Being a landlord is not all it’s cracked up to be. You don’t just sit around and wait for the income to arrive. You do a lot of other tasks too. You need to follow ethical practices to become a responsible landlord and it is a continuous process; it does not stop after you find tenants.
One of the challenging tasks a landlord has to do is dealing with paperwork — a lot of paperwork! Documents will tend to pile up in your office that you might have a hard time looking for a specific file when the need arises. You must know which files to keep and what to throw away. That way, you can organize the important files to be easily accessible.
Consider using a computer program for this because it is easier to look for files on a computer using a search engine. This will save you a lot of time and office space too. Imagine how relaxing it is to have a clean office free of clutter. Here is a list of documents that a landlord should keep:
• Tenant applications
You must keep your tenant’s applications, especially the current ones, because you might need them as reference in the future.
You may also want to contact applicants that you had to deny because someone else got approved first. If you keep their application, you can easily reach out to them again if you have other properties they might be interested in, or if an unexpected vacancy comes up.
• Checklists
It is a good idea to make checklists. May it be a checklist for your tenant’s requirements or a list of utilities inside your properties. You might not recall every single detail of a unit if you have several places for rent. This will come in handy if you need references.
You can also use a checklist if a tenant moves out and you need to inspect all that needs to be accounted for. This will help determine the basis for refunds of security deposits.
If you have checklists ready for you to use, you will have lower chances of forgetting important steps or details.
• Leasing agreements
Never throw out contracts. Those are the most important documents that you need to keep because they are binding and they will include the essential points that the tenants will need to agree to, for example, the amount they need to pay, the rules that they have to follow, etc.
They will also save you from future lawsuits. You can use them in case a tenant breaches your agreement, which has legal consequences.
• Renewal letters
A lease agreement will end eventually but you might want some tenants to stay and you will need to send them renewal letters in advance. It will serve as a formal invitation to stay and rent out your property.
Make sure it includes the changes that you wish to be made including changes in rental payment.
• List of emergency contacts
Keep a list of emergency contacts of your tenants. Accidents cannot be avoided and you should know who to call in case you would need to contact your tenant’s relatives. You can also use this if your tenant suddenly vacates their unit without notice and you need to locate them.
• Payment records
You will pay a lot of bills as a landlord and you need to keep track of all of them to avoid paying double or forgetting to settle the payment. This includes mortgage too.
You might need to pay for late fees if you delay payment and you don’t want that to happen. Also, keep a record of everything that might count as an expense because you need them to file your taxes. Organize this and you won’t have to deal with a headache once tax season comes.
• List of utilities
If you have several properties, this means that you also have several utilities that you own and that you have to maintain and repair from time to time. Keep a log of these utilities and if they had undergone repairs and maintenance. You have to keep this updated because you will need this information if your property is up for lease. Check these before creating your listings at Padleads and syndicating them to popular rental websites.
• Logbook of property upgrades
A tenant may want to upgrade or change some features of their units and this will require money. This expense will also be included in your tax report. Also, an upgrade would mean that your property can be rented at a higher value.
You can hire someone to do this for you if you are having a difficult time organizing or you can make use of the technology that you have because they make things simple and systematized. Do not be overwhelmed with documents because you also have other important things to think about.