Key Takeaways
- Annual Maintenance and Safety Checks Are Crucial: Regularly testing smoke and carbon monoxide detectors, inspecting for water leaks, and cleaning gutters helps prevent costly damage and ensures tenant safety and compliance with local regulations.
- Reviewing Leases and Rent Rates Boosts ROI: Each year, landlords should review and update long-term leases, adjust rental rates based on market trends, and notify tenants early about renewals to maintain steady cash flow and minimize vacancies.
- Stay Protected with Updated Insurance Coverage: Reviewing and updating your rental property insurance annually ensures you have adequate protection and may help you find better coverage options or savings.
As a landlord, you have a number of responsibilities to keep track of. The day-to-day and monthly tasks will naturally occupy most of your time. However, there’s also a number of annual tasks that slip through the cracks. So, what are some of the things that you should be doing every year but probably aren’t? This guide by EquityTeam will help to keep you organized for optimal ROI.
Annual Tasks Landlords Should Perform
Here are some of the vital responsibilities landlords should be performing on an annual basis:
Renew and Updates Long-Term Leases
As a landlord, you have the option to rent out your property on either a short-term or long-term lease. Long-term leases are usually in effect between 6 months to one year. They can guarantee you consistent cash flow and reduced vacancy rates.
To experience the full benefits of a long-term lease, you need to have a solid renewal process in place. When looking renew the lease, consider updates certain policies and adjusting rent to protect you cash flow.
Ideally, you should notify tenants at least 90 days before their current lease is up. Let them know the new terms of the renewal for clarity. If they decide not to renew the lease agreement, you’ll have a good buffer period to market the property to new tenants.
Refresh Marketing Materials
Make sure to update your marketing materials, namely photos and video tours. This is especially important if your property has undergone minor or major upgrades. Even if you aren’t looking to re-rent the property to new tenants, having quality marketing materials on hand can save you time in the future.
Check Prevailing Rental Rates
Adjusting rent prices is another thing that some landlords forget to do. Failing to update your lease could be jeopardizing your ROI. Each year, you should verify that you’re charging residents the right rent amount by conducting a comparative market survey.
You could just browse online listing and check what comparative rentals are charging. You could, alternatively, hire a property manager to help you conduct a thorough analysis to determine the rental amounts you should be charging for an optimal ROI.
Check for Water Leaks
If water is leaking from plumbing systems in your residential rental home, that could cost a lot of money in the long run.
In fact, just one inch of water could cause thousands of dollars of damage. The damage could take many forms. Some of the main types of damage water include:
- Structural damage, foundation issues, wood rot, and damaged walls.
- Growth of mold and mildew.
- Electrical hazards.
- Damage to personal property.
If during your inspections you notice a small water leak, make sure to call a plumbing professional as quickly as you can. Getting ahead of the issue will protect your property’s value and your Cincinnati, Ohio tenant’s safety.
Test Safety Detectors
Most states require landlords to provide functional smoke and carbon detectors as part of meeting the unit’s habitability standards. As such, ensuring these devices are working as they should must be an annual responsibility. Test the devices and replace batteries when necessary. You should also update tenants on building safety standards and remind them of where they can find emergency contact information.
Clean the Gutters
If there are trees located near your rental property, it’s important to ensure that your roof gutters are regularly and thoroughly cleaned to prevent potential blockages. Clogged gutters can cause water to overflow, leading to structural damage and issues such as pest infestations and mold growth.
If gutter cleaning is beyond your scope of maintenance skills, it’s advisable to hire a qualified professional to ensure the job is done safely and effectively.
Check Your Insurance Policy
As a landlord, you’re mandated to insure your rental property against certain potential damages. Examples of insurance coverage includes fire, lightning strikes, storm damage, theft, liability, and loss of rental income. Every year, make a point to look for expanded coverage or considerable savings. You can do this by either browsing online or calling local agents. You also speak with your current provider and try and negotiate better terms.
Remain Informed on Local Rental Laws
Laws are subject to change so it’s vital that you remain up-to-date on local, state and federal rental policies. Check if there have been changes to security deposit, eviction, or other landlord-tenant laws. By staying legally compliant you can protect your real estate investment and tenants.
Why Work with a Property Manager
If you need help managing your rentals, working with a local management company can provide peace of mind. The right team will help with everything from tenant screening and lease management to maintenance and legal compliance. Despite the management fee, professional services often allow property owners to maximize returns thanks to enhanced efficiency and access to industry insights.
Bottom Line
Being a successful landlord calls for a proactive approach. These are some of the essential things that should be on top of your mind at least once a year to ensure you run a solid, long-lasting business. If doing any of these things seems daunting, consider hiring a property manager. We, at EquityTeam provide rental property owners in Cincinnati with quality residential property management services they can trust. Get in touch to learn more!
