needs.

1. Notice of entry / intent to enter

The most common notice is letting your tenant know that you will be entering their unit. It is important to know the requirements for your state, but in most states landlords must give notice to their tenant before entering an occupied premises. The industry best practice is to give 24 hours’ notice even if a notice isn’t required in your state.

You are also able to send your “intent to enter” though an email or text message (depending on your state), but it is important to receive a reply of confirmation from your tenant. If you don’t receive this, you should consider sending a postal letter if time permits.

If there is an emergency (water leaking into downstairs apartment, etc.), landlords are typically allowed to enter without the typical notice.

Here is an example of a common notice to enter:

“If it’s convenient, I will be stopping by your unit between 1pm and 5pm on Thursday, August 12th, to do some routine maintenance.”

2. Notice of repairs, renovations, or outages

This notice can often accompany the Notice of Entry (as discussed above) if someone has to enter the unit to make repairs. This notice should include what work will be done on the unit, the date that the repair or renovation will take place, and the expected time any outage will last.

An example of a repair notice:

“A contractor will be coming by your unit on Saturday to change the electrical panel, and the power will be out all of Saturday.”

If you are cutting off your tenants essential services (heat, water, electricity, etc.) for more than one day, you should consider relocating your tenant to a hotel (at your expense) until the repair is finished. If your tenant doesn’t have access to these essential services, then the unit is considered uninhabitable.

3. Offer of Renewal

If you have a fixed-term lease with your tenant, it may not have an auto-renew clause. If your tenant would like to stay in the unit, you both will have to sign a renewal agreement. You should send the offer of renewal 60 to 80 days prior to when the lease ends (especially if your tenant needs to provide a 60 days’ notice before the move out).

This letter can include the date the fixed term lease is set to expire, the tenant’s name, the address of their unit, your offer to renew the lease, the date when you need to be notified if they intend to move out, your name, and your signature.

An example:

“The fixed-term lease for (tenant’s name) at (tenant’s property) is set to expire on (MM/DD/YYYY), and I am pleased to offer you a renewal. Please notify me of your decision by (MM/DD/YYYY). Thank you, (your name).”

4. Notice of non-renewal

If you are not planning to offer your tenant a renewal, it is important to notify them that their lease will not be renewed and give them a move-out date. You can terminate a periodic lease (daily, weekly, monthly, or yearly) by sending your tenant this notice of non-renewal. This notice is also called a “no-cause eviction” because the landlord and tenant can terminate their periodic lease (with proper notice) at any time. You can also use this notice of non-renewal if your lease auto-renews but you would prefer if it didn’t.

Make sure to review your state laws to verify the amount of notice you need to provide your tenant before they move out. In most cases, the amount of notice is between 7 to 60 days.

Here is an example of a notice of non-renewal:

“The lease or monthly rental agreement for (tenant’s name) at (tenant’s property) is set to expire on (MM/DD/YYYY), and a renewal will not be offered. You will be expected to vacate your unit on or before (MM/DD/YYYY). Thank you, (your name).”

5. Notice of rent increase

In most circumstances, you can’t raise your tenant’s rent mid-lease, so this notice is often accompanied by the offer or renewal (mentioned above). This notice includes the percentage of increase of the rent amount, the new rent amount, and the start date. You should typically send this notice 30 to 60 days in advance depending on the laws of your state.

When sending this notice be sure to consider the ramifications of choosing to raise the rent of your tenant. If your tenant gets upset by the rent increase and decides to move out, you will have an abundance of new tasks to prepare for your next tenant (including cleaning, repairs/updates, re-listing your property, hosting viewings, and screening potential tenants). Even after this process your unit could still be unoccupied. If you have a great tenant, you might consider choosing not to increase the rent amount every year and instead make up the difference once your tenant does decide to move out and a new tenant moves in.

The downside to not increasing rent is that you may lose money due to inflation, rising property taxes, or other expenses. It is important to consider all the options when deciding if a rent increase is the right decision for your property and tenants.

Example of rent increase notice:

“Your rent will increase by (X)% to $(X) per month starting on (MM/DD/YYYY).”

6. Notice of transfer of ownership / management

This notice is sent to a tenant if you sell your rental property to another individual or company. You can also use this notice if you are changing management companies.

Your tenants’ leases don’t automatically terminate on the sale of a property (unless specified in the lease), instead they are transferred to the new owner. The new owner becomes the new landlord, and the tenants are usually able to live in their rental unit through the rest of the lease. This notice tells your tenant what the new situation is.

It is important to always review your state laws, because in this situation (in some states) the tenant may have first right of refusal. This means that as a property owner, you can’t sell the property to anyone else unless your tenant has signed a form saying that they don’t want to buy the property themselves.

Here is a common notice of transfer:

“Effective immediately, I have transferred ownership of this property to (owner’s name). (Owner) will contact you to provide instructions for paying your rent).”

7. Notice to pay or quit

This notice is sent to tenants if they are late on paying their rent (including any grace period). In sending this notice, you are telling your tenant that they need to pay their past due rent within a certain amount of days or their lease will be terminated and they will have to move out.

This notice does not give landlords the ability to cut off utilities or lock the tenant out. Landlords need to go thought the formal eviction process in order to have their tenant removed by the police. Your state laws will provide you with the amount of time a landlord must give a tenant to move out.

Here is an example:

“You have (X) days to pay your past due rent, or I will terminate your lease and you will have to move out of the unit”

For more information on what to do if your tenant won’t pay their rent visit: https://www.schedulemyrent.com/blog/

8. Notice to cure or quit

This notice is similar to the “pay or quit” notice mentioned above. It is sent to a tenant if they violate a condition, rule, or clause in the lease agreement. For example, your tenant moved in an unapproved roommate, brought in a pet when their lease specified a no pet rule, or made unapproved renovations to the property.

In most situations, you should give your tenant a time frame to “cure” the problem. After that time frame, you can begin the eviction process for that tenant. If the tenant remedies their violation, you can decide to continue to let them live in their unit.

An example:

“You have (X) days to fix the violation (specify the violation), or I will terminate your lease and you will have to move out of your unit.”

9. Unconditional quit notice

In the previous two notices, your tenant is able to fix whatever problem you notified them of in a certain number of days. With an unconditional quit notice, your tenant is not given the opportunity to continue to live in their rental unit (regardless of if they have fixed the problem).

The most common situations for this type of notice are the tenant is late on rent more than once, the tenant has caused serious damage to the property (including unrepairable damage), the tenant is participating in illegal activity on the premises, or the tenant has repeated the violation or offense.

An unconditional quit notice is the harshest of all the notices and some states don’t allow them. Even states allowing this notice have strict guidelines on their usage, so make sure to contact a lawyer before sending your tenant an unconditional quit notice.

An example of an unconditional quit notice:

“Your lease is being terminated because ____. Please vacate the premises by (MM/DD/YYYY).”

10. Notice of intent to dispose of abandoned personal property

Before sending this notice to your tenant, make sure that the property was actually abandoned. Once you have determined this, you can send a notice of your intent to dispose of the property.

The state laws vary substantially for how landlords are required to manage personal property that their tenants have abandoned. Different states require different courses of action including: sending a 30-day letter to their last known address, a description of the property for the tenant to identify, and storage of the items for a set period of time. Some states even allow the landlord to sell or throw out the items immediately after the tenant has moved out. Make sure to know the laws for your state in this situation.

Document storage and sharing on Schedule My Rent

2021-10-20T21:59:53+00:00

As a business owner, it is essential to keep all your documents organized with easy access to them at any time. Keeping your documents organized online allows you to cut down on time searching for documents and prevents unmanageable paper piles from building up on your desk or wherever you store your documents (this also reduces paper costs!). In addition to saving time, storing documents online gives you extra data security and allows you to access the documents from any device with internet access.

Having your documents organized online is a great solution for many businesses and it is essential as a landlord. What’s even better than having all your documents organized on a secure site? What if that site was also your property management software? Schedule My Rent has a feature that benefits both landlords and tenants by doing just this.

Our property management software has a landlord dashboard that easily allows landlords to keep track of rent payments from their tenants, screen potential tenants, customize late fees, remind tenants of upcoming rent payments, upload expense receipts, and so much more (visit https://www.schedulemyrent.com/Landlord-Software-Features.xhtml for details on all our features)! We also have a document saving and sharing feature.

With document saving, landlord can upload important documents to our secure site for easy organization. This is a great way for landlords to keep track of documents that their tenants don’t necessarily need access to such as a copy of a pay or quit notice or an eviction notice. Document sharing allows landlords to securely upload documents that they would like their tenant to have access to. This is the place to upload a copy of a lease signed by you and your tenant. You both will have access to this document at any time. Other examples are the pool rules for your property that you would like your tenant to be able to refer to or move in/out checklists.

As a landlord, you are able to choose if your tenant has access to certain documents and can edit this at any time. Your tenants are also able to share important documents with you!

Keep your important documents secure and organized and check out this feature by clicking “document sharing and sending” on the landlord dashboard!

3 Advantages of Online Rent Collection for Tenants and Landlords

2021-09-24T15:51:31+00:00

In today’s digital world, there is no question that choosing to collect rent online is more convenient and beneficial for both tenants and landlords alike.

Why Is Collecting Rent Online Better Than Traditional Methods?

If you’re still on the fence about making the switch to a digital rent collection software, let’s explore the top 3 benefits of using one:

#1: Easy and Stress-Free Transactions

The automation features that come with online rent collection software make it easier than ever to avoid any payment issues from arising. With the help of automatic late fees and payments, landlords consistently get their money on time and no longer have to wait days for checks to clear. Additionally, setting up recurring auto-payments help tenants never miss a payment ever again!

#2: Safer Transactions

Even in the most organized of offices, a physical check runs the risk of getting lost in the shuffle of paperwork or even getting stolen. On the other hand, online software is encrypted to protect tenants’ personal financial information and ensures that payments are received without any privacy breaches.

#3: Customizable Payment Options

The beauty of online rent software is that it allows tenants to customize their payment options to best fit their needs. Not only can they choose to pay with cash, a bank account, or a debit or credit card, but they can also choose to split the rent amongst roommates in any fashion they desire.

Collect Rent Online with Schedule My Rent Today

With all of these benefits, it is clear that tenant’s and landlord’s lives are significantly easier with online rent collection software in place. Ditch the old school checks and instead collect rent online with the help of Schedule My Rent’s software today!

Why Every Rental Property Should Use a Landlord Software

2021-09-22T20:19:55+00:00

There's a reason why countless properties are making the switch to an online landlord software: it plays a pivotal role in creating a streamlined and smoother rental process for all parties involved.

4 Key Benefits of Using a Landlord Software

There is no doubt that online software will improve the ways that a rental property runs. Here are four perks of landlord and rental property software that benefit both landlords and tenants alike:

#1: Quicker and Consistent Payments

Paying rent has never been easier than with an online software. Not only can tenants set up autopayments with their choice of a preferred method of payment, but landlords also get their money much faster without having to go to the bank and wait for checks to clear.

#2: Affordable Pricing

The beauty of working with landlord software, especially with Schedule My Rent, is its affordable price tag. There is no setup, monthly, or minimum fee to worry about, making the incredible features of the software worth a great value.

#3: Customizable Features

Online landlord software offers a level of customizability to fit the unique needs of each landlord and tenant. Some of these features include the choice to split the rent between roommates, choice of payment method, custom late and return fees, and so much more.

#4: Better Organization

Running a rental property is difficult enough, let alone also having to organize the tenant’s physical rental checks, paperwork, and requests across multiple platforms. The great part about an online system is that it allows landlords to track charges and payments, maintenance requests, and expenses all in one centralized place.

Schedule My Rent Makes Landlord and Tenants Lives Easier

To work with a landlord software trusted by thousands of users, schedule a 30 day free trial with Schedule My Rent today!

How to Avoid Landlord Liability Issues

2021-08-26T14:45:39+00:00

Owning a rental property investment can be a rewarding opportunity, but it also burdens you with some major responsibilities. Every state has a huge number of laws, rules, and regulations governing landlord and tenant relationships to protect all parties involved, and juggling all of these factors can be difficult.

Even situations that are entirely out of your control can drop huge liabilities at your doorstep, so it’s vital for you and your business to be proactive about minimizing risk and liability whenever possible. From property maintenance to online lease and property management software, here are a few things you can do to protect your prospects.

Screen Your Tenants Carefully

It’s an unfortunate reality that not all tenants will use your property for good purposes. Some will treat your rental with the respect it deserves, while a problematic handful could miss rent payments or trash the property. Lease out your property to unreliable candidates, and you might end up with significant monetary liabilities.

Thorough tenant screening can help you reduce these risks by helping you pick only the best and most dependable tenants for your rental. Ideally, your tenant screens should include a detailed background check of the candidate’s criminal record and employment history to verify that they have a dependable income and a tendency toward good behavior.

Double Down on Maintenance

Broken facilities aren’t just annoying for your tenants— they can present active risks to their safety. As the landlord, it’s your responsibility to ensure that you never endanger your tenants and quickly repair any major damages on your property.

If you let damaged facilities like water or air go unrepaired for too long, you may end up being charged for negligence. It’s a good idea to partner with a local repair company to reduce these risks and provide quick responses for any issues. Of course, ensure that any professionals you hire are fully licensed and insured, as unprotected workers can generate even more risks.

Develop Airtight Contracts

It isn’t difficult to find blank templates for leases and contracts online, so it may be tempting to use one of these and manage your documentation yourself. However, these one-size-fits-all solutions will likely not address all the intricacies and unique factors affecting your situation. If you use a blank slate like this, you may be missing out on important limiting clauses that could protect you from liability headaches.

For the best results, you should work with a real estate lawyer in your local area to verify that all leases and contracts are written with your market in mind.

Use Online Lease & Property Management Software

Documentation is always a hassle, and if you’re trying to manage all your contracts on your own, you may have some recordkeeping troubles in store. Using an online platform to help you and your tenants keep track of your paperwork can help you stay on top of all your numerous rental agreements and ensure that everything remains in compliance.

There are a few potential options on the market, but Schedule My Rent is easily the best when it comes to convenience, value, and functionality. We have served landlords and tenants across the country and have helped take the hassle out of managing leases. Call us at (844) 465-3339 for more information about our online property management software today.

Top 5 Tips for Tenant Retention

2021-08-24T22:45:58+00:00

It takes time, effort, and dedication to secure a tenant for your property. However, your job isn’t over when your tenant settles in - it’s only just beginning. Now, your focus should turn toward retaining your residents and keeping them happy with your rental.

Tenant retention is no one-time project. Instead, it’s a dynamic process that involves extensive planning and dedication on your end that requires using online lease management software. If you’re curious about how you should get started, here are five key tips to remember to help retain your residents.

1. Maintain Your Property

One of the most practical ways to retain your tenants is also the most obvious: keep your property in good condition. Nobody likes the idea of living in an unsightly home, which is why it’s vital to maintain your rental and ensure that it looks attractive all year round.

Most importantly, keep an eye on essential facilities like plumbing and air. Your tenants won’t hesitate to seek out other residences if they find that you aren’t taking care of the bare necessities for comfort. Consider working with a dependable contracting company so that you can quickly address repairs and maintenance issues.

2. Improve Communication

No one likes feeling like they’re in the dark. Your tenants shouldn’t have to jump through hoops just to get in touch with you— instead, prioritize communication and provide plenty of ways for your residents to reach you. Be available by call, text, email, or in-person, and ensure that you respond to inquiries promptly.

3. Be Flexible With Dependable Tenants

Sometimes, life happens. While it’s always essential to be firm about deadlines for paying rent, you should have some degree of flexibility for tenants that have been dependable in the past. When you do so, you’ll help foster loyalty with your residents and show that you care about them beyond simple goals for business profitability.

4. Keep Your Prices Competitive

When you’re setting rent for your property, you have to toe a fine line between making a profit and providing a competitive value. You may be tempted to set a high price to maximize your revenue, but if you want to attract and maintain your tenants, you’ll need to keep your rent below the market average.

Offering a good value for your rent will not only incentivize tenants to move in but will also encourage them to renew their leases time and again. In the process, you’ll make further profits than you would have with a higher rent that routinely drove tenants away.

5. Use Online Lease Management Software

If it’s hard for you to keep track of all your leases and contracts, imagine how tough it is for your residents. You can simplify your lease management efforts by using a streamlined online lease management software, which helps you organize all your tenants’ and landlord documents.

Try Our Lease & Rental Property Management Software

At Schedule My Rent, we provide the industry’s most effective and efficient rental management platform that landlords and tenants across the country trust. Call us at (844) 465-3339 for more information about our online lease and property management software today.

Tips to Create a Property Management System Strategy

2021-06-24T02:38:44+00:00

Tips to Create a Property Management System Strategy

Why You Need a Property Management System to Run a Successful Rental Property

Creating and implementing an effective property management system (PMS) strategy is essential for landlords who want to maximize profitability and reduce risk. Whether you're managing a single rental unit or a portfolio of rental properties, a well-organized PMS helps prevent costly mistakes that could hurt your income and reputation.

Landlords using rental property management software can automate daily tasks, monitor tenant interactions, and stay ahead of maintenance and financial issues. The right strategy allows you to anticipate problems before they escalate—saving you both time and money.

What Is a Property Management System?

A property management system is software that provides landlords and property managers with a centralized platform to organize, schedule, and manage all aspects of running a rental property. This includes lease tracking, maintenance coordination, rent collection, and tenant communications.

By using a PMS, landlords can:

Automate time-consuming tasks
Increase operational efficiency
Improve tenant satisfaction
Keep accurate maintenance and financial records

In short, a well-run property management system streamlines landlord responsibilities and helps foster long-term tenant relationships.

6 Smart Tips to Optimize Your Property Management System

To get the most out of your rental management software, you need a clear strategy. These practical tips will help you set up a system that’s efficient, scalable, and designed to increase your return on investment.

1. Clearly Define Lease Responsibilities

The lease agreement should detail the roles and responsibilities of both tenants and landlords. Make sure all expectations are outlined clearly—including rent due dates, maintenance responsibilities, and pet policies. A detailed lease helps reduce disputes and strengthens legal protections.

2. Maintain Digital Maintenance and Financial Records

Use your PMS to track service histories, vendor receipts, invoices, and inspection logs. Digitizing this information provides quick access and helps avoid lost paperwork. Set automated reminders for maintenance tasks and financial due dates to stay organized.

3. Plan Seasonal Maintenance in Advance

Property upkeep changes with the seasons. Implement a seasonal property management strategy that includes HVAC tune-ups, snow removal, gutter cleaning, and pest control. Preparing in advance protects your investment and ensures tenant comfort year-round.

4. Enhance Communication with Tenants and Vendors

Communication is key to smooth property management. Use your PMS to:

Provide tenants with an online portal for maintenance requests
Send automated rent reminders
Schedule repairs with vendors
Keep all conversations documented

Good communication builds trust and improves tenant retention.

5. Establish an Emergency Fund

Unexpected repairs or emergencies can disrupt operations. Build a reserve fund to cover urgent expenses, like plumbing issues or storm damage. Include emergency fund contributions in your monthly budgeting strategy for long-term sustainability.

6. Create an End-of-Lease Turnover Checklist

When a tenant moves out, time is money. An empty unit means lost rent. Use your PMS to manage a lease-end protocol, including:

Final inspection
Security deposit evaluation
Cleaning and repairs
Listing and marketing the unit

A standardized turnover checklist ensures fast re-leasing and minimizes vacancy time.

Additional FAQs for Landlords Using Property Management Software

Should I Ask My Tenant to Get Renters Insurance?

Yes. Requiring or recommending renters insurance benefits both tenants and landlords. It protects tenants’ belongings, covers liability if someone is injured in the unit, and may provide alternative housing if the rental becomes uninhabitable. Including a renters insurance clause in your lease is a smart, low-cost way to mitigate risks.

What Are the Best Tenant Screening Services?

Reliable tenant screening is crucial to avoid problematic renters.

These services provide credit reports, criminal background checks, and eviction history—helping you make informed leasing decisions.

Should I Make My Property Pet-Friendly?

Allowing pets can expand your tenant pool and reduce vacancies. Over 70% of renters have pets. You can charge a pet deposit or monthly pet rent to offset potential damage. However, set clear pet policies and consider property type, noise levels, and tenant preferences before allowing animals.

Get Started with a Property Management System Today

Ready to streamline your rental property operations? Schedule My Rent offers user-friendly rental property management software that helps landlords:

Collect rent online
Track maintenance requests
Automate tenant communication
Stay organized with digital records

Call us today at (844) 465-3339 or visit ScheduleMyRent.com to learn how we can help you run your rental property more efficiently.

Contact Schedule My Rent for More Information Today

Schedule My Rent provides software that allows you to establish an effective property management system strategy to keep your property running smoothly and looking its best. Call us at (844) 465-3339 for complete information about our rental property management software and get started today.

7 Ways to Increase Tenant Retention Rate

2021-06-21T22:32:00+00:00

7 Ways to Increase Tenant Retention Rate

Property managers and landlords are continually looking to keep tenants in their units for as long as possible. When someone vacates the property instead of renewing their lease, it is costly to prepare the unit and find a new tenant.

Depending on how long the former tenants were in the unit and the condition they left it in, it will need to be cleaned and undergo any necessary repairs or replacements. The marketing cost to attract the best new tenants paired with a lengthy rental application process adds to the expense and hassle that comes with a tenant moving out.

Turnover is a significant liability to the financial success of the property owner’s investment. Vacant units collect no revenue yet continue to require spending on upkeep and maintenance. The longer properties sit empty, the more money owners lose in rent and basic operational expenses until the vacancy is filled. A high retention rate is a compounded asset that brings in ongoing revenue with effort.

7 Tips to Raise Tenant Retention Rates

The best way to reduce turnover and increase retention rates is to follow the most basic and time-tested business principle: offer the best service at the lowest prices. When it comes to property management that means keeping rent at or below market, upkeeping the property so it looks its best, and allowing renters the freedom to make their rental units look and feel like home.

From maintaining open communication to implementing effective property management system strategies, the following are helpful tips to help keep your tenants feeling happy and appreciated:

1. Find the Right Tenants

Leasing to people that have a high risk of defaulting on the lease agreement will cost you more money and aggravation than the expense of waiting to find a more suitable tenant. The best way to get people to renew their leases is to spend the time, effort, and money it takes to find the right tenants that will pay their rent on time and enjoy living on your property. The right tenants will treat the unit with respect, create a home environment, and be more likely to renew when their lease is up.

Perform a thorough screening for each rental applicant. Take the time to check references and credit ratings and follow through on background checks. Find out why they left their previous living situation and any problems they had there.

2. Utilize a Property Management System

Implementing effective strategies in operating your property management system offers a centralized location to track tenant issues and needs. The convenience and efficiency of online rental applications and automated rent payment systems allow you to focus time and energy on the needs of your tenants. Use an online system to organize and facilitate maintenance, repairs, and service calls to ensure fast and quality service throughout the property.

3. Focus on Property Maintenance

It is a mistake to take your tenants for granted and let the maintenance and repair of their rented property slide because they are under contract to pay the rent. Staying on top of maintenance will show your tenants that you take pride in the property. They will be more likely to extend their lease if they know you will promptly take care of repairs and maintenance needs. Focusing on maintenance issues will also make it easier and cheaper to turn over the unit when a tenant does move out.

4. Allow for Unit Adjustments

Property managers are generally not open to the idea of tenants making major changes to the layout or structure of a rental property unit. Tenants do like to make the place their own by adding elements of their tastes and preferences. Allowing for minor changes to the interior and exterior of a rental unit will make it more of a home for your tenants, and they may even make improvements that will last beyond their stay.

5. Keep Communication Open

Interpersonal communications, tenant relations, and conflict resolution are as important as any other skill you will use to improve retention rates for your rental property. Being able to handle hostile tenants and making all tenants feel a part of a community is essential to keeping people in their units beyond their original lease agreement. Deal with late payments in a respectful and discreet fashion and be flexible enough to handle each situation with an open mind.

Tenants that have questions or complaints need to be approached with kindness and patience in a safe environment. This will show them that their opinions matter and increase their appreciation for the service and treatment they get in their chosen place of living. A tenant will stay with you a lot longer when privacy and trust are established and their voices are heard and encouraged.

6. Lease Renewal Incentives

Make your tenants a renewal offer they cannot refuse. Get creative and develop financial incentives and property upgrades to give tenants the sense they are getting a new version of their old place. Putting in new appliances, replacing the flooring, or repainting will give the unit a fresh look and a new perspective to motivate tenants to stay.

Some examples of renewal incentives that will not break your budget include:

● Cash or spendable rewards

● Unit upgrade

● Parking discount or premium upgrade

● Internet or TV service upgrade or discount

● Free service items such as carpet cleaning, power washing, or appliance upgrade.

7. Keep Rent Below Market

For many tenants, the decision regarding whether to renew a lease or find another property comes down to money. If they can rent the same type of property for less money, they will, even with diminished quality and amenities.

It is important to monitor the local rental market to keep updated on property and tenant trends so you can remain competitive and keep your rents below market, with rent increases every few renewals instead of every year.

Contact Schedule My Rent Today

To learn more about ways to increase tenant renewal rates through an efficient and affordable property management system software, contact Schedule My Rent at (844) 465-3339 and get started today.

What to do if your tenant isn't paying rent

2021-03-27T19:58:45+00:00

What to do if your tenant isn't paying rent

As a landlord, it is ideal to always have good tenants who pay on time who you can keep happy and satisfied. However, that is not always the case and no matter how well you screen potential tenants, you will end up with some less than pleasant tenants. When one of your tenants isn’t paying rent, it is important to have a plan with how to manage the situation. Here are some steps and words of advice for confronting and dealing with a tenant who won’t pay rent:

Keep records and review the lease

When managing rental properties there is a lot to keep track of, especially with multiple units and properties. It is especially important to keep records of payments including when and how much is due. Schedule My Rent offers an organized and simple landlord software that automatically documents when and how much tenants have paid and highlights missing payments in red making it easy to know who owes what.

Before taking any action, review the lease or tenant agreement and make sure that any grace period for making rent has expired. Also check to see if a late fee was specified in the agreement. Late fees are a great motivator for tenants to pay on time. Schedule My Rent also provides features that allow landlords to set a grace period, late fees, and daily late fees automatically.

Communicate with your tenant

As a landlord, if you consistently let your tenants pay late or make late partial payments without any late fees or consequences, chances are they will do so every month. You are probably relying on getting rent payments every month for your personal finances, so if your tenant doesn’t pay on time it could set you back.

It is important to communicate with your tenant and let them know that you can’t afford not to receive rent. If your tenant doesn’t communicate with you about why they aren’t paying rent on time and create a plan with you, it might be time to take action. Let your tenant know that if they can’t pay their rent, then they can’t stay. You could offer them the option to get out of their lease early without penalty if they leave by the end of the week. Sometimes if the tenant is faced with the prospect of losing their unit, they will be more proactive and responsible about paying their rent. If your tenant doesn’t want to move forward with that option, let them know that you will be giving them a formal eviction notice.

Hire a property manager

If you aren’t interested in managing tenants who won’t pay their rent, or you are too lenient on enforcing timely rent payments, you might benefit from hiring a property manager. A management company is a neutral third party who has policies for handling late rent payments, and a tenant who isn’t paying you rent will probably not try to skip on rent if a professional is in charge.

Use a property management software

If you would like to still be in control of your property, but don’t want to have to hassle tenants for rent, you can use a property management software. Schedule My Rent has features that allow you to send rent reminders to tenants, add customizable late fee policies, and stop rent collection from a tenant in the eviction process. Our system will take out the hassle of managing a property and will give you full control of your business.

Send your tenant a “pay or quit” notice

In most states, landlords are required to send a “notice to pay or quit” to their tenant who isn’t paying rent. This formal letter or email says something like, “You haven’t paid rent. You have X days to pay rent in full or your lease will be terminated and you will have to move out.” Normally, the X number or days is between three and five. If your tenant doesn’t move out or pay their rent, you are able to formally terminate the lease and your tenant will lose the right to live in the unit. If your tenant doesn’t either pay or move out, you can file an action with an eviction court.

File an eviction action

A landlord is never allowed to force a tenant out of a unit without a sheriff. The sheriff is legally necessary and landlords are not allowed to cut off utilities or lock a tenant out. If your tenant didn’t respond to the “pay or quit” notice as discussed about, you can go to a local courthouse and fill out the paperwork for an eviction hearing. It is important to bring the “pay or quit” notice that you sent your tenant for the court’s records. After paying court fees, the administrator will schedule your hearing (usually two to six weeks from now). Then you or the court will serve the tenant a subpoena (a document requiring the tenant to come to court).

On the court date, show up to court and argue your case. If you win a judgement against your tenant then you can hire a sheriff to legally remove your tenant.

Alternate to an eviction: Pay your tenant to leave

If your tenant still is not paying rent after your conversation, you can still avoid the eviction process. If your tenant is having financial troubles and that is the cause of them not paying rent, you can motivate them to leave by paying them.

This seems like an odd solution since you are the one who is supposed to be receiving money. Overall if you weigh the costs and benefits of the decision it might work out for the better. An eviction will most likely get a tenant out of your property, but the process is long (typically one to three months). If your tenant leaves immediately for an amount that is less than one month’s rent, you will probably save yourself some money and the stress of an eviction process.

Tips for Raising Your Tenants' Rent

2021-03-17T19:26:13+00:00

Tips for Raising Your Tenants' Rent

Raising the rent on your property can be tricky. First-time landlords might be nervous about upsetting their good tenants already living in the property. Even experienced landlords could be worried about upsetting a close relationship they have with a tenant, or worried if it has been a while since rent was last increased. While it might be difficult, it is important to tell your tenant you are increasing rent, although you don’t need to justify it to them. There are many valid reasons for raising your tenants’ rent including increasing taxes, insurance premiums, maintenance fees, cost-of-living, and homeowner association dues. We have provided some tips for how to easily increase your tenants rent.

Send a rent increase letter

When sending your tenants a rent increase letter, it is important to give them plenty of time to decide if they would like to stay or end the lease (and give you 30 days’ notice). 60 days before the lease ends is the right amount of time to send out your rent increase letters.

In your letter, you can thank your tenant for being such a good tenant and describe why such as always paying rent on time or keeping the property in great shape. Next, tell your tenant that you are increasing the rent and if you would like you can provide an explanation. Then state what the new rent will be and the date when it becomes effective (the day after their lease ends). If you and your tenant have a fixed-term lease, then you could include a new lease and ask that the tenant read it, sign it, and send it back to you. If you have a month-to-month lease with your tenant, then they won’t need to sign a renewal (because it automatically renews each month).

You can choose to send your rent increase letter via email or mail. If you choose mail, consider sending it through certified mail. Certified Mail is a service by USPS that allows the person sending the mail to receive confirmation that the mail was received. This creates a dated paper trail for your reference, and allows you to know that your tenant has received the notice.

It is important to track when your lease ends. If you use Rental Property Management Software like Schedule My Rent, you can enter a lease end date. You can easily see when a lease ends on your dashboard and you are automatically sent reminder emails about upcoming lease end dates.

Include small rent increaes every lease renewal

If you are worried about tenants moving out because of a large rent increase, consider increasing it by less than $50 each renewal time. A good general rule is to increase rent by 3%-5% each year. If you are in a position where you are trying to convince a great tenant to renew their lease, you could consider waiving the rent increase so they will continue to live in your property. An excellent tenant is more important than a rent increase.

You could also consider including a rent increase clause in your lease. If you are upfront with your tenant that you will increase the rent, then there will likely not be negative feedback. This clause could simply state that there will be a small increase (3%-5%) in rent every year. When your tenants sign the lease, they will be prepared for the rent increase.

Do your research and know the law

Before deciding to increase rent, do some research on what the fair market value is for rent in your area. Even though you own the property, you can’t simply raise the rent to whatever value you would like if it is rent controlled. It is important to know if there’s a statute that limits how much you can increase rent.

If your tenant signed a lease, you are also unable to increase your tenants’ rent until the lease is over. The only exception is if you stated in the lease that you can increase rent during the lease period. But this negates the “fixed” lease idea and often does not hold up in court.

If your tenants are on month-to-month leases, you need to give them enough notice (varies depending on your state, but typically 30 days’ notice). This notice needs to be via email or a letter and not a verbal agreement which usually won’t work in court if it is argued.

You are not able to raise rent because you made necessary repairs and want to punish your tenant for complaining about the problems. You are also not able to raise rent in a discriminatory way because of a person’s religion, sexual orientation, or race.

In many states, there are situations that prevent you from raising rent for a certain period of time. These situations include if your tenant has been involved in a tenant’s organization, filed an official complaint with a government authority, or exercised a legal right. It is important to know the laws of your state, because many courts will assume retaliation if you increase a tenant’s rent after a negative action is taken by the tenant. The typical period before you can increase rent is 60 to 180 days, but differs by state.

Remember you run a business

It is important to remember that you are running a business. Even if you are close or friendly with your tenants, if you are losing money it is time to adjust rent to help your business succeed.

You should be firm with your tenants once you have done your research and decided on a fair rent increase. It is not a great idea to negotiate with your tenants or ask their opinion on what a fair increase would be. It is important to ensure that your rent is in the market value, because if it is way over market value then tenants will see that as unfair and probably leave.

In order to raise the rent a fair amount and keep your tenants, you can look at actual rent prices in similar rentals in your area. Looking at actual rent data provides you with an actual amount and is better than looking at listing price data which is just a projected amount.

We hope these tips help make increasing your tenants’ rent a smooth, and worry free process. Rent increase can be tricky, but it is essential to maintaining your business and competing with other rentals on the market. If you follow these tips and professionally give your tenants their rent increase notice, you will wonder why you were ever nervous about the process.

When do Guests become Tenants?

2021-03-14T20:19:19+00:00

When do Guests become Tenants?

Your renters will inevitably have people visiting their rental including family, nannies, partners, and roommates. But when does a visitor become a tenant?

It is important to protect your property, your other tenants, and your legal rights by making sure guests don't become tenants without your approval. Here is a real-life example from one of our owners showing how this can easily occur.

"We had an older woman that lived in one of our units. She was having a few medical issues and her son was coming over occasionally to help her out. Over a period of multiple months, he needed to come over more often and occasionally started spending the night. We wanted to be supportive since the tenant was having health issues and didn't take any actions. As the months went on, the son slowly moved in and his wife and son also moved in. Once again, we were trying to be supportive since the tenant was having medical issues and needed a support system. We then started to receive complaints from other tenants about the couple yelling and fighting and disturbing other residents. A few days later, the police had to come out because there was report of a gunshot. At this point, we realized our situation had gotten out of control and had the couple each submit an application and background check. We were horrified to discover a long list of evictions and violent issues in their past." This is just one example illustrating the need to know who is living in your rental and to make sure you find out right away even when nothing looks wrong.

The difference between a tenant and a guest

Most landlords consider a tenant as a person who is on the lease. That is usually a good definition, but it doesn’t account for guests living in the property without the permission of the landlord. Tenants on the lease are responsible for paying their rent on time and not damaging your property. Guests who begin to act like tenants become a liability and you can’t legally account for them. Tenant’s rights allow guests in a tenant’s rental, but rogue tenants are not allowed and cause legal issues. It is very important for adult occupants who are living at the property to be on the lease.

Examples of guests vs tenants

It can be difficult to determine if someone living on the property is acting like a guest or a tenant who needs to be added to the lease. For college students, if they are returning to the unit for weekends or school breaks and will go back to school they are considered guests. If they are home for the summer or have stopped attending school, then they would be considered a tenant. For elderly parents, if they are visiting for a few weeks or helping their children out they would be a guest, but if they are moving in with your renters because they can’t take care of themselves, then they are considered tenants. For hired help (such as nannies), if they are spending normal business hours at the property, they are considered guests. If they begin to live at the property full time, then they would be considered tenants. For friends or romantic partners, if they visit during the day or spend a couple nights at the unit they are considered guests, but if they spend most days and nights for weeks or months, then they are considered tenants.

Helpful signs guests are becoming tenants

Guests can start to become tenants if they begin to spend most of their time at the property as given in the examples above. Some other signs are that they are paying rent, moving in pets or furniture, making maintenance requests, receiving mail at the property, and spending every night at the unit.

Know the laws

State laws vary on the issue of tenants vs guests on your property. It is important to know what the specific laws for your state are. It is important to address how long a guest is allowed to stay in the unit, before they are considered a tenant. For example, it could simply state that guests can stay no more than 10 to 14 days in any 6 month period.

When should you add a guest to the lease?

The best practice in this situation is to add any adult that is occupying the property to the lease. Once they are added, they become accountable for the terms of the lease. This is an important step to clarify who is living at your property.

The conversation with your tenant about adding a roommate to the lease can be uncomfortable, but it is necessary. Most landlords ask their current tenant to simply add their roommate to the lease, and this provides the landlord with an opportunity to discuss renewing the lease with new terms if necessary. The alternate to this approach is the serve your tenant a lease violation notice and threaten to terminate your lease agreement. Most tenants would rather add their roommate to the lease than risk lease termination.

Preemptive steps

There are easy ways to avoid the situation of a guest turned tenant. It is important to specifically mention guests in your lease and when a guest becomes a tenant. If you are upfront with your tenant about what the rules regarding guests are, then they will likely be more compliant with them. You can also consider having a conversation with your tenants regarding guests and explain to them what’s allowed.

In some cases, if you as a landlord accept rent from a guest, it might initiate a landlord-tenant relationship. This puts you at risk for legal issues, and you should only accept rent from people on the lease. In this situation, the guest might have the same rights as any of your other tenants. If you use Landlord Software like Schedule My Rent, you can document a clear history of who is paying on the lease. You also have the ability to immediately stop all or specific roommates from making payments which is very important if you are trying to move a tenant out or are in an eviction process. You can learn about additional options in our Rental Property Management Software Guide. It is also important to consult an attorney before you consider evicting a tenant because of guests.

Realistically, as a landlord, your tenants will have guests and you will probably need to decide if these guests are considered tenants. It is important to be informed and prepared to make that decision.

Top 6 Ways to Finance Your Rental Property

2021-03-12T22:18:47+00:00

Top 6 Ways to Finance Your Rental Property

Purchasing real estate can be a great investment and update to your financial portfolio, for a variety of reasons. Real estate is one of the primary investment categories, which also includes stocks, bonds, gold/commodities, and cash. Real estate often gives you an advantage against market volatility if stocks go down, and being a landlord allows you to have a steady stream of passive income. When buying a rental property, you need to have a certain amount of cash in order to get started and enjoy the perks. It can be challenging to discover the right way to fund your property purchase. Most investors use a combination of cash and loans to purchase a property to increase the leverage which increases the return on the cash that is used. While a loan can increase your return rate in good times, it can also decrease your return rate in bad times. Even if you decide to buy a property with another person, it is important to know all your investing options. We have provided you with the top six ways to finance your next property.

Loan options

When financing your rental property, it is important to choose the right loan for you. Some loans have very specific criteria that needs to be met and if you choose the wrong type of loan, you could set back your success in financing your real estate.

Conventional Bank Loans

You are probably familiar with conventional financing if you already own your own home (that is your primary residence). This type of loan is not backed by the federal government and instead conforms to guidelines set by other parties. The typical down payment for this loan is around 20% of the purchase price of the home, but in the case of an investment property, you may need to provide a down payment of 30% of the funds.

Your personal credit score and credit history play a determining role in if you get approved for this loan, and how high the interest rate on your mortgage will be. Since you are renting this property and don't plan on living in it, it is not an "owner occupied" property your interest rate is typically .5% higher than a loan that is "owner occupied" where you live in the property. Your lenders will also review your income and assets and you must be able to prove that you can afford your current mortgage along with the loan payments on your investment property. You may have to have at least six months of funds for both of your mortgages. When your debt-to-income calculations are made, your future rental income from the property may not be included, depending how conservative the bank loan officer is.

Tapping Home Equity - HELOC

Another way to secure your investment property is through drawing on your home equity (through a home equity loan (HELOC), or cash-out refinance). Generally, you are able to borrow up to 80% of your home’s equity value in order to use it for the purchase of a second home.

This method has its pros and cons which can depend on what type of loan you decide to choose.

If you choose the HELOC option, you are able to borrow against the equity. This is the same concept you would use with a credit card, and your monthly payments would often be interest-only. The rate is variable in most situations (meaning it can increase if the prime rate also changes).

If you decide on the cash-out refinance method, you would pay a fixed rate, but it could extend your current mortgage. If you have a longer loan term, you are also paying more interest on your current residence. It is important to keep in mind that you will have returns on investment when you rent out the property.

Fix-and-flip Loans

If you would like another option that doesn’t include becoming a landlord, you should consider flipping houses as an alternative. You are able to receive a lump sum of profits when the house is sold, instead of waiting for rent checks each month for your return on investment.

This short term loan called a fix-and-flip loan allows you to renovate a property and put it back on the market as quickly as possible. These loans are essentially hard money loans. This means that the loan is secured by your property.

The benefit of this type of loan is that it might be easier for you to qualify for a house flip loan instead of a conventional loan. While your credit score and income are still considered, the primary concern is the profitability of your property. Your property’s estimated after-repair value (ARV) is used in calculating if you are going to be able to repay the loan. Another advantage is that you might be able to get loan funding in days instead of weeks or months when applying for this loan.

The largest disadvantage that is important to think about is that your interest rates can go as high as 18%, and you might have a small timeframe for paying back the loan. It is not uncommon for these types of hard money loans to have time frames of less than a year. It is also important to consider the origination fees and closing costs that could take out part of your returns.

Private Funding

Private funding is similar to mortgage lending in the aspect that some lenders can provide secured interest in the home or rental property. This process can be faster than the route of conventional mortgage financing. When considering this option, keep in mind that you may pay a higher interest rate. If the property is a good investment (if there is a positive cash flow through rental income) you can use the option of private funding until conventional financing is available for you.

Insurance Company or Specialized Lender

Insurance companies need a stable return and often use real estate loans. Because they are custom loans, these loans are typically for one million dollars or higher. You would contract directly with the insurance company or specialized lender that facilitates the loan. Most terms can be negotiated, including the term, interest rate, ability to pre-pay or no ability to prepay without a penalty, covenants, etc. Unlike a conventional loan, there are typically yearly reporting requirements where you need to provide a rent-roll, profit and loss statement, and there may be annual inspections of the property where an inspector reviews the inside and outside of a property to ensure it is properly maintained. Using rental property management software like Schedule My Rent helps you create a rent-roll report and track expenses. The interest rates are often similar or lower than a conventional loan.

Cash-Out Refinance on a Primary or Secondary Home

A cash-out refinance is when your lender uses one of your existing properties, a primary or secondary home, as security for your new loan. This process is the exact same as applying for a standard mortgage and takes around 30 to 45 days. You are typically able to borrow up to 80% of your home value. Through cash-out refinance, any existing debt on the property will be paid off and a new mortgage will be created. Then you will receive the difference as “cash out”.

Since this option has home owners using the equity from their personal properties, it may not be an option for you if there is simply not enough equity in your existing properties to finance the cash-out.

The maximum cash-out available to you if you refinance on a property you own (that was not purchased in the last six months) is 75% loan-to-value ratio (LVT) for one property, and 70% if you have a property with two to four units.

You are able to pursue a cash-out refinance immediately if these guidelines are met and if there was no financing for the purchase transaction.

You provide the settlement statement indicating no financing
A title search shows there are no liens on your property
Any loans used as a source of your down payment must be paid back on your new settlement statement
Your purchase was an arm’s length transaction
Your new mortgage cannot be more than the initial investment that was used to purchase
You must be able to source the funds for your purchase through bank statements, loan documents, etc.

When financing any potential investment property, it is essential to do your research to understand the interest rate, closing costs, loan duration, pre-payment penalty, covenants, and annual reporting and inspection requirements. If you are looking for software to help operate your new rental efficiently, please look at our Property Management Software Guide. Good luck on your future investing!

Can my tenants break their lease?

2021-03-11T22:02:15+00:00

Can my tenants break their lease?

Usually when a tenant signs their lease, you expect them to stay in the unit for the entire term of the lease. But occasionally this may not be the case. Your tenant could decide to move out early and break the lease. Is a tenant able to break their lease? What should you as their landlord do? Your tenant most likely intended to rent your property though the entire period of the lease. Lots of different situations could have caused your tenant to move out early such as a job transfer, job loss, opportunity to buy a house, etc. Usually, if your tenant needs to break their lease, it’s for a good reason.

Is your tenants still financially responsible for their lease even if they move out early? You can’t make your tenant stay but this is still an important question for you to consider. Here are important details on how to proceed if your tenant breaks their lease.

A lease is binding

In the same way a lease protects tenants from their landlords kicking them out before the lease ends without a cause, a lease also protects landlords from tenants who want to leave early. When your tenant signs their lease, they are agreeing to pay rent every month (or bimonthly/weekly) for the entirety of the lease. In most cases, if your tenant moves out 4 months early, they owe your rent for those 4 months. Although there are some exceptions.

Check your state’s laws

In most states, landlords are not legally allowed to hold their tenants to the terms of the lease while the unit is vacant. Even though the tenant has broken the lease by leaving early, the landlord must try to re-rent the unit (even in inconvenient times). Although your tenant is still responsible for paying their rent while you find a new tenant. You are still able to go through your usual screening process for tenants (you don’t have to rent to the first person who applies if they don’t meet your requirements).

In a few states, landlords are not required to look for a new tenant. In this situation, they can hold the tenant to the lease terms for the entire lease. It is important to know the specific laws of your state.

The unit in uninhabitable

When renting to tenants, it is essential that you are providing them with an inhabitable place to live. You must provide a non-leaky roof, hot water, doors, windows that lock, heat, functioning electrical systems, safe stairs (if applicable), and no pests for the unit to be habitable. If you aren’t providing your tenant with a safe and livable unit or if you aren’t responsible in fixing anything that comes up that causes the unit to be uninhabitable, your tenant may be able to break the lease.

Military or active duty

Federal law allows people in the military to break their lease agreement to begin active military duty or if their orders take them approximately 50 miles or more from their unit. This law is called the Servicemembers Civil Relief Act and applies to members of the armed forces, National Oceanic and Atmospheric Administration (NOAA), activated National Guard, and U.S. Public Health Service. If this is the case, your tenant won’t need to provide you with a 30- day notice if they are leaving for military reasons (even if there is time left on the lease).

You’re intrusive

Even though you own the property, once you collect rent from your tenant, you forfeit the right to enter anytime you would like. In an emergency (for example the unit is flooding) you are allowed to enter the property, but if you would like to conduct a routine inspection or make a repair, you have to provide your tenant with a notice (visit https://www.schedulemyrent.com/blog/ for types of notices to send to tenants).

Even if you are being intrusive and not respecting your tenants property and privacy, your tenant still has to give you a warning before leaving. They need to provide a “notice to remedy or quit” which can be a letter saying “Stop coming by unannounced, or I’m terminating the lease in X days”. Your tenant will most likely not terminate the lease immediately. If you receive a “notice to remedy or quit” from your tenant, you might want to consider talking to a lawyer to ensure you aren’t violating any state or local laws.

What your tenant can help with

If your tenant tells you that they want to break the lease, you can ask them to help you out. Your tenant might be able to help you find a responsible replacement tenant who can continue the lease, or they could show the unit to potential tenants. You should still screen your new potential tenant though.

Fees for early termination

As mentioned above, you are able to charge your tenant their rent amount until the lease has ended, as long as you are looking for a replacement tenant.

If your tenant would prefer not to pay the ongoing rent charges, you could offer to charge an “early termination fee”. This fee is designed for the tenant to pay an amount that allows them to break the lease and leave without repercussions.

This fee is nonrefundable, so if your tenant decides to pay this fee (usually equal to two months’ rent) and you find a tenant within two months, you aren’t obligated to refund the prorated amount to your tenant. On the other hand, if it takes you three months to find a replacement tenant, you are not able to charge your tenant that third months’ rent if they agreed to pay the early termination fee.

If you decide to offer the early termination fee, make sure that you specify the amount in your lease, so your tenant has enough warning. This is important because you are not able to charge double rent amounts, but you are able to charge rent to your replacement tenant and collect the early termination fee from your original tenant. This is possible because your tenant decided to pay the fee to avoid the possibility of paying rent for over two months.

Suing your tenant

You might end up in a situation where you need to take your tenant to court. This could be the case if your tenant breaks the lease, won’t pay rent for the months until the lease ends, and won’t pay an early termination fee. It is important to consider talking to an attorney before taking legal action. When going to court, it could be possible for you to just present a copy of the signed lease and tell the judge which months your tenant owes rent for.

Prepare for false charges

To avoid paying rent after breaking their lease, your tenant might decide to place false charges on you. For example, they could claim their unit was infested with insects or rats (and you did nothing to remedy the situation), the heat didn’t function (or anything that could cause the unit to be determined uninhabitable), or you continuously visited their unit.

It is important to be prepared for these kinds of charges in order to defend yourself against them. You should keep maintenance records and photos of the unit to prove that you maintained the unit. Rental Property Management Software like Schedule My Rent provides Maintenance Requests so all tenant requests are easily documented incase you need them.

Conclusion

If you tell your tenant that they are financially responsible for paying rent if they break the lease until you find a replacement tenant or their lease ends, they might choose to stay in your unit to avoid paying rent at two units at once. It is important to consider all these factors when deciding how to proceed if your tenant breaks their lease by leaving early. You can’t make them stay, but in most cases you will be compensated for your efforts.

9 Things to Know Before Investing In a Rental

2021-03-07T15:44:09+00:00

9 Things to Know Before Investing In a Rental

There's a lot to like about purchasing your first rental property. You have a whole new horizon of financial opportunities ahead of you, and the idea of such a lucrative investment can be exciting. However, it would be best if you didn't jump headfirst into the world of rental investment without knowing what's ahead. There are a few things that any responsible rental owner should know before finalizing their purchase.

From rental property management software to local market values and tenant screening, there are countless things you need to consider before getting started with a rental property - and that's only listing a few examples. If you're getting ready to invest in a rental, you should know these nine things.

Have you assessed your potential profit?

There's not much point to investing in a rental property if you're unable to turn a decent profit from it. Before you finish up your purchase, you need to understand your property's value, compare it with the rent that you plan to charge, and determine whether you're able to make any money off it.

One easy way to determine whether a property is worth the price or not is to use the so-called "1% rule." This strategy states that your gross income from the rental each month should be at least 1% of its original asking price. With this base income, you should be able to cover routine expenses on your property, and if you earn above it, you might be able to pocket the excess funds for your savings.

Do you know your target location?

There are plenty of factors determining a rental property's value, but perhaps nothing is as important as its location. Your demand (or lack thereof) will largely depend on where your property is located: is it near high-traffic city centers or tourism hotspots, or is it out of the way on a distant side street? Your area could make the difference between your property being in high demand with a constant stream of renters or sitting unused without a single tenant.

Before you invest in any property, you should identify the most profitable areas within your budget and focus on securing a rental within them. Choosing a lucrative location is the best way to make sure that you'll make a return on your investment.

Who is your audience?

Like any other business, you should have a target demographic in mind before you invest in a rental property. You might need to tailor your investment depending on your ideal tenants. For example, if you're planning on marketing your rental as a vacation home, you'll need to ensure that it's close to popular attractions and filled with appealing furniture. Meanwhile, suppose you're targeting students at a college or university. In that case, you might not need to worry about your facilities' quality as much as you should about proximity to school and student hotspots.

Do you expect the unexpected?

Buying any piece of real estate comes with plenty of risks and surprises, and rentals are no exception. While you can't prepare for every possible eventuality, you should leave room in your monthly income to pay for unexpected expenses.

You can't predict when a pipe bursts or the plumbing needs work, so you should make sure your monthly budget can afford to accommodate last-minute repairs, maintenance procedures, and other routine costs. You’ll have a major problem on your hands if something happens and you can’t find the funds to pay for it.

Is your property ready for business?

Rentals sometimes operate on a tight profit margin by necessity. If you want to maximize your monthly revenue while paying for any unexpected expenses, you should only invest in properties that are ready for tenants as soon as you get the keys. Extensive repairs can quickly stack up and drain your funds away from more important endeavors, so it's essential to opt for tenant-ready properties whenever possible so you won't have to wait to recoup your investment.

Are you aware of your requirements?

Most states have numerous regulations regarding the landlord-tenant relationship, meaning that you'll have government-mandated obligations to follow up on as soon as you own a rental property. It would be best if you read up on your state's landlord laws to ensure that you're able to meet all your requirements and comply with the law.

Do you keep an eye on market trends?

The real estate market changes every day. If you're planning on getting into rental investing, you should make sure that you're aware of the market's current state and stay ahead of the curve. If you can capitalize on emerging property trends before they make it big, you'll be able to maximize your revenue.

Can you screen your tenants?

While you certainly want tenants to occupy your property, you shouldn't welcome just anyone onto your rental. Instead, it would help if you took your time to verify that all your tenants have a clean record and are not likely to damage your investment. Without proper screening, you might have significant liability on your hands should your tenant miss payments or even destroy your rental.

Do you have the tools you need to succeed?

Despite what some might say, managing a rental property is a lot of work. You'll have to make sure that rents get paid on time and that each rental is in good condition. You'll have a lot to think about regularly if you do it yourself. However, there are tools in place that can make your job easier.

High-end rental property software can automate the most tedious aspects of running a rental, such as collecting payments, screening tenants, and the most up-to-date market trends. Whether you're a first-time property owner or a seasoned investor, the right rental property management software can protect your investment and maximize your profits in the future.

Try Our Rental Property Management Software Today

Schedule My Rent is one of the industry's leading rental management platforms that streamlines your job, whether you're a manager, landlord, or investor. However you plan to use your property, we can help. Call us at (844) 465-3339 for more information about our rental management software today!

4 Ways You Can Make Money with a Rental Property

2021-03-06T18:51:24+00:00

4 Ways You Can Make Money with a Rental Property

Rental properties can be reliable money-making machines if you know how to leverage them properly. If you want to make a tidy profit by renting your real estate, though, you can do more than wait to collect rent every month. There are a few actionable strategies you should practice from the outset so you can make the most of your investment.

You'll need to balance your expenses, manage your property efficiently, and ensure that you're not spending money anywhere you don't need to. From rental management software to assessing your cash flow, simple practices can help you boost your profits and make the most money possible.

If you're wondering how to increase your profit margins, follow these four simple tips.

Are you considering cash flow?

There's no better way to make money off your property than to think about your cash flow. In essence, your cash flow is the difference between your monthly operating expenses and the rent you collect. If your rent exceeds your operating expenses, then you'll start making money.

Let's say that you spend $800 a month on your property to cover its mortgage payments and taxes. If you then rent it out for $1200 a month, then you'll have a $400 difference for your cash flow.

This is the simplest explanation of cash flow in theory. In practice, however, it can be far more complex. Most rental properties come with "hidden fees" that aren't included in your monthly mortgage payment, and you'll have to take these into account.

For example, your property might need occasional maintenance. You may have to pay for plumbing services, roofing repairs, or other general upkeep costs. It's also possible that you'll experience times that your property doesn't have any renters at all, meaning that you lose months of potential income.

If you want to maximize your profits, you'll have to anticipate and calculate all these hidden expenses and subtract them from your rent. If you're going to spend $150 a month on maintenance and upkeep, for example, you should take that out of your $1200 to show that you're only netting $1050 rent each month.

Understanding your actual cash flow is essential so you can understand how much money you're making and budget your expenses accordingly. If you can realistically gauge your total costs ahead of time, you can set your rent appropriately and make sure you're setting yourself up for profit in advance.

Are you preparing for the future?

Your rental property's value is never set in stone. Instead, as soon as you finalize your purchase, you can expect its market value to fluctuate over time. It would help if you planned for the future whenever you purchase a rental property to make sure that you'll make the most out of it in the long run.

Whenever you invest in a property, you should make sure that its value is on track to appreciate over time. By considering factors such as market trends, population growth, and historical metrics, you can determine whether your investment will pay off in growing values.

In large part, real estate properties appreciate due to the simple concepts of supply and demand. Any given area can only contain so much space for homes and businesses, so if the population increases, demand for its property inventory is bound to increase - and prices will rise along with it.

Use this understanding to your advantage by investing in properties in high-growth areas where values are on track to skyrocket. If data shows that most new arrivals in your area are flocking to neighborhoods near downtown, make sure to target those areas. Meanwhile, if history suggests that suburbs are due for growth, don't get left behind and invest in a family home. It's also a good idea to choose more modest properties in high-demand areas. By spending less upfront, you can increase your potential for appreciation.

You can gather the necessary data in a few ways. You can use real estate websites like Zillow to see trends in property values, or if your city or state shares population statistics, those can also serve as a valuable source of information.

Are you making your property more attractive?

Many properties can appreciate naturally over time. However, you can help boost your property's value and charge higher rent by taking a few intentional steps to make your rental more attractive.

If the property needs a few renovations, don't hesitate to make them. Something as simple as a fresh coat of paint or updated facilities can make your property more attractive to your buyers, which will make your rental more competitive and increase your profits.

However, if you plan on renovating your property, you'll need to remember your cash flow and your total monthly expenses. You won't want to spend hundreds or thousands of dollars on updates if it means that you'll lose money without a chance to recoup.

Nonetheless, taking the time to evaluate your property and identify aspects that can be updated to gain potential tenants' interest can help you make even more money on your rental in the short and long terms.

Can you streamline your management process?

It should be abundantly clear by now that managing a rental property requires a lot of thought, care, and attention. Since maintaining your rental and keeping it competitive takes so much effort, you can't afford to waste time on tedious management processes like tenant screening and rent collection.

Thankfully, there are a few reliable ways that you can streamline your management process, so you don't spend valuable time on innocuous tasks. Rental management software can automate your rent collection and property management duties, so you can spend more time discovering ways to improve your property.

Get Rental Property Management Software Today

Schedule My Rent is a leading rental management platform that makes it simple for landlords to monitor their property, whether they own commercial or residential rentals. We take the tedium out of owning a rental so you can focus on the work that matters most. Call us at (844) 465-3339 for more information about our rental management software today!

Top 10 Tax Deductions for Landlords

2021-03-02T04:20:39+00:00

Top 10 Tax Deductions for Landlords

As a landlord, it is essential to understand the expenses you need to pay on your rental income, and the amounts you are able to deduct from your taxes. Taking advantage of the tax deductions available to you can help you reduce your tax burden, avoid overpaying, and maximize the profit of your properties. Rental real estate properties provide more tax benefits than almost any other investment you can make. In order to properly take advantage of these deduction, it is important to know what they are and how to use them.

What qualifies as an expense?

There are two types of expenses you should understand: current expenses and capital expenses.

Current expenses
Current expenses are usually items that keep your property habitable and in working condition, or help you operate your rental business. On your taxes you can deduct the entire expense if it was incurred in the same year (that’s why they are called current expenses). Generally, repairs that restore an item to its previous, working condition are deductible.

Here are some qualifications of current expenses:
- The expense must be ordinary and necessary. Ordinary expenses qualify as those that are common and generally accepted in the rental business. Necessary expenses that you can encounter are those that are deemed appropriate such as advertising, utilities, maintenance, insurance, interest, and taxes.
- They must be current. Current expenses have more of a short-term value, than a long-term value. An example of short vs long term value is fixing a hot water heater (short-term value) or replacing an appliance (long-term value). Fixing an appliance updates and adds value to the property while fixing a hot water heater restores the property back to its original condition.
- It has to be related directly to your rental activity. These expenses must be business related.
- It must be a reasonable amount. You will get audited if you report an unreasonable amount such as a $600 toilet seat.
Capital Expenses
A capital expense can be anything that increases the value or extends the life of your rental property. Anything that increases value is considered an improvement and must be capitalized and depreciated over many years. It is a good idea to deduct any capital expense that costs hundreds of dollars (or even more) to replace. Examples include new appliances and a new roof.

Keep records and stay organized

It is essential to keep detailed and accurate records of all expenses and payments on your rental properties. It is especially important when you are claiming anything on your taxes. Documents that provide proof of what you are claiming are essential if you ever get audited. As part of Schedule My Rent’s landlord software, you are able to enter all your expenses in an organized, easy to access screen. You can enter an expense, upload an image (so you don't have to keep a shoebox full of receipts), and split the expense across multiple different units. For example, a landscaping company many mow the lawn and trim the trees across all of your 3 properties and send you one bill. You can enter the bill, upload an image, and split the total amount into separate amounts for each unit. At tax time, you can see all of the expenses, by tax category that you assign, for each unit. For more information, visit our Landlord Software.

Tax Deductions

Interest
Generally, interest is a landlord’s largest deductible expense. It is such an important deduction because you are able to deduct the interest payments on your mortgage loans that were used to acquire or improve your rental. You can’t deduct the mortgage payments themselves, but the interest deduction will save you a lot of money. Another common example of interest deductions is the interest on credit card payments. You can deduct interest on goods or services used in rental activity paid through your credit card. It is important to remember that you can only deduct interest on the money that was used on your rental business.
Insurance
You are able to deduct premiums for almost any insurance related to your rental activity. This includes accident, causality, flood, theft, health, fire, vehicle, and landlord liability. Along with these, if you have employees involved in the management of your properties, you can deduct the cost of their workers’ compensation insurance, and their health insurance.
Travel
Landlords are entitled to tax deductions for certain local and long distance travel expenses relating to their business. This means you can deduct mileage for driving done in order to manage your rental property. For example, if you drive to the rental property for a tenant complaint, or drive to a hardware store for parts to repair your property. However, you are not able to deduct the cost of driving to your properties for the purpose of improving your rental.

For long distance travel, if you don’t live near your rentals you can deduct costs of travel related to business expenses. This includes airline fares, hotels, car rentals, and 50% of meal expenses.

You have two options for deducting vehicle expenses relating to business activity. One option is to deduct your actual expenses (upkeep, repairs, gasoline). The other option is to use the standard mileage rate (check the IRS website for the current rates). In order to qualify for the standard mileage rate, you need to use it during the first year of using the car for your rental activity. If you don’t use your own vehicle, you can deduct the costs of public transportation expended for business purposes.

In order to take advantage of this deduction, it is important to carefully and precisely track your travel. The IRS closely scrutinizes travel deductions (especially those related to overnight travel).
Repairs
You are able to deduct the cost of repairs in the given tax year. Repairs are considered work that is necessary for maintaining the condition of your property, and don’t add significant value to the property. The repairs also must be ordinary, necessary, and in reasonable amounts. Examples of repairs include repainting, plastering, fixing floors, repairing gutters, fixing leaks, replacing broken windows, and air conditioning repairs. It is very important not to deduct costs that are considered improvements. Any work that adds value to the property is considered an improvement. A good general rule, is anything that is a replacement most likely will add value to the property and will not be a repair (for tax deduction purposes).
Depreciation
Another major deductible for landlords is property depreciation. There are three types of costs that you should depreciate: value of the structure (not the land), equipment/laptops/computers, and the value of improvement (appliances, windows, carpets, countertops). Some general rules are that expenses should be expected to last for longer than a year, bring value to your business, and lose its value/wear out over time. These expenses are not able to be deducted in a single year, and they must be spread out (depreciated) over multiple years.

The way in which you will depreciate an asset will depend on what the asset is. Assets such as refrigerators or buildings, will have useful lives different from other assets and could need accelerated depreciation or straight line depreciation. You are able to consult the IRS or your accountant to help determine which type of depreciation to use based on the assets and their useful lives.
Employees and Independent Contractors
When you hire someone to do work or perform services for you on your property, you can deduct the wages you pay them as business expenses. The worker can be a full-time employee (such as a property manager) or a part-time employee (such as an independent contractor). Independent contractors can be plumbers or electricians (anyone you hire to do work at the property).
Personal Property
The cost of personal property that is used in your rental activity can be deducted in one year. This deduction is possible under the de minimis safe harbor deduction and is applied for property costing up to $2,000. Personal property can include appliances (washing machine, fridge, etc.), furniture in a furnished rental, and gardening equipment.
Home Office
If part of your home is used exclusively as an office for your business, landlords are able to deduct their home office expenses from their taxable income. In order to claim the deduction, you must conduct the majority of your business in your home office. The amount of deduction available to you depends on the percentage of your home that the office takes up. When applying this deduction, it is essential that you properly apply it. Home office deductions are the most common type of deduction flagged by the IRS because many businesses abuse it. You should keep accurate records of the time you spend using your home office and subtract any personal usage of the space.
Pass-Through Tax Deduction
Pass-through tax deduction is an income tax deduction instead of a rental property-specific deduction. Most landlords qualify for this deduction established by the Tax Cuts and Jobs Act. Depending on the landlord’s income, they can deduct up to 20% of their net rental income or 2.5% of the initial cost of their rental property plus 25% of the cost they pay their employees. This deduction is set to expire after 2025.
Legal and Professional Services
If you need to hire a professional such as an attorney, financial advisor, accountant, or tax professional you can deduct these fees as operating expenses as long as the fees are related to work on your rental property. As a landlord you will inevitably be put in a position where you need to evict a tenant. All reasonable court and filing fees relating to the eviction of your tenant can be covered by this deduction.

Schedule My Rent's landlord software makes it easy to store and catagorize exenses throughout the year. You can then see a summarized table of units and expense types when it is time to do your taxes.

9 reasons tenants could lose their security deposit

2021-02-25T21:44:48+00:00

9 Reasons Tenants Could Lose Their Security Deposit

When renting out a property to tenants, it is important to collect a security deposit before they move in. This security deposit is usually one months’ rent and is returned to the tenant under ideal circumstances. It is best to track the security deposit amount in a rental property management software like Schedule My Rent so that both the landlord and the tenant can see what the current balance is throughout the rental term. Your tenants might not always get the full security deposit back. Here are a list of common reasons why landlords will not return part or all of the tenants security deposit.

You didn’t read and understand the lease
As with any legal agreement, it is essential that you read and understand anything that you are signing. You should go to an open house or showing of the unit before moving in. You must agree with and follow all clauses of the lease and if you do so your landlord will have fewer reasons for keeping your security deposit. Two important phrases in most leases that you should clarify with your landlord are “ordinary wear and tear” and “reasonable effort”. If your interpretations of these phrases differ, then you need to talk to your landlord about it before moving out to avoid losing your security deposit over miscommunication. It is also important to document how the unit looked before moving in to make the moving out process simpler. You can store move-in pictures in Schedule My Rent.
The lease is terminated or broken early
Before you move out, you need to give your landlord at least 30 days notice. If you move out before the lease ends and do not give a notice, then your landlord is able to use the security deposit to pay rent that you were financially responsible for. There are some situations in which you are not responsible for paying rent if you leave the property. There are also situations where the tenant may need to continue to pay rent until the property is leased again, for a certain number of months, or until the end of the lease. For these specific scenarios and more detail visit https://www.schedulemyrent.com/blog/.
You owe your landlord rent
When you sign a lease, you are obligated to pay rent each month. If you do not follow through on your obligation, your landlord is able to keep a portion, or all of your security deposit to pay rent. Nonpayment is considered breaking your lease.
Damage to the property
Damage to a property is different than normal wear and tear that is expected when living in a unit. For example, if your faucet is leaking, it is important to immediately tell your landlord in order for someone to repair it and so you can be reimbursed. If you wait, the repair can be considered longstanding and turn from a wear and tear situation into a damage that will be paid for out of your security deposit.

Normal wear and tear on a property can include tarnish on bathroom fixtures, small amounts of dirt and dust, dirty grout, or a loose handle. Damages could include multiple or large holes in the walls, missing outlet covers, broken doors/windows, large stains or holes in the carpet, missing or damaged smoke or carbon monoxide detectors, etc.

When you first move into your unit, it is important to document any existing damages that you didn’t cause. You can take photos or videos of any damages or wear and tear and a written record to protect you from liability for existing damages.
Cleaning costs
If you left your rental excessively unclean when you moved out, your landlord will be able to use a portion of your security deposit to cover cleaning costs. You are not expected to leave your unit in pristine condition, but when your landlord has to spend extra effort and money to clean up your unit for someone else to live in that you will be paying for the costs. If you leave one bag of garbage in your unit, it isn’t considered unreasonable. But if you have trash everywhere, stains in the carpet, food in the fridge, and any other unreasonable or expensive cleanups then it is considered excessive.
Unpaid utilities
It is important to always know the terms of your lease including any utility bills that you are responsible for paying. You should know about any fees including late payments on utilities, HOA fees, and out of date billing. If you do not pay your utility bills, you landlord is able to use your security deposit to do so.

Some landlords state in the lease that they will pay for utility bills, but not extra charges if the utilities are used excessively. If your landlord is paying for your utilities, it is easy to slip into a habit of using them unreasonably. For example if you keep the thermostat at 83 degrees and raise the electric bill by $100, then that would be considered unreasonable and your deposit could be used to pay for the extra charges.
Repairs without permission
If you decide to make any unauthorized changes to your unit, your landlord will be able to use your security deposit to return the property to its original state. For example, if you decided to paint the unit without asking your landlord, your security deposit will cover the costs of repainting the unit back to its original color. Even if you believe it’s a great improvement, your landlord might not think the same. It is always best to ask your landlord before making repairs or improvements to your unit and only proceed if you have an approval in writing.
You left things behind
When you move out of a unit, make sure to throw away or take everything with you. If your landlord has to throw anything away for you, the costs will come out of your security deposit.

On a larger scale, if you are guilty of property abandonment, your landlord will be able to keep all or most of your security deposit to cover any fees. Property abandonment is when you leave furniture and belongings unattended in your unit for more than 15 days. In most states, if your landlord has to pay someone to move out your furniture and clean up, the costs will be covered by your security deposit.
You didn’t do an exit inspection
Along with your initial inspection and documentation of the property, you should meet with your landlord for an exit inspection. Provide your landlord with the initial documentation as a reference so there are no discrepancies between your landlord’s report and your observations of the unit.

Tips On How To Collect Rent On Time Every Month

2021-02-16T23:11:31+00:00

Tips On How To Collect Rent On Time Every Month

When managing a rental property, the task that is most time consuming is collecting late rental payments. Here are some tips on how to manage tenants who pay late and get your rent collected on time.

1. Choose responsible tenants

It is important to set criteria when selecting your potential tenants, but that criteria must be the same for all tenants. A person’s credit score is usually a good place to start to determine if your tenant is responsible with their money.

Credit score: As part of selecting a tenant, you should get an updated consumer credit report (provided by Schedule My Rent). This credit report should include past debts and eviction judgments. From this report, you will be able to see if they have been irresponsible renters in the past.

References: Another document that can help you decide if a potential tenant is responsible is their references. Their past rental experiences can indicate what they might be like as a tenant. You are always able to call their previous landlord and ask if they would rent to that tenant again (although they aren’t required to tell you anything).

Income: If the tenant doesn’t have a steady income, they might not be the best candidate for paying rent on time or at all. Their regular income should be at least three times greater than the rent due for them to be a relatively safe candidate. If they have a history of paying rent on time with past landlords then even better!

2. Collect rent online, automatically

Collecting rent online is a reliable way to help your tenants pay their rent on time. With Schedule My Rent, you can set up reminders for tenants when the due date for rent is approaching, AutoPay to automatically transfer their rent to your account, and late fees that can be automatically added to a tenant’s rent.

When collecting a tenant’s rent online, it is important to use a site designed for rent collection like Schedule My Rent instead of other sites like Venmo, Zelle, and PayPal. Schedule My Rent has a unique landlord dashboard that allows the landlord to view all their properties at once (or select specific ones) and know at a glance who has and hasn’t paid their rent.

Schedule My Rent also gives tenants the unique opportunity to pay in cash. With MoneyGram, tenants can go into a Walmart, CVS, or other MoneyGram location and pay their rent. The landlord will be notified of the amount that was paid, leaving a receipt for the payment. MoneyGram is much more reliable and simple for landlords and tenants than meeting to pay with cash or mailing a check.

3. Communicate with your tenants

Communication about rent with your tenants is essential. Your tenants should know what amount they need to pay every month, where they can pay, what forms of payment you accept, when they need to get their rent in, and any consequences for late rent payments.

If your tenant pays their rent late, ask them: When do you expect to make your rent payment? What amount will you pay? What source of income will you use for your rent payment? What method of payment will you use?

If your tenant has trouble answering these questions or starts to get defensive, it might be time to consider beginning the eviction process. In these situations it is always important to act professional, so don’t cut off your tenant’s utilities or threaten them in any way. These actions won’t be tolerated by a judge in an eviction hearing.

If you have a reliable renter who doesn’t pay on time once, you can consider letting it slide. But in general it is important to set firm expectations for your tenants and let them know what you expect.

4. Appreciate your responsible tenants

As a landlord, it can be easy to get caught up in preventing late payments and other unwanted situations. It is important to appreciate the tenants who consistently pay on time, take good care of your unit, and abide by your rules. Let them know you appreciate them!

Landlord Software

How much should I Charge for Rent? A Landlord's Guide to Setting the Right Price

1. Research the Local Rental Market

2. Factor in Your Expenses

3. Consider Rent Control and Local Regulations

4. Evaluate Property Amenities and Services

5. Test and Adjust

6. Communicate Your Value

7. Streamline Management with the Right Software Tools

Streamlining Your Rental Process: A Landlord's Guide to Collecting the First Month’s Rent Online

Introduction to Online Rent Collection

Understanding the First Month’s Rent

What types of payments should a landlord accept for rent?

The Benefits of Prorated Rent

The Optimal Time to Collect Rent

Leveraging Guaranteed Funds for Rent Payments

Is Collecting the Last Month’s Rent Necessary?

Additional Fees to Consider

Concluding Advice

Do You Need a Guarantor When Signing a Lease? A Comprehensive Guide

What is a Guarantor?

When Do You Need a Guarantor?

Benefits of Having a Guarantor

Increased Landlord Confidence: Makes you a more attractive applicant by offering financial backup.Stronger Negotiating Position: A guarantor may help you secure better lease terms.Peace of Mind: Offers an extra safety net in case of unforeseen financial difficulties.

Drawbacks to Consider

Who Can Be a Guarantor?

Common guarantors include:Parents or Family Members: Most common choice due to trust and existing relationships.Trusted Friends: Must be financially stable and understand the responsibility.Professional Guarantor Services: Third-party companies that provide this service for a fee.

How to Approach a Potential Guarantor:

Be Transparent: Clearly explain why you need their support.Show Gratitude: Acknowledge the seriousness of your request.Discuss Finances Openly: Ensure they understand the obligations involved.

Is a Guarantor Always Required?

Not necessarily. Many tenants qualify without one. However, in high-cost or competitive rental markets, a guarantor can be a valuable asset to your rental application—especially if you lack income stability or credit history.

Alternatives to a Guarantor

Does a Guarantor Need to Sign the Lease?

Yes. A guarantor typically signs a separate section or addendum of the lease agreement. This formalizes their legal obligation to cover rent or damages if needed.

Key Steps:

Submit financial and identification documents for approval.Review lease terms carefully.Sign the guarantor agreement.

Can You Be Your Own Guarantor?

Rarely. Most landlords require an independent third party. However, some may accept personal assets—such as savings accounts or property—as collateral. This requires landlord approval and substantial financial documentation.

What Credit Score Should a Guarantor Have?

Generally, landlords prefer a credit score of 750 or higher. A strong score demonstrates financial reliability, which reassures the landlord that the guarantor can step in if needed.

What Are the Risks of Being a Guarantor?

Does Being a Guarantor Affect Your Credit Score?

Not Initially: Simply agreeing to be a guarantor doesn’t affect your credit.If Defaults Occur: Missed payments that you're responsible for can damage your credit.Debt-to-Income Ratio: Your guarantee might be considered when applying for your own credit or loans.

What Documentation Does a Guarantor Need?

Landlords usually require:Identification & SSNProof of Income (e.g., pay stubs or tax returns)Bank Statements to show savings and financial healthCredit Check Authorization

How Much Does a Guarantor Service Cost?

Professional guarantor services generally charge 50% to 85% of one month’s rent, as a one-time fee. Prices vary based on location, lease amount, and provider. Always read the terms and check for additional fees.

How Long Is a Guarantor Responsible?

Duration: Usually matches the full lease term.Renewal: Guarantor must approve any lease extensions or renewals.Early Termination: Ends their obligation unless otherwise stated in the lease.Clear Communication: All parties should agree to terms in writing before signing.

Co-Signer vs. Guarantor: What’s the Difference?

FeatureGuarantorCo-SignerOn Lease?NoYesLegal ResponsibilityOnly if tenant defaultsAlwaysRights to the PropertyNoneEqual to tenantInvolvementPassive backupActive lease participantChoose based on the level of involvement your financial partner is willing to assume.

Conclusion

Collecting Rent Online: Your Questions Answered

Collecting Rent Online: Your Questions Answered

Is It Safe to Collect Rent Online?

How Long Does It Take to Collect Rent Online?

Can You Automate Online Rent Collections?

Does Online Rent Collection Reduce Missed Payments?

How Does Online Rent Collection Provide Flexibility?

Does Collecting Rent Digitally Cost More Than Other Methods?

What if you tenant doesn't have internet access or a bank account?

Will You Be Notified If Anything Strange Happens With Your Rental?

What Are 10 Ways to Collect Rent Online?

4 Benefits of Using Property Management Software

What Is Property Management Software?

The Benefits of Using Property Management Software

#1: Automated Communication

#2: More Convenient Rent Payment

#3: Hours of Time Saved

#4: Better Document Organization

Streamline Property Management with Schedule My Rent Today

A Landlord’s guide to renting with pets

1. Create a pet addendum on your lease

2. Screen your tenant and their pet and ask for references

3. Collect a pet deposit or larger security deposit

4. Charge pet rent or a higher rent rate

5. Require that pets be spayed or neutered

6. Consider the pets personality over their breed

7. Ensure that your tenant has responsibility for their pet

Property Management Software 101

Increased Landlord Confidence: Makes you a more attractive applicant by offering financial backup.
Stronger Negotiating Position: A guarantor may help you secure better lease terms.
Peace of Mind: Offers an extra safety net in case of unforeseen financial difficulties.

Common guarantors include:
Parents or Family Members: Most common choice due to trust and existing relationships.
Trusted Friends: Must be financially stable and understand the responsibility.
Professional Guarantor Services: Third-party companies that provide this service for a fee.

Be Transparent: Clearly explain why you need their support.
Show Gratitude: Acknowledge the seriousness of your request.
Discuss Finances Openly: Ensure they understand the obligations involved.

Submit financial and identification documents for approval.
Review lease terms carefully.
Sign the guarantor agreement.

Not Initially: Simply agreeing to be a guarantor doesn’t affect your credit.
If Defaults Occur: Missed payments that you're responsible for can damage your credit.
Debt-to-Income Ratio: Your guarantee might be considered when applying for your own credit or loans.

Landlords usually require:
Identification & SSN
Proof of Income (e.g., pay stubs or tax returns)
Bank Statements to show savings and financial health
Credit Check Authorization

Duration: Usually matches the full lease term.
Renewal: Guarantor must approve any lease extensions or renewals.
Early Termination: Ends their obligation unless otherwise stated in the lease.
Clear Communication: All parties should agree to terms in writing before signing.

Feature Guarantor Co-Signer
On Lease? No Yes
Legal Responsibility Only if tenant defaults Always
Rights to the Property None Equal to tenant
Involvement Passive backup Active lease participant
Choose based on the level of involvement your financial partner is willing to assume.