Mastering the Essentials: Continued Success as a New Rental Property Owner
Synopsis
Welcome back to our two-part series on setting yourself up for success as a new Independent Rental Owner/Operator (IRO). In our first blog, we covered the importance of joining your local apartment association, formalizing your company, and securing the right insurance. Now, we’ll explore three more critical steps:
- Use a quality lease
- Learning about fair housing laws
- And commit to continuous learning
These tips are not only essential for getting started, but are also vital for maintaining long-term success. By implementing these strategies, you will be better equipped to manage your property effectively, reduce potential legal risks, and foster positive relationships with your residents. These steps will help you navigate the complexities of property management with confidence and ensure a thriving rental business.
4. Use a quality lease
Always use a lease contract to establish clear expectations about responsibilities for your residents and you. The TAA Lease has been an industry standard since 1970, and it’s available in customized versions for residential (single family), apartments, condo/townhomes and student housing. Membership in TAA includes complimentary access to TAA Click & Lease for any owner with 10 or fewer units.
Learn more about TAA’s lease here.
5. Learn about fair housing
The duty to comply with fair housing law is at the heart of all rental relationships. At its core are the protected classes. It can be discrimination if you take adverse action against an applicant or resident (or those connected with them), when renting (or selling) property to someone because that person is (or is perceived to be) a member of a protected class. There are seven protected classes under the federal Fair Housing Act: color, familial status, disability, national origin, race, religion and sex.
In addition to federal law, which is administered by the U.S. Department of Housing and Urban Development (HUD), there is a state fair housing law, administered by the Texas Workforce Commission Civil Rights Division, which closely follows federal law. A number of localities, including Texas cities, also have fair housing ordinances. These local laws often create additional protected classes, including such things as sexual orientation, gender identity, marital status and student status.
TAA’s IRO Guide includes a list of fair housing resources to help IROs further navigate this facet of their business.
6. Keep learning!
Once you’ve covered these first five steps, you’ll need to learn about a number of other things to help make your new business a success.
Once you’ve joined your local apartment association and gotten set up with TAA’s Click & Lease, visit TAA’s REDBOOK Online to learn about:
- Using a rental application and resident screening
- Best practices related to resident requests to have pets
- Rent payment methods
- Understanding property taxes and the appraisal system
By implementing these strategies, you’ll be well on your way to becoming a successful and knowledgeable IRO.
The Texas Apartment Association’s IRO Guide provides even more valuable resources to support your growth. It includes detailed guidelines on legal compliance, expert advice on property maintenance, and tips for effective tenant communication.
These tools are designed to help you navigate the complexities of property management with confidence. With these combined six tips, you’re now equipped with a solid roadmap for your rental property journey. Leverage TAA’s IRO Guide and other resources to support your continued success and ensure a thriving rental business.