Anyone who has gone to the trouble and expense of investing in rental property is seeking the most return on his or her investment possible. The best advice I can give you though is to invest the extra monthly expenses you would need to go to in order to hire a property manager. First of all, it is money well spent. Not only is someone else sweating the details of whether or not the rent checks are collects, bounced, repairs need to be made, and those infamous late night phone calls, but you are purchasing your personal peace of mind from these details while still enjoying the steady income that comes from having a property rented out.

I think we will all agree that the tenant is the most important part of the equation in a situation where rental property income is relied upon. With no tenant, there is no income. But when you own a property and have a sizeable investment made in that property it is difficult to be objective when dealing with the people who will be living in what you perceive as your home. It is much better to have a casual and more importantly objective observer make the decisions about who becomes your tenant.

If you chose to manage your own property there are some things you want to consider.

1)    Become familiar with the laws in your state about the rights of both tenants and landlords. This is vitally important for you. You must make sure that you are aware of any potential problems before they arise and your rights and responsibilities as a landlord.

2)    Happy tenants equal long-term tenants. If your tenants aren’t happy, chances are they won’t stay around very long. It is much better to have a property occupied than empty. Unless you are extremely fortunate and have a waiting list, it is likely that your property will be empty for at the very least one month, every time a tenant leaves. This gives you time to make necessary repairs, clean, and take care of other issues that are sometimes neglected while tenants are in place. Keep your tenants warm, dry, and most importantly treat them with respect if you want them to stay around for a while.

3)    Perform a thorough background check on your tenants and listen to your gut. If the little voice inside your head is screaming that this isn’t a good idea then it probably isn’t.

4)    Get everything in writing. Get a signed lease that details every conceivable possibility.

Again, I will stress that my personal recommendation is that you hire a property manager to deal with the tenants in order to save you the headaches later on. It’s a relatively small fee considering the hassles it prevents and the peace of mind it provides. If you chose not to, my hope is that the advice I’ve given you will provide some degree of assistance in the way you interact with your tenants.