Now, more than ever, is the best time to invest in rental property in Washington, D.C. Recent research shows that D.C. residents favor renting, with some zip codes having up to 77.2% renters. If you want to invest in D.C.'s busy rental market, then you absolutely must have top-tier lease administration skills.
Are you wondering what you can do to enhance your lease compliance and management abilities? You've come to the right place. Read on to learn how to get started!
Know Your Laws
Before you have a renter sign on the dotted line, it's critical that you draft a lease that complies with federal and local laws. D.C. has strict landlord-tenant laws that you may not find in other areas in which you've lived.
For example, landlords in D.C. cannot:
- Charge more than 1 month's rent as a security deposit
- Ask tenants to waive landlord liability in the lease
- Raise the rent above D.C.'s rent-control standards
- Evict tenants for reasons outside of the ten legally permissible reasons in D.C.
- Refuse to rent to someone based on their membership in a protected class
Make sure to brush up on everything from Fair Housing to landlord responsibilities and create a lease that's bulletproof.
Make Your Lease Crystal Clear
You want your tenants to abide by the terms of the lease at all times. That's simply not possible if you craft a lease that is difficult to understand. The further you get into legalese, the more difficult it'll be for some people to understand.
Consider adding bullet points in plain English about what you expect from your tenants, including information about:
- When the rent is due
- When a late fee is charged
- How many guests a renter can have and how often
- Maintenance expectations
- Pet restrictions
It is okay to negotiate over the lease as long as it is clear, in writing, what the expectation will be.
Integrate Regular Inspections
One of the number one rules of lease administration is tracking lease compliance. Effective property managers perform regular inspections of the property to ensure that their tenants are complying.
You can walk through the common areas of the property at any time, but if you want to enter an occupied home, you have to give proper notice. It's a good rule of thumb to look for any potential maintenance issues that you need to address during inspections to prevent bigger repair expenses later.
Rent Collection Consistency
One of the biggest lease administration risks is failing to be consistent in rent collections. For example, if your lease says rent is due on the 3rd, and a late fee is charged on the 4th, you must apply that rule every single time. If you sometimes look the other way, it may give your renters some standing if you end up having to file for eviction.
Effective Lease Administration is Just a Click Away!
When it comes to property management skills, effective lease administration is one of the best to add to your toolkit. Not only will you be able to create a fair and understandable lease, but you'll also know how to keep most of your best tenants! If you're struggling with questions about lease management, don't hesitate to bring in a professional for help!
Are you looking for a property management company that can help with everything from tenant screening to move-out charges? PMI D.C. Metro has the unrivaled knowledge and expertise you need to make your rentals a success. Contact us today to learn more about our services.
