Most landlords in today's world own only few rental properties, and most work full-time jobs in addition to owning their one or two rental properties. The prevailing attitude among these part-time landlords assumes that, after signing a lease agreement, the rental income will simply arrive on time each month and the landlord simply has to use the rent to pay their mortgage. Unfortunately, there are plenty of pitfalls for part-time landlords, but most are avoidable by following a few simple rules of landlording. 

Rule 1: Screen Tenants Carefully with a Rental Application

Finding the right tenant for your rental property is the single most important decision a landlord makes. The tenant screening process should include a comprehensive rental application, which includes a release clause allowing the landlord to pull background and credit information. After a prospective tenant has completed and signed the rental application, landlords are wise to pull credit reports, verify employment and income, and verify rental history with prior landlords.

Rule 2: Sign a State-Specific Lease Agreement

While it's tempting to use a cheap lease agreement from the office store, the fact is each state has different landlord tenant laws that affect the regulations that can be included in a lease agreement, and has their own legal language that should be included. Landlords who use a generic lease agreement run the risk of not being able to enforce it in rent court, which is a landlord's worst nightmare. 

Rule 3: Be Responsive to All Repairs/Maintenance Requests

By being extremely responsive when a tenant calls about a repair issue, you can prevent two types of problems: further damage to your rental property, and a possible dispute with your tenant. This does not mean you have to do every repair your tenant requests, but it does mean you should either do the repair immediately or tell them immediately that you can't afford to make that repair at the moment, which will settle the matter without further aggravation.

Rule 4: Be Responsive to Tenant Disputes

Tenants and landlords will always have disputes, due to the nature of their relationship, but the important point is to address these disputes quickly and fairly. If left to fester, these disputes can quickly become expensive lawsuits, so make it a point to sit down with your tenants in person to discuss any grievance they may have. Bring a copy of the signed lease agreement, so you can refer to it to resolve the dispute, as many disputes are already covered by the lease agreement. Finally, consider that helping a tenant to move out amicably can be far less expensive than having to evict them, or having to go to court over a lawsuit with them.

Rule 5: Keep All Communications in Writing

When you do have a conversation over the phone or in person, follow it up immediately with a written correspondence that summarizes the conclusions of your conversation, and sign it with your tenants. This will prevent any he said/she said disputes down the road, and will help you keep a paper trail of evidence to reference if need be.

Rule 6: Automate Your Rental Collection

Collecting rent is an area where many new landlords struggle, as many tenants will push the envelope of sympathy to see how much they can get away with. It's important to think of your rental business as a business, just as your mortgage lender who collects your mortgage runs an automated business. When a rental payment is officially late, immediately send an eviction notice to pay rent or quit, and as soon as legally allowable, file in rent court for the eviction. This may sound "cold" or "heartless," but the fact is you will send a strong message to your tenants that you will not tolerate late rental payments. In response, you'll find most tenants will bring their rent current, and will think twice before paying their rent late again.

Whether you're a novice landlord or a seasoned one, these basic rules will help your rental business run more smoothly as a business, and not simply a part-time real estate investing gig you do on the side. By investing the effort and following these rules, you will see each lease agreement perform better, and your monthly costs associated with your rental properties reduced to a minimum.