Here's What to do to Set Your Rental Property up for Success

Take a minute to let it sink in– you’re now a U.S. investment property owner. That’s no small feat, especially considering the fact that you’ve done it all from another country.

But now that the property is yours, what comes next? 

The actions taken after closing are just as important as the purchase itself. From getting the property rent-ready to setting up the right systems, each action plays a key role in increasing your chances for success. This guide outlines exactly what to focus on once you own a rental property.

Key takeaways

• Get on the same page as your property manager on all aspects of operating a rental business to avoid miscommunications or financial mishaps.
• Don’t compromise on your standards: whether it’s selecting a great tenant or holding your property manager accountable.
• Never slack with bookkeeping, even if it hurts! You want to keep an accurate record of financial transactions from the beginning.

Create a gameplan with your property manager

Many investors living abroad opt to hire a property manager. They’ll be your boots-on-the-ground and oversee many components of your rental property for you if you hire one rather than self-managing. As the name suggests, a property manager becomes an essential part of your team once you own a rental property.

But, even your property manager needs to be managed. At the end of the day, no one has more interest in the rental property than you. It’s your job to keep them accountable.

The best way to do that? Align early and create a clear, detailed game plan together that includes the following:

1. Clear accountability

Keeping everything organized and predictable helps both you and the property manager stay accountable, even from thousands of miles away. Discuss a regular check-in schedule (weekly or monthly) where you receive updates on overall property performance. While we recommend a call, you may find that email works better for quick updates unless there are major updates. Speaking of major updates–ask to be immediately notified of urgent issues like emergency repairs or missed rent.

Pro tip: Make sure that the scheduled meeting time works for both time zones!

2. Maintenance protocols

Regardless of the property type you own, it will likely require some degree of maintenance. From lawn care and snow removal to bigger repairs, make sure you and your property manager are aligned on who’s responsible and how it will get done. This can be the property manager’s job or yours.

Pro tip: Establish a spending threshold for repairs that your property manager can authorize independently. For any costs exceeding that limit, insist on written approval before proceeding.

3. Tenant management strategies

A major part of property management is working with your tenants. This includes renting out the units (more on this in the next section), responding to maintenance requests, enforcing the lease, staying compliant and much more.

You need to decide how involved you want to be. Do you want to get in the weeds of every communication with the tenant? Or do you prefer to just know when something major happens?

In addition, it’s important to establish clear standards with your property manager for response times to tenant inquiries and maintenance requests, timelines for unit turnover, and how quickly vacancies are filled. 

Agreeing on these expectations upfront helps ensure consistent service, minimizes downtime, and protects your rental income. It also gives you a benchmark to evaluate your property manager’s performance over time.

Pro tip: Make sure that all communication (or as much as possible) between the property manager and tenants is in writing. Having this is valuable as evidence if disputes arise and you need to prove what was agreed upon.

Find great tenants

Easier said than done– great tenants are hard to come by. But they’re out there, and the effort is absolutely worth it. Great tenants pay the rent on time and keep your property in good condition.

When you find great tenants, everything gets easier. That’s what people really mean when they talk about “passive income.” It’s not passive if you’re constantly putting out fires.

How do you find great tenants? Working with your property manager to do the following will help increase your chances of landing the right tenant:

• Property quality: To attract great tenants you’ll want to have a property that appeals to great tenants. That might mean updating the bathroom or kitchen— it could also be as simple as keeping the space clean, well-maintained, and welcoming. Take time to study what comparable rentals in your area are offering. Ask your property manager for insights so you can make smart, targeted improvements that help your property stand out.
  
  
• Great marketing: Work with your property manager to make your listing impossible to scroll past. Use high-quality photos, include a clear and appealing description, and highlight key selling points like location, amenities, and of course price it correctly. That’s right. If it’s priced too high, you'll drive away potential tenants who are educated about going rents in the area. If you're too low, you’ll attract a flood of less qualified tenantst. Look at similar listings in your area and use your property manager's expertise to price competitively.
  
  
• Thorough tenant screenings: It’s all about identifying your realistic, but high standard of criteria for what you’re looking for. This may include things such as credit score, income-to-rent ratio, and rental history. Then, stick to it consistently while ensuring you stay legally compliant with fair housing laws and local regulations. A solid screening process that includes credit checks, income verification, background checks, and reference calls helps you filter for tenants who are reliable, respectful, and a good long-term fit.

Learn More: The Key to Successful Property Ownership for Investors

Establish a bookkeeping system

Bookkeeping isn’t sexy, but it’s one of the most important components of a successful rental property operation. You need an accurate way to track money in and out. Plus, it’ll make filing taxes in the U.S. a lot easier for your CPA if your books are in order.

First and foremost, you’ll need to choose a bookkeeping software that fits your needs. There are plenty of options that integrate easily with your U.S. bank account, including the one provided by Waltz through Regent Bank² in your Investor Kit. These tools can help you track income, expenses, and generate reports for tax time. Do your own research or ask your property manager what platform they recommend or already use.

Next, work with your property manager to set up reliable systems. These are three essential topics to cover in your discussions with a property manager and to have a clear plan for:

• Rent collection: Use online payment platforms for fast, trackable payments. Be sure to ask your property manager for recommendations!

• Maintenance tracking: Integrate a platform where tenants can submit maintenance requests online, and you or your property manager can track progress, assign vendors, and log repair costs. This keeps everything organized and ensures nothing falls through the cracks.

• Accounting: Ensure all income and expenses are recorded consistently. Ideally, this would be done daily or weekly. That way, you know exactly where your finances stand.

Plan your next big move

Now that your property is rented out and your systems are in place, you’re officially in business! 

For those of you who have the itch to scale beyond this rental property, it’s also the perfect time to start planning your next move. Do you have enough equity for a cash-out refinance? Or perhaps you’ve saved enough for your next down payment elsewhere.

No matter what’s next, Waltz is here to help when the time is right.

Get started!

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