Michael Leafer

Quarterly Property Management Inspections: What to Expect

A quiet rental doesn't mean a safe one. Hidden leaks rot subfloors, and unauthorized pets scrape up carpets. But instead of dreading quarterly inspections, reframe them as routine maintenance. Tenants value the proactive care, and you catch disasters before they drain your equity dry.

The Preventive Service Frame

If you tell a tenant you are coming to inspect their living habits, they will panic and push back. No one wants their landlord acting like a drill sergeant evaluating a barracks. Instead, position the quarterly visit as a premium service you provide to keep their utility bills low and their air clean.

This framing shifts the dynamic from a hostile audit to a helpful amenity. When you show up holding a fresh air filter and a smoke detector battery, you lower their defenses. You are there to perform manual labor that benefits them. While you swap out the physical components, your eyes scan the walls, ceilings, and floors for early warning signs of property damage. You gather the intelligence you need without ever making the tenant feel targeted.

The Maintenance Trojan Horse

You must anchor your visit to a mandatory task. This gives you an undeniable reason to enter the high-risk areas of the property—the bathrooms, kitchen, and utility closets.

Execute these tasks to mask your structural review:

Swap the HVAC filters: This is your golden ticket inside. By changing the filter yourself, you guarantee the furnace runs efficiently without burning out the motor. This also forces you to walk into the central utility closet or hallway.

Test the smoke alarms: Bring fresh batteries in your pocket. Pushing the test button takes five seconds but proves you manage life-safety systems. It also gets you into the bedrooms.

Check the sink traps: Tell the tenant you are checking for winterization or seal health. Shine a flashlight under the kitchen and bathroom cabinets. You are looking for warped wood, black mold, or active drips that the tenant ignored.

Flush the exterior gutters: Walk the exterior perimeter before you knock on the door. If water spills over the gutters, it can pool against your foundation, threatening the structural integrity of your house.

The 15-Minute Execution Protocol

You must keep the visit fast and structured. Lingering makes tenants uncomfortable and wastes your operational hours. You want to get in, secure the visual data, fix the minor maintenance items, and get out.

Send the 48-hour service notice: Send a friendly email stating you will drop by to handle seasonal HVAC and safety maintenance. Give them a tight two-hour arrival window so they do not feel trapped at home all day.

Bring your own supplies: Carry the filters, batteries, and a bright flashlight in a single bag. Never ask the tenant for tools or a step stool. You must look completely self-sufficient.

Keep your eyes moving: While walking to the thermostat, scan the baseboards for dog hair or scratch marks. And check the ceilings for brown water stains. You are gathering data without staring at their personal belongings.

Document and exit: Thank them for allowing the quick service, leave, and record your findings when you get back into your vehicle.

Handle the Red Flags Strategically

You will find lease violations or deferred maintenance during these visits. You must address them without starting a shouting match in the living room. Your goal inside the house is to observe, not to confront.

If you spot an unauthorized pet: Do not confront the tenant while standing in their hallway. Document the dog bowl or scratched door frames mentally, finish your filter swap, and leave. Send a formal notice of lease violation the next morning.

If you find a slow plumbing leak: Act immediately but frame it positively. Unreported leaks quickly escalate; a running toilet alone can cost up to $1,400 per month in utility waste. Tell the tenant you noticed a small drip under the sink and will dispatch a plumber the next day to fix it. This frames you as proactive rather than accusatory.

If the property is filthy: Distinguish between surface clutter and physical damage. A messy living room with clothes on the floor does not hurt your drywall. But piled garbage attracting pests requires a written notice to cure the health hazard. Send the notice after you leave the premises.

By instituting quarterly check-ins, you stop hoping your property is safe and start verifying it. You catch the slow leaks before they rot the floorboards, and you maintain a presence that deters bad tenant behavior.

Most landlords don’t lose money because of bad tenants—they lose it because of unclear screening standards.

In our latest blog, “The Investor’s Guide to Tenant Application Standards,” we break down how to turn tenant screening into a structured system.

How Property Owners Can Mitigate Water Damage 

Establishing a comprehensive water damage mitigation strategy is crucial for homeowners and landlords, as delayed action can lead to serious health issues and costly repairs. 

The following outlines the preventative maintenance and emergency response steps property owners can take to prevent gradual deterioration and sudden disaster. 

Smart Devices and Preemptive Measures 

Smart devices provide effective first-line-of-defense protection against leaks. Homes that are frequently vacant or are occupied by tenants unfamiliar with water shutoffs benefit from automated systems to efficiently catch problems. 

Smart water shut-off valves: Fitted to the main water line, these devices utilize artificial intelligence to establish your water usage patterns, identify minor leaks, track pressure, and automatically shut off the water supply to prevent major damage. 

Wireless leak sensors: Sensors are placed beneath sinks, behind refrigerators and washing machines, and near water heaters. If moisture is detected, they send an immediate notification to your smartphone. 

Track water usage: Review your water bill for any unexpected usage increases, as these often signal concealed leaks. 

Routine Preventative Maintenance 

Consistent preventative maintenance serves as a primary safeguard against leaks before they emerge. Routine checks help prevent appliance failures and expensive plumbing and roof repairs, and they ensure the dwelling's structural integrity.

Plumbing and appliances: Approximately every 3-6 months, examine the supply hoses for washing machines, dishwashers, and other water-dependent appliances for any signs of wear, such as cracks or corrosion. Replace all hoses every 3–5 years. 

Water heater inspection: Drain your water heater once a year to remove accumulated sediment and check for any rust. 

Gutters and downspouts: Clean the gutters twice a year. Downspout water should be channeled away from the foundation a minimum of five feet.  

Caulking and sealing: Inspect caulking around bathtubs, showers, sinks, and toilets as well as windows and doors. Scrape and reseal as necessary. 

Property Inspections to Identify Unseen Water Damage 

Slow, unnoticed leaks can cause significant health issues and structural damage. While you can use moisture meters and infrared cameras to identify hidden leaks, your senses are remarkably effective detectors.

Musty smells: The first realization of a leak may be a persistent musty odor, indicating mold growth from excessive moisture and humidity. 

Walls and ceilings: Inspect walls and ceilings for sagging drywall and water stains. 

Flooring: Pipe leaks under the floor can cause warping and dampness. 

Emergency Preparedness 

Keeping up with routine maintenance and preventative measures will certainly reduce the risk of water-related damage. However, there is always the possibility of an emergency. Having a plan in place for the unexpected can help reduce the time it takes to manage the situation and mitigate disaster. 

Shutoffs: You and everyone on the property should know where the shutoffs are and how to operate them. 

Contact numbers: Keep an easily accessible list of contacts handy, such as electricians and plumbers. 

Waterproof valuable storage: Protect valuables by storing them on shelving in waterproof containers. 

Access to insurance and property documents: Important documents should also be stored in waterproof protection and easily accessible to begin immediate claims process. 

Thoroughly Remove Water and Moisture after a Leak 

The extent of the water damage will determine whether you need to call in professionals to manage the cleanup, or if it's something you can handle in-house. Regardless, immediate drying, dehumidifying, and sanitizing are key to mitigating damage. 

Immediate Actions 

Dry and Dehumidify 

Sanitize and Monitor 

The Risks and Rewards of Month-to-Month Tenants

For landlords, selecting the tenancy agreement is one of the most important decisions. The choice sets the tone for expected cash flows, flexibility, and stability. While traditional 12-month leases provide predictability, investors are increasingly considering the versatility that comes with a month-to-month agreement. Both options offer their own unique risks and rewards. 

Choosing between the two isn't a one-size-fits-all scenario. In fact, some portfolios are divided between 12-month leases and month-to-month agreement plans. Deciding between the two comes down to local market demand, investor tolerance for turnover, and personal investment goals. 

If you're unsure which is best, this article is for you. 

12-Month Leases

12-month leases are the industry standard for rental agreements. This is largely driven by the desire of stability for both the landlord and the tenant. A 12-month lease legally binds the tenant to pay rent for a full year at an agreed-upon price. For the investor, this means a reliable and predictable cash flow for the next 365 days. The agreement simplifies forecasting future revenues. 

The fixed term also reduces the risk of turnover, and makes turnovers much easier to predict. With the 12-month commitment from the tenant, the property owner can expect lower costs associated with turnovers, such as marketing, screening new tenants, and preparing the unit for new tenants. However, a 12-month lease has a significant tradeoff: flexibility. The property owner cannot easily raise rents during the 12-month agreement. During sudden market changes, the rent agreement remains in place until the lease expires. 

Risks

Difficult Tenant Removal- One of the biggest risks is a commitment to the tenant, even if they are a poor tenant. Should a renter become difficult, like damaging the property or violating rules, the property owner is typically obliged to endure the full 12-month term. Ending the lease early generally requires pursuing an eviction, which can be costly and time-consuming and is far from guaranteed.

Greater Vacancy Gaps- When the tenant decides to not renew a lease, turnover times are generally greater when compared to month-to-month leasing agreements. Generally, more cleaning and repairs are required at the end of long leases. The extended turnover time can contribute to lost revenue.

Reduced flexibility- During the lease, the property is legally occupied and inaccessible to the owner. Should the investor wish to sell the property, they must wait until the lease term is complete. Additionally, major renovations can not be completed while the property is leased. 

Rewards

Lower Turnover Expenses- With 12-month leases, property owners can enjoy lower costs that are associated with turnovers. This is particularly noticeable with marketing, screening new tenants, and other administrative costs. In terms of annual turnover costs, 12-month leases are the superior option.

Simplified Management- Fixed-term leases tend to provide easier management. Occupancy status and renewal negotiations are all reduced with 12-month leases.

Easier to secure financing- Lenders typically value long-term fixed income streams when approving loans for rental properties. If you're looking to expand your portfolio with financing, 12-month leases provide a strategic advantage. 

Month-to-month Leases

While 12-month leases remain common, month-to-month agreements are becoming increasingly popular for both tenants and landlords. Generally, a month-to-month agreement automatically renews every 30 days unless either party provides notice to terminate the agreement (typically, 30 days' notice is required). 

This type of agreement is becoming more attractive for today's tenants. Job seekers, future home buyers, and traveling workers all highly value month-to-month agreements. Landlords also appreciate these short-term agreements, as they can easily change rent prices or quickly remove bad tenants. However, month-to-month agreements do present some challenges. 

Risks

Sudden High Turnover- The biggest risk is the lack of stability. A tenant can terminate the agreement with little notice, leaving the property owner with a vacant unit. Sudden terminations create unplanned revenue shortfalls, increased administrative tasks, and the burdens that come with finding a new tenant.

Unpredictable Cash flow- As tenants can leave with short notice, projecting future cash flows is much more difficult with these short-term rental agreements. Budgeting and long-term financial planning requires a tremendous amount of flexibility. This can be especially challenging with high mortgage costs or high operating costs. 

Rewards

Tenant Trial Periods - Short-term agreements act as a de facto probationary period for new tenants. With short-term rentals, you can assess a tenant's payment history, care for the property, and respect for neighbors before any long-term agreement is made. If the tenant proves to be reliable, you can easily propose a long-term agreement.

Higher potential rental rates- Month-to-month is a premium benefit for most tenants. As such, landowners can justify charging slightly more than they would for a 12-month lease. 

Month-to-month or 12-month lease?

Financially smart property owners know that bathroom renovations aren't just about aesthetics. Their true value lies in strategically reducing future costs and maintenance needs while providing excellent service for the tenant. 

While aesthetics do grab attention and can help with attracting new tenants, focusing on long-term strategy can save property owners time and money.  If you're looking for easy improvements that will help your bottom line in the future, this article is for you. 

Automated Venting

One of the biggest threats to your bottom line and tenant satisfaction is bathroom mold. Expecting tenants to responsibly manage moisture in the bathroom is a gamble not worth taking. Fortunately, there is a simple solution: wire the vent fan directly to the light switch. By eliminating a separate fan control, the vent and fan are automatically activated any time the light is switched on. This wiring trick ensures that proper ventilation occurs during every shower, assuming there are no other light sources. This wiring trick can easily prevent structural damage, reduce the risk of mold growth, which helps minimize expenses and keeps tenants happy by reducing the need for maintenance calls.  Towel Rack Studs

Tenants, like everyone else, need a place to hang wet towels. If no suitable option is provided, tenants may find their own solution without much concern for the property. They may drill their own holes, pull anchors from drywall, or miss studs entirely during installation. 

The simple solution is to provide towel racks yourself. We recommend installing towel racks directly into the wall studs for longevity. Use high-quality fixtures that are built to last so you can save on future maintenance costs. By providing towel racks the right way, tenants are unlikely to rely on alternatives that may accidentally result in damage.  Pre-Installed Shower Rods

Pre-installed shower rods are a fantastic way to prevent damage while also keeping tenants satisfied. If no shower rod is provided, tenants are likely to use cheap tension rods. Tension rods have the habit of slipping and sliding, which can lead to damaged paint or tiles. Alternatively, tenants may install a screw-in-rod with little concern about where the holes are drilled. Installing your own shower rod offers a permanent solution to this problem. The tenant will be satisfied as they won't have to find their own rod, and you won't have to worry about any unexpected damage. 

Simple Tiling and Grout

Tile is strong, durable, and long-lasting. Grout on the other hand is weak, and can lead to some serious problems, especially in the bathroom. When Grout lines weaken, they can trap dirt, soap scum, and water, all of which increase the risk of a mold infestation. To keep the bathroom low maintenance, we recommend epoxy grout over traditional cement-based grout. While more expensive up front, epoxy grout will save money in the long run. Epoxy grout is non-porous, which significantly reduces the risk of mold infestations.  LED Lighting

Light bulbs are often an overlooked expense for many property owners. But replacing bulbs after every tenant change can add up in costs, and result in avoidable trips to the home improvement store. Traditional incandescent and CFL bulbs have a short lifespan when compared to modern Light Emitting Diodes (LED) bulbs. Yes, LED bulbs will be more expensive upfront, but they pay for themselves due to their longevity. Additionally, LEDs consume less electricity than conventional bulbs. Depending on how utility payments are agreed upon, LEDs may provide additional savings. LEDs not only provide savings in the bathroom, but also throughout the entire property.  Door Stops

Door stops may seem trivial, but when they're missing, expensive damage can be inflicted on your drywall and paint. Should a bathroom door swing open suddenly, the handle will make a direct impact with the wall. This impact can cause dents, cracks, and sometimes even holes. Generally, spring-loaded floor stops are sufficient, but even these can fail and wear out over time. Depending on your property, you may want to consider commercial-grade door stops that anchor directly into the baseboard or floor. Measure twice to ensure the door stop is in the correct position so that the door handle will not directly hit the wall.

Steps to Take If Your Town Doesn't Like Short-Term Rentals

Anyone who was thinking about snagging a short-term rental stay in a Southhampton Village in the Hamptons this past Labor Day was extremely disappointed. This is because the village changed its local codes to ban any rental for a period of two-weeks or less. This more or less put the clamp down on any short-term rental offerings that are typical in high-demand areas like this. Unfortunately, this approach has rapidly been adopted by plenty of other towns and cities all throughout the country as well. It leaves the average real estate investor with the following question: "What am I supposed to do if my town doesn't like short-term rentals?"

Keep Tabs on Local Government Websites and Laws 

First and foremost, you should always keep yourself informed about the latest changes to the law. It is highly unfair that many local governments think that they can change short-term rental laws at the drop of a hat, but they often are of this mindset. You should do your best to keep tabs on the latest changes to local laws and subscribe to e-mail alerts from all of the relevant local government websites. You want to be the first to know when there is any scheduled public hearing or meeting on this issue. 

Join Advocacy Groups and Online Communities 

You are not voiceless in what goes on in the decision-making process regarding short-term rentals. IGMS.com encourages property investors to join advocacy and online groups and forums to express their views and get organized: 

Engage with local property owner associations or online forums, such as Facebook groups for short-term rental hosts. These platforms often discuss recent changes and share experiences related to compliance, including sharing best practices for providing contact information and ensuring your property is listed correctly.

At the very least, you can find like-minded people who are passionate about the same issue that you are. You can potentially partner with those individuals to spread the message about why short-term rentals are a good thing for your community and why they are an essential part of the real estate landscape as a whole. On top of that, you might also discover that you can find some potentially beneficial business partners within the group as well. 

Create Policies for Your Guests 

Even if your town permits short-term rentals, they might still frown upon them. One of the things that you can do to help make this type of situation a bit better is to establish policies for your guests the minimize the chances of a disturbance within the area where they are staying. This means instructing those guests to do things that are mindful of the neighbors around them and avoid making an excessive amount of noise, particularly at night. 

You are ultimately in charge of the property as the owner, and you are permitted to write any rules that make sense for your guests to abide by. Therefore, you should craft a comprehensive list of rules that you want them to follow in order to create the type of atmosphere that is not too invasive for the people who live around them. Small changes to policy like this can potentially help to turn the tide of public opinion in small, but measurable, ways. 

Consider Investments in Less Restrictive Areas

You are not geographically isolated to the city or town that you happen to best nearest to. The reality is that you can consider investments in areas that have less restrictive laws regarding short-term rentals. This is certainly the fastest way to expand your investment portfolio and discover the opportunities that exist out there. You might find yourself a little disappointed that you are not able to invest specifically in the areas that are nearest to you, but at least you can still get your hands on some short-term rentals that generate cash flow for you. 

Housing Market Expectations for 2026: How to Prepare for the Year Ahead

It would be a wonderful thing for any investor to know with absolute certainty what was going to happen in the housing market over a period of time. Of course, perfect predictions like this are not possible. However, we can review ongoing trends to better help ourselves prepare for the most likely outcomes for the year ahead. Let's take a look at some of the housing market expectations for 2026. 

Mortgage Interest Rates are Expected to Decline Moderately 

Current mortgage rates for 30-year mortgages stand at a moderate level just a little north of 6%. However, there are expectations that these rates will moderate a bit and drop down from the levels that we have seen across 2025. If this turns out to be true, then this might spur more investors to take advantages of the declining rates and perhaps purchase more properties or at least consider refinancing the ones that they already have. 

Regionally Market Prices May Differ Significantly

There is a good chance that market prices for different properties will vary significantly across the various regions of the country. That said, a modest appreciation of housing prices as a national average is what most expect. Investors should keep a close eye on their markets of interest to see how those specific markets react to the conditions that take place in 2026.  

Tenant Behavior is Worth Keeping an Eye On 

The changing way that tenants behave should also be carefully noted across the board. There are some critical emerging trends that one should keep a close eye on, including: 

Increased Prefer for Remote Work - Many workers got their first taste of what it might be like to work remotely during the COVID pandemic lockdowns during the 2020-2021 time period. Now, many workers prefer to work remote jobs whenever possible, and this has a direct impact on the type of properties that they might consider renting. As such, investors should think about the types of properties that tenants might be the most interested in. 

Job Market Considerations - Tenants need to think about the types of jobs that might be available to them if they should decide to rent from a specific location. Thus, they will give extra value to the properties that are closest to the types of employers that they might be interested in working for. Given this, investors should also think carefully about which economic opportunities are available near their target properties. 

These are the types of things that tenants care about, and that should also mean that landlords care about them as well. If you are looking to invest in the types of properties that tenants are interested in, then you should be mindful about the things that matter the most to them. 

An Increase in Housing Inventory 

It is anticipated that there will be a moderate increase in the total amount of available housing inventory in 2026 compared to previous years. This might put pressure on the prices of homes overall, and is something that investors should keep an eye on. They need to understand that they will have a broader selection of available housing stock to select from, and that means that the smartest investors will focus on taking their time to purchase the properties that will be profitable for them. 

Broader Economic Context 

Real estate investors need to always make sure that they are taking notes on the broader economic picture. Knowing what is happening in terms of inflation, actions by the Federal Reserve, and political decisions can all have an impact on the broader economic picture. These factors are impossible to control, but they are incredibly important to keep at the top of your mind because you don't want to be blindsided by anything that might happen in a broader economic context. 

What's the Best Season for Putting a Rental on the Market and Why?

The birds are chirping, the bees are buzzing, and there is a feeling of light-heartedness and warmth throughout the region. It is Spring, and potential tenants are flooding the rental market looking for a place to call home. This is the peak season for rentals throughout most parts of the country, and Real Property Management explains some of the reasons why that is the case: 

There are several key reasons for this seasonal increase, including tenants timing their moves between school years, the advantages of moving in nice weather (no snow and ice to deal with!), and longer days allowing more time for renters to search for properties.

Indeed, this is a time when many people feel a certain level of optimism that sometimes translates to a desire to relocate. If you are a property owner, you might consider Spring as the optimal time to place a new property on the market. 

What is the Fall Season Like?

For most properties, Fall is a season of moderation. It is not as though all potential tenants have disappeared from the map, but there isn't quite as much demand as other seasons. This is a settling down time of year for many, and it means that you might have to reconsider your strategies for attracting renters during this time. A few examples of things that you can do include: 

Adjust Prices Strategically - You can make adjustments to the prices that you offer on your rentals during this time. Keep in mind that you should do so strategically and not out of desperation. You want to make shifts that help get more renters in the door, but you don't want to sell yourself short and end up with properties that are underpriced. 

Note Your Fall-Friendly Features - It may be the case that your property has certain fall-friendly features that you want to make note of for potential renters. This can include things such as a covered garage, in-unit laundry machines, and newer HVAC units with efficient heating. Whatever the case may be, you should try to highlight those features as much as possible to ensure that your tenants understand that you are doing all that you can to provide for them. 

Consider Holding Off Until a More Favorable Season - In some cases, the best policy is to hold off until you reach a more favorable season to put your rental properties on the market. You certainly don't want your inventory of properties to sit for too long, but you don't want to rent them out at unfavorable rates simply because you feel a sense of desperation either. 

What is the Summer Season Like?

Similar to Spring, the Summer season is typically a booming time for rental properties. The warm weather gets people outdoors more often, and this means that you can spend time with them showcasing your properties and helping them to understand what you have to offer. That said, you should also be mindful that at least some of your tenants might want to use this season as their opportunity to find a new place to call home as well. If that is the case, then you might need to attempt to rotate in new tenants to take the place of those that you have lost as a result of people moving around. 

What is the Winter Season Like?

Unfortunately, the winter season is typically the slowest time of year for bringing in new tenants. You should expect that many people will want to stay put where they are during these coldest months of the year. Not only that, but you can expect that the multiple holidays that occur during the winter months are likely to slow things down for you as well. However, you can still use this time productively. In particular, you can take on some of the following tasks: 

Perform Winter Maintenance Tasks - You may choose to capitalize on the winter months as a time to perform winter maintenance tasks that you couldn't get to at any other point in the year. 

Plan for Snow Removal - In certain regions of the country, winter weather can have a big impact on the appearance of your properties. You may need to schedule some snow removal services to keep your properties looking their best regardless of the weather.

Consider Scheduling Upgrades - You can plan some upgrades to your amenities and your space during this time of year as well. This can prove helpful as you seek to make your property as attractive to potential clients as possible. 

Preventing Digital Ghosts: Smart Homes Secured For Every Resident

Today, tenant experiences are often connected to technology, ranging from the convenience of smart doorbells to smart thermostats to smart lights. Landlords and property managers with cybersecurity investments have the opposite concern with turnover, considering these are devices that retain information through app connections, networks, and mobile accounts. Ghosts of the digital kind threaten data breaches and digital quality of life, as well as professional credibility. Digital ghosts are as bad as physical ghosts. When keys change, everything else should, too.

Why Smart Devices Are Always At Risk

Smart devices never forget things unless they're told to. A smart lock will forget the passcode someone changed. A smart doorbell will remember the faces of people. A smart thermostat will know the WIFI information unless it's been told to forget it. As long as a smart device lives in the app-connected world, or cloud-based access, someone who once lived there can access what they left behind, even if they've long forgotten the passcode. Significant measures are needed to prevent this.

In 2023, cybersecurity experts found that factory reset settings, which are not mandated on doorbells and smart cameras, allowed people to still access their accounts by merely reconnecting to the associated WIFI. They're also subject to privacy concerns. Malfunctions do happen. Permissions are not revoked, and firmware updates do not occur at times. It all puts landlords, property managers, and former and current tenants at risk.

Smart Home Turnover Best Practices

Smart homes should never ghost their previous generations. Just before the new tenants are provided access, devices should be entirely reset. It would be beneficial to do it the same day the former tenants leave and again the day the new tenants move in. It's easy to implement measures in transition to help everyone on either side of the process feel secure moving forward. Best practices for device turnover include:

Device Factory Reset: Each manufacturer's specific guidelines differ on how to factory reset. Make sure all steps are effectively taken to wipe everything away.

Create an Owner's Account: Do not use tenants' personal accounts. Create an owner's device account. Tenants will be able to create their own login and password, but it would be beneficial for all smart devices to be on owner-owned WIFI that tenants cannot access. By having the owner host the access, they can also revoke it when the tenancy ends.

Update Firmware: Routinely update firmware behind the scenes using the owner account to be the most updated security.

Keep Track of Devices: Receipts of serial numbers, stock photos of devices, and timestamps of factory resets should all be saved for compliance measures if needed in the future.

Giving New Tenants a Head Start

The more you can do to help your new tenant, the better it will be for everyone moving forward. New tenants want to hit the ground running to learn how things work and how to make them work for them, not prior tenants. They also want to know their information will be secure and protected. Giving them a head start provides them and any future similarly-situated tenants with confidence from the get-go, whether they know what they're doing or not, based upon prior experience or time spent in another location before.

Consider providing a mini "Welcome Packet" specifically for all smart home devices that includes:

Log-in or QR codes for each device.

A checklist that both parties sign, amended to indicate that all devices have been successfully reset. This document should show the reset dates done by management and the acknowledgement of the most recent reset by the new tenant. It would be beneficial if they saw the manager hit each reset button to verify.

A troubleshooting phone number.

A safety tip sheet.

Consider adding an extra agreement to the lease stating that devices are owned by management, but are the tenant's responsibility moving forward, and are considered part of the unit.

The more similar tenants are across units, the better tenants will feel comfortable without excessive early maintenance requests.

The Professional Approach

Smart devices do not have to come with privacy concerns. Digital turnover is as important as keyed access turnover.

Permanent Grid Drains: Are They Right for Your Rental Property?

While the type of drain you install in your sinks, showers, and bathtubs may not seem like it will make much difference to you or your tenants, you should be aware of different types of drains and how they function. Permanent grid drains are a popular choice these days, mostly because they are low maintenance and allow water to drain efficiently. However, there are some reasons to not install a permanent grid drain, too. Take a look at the pros and cons of installing permanent grid drains, and decide for yourself if they are right for your rental property.

What Are Permanent Grid Drains?

Grid drains have a grid design, and they are permanently open, which means water can flow down the drain at all times. They do not have a stopper allowing you to open and close the drain. They can be installed in tubs, showers, bathroom sinks, kitchen sinks, utility sinks, and garages. 

Pros of Permanent Grid Drains

These drains are popular for a reason. Check out the numerous advantages that they offer:

Great Drainage Functionality

Grid drains allow water to drain efficiently. They usually have a large surface area, which is good for showers and sinks that are in frequent use. The grid design prevents large objects, such as rings, silverware, and kids' toys, from going down the drain.

Good for Sinks with No Overflow Holes

Because permanent grid drains are always open, they are the perfect option for sinks that do not have an overflow hole. Nobody will be able to accidentally stop the drain and cause a messy flood in the bathroom or kitchen.

Low Maintenance

Grid drains are typically flat, making them easy to clean and maintain. Unlike a drain with a stopper, they are less likely to get mucked up with hair, food particles, and other things that go down the drain.

Durable

If you are looking for a durable drain that won't need a lot of attention over the years, a grid drain could be your best option. They are typically made of strong, durable materials that resist corrosion, like stainless steel.

Modern Aesthetics

Permanent grid drains can come in a variety of finishes to match the look of your room. They have a sleek, modern look that goes great with many sinks and showers.

Cons of Permanent Grid Drains

Although there are many reasons to choose a grid drain, there are some drawbacks, including:

Inability to Close the Drain

The design of a permanent grid drain keeps the drain open all the time. If you wish to have the ability to close the drain to collect water, such as for washing dishes, then another type of drain may be a better option. If you have a bathtub that does not have a showerhead, it would not be a good idea to choose a permanent grid drain because it would not allow the tub to hold water.

Clogging of the Trap

Because water is allowed to flow freely through, food particles and other things that fit into the grid holes may also flow through and get stuck in the drain's trap. This could create clogs, which can lead to flooding and property damage.

Needs Proper Sloping to Work

A permanent grid drain needs a properly sloped sink or floor to effectively move water down the drain. If you are not sure if your sink or shower is sloped enough for a grid drain, it is best to consult a professional.

Is a Permanent Grid Drain Right for Your Property?

Knowing the pros and cons of a permanent grid drain can help you understand how they work and what they do or don't do well. The main advantage of a grid drain is that it drains more efficiently compared to other types of drains. The main disadvantage is that it can't be closed, which could be an issue if you want the capability to collect water.

If you are still undecided about installing a permanent grid drain, you could talk to a professional plumber, who may have a better perspective concerning your unique sinks, tubs, and showers.

When surveyed about their New Year's resolutions, Statista Consumer Insights found that Americans want to save more money (21%), eat healthier (19%), and exercise more (17%) as some of their top goals for the new year. Those are all fantastic and fulfilling personal life goals, but what types of resolutions should rental investors set for themselves as we prepare to flip over the calendar and head into a new year? We have some ideas for how they can get started the right way. 

1) Work on Tenant Retention 

Sure, it is nice to bring in a new tenant to your rental property, but do you know what is an even better feeling? When you retain a tenant that you already have. Landlords can use some tenant retention strategies such as enhance their communication with those tenants and even making rent payments easier via technology to help keep tenants around. Sometimes it takes just a small amount of effort on the part of the landlord to show tenants how much they are prized and valued. If you can do that for them, then they might be willing to stay longer than they otherwise would have. 

2) Evaluate Your Insurance Coverage

Investopedia reminds us that you might be in for a nasty surprise if you think that your homeowners insurance policy alone will cover any potential damage that occurs to your property as a landlord: 

Landlords renting out a residential property (house, vacation cottage, apartment) might be surprised to learn that their homeowners insurance will not cover all the costs in the case of a natural disaster, accident, or another damaging event. As a result, landlords will typically need landlord insurance.

Tenants do not typically bare any liability if a large appliance malfunctions and causes damage or if someone is injured on the property they are renting (assuming they didn't cause the injury). As such, landlords need to carry insurance coverage to protect themselves from the liability that they have for these types of situations. The new year is the perfect time to review your policies and determine if you need to make any changes. 

3) Review Your Rental Rates and Adjust as Necessary

The new year also presents you with the opportunity to completely review how much you are charging tenants and consider making some adjustments as necessary. This is something that you want to do with a great amount of thought and balance. You don't want to outprice your rentals compared with others on the market, but you also need to ensure that you are pulling in enough revenue for yourself. You can use the new year as a fresh start to review those rates and make a determination about where your rates need to be. 

4) Schedule Preventative Maintenance on Your Properties 

There are plenty of preventative maintenance measures that you can take on your properties to make them as habitable and safe as possible for all of your tenants. Among some of the things that you might want to work on include: 

Water Leaks and Damage - Even a small water leak can create a headache for you, and it is best to try to stop those issues in their tracks. It is one of the most common issues for landlords, and you should do your best to try to catch it before it becomes a major problem. 

Pest Control - Getting a pest control service out can help you to take care of the rodents and bugs that might otherwise infultrate your property. Tenants clearly don't want to have to deal with these pests, and you should do your best to use the new year as a time to get a pest control team out to your properties as soon as possible. 

Clean Gutters and Inspect the Roof - Clearing out the leaves and other debris that might have gathered in the gutters during the fall is a great way to get the most life out of them. Couple that with a roof inspection, and you are well on your way towards taking care of your property the way that it deserves to be cared for. 

5) Continue Your Real Estate Education 

 Advantages of Tenant Retention, and Why It's Better than Seeking New Clients at Higher Rental Rates

As a rental property owner, you worry about raising your rental rates. An increase in rates could lead to higher-paying tenants, but it could also lead to new expenses caused by tenant turnover. Is it better to keep your rates at their current value, or should you raise them? Are there any other options to help ensure you increase your income without also causing turnover costs?

While the decision to raise rates or keep them the same ultimately rests on you, there are certain advantages to retaining your tenants at existing rates.

1. Avoid Turnover Costs

Tenant turnover induces new costs, such as:

Loss of rent during a time of vacancy

Professional cleaning services

Lock changes

Repairs to the property, including painting and appliance replacement

Marketing costs when advertising your vacant property

Screening costs for new tenants, including background checks and credit checks

Time costs for showing the property to potential tenants

Application processing costs

If tenant turnover increases, these costs can multiply. Avoiding tenant turnover can save you money, even if you don't increase your rates.

2. Establish Long-Term Financial Stability

When your rental property is consistently occupied, you can rely on that rental income every month. You won't have to worry about the costs associated with preparing the property for a new tenant. The predictability of your income can help stabilize your finances over the long-term, which can be much more satisfying than trying to get new renters to pay higher rates.

3. Decrease Your Paperwork

Tenant turnover causes a lot of paperwork, and paperwork takes time. For example, you need to fulfill lease agreements from the tenant moving out and create a new lease agreement for the new tenant. You need paperwork for security deposits. You need to review rental applications. There may be multiple proof and verification documents to process. If you hire someone else to do the paperwork for you, then you are incurring more administrative costs that could be avoided by retaining your current tenant. 

4. Reduce Maintenance Costs

Preparing a property for a new tenant causes a lot of maintenance. Walls may need patching and painting. Carpets may need to be deep cleaned or replaced. Light fixtures may need to be replaced. Appliances may need updating. Smart home devices may need to be reset and prepared for a new tenant. Retaining long-term tenants does not eliminate the amount of maintenance that needs to be done, but it does greatly decrease maintenance.

5. Enhance Your Property's Reputation

Retaining tenants is good for your property's reputation. A tenant who is happy to continue renting will become a type of ambassador for your property. They may say good things about it to others, leave positive online reviews, or give personal recommendations to people they know. On the other hand, properties that experience high turnover risk getting bad reviews and scaring away potential tenants.

6. Build Strong Tenant Relationships

Long-term tenants tend to have better relationships with their landlords. A stronger relationship leads to better communication, which can help keep the property in good condition. For instance, a long-term tenant who feels comfortable talking to their landlord may report a minor issue before it worsens and becomes a major, costly problem. It is almost always more cost-effective to deal with concerns proactively rather than waiting until the concern has escalated.

Tenants may also experience life changes that affect what they can afford and how they are living. If the tenant has a good relationship with the landlord, the two may be able to work out a solution that works for both of them. If the tenant does not have a good relationship with the landlord, the situation could end in eviction and costly tenant turnover.

7. Set Yourself Up for Incremental Rate Increases

Tenants appreciate stable rent rates, but if they are long-term tenants who really like where they live, they will be more likely to understand that their rent rates need to be slightly raised every once in awhile. Tenants know that inflation raises your costs, and they may expect a slight increase in rate. Developing good relationships with your tenants helps these incremental rate increases go over smoothly. If your tenants trust you, they know you won't raise the rates unreasonably. 

How to Create Smart Exit Strategies for 2026

Robert Burns wrote the poem "To a Mouse" in 1785 and dropped a pearl of wisdom that still holds true to this day: "The best laid plans of mice and men often go awry". 

In other words, no matter how well-crafted you believe your plans to be, you should always have an exit strategy in case things don't work out how you hoped they might. Therefore, we want to take a look at the best ways to create exit strategies for your investment properties in 2026 in case you need to use them. 

Clarify Your Investment Goals and Objectives

First and foremost, it is your responsibility to identify your investment goals and objectives for every property that you own. Without such clarity, you are never going to be clear about when to exit any given strategy. A few of the questions that you can ask yourself at this stage include: 

Ask yourself these questions and write out your answers to get a better sense of what you are aiming to do with your property investment portfolio in the first place.

Consider Current Market Conditions 

This is the step that many investors want to jump to immediately, but it is actually what you should do only after you are certain that you know what your objectives are. People talk about market conditions constantly, and you should be a part of that conversation and consider: 

Once you have done all of this, then you are ready to select the exit strategy that you might use in 2026. 

Select the Exit Strategy That Works for You 

Believe it or not, there are various exit strategies that one might consider in 2026, and not every strategy will be the perfect fit for every type of investor. You should base your selection on the specific objectives that you have for your portfolio and how you intend to accomplish them. Some examples of exit strategies that could work for you include: 

Selling at the Peak of the Market 

For those who are ready to move on from the rental game, it can be best to try to unload their properties at their peak value in the market. This is ideal for anyone who seeks to capture as much of the market appreciation value of their property as they can. 

Consider Converting the Property Into a Longer-Term Holding 

If you notice that the real estate market in your area is softening, then you might consider making your investment property more of a long-term holding. This is to say that you might choose the tactic of converting it into a rental instead of attempting to sell it into a market that isn't brimming with buyers. 

Hire a Property Manager

Finally, another tactic that you can use if you truly want to wash your hands of the property is to hire a property manager who can handle it as a rental for you. He or she will ensure that you still collect rent on the property but that you don't have to burden yourself with the day-to-day stresses of managing the property itself. 

Are Outdoor Living Spaces Worth the Cost?: What to Know Before You Include One

An outdoor lounge with a coffee table or perhaps a fire pit centerpiece creates the perfect atmosphere for entertaining family or friends. Likewise an outdoor dining area with an overhead pergola to protect from the sun can create a picture-perfect dinner party experience. However, before you shell out money to create the perfect outdoor space for your next rental home or flip, you need to think about the ROI of this venture. Let's break this down for both scenarios (rental home or flip) and see how things shake out. 

Is There Value to an Outdoor Living Space for a Rental Property?

As with most considerations in real estate, there are both pros and cons to adding an outdoor living space to a rental property. Let's start by taking a look at what some of the upsides are. 

Upsides to an Outdoor Living Space for a Rental Property 

Here are some things that you immediately gain when adding an outdoor living space to a rental property: 

Risks of an Outdoor Living Space for a Rental Property 

On the other hand, there are some risks to adding an outdoor living space to a rental property. Among those risks include: 

Upsides of an Outdoor Living Space for a Flip 

If you intend to flip the house that you have just purchased, then the benefits of an outdoor living space might look like this: 

Risks of an Outdoor Living Space for a Flip 

Don't forget to think about the challenges of including an outdoor living space on a flip as well, including: 

3 Strategies for How to Discover Good Rental Investments in a Pricey Market

Housing prices in some fo the most expensive markets in the country, such as San Francisco, have recently hit all-time highs. This fact has left many real estate investors scrambling to figure out how they can still uncover valuable investments in a very hot market. It's true that these market conditions make the work more challenging, but there are still some tactics that anyone can deploy to find the hidden gems. 

1) Work with Local Experts

Did you know that there are some properties for sale that are listed "off-market".  This is to say that the property isn't listed on some of the most popular property listing sites such as Redfin or Zillow. In fact, you are unlikely to know that the property is for sale at all if you aren't working directly with a local expert who is plugged in to the entire market in that area. This is why you should do everything within your power to build connections with local experts who know a thing or two about which properties are available. They can help you uncover deals that others might miss. 

2) Consider Mismanaged Properties 

It might sound counterintuitive at first, but checking out properties that are currently mismanaged could be your best bet for finding a good rental in a pricey market. This is because the value of these properties is likely to have fallen in relation to their true value. The years of mismanagement has made these properties less desirable in their current state, but that doesn't mean that you have to give up on them. Rather, you can take a stab at turning them around and turning them into something valuable. 

A few things to look out for when trying to spot a mismanaged property include: 

Absentee Landlords - Some people out there believe that they can purchase a property, rent it out, and then never think about it again. These people are known as absentee landlords. They do not live on or near the property that they lease out, and that can become a big issue when problems arise within the property. In fact, it can ultimately lead to the mismanagement of a property and a diminished value for that property. However, it can also be the perfect opportunity for you to swoop in as a real estate investor and score a great deal. 

High Vacancy Rates - The percentage of unoccupied units within a property is known as the vacancy rate. If that rate is particularly high then it might indicate that there are issues with how the property has been managed. People don't want to move in while the property is in its current state, but they might be swayed a different way if you step in and make it worth their while. 

These are a couple of tell-tell signs that something is wrong with a property and that you can potentially purchase it at a discount. Poke around and see if these types of properties are something that you believe that you can work to repair. 

3) Search Outside of Metro Areas 

Although the metro areas of many cities have become widely pricey, they often feature areas just outside of the main metro area that aren't nearly as outrageous when it comes to price. Therefore, you might consider digging into some of the sub-communities outside of the main metro area to find some of the best bargains in real estate today. 

These areas have two big upsides to them: 

Lower Cost of Entry - They tend to have a lower cost of entry than do the main metro areas. This means that you can still snag the kind of deal that you couldn't possibly get in the main metro area. 

Rising Rents - Although there are still deals for purchase, the area tends to be up and coming, and this means that the rents are rising in that area. Therefore, you can likely charge a higher rent than you might in some other markets and your tenants won't necessarily balk at it. 

Why Year One of the Rental Property Investor Experience Isn't About Profit

You finally took the leap into rental property investing. You're excited, but after looking at your first year's numbers, you feel a pit in your stomach. Between closing costs, repairs, and unexpected expenses, you're barely breaking even—or even operating at a small loss.

Take a breath. This is not a sign that you made a bad investment. In fact, it's exactly what many seasoned investors expect, and here's why: year one isn't about profit—it's about building a strong, cash-flowing asset for the years ahead.

Why Year One Profits Are Rare

Even great investment properties often don't produce much profit in the first year. This happens for several reasons:

Upfront repairs and improvements: Whether it's replacing outdated appliances, adding fresh paint, or fixing a leaking roof, you're setting your property up for long-term stability and higher rent potential.

Leasing and turnover costs: If the property was vacant before purchase, you might have to pay for cleaning, marketing, and tenant screening before cash flow even begins.

Learning curve expenses: From small maintenance surprises to navigating your local landlord laws, year one is when you learn the ropes, and sometimes those lessons cost money.

This doesn't mean your investment is failing. It means you're investing in the property's future potential.

The Power of Upfront Renovations

It's tempting to want cash flow immediately, but holding off on key repairs or updates can backfire. A well-maintained property:

Attracts better tenants who stay longer.

Reduces emergency repairs that are often more expensive than proactive maintenance.

Justifies higher rent, increasing your future cash flow.

For example, you might spend $8,000 replacing old flooring and repainting before listing your property. You may not see that money back immediately, but it can increase your monthly rent by $150 and reduce vacancy rates, adding significant value over the years.

Depreciation and Tax Advantages

Another reason seasoned investors aren't worried about low or negative cash flow in year one is depreciation. Even if your property only breaks even on paper, depreciation can create a paper loss that reduces your taxable income, offsetting the tax burden from your other income streams..

Additionally, many upfront expenses like repairs and closing costs can provide tax deductions, helping you keep more money in your pocket at tax time.

Building Equity and Future Cash Flow

Every mortgage payment you make reduces your loan balance while your property potentially appreciates over time. Even if you're not seeing big year-one profits, you're building equity and setting yourself up for increased cash flow as rents rise and your mortgage stays relatively stable.

Additionally, as you complete key repairs and upgrades, your property becomes easier to manage. Over time, those major expenses decrease, leaving you with stronger monthly cash flow and a more valuable asset.

Avoiding Emotional Burnout

First-time investors often feel disheartened when they see low profits or losses in year one, leading to decisions like under-maintaining the property or rushing to raise rents too quickly, which can result in vacancies.

Understanding that year one is about positioning your property for long-term success can help you avoid emotional burnout and continue investing confidently. It's normal to reinvest your income into your property at the start—it's what positions you to benefit from true "mailbox money" later.

What You Should Focus on Instead

Instead of worrying about year-one profit, track these indicators to ensure your investment is healthy:

The property is in a good location with demand for rentals.

You have a reliable tenant paying rent.

You're improving the property to justify future rent increases.

You're building equity with each mortgage payment.

You have a clear plan for future maintenance and property management.

These signs show your investment is on the right track, even if your year-one numbers don't show big profits.

Final Thoughts

Conventional wisdom says you don't want profit in your first year as a rental property investor because your goal isn't a quick win—it's building a reliable, appreciating asset that will provide you with steady cash flow and long-term wealth.

So if you're staring at your year-one numbers feeling discouraged, remember: many successful investors have been in your shoes. Year one is the season of planting seeds, setting up systems, and investing in your property's future. Profit will come, but only if you give your investment the foundation it needs to thrive.

What Really Counts as a Bedroom for Rental Properties and Flips

A home's value is often estimated by the combined factors of location, design, and the number of bedrooms. This is especially true for rental homes. Bedroom count is one of the most important factors in both the rentability and the rental price of a property. However, not just any room can be considered a bedroom. Local building codes and dwelling laws determine how many bedrooms a home truly has according to the architectural design.

Property investors looking to optimize their listings can count bedrooms as long as each room meets essential criteria. While the exact details vary by region, state, and city, we can provide a few universal guidelines to help you identify which rooms in your investment homes can be included in the bedroom count.

What counts as a bedroom for rental properties and flips? Let's find out.

Bedroom Basics: Know Your Building Code

Size

Window

Temperature

What defines a bedroom is typically determined by a minimum size, safety, and quality of life. Before counting bedrooms, check the local building codes to determine what exactly qualifies as a bedroom in your region.

Some regions require specific features like closets or light fixtures, but the essentials are square footage, ceiling height, the presence of a window, and whether the room can be kept at a safe temperature for sleeping.

Bedroom-Sized: Floor Space and Ceiling Height

First, a bedroom must have enough room for a bed and then some. A bedroom typically must have an average of 50 square feet per person, and most are between 70 and 80 square feet for a medium-sized bedroom. There is also often a minimum horizontal measurement (about 7 feet) to ensure there is room for at least one full-length twin-sized bed.

Ceilings in a bedroom typically must be about 7 feet tall. For rooms with a sloped ceiling, such as finished attics, at least half the ceiling in a bedroom must be a minimum of 7 feet tall.

Window Exit

In almost all regions, a bedroom must legally have a window large enough to climb out of. This provides a safe exit in the event of a fire, and the ability to access fresh air in a carbon monoxide event. Bedroom windows may require access to a fire escape for tall buildings in certain locations.

Basement bedrooms and attic bedrooms are possible, as long as they have a window of sufficient size and the ability to open that window in an emergency. The exact size and qualities of the bedroom window vary by municipality.

Access to a Common Area

Bedrooms typically have access to a hallway or public room. A room that can only be accessed through another bedroom may not qualify as a bedroom depending on local laws. This is often the difference between a large windowed dressing room or a separate efficiency apartment versus an additional bedroom. An isolated room with a window may be used as a bedroom by the residents, but whether it can legally be listed as a bedroom depends on the home design and local laws.

Temperature Control

Access to temperature control can be required in regions where an unventilated room can reach dangerous temperatures. In colder climates, it may be required that every bedroom have access to central heat or room-specific heating source. In some Southern states, access to central AC or a window unit may be required to consider a space a bedroom. This is because sleeping in a room that reaches extreme hot or cold temperatures can become a health hazard, and therefore an unventilated room might not achieve minimum quality-of-life requirements.

Closets

Closets are not always required to count a room as a bedroom, but they help. Some regions require either a closet or provided furnishings for clothing storage for a room to be counted as a bedroom. However, there are many locations where closets are neither required nor provided. As a general best practice however, if a room achieves all other conditions and has a closet, it is most likely a legal bedroom.

Your Best Bedroom Count