Is Your Rental Losing Money? Fix It Now!

In my video "Is Your Rental Losing Money? Fix It Now!" I walked through the exact property management playbook we use at Second Street Property Management. I’m Bud Evans, a real estate investor and former operator. I learned the hard way that chaos is the default unless you replace it with systems. Below is a written blueprint you can adapt to your market — the same structure that keeps properties safe, tenants satisfied, and owners profitable.

The Big Picture: Five Pillars + One Rhythm

Any property management system that works rests on five pillars: leasing, collections, maintenance, compliance, and finance. Holding those together is a weekly operating rhythm. This rhythm includes one focused meeting where metrics are reviewed, wins are celebrated, misses are addressed, and the top five issues are tackled in order of impact.

• Marketing through move-in: Reduce vacancy days with sequence and clarity.

• Collections: Make paying easy, non-payment hard to ignore, and document everything.

• Maintenance: A triage system with proof and service levels keeps costs down and reputation intact.

• Compliance: Safety checks, certificates, licenses, and documentation retention prevent costly failures.

• Finance: Clean bookkeeping, cash control, and timely reporting tie everything together.

  
  

We run one 60–90 minute weekly meeting. We review metrics, celebrate wins, address misses, and tackle the top five issues. If it's not on the issues list, it’s noise. Build standards so you don’t have to rely on heroics; repeatable systems beat rockstars every time.

Step 1 — Intake: Create the Single Source of Truth

Before a house becomes a door in your portfolio, it must become a record in your system. This record should enable anyone on your team to manage the property tomorrow without calling you.

• Owner goals, target rent, reserve requirements, and repair approval authority (we set $250 normally, $700 for emergencies).

• Deed or property management agreement, W9, insurance declarations, HOA rules where required.

• Property profile: bed/bath count, age of major systems, utilities, trash day, parking, school district.

• Safety survey checklist: smoke/CO detectors, GFCIs, secure railings, working windows, no trip hazards.

• Photos, professional marketing assets, and a 60-second walkthrough video. These create a single source of truth.

  
  

If someone new joins the team, the intake file should let them manage that property without missing a beat.

Leasing: Compress Vacancy Days with Sequencing

Vacancy days are silent profit killers. We compress vacancy not by frantic speed but by disciplined sequencing.

• Marketing goes live the same day across sites and major portals.

• Include at least 10 photos, three key features, and state the pet policy upfront. Note HCV acceptance if applicable.

• Use autoresponses on inquiries with screening criteria and application links.

• Pre-screen applicants for income, credit, background, and rental history. If demand is high, require applications before showing; if low, show first and then ask for applications.

• Conduct a five-minute rent-talk call with every serious lead to explain due dates, fees, maintenance expectations, and quirks of the home. Clarity keeps good tenants and reveals problematic ones early.

  
  

Screening is strict: verify income with pay stubs or bank statements, call prior landlords, and ask one question — “Would you rent to them again?” Document every approval or denial reason, and retain records for fair housing compliance.

Move-In: Orientation and Documentation

A strong move-in talk prevents 80% of the drama you’ll ever face. Move-in should include:

• Digital lease signing with addenda covering utilities, maintenance expectations, and property rules.

• Move-in orientation: how to pay, what’s an emergency, how to request service.

• Full photo-documented condition report. Deposits handled exactly as the state requires (escrow in NJ).

  
  

Collections: Make Rent Easy to Pay, Hard to Ignore

Money wants a clear path. Rent should be simple to pay, and the reminder cadence should be relentless.

• Primary payment through the tenant portal; backups like PayNearMe for money orders. Discourage personal checks for chronic late payers.

• Automated reminders: 10 days before due, 5 days before (portal opens), day of, and a polite late notice after the due date with a fee schedule.

• After the grace period, issue a pay-or-quit notice compliant with state law and capture proof of delivery (email receipt + text).

• Payment plans must be in writing with specific dates and amounts. If terms are violated, resume the legal process.

• Keep the ledger immaculate — screenshots and texts are helpful, but clear, maintained ledgers win in court.

  
  

Our operating motto here is “kindness with clarity.” Listen, document, and follow policy every time.

Delinquency & Legal: Stop Improvising

Once an account crosses the line, follow a script:

1. Review the ledger and issue notice with proof.

2. Attempt one resolution — one payment plan max.

3. If default continues, go to an attorney and start the legal process. Assemble an evidence pack (lease, ledger, registrations, notices, proof of delivery, photos, timeline).

   
   

In court, present short factual statements — no stories, no fluff, just evidence. If you regain possession, change locks and launch the turn plan the same day. For long delays or at-risk units, consider cash-for-keys with a written agreement and verification before releasing funds.

Maintenance: Service Levels, Proof, and Vendor Management

Maintenance is one of the biggest operational risks. A sloppy process bleeds cash and ruins reputations. Use service levels and require evidence for every ticket.

• Use a triage system: Emergencies (life-safety/active water/AC out in heat) — immediate dispatch; Urgent — 24–48 hours; Routine — 3–7 days.

• Every ticket must include photos or video, access notes, and budget authority. Auto-approve work under a set dollar threshold; require photo + estimate for overages.

• Automated tenant updates: ticket scheduled, technician en route, before/after photos uploaded, and invoice attached to the ticket.

• Vendor scoring: on-time rate, first-time fix rate, average ticket size, and warranty call rate. Replace poor fits quickly; reward reliable vendors with more volume.

  
  

Turns: Choreography and Speed

Turns are where many landlords bleed. Our process focuses on keeping people in the building, choreography, and staging materials.

• Start the process 30 days before move-out when possible; target re-occupancy in 7 days for single-family homes.

• On possession day: change locks, switch utilities, capture a full photo set (ceiling, under sinks, odors), and book cleaners/contractors in sequence.

• Pre-written make-ready scopes for touch-up paint, LBP repairs, deep clean, bulbs, filters, and curb appeal. Materials pre-staged.

• List as soon as photos are ready. Track turn time and days-to-lease monthly; investigate outliers.

  
  

Compliance and Risk Management

Compliance is cheap compared to the cost of ignoring it. Build the checklist once and use it every time.

• Lead-safe certificates, chimney/VA certificates where applicable, annual smoke/CO verifications, GFCI checks, secure railings, and working windows.

• Maintain rental licenses and schedule municipal inspections with 60/30/7 day reminders.

• Documentation retention is non-negotiable: keep applications, approval/denial letters, leases, addenda, notices, and inspection reports.

• Train staff on fair housing with scripts and standard responses. Verify insurance annually and require tenant renters insurance where appropriate.

  
  

Finance and Reporting: The Truth Engine

Finance is what turns operations into an investable business. Keep accounts separated and reconciled.

• Separate operating account, escrow for security deposits, and reserve accounts. Reconcile weekly and code expenses consistently.

• 1099s, W9s, and current vendor insurance every year.

• Monthly owner statements with income, expenses by category, reserve levels, and notes on delinquencies and maintenance.

• Quarterly narratives: vacancy rate, turn time, maintenance per door, and upcoming capital projects.

• KPIs to track weekly: collections percentage, NOI trends, DSCR (if leveraged), open/closed tickets, first-time fix rate, turn time, and cash on hand.

  
  

Communication: Fast, Factual, Friendly

Confusion breeds complaints. Communication is the glue that prevents fires.

• Welcome email at move-in with payment instructions, emergency definitions, and how to request service.

• Automated maintenance updates and quick surveys after service.

• Renewal reminders at 90/60/30 days with clear options; aim for one-year minimum leases, up to three where appropriate.

• Owner alerts on tickets above threshold with context and recommendations; monthly summaries and quarterly calls to align expectations.

  
  

Technology: Repeatability Over Flash

Technology’s job is repeatability, not complexity. Use software to handle applications, leases, portals, tickets, and accounting. Keep a shared inbox, a cloud drive organized by property, and short recorded SOPs for training.

• One-page runbooks for each system: trigger, steps, tools, output, and KPI that proves it works.

• Document processes using short videos and tools like Scribe to make SOPs readable and trainable.

  
  

30-Day Implementation Plan (If You’re Self-Managing)

1. Write SOPs for leasing, collections, and maintenance. Create listing templates and notices. Build intake form and safety checklists.

2. Configure software — portals, reminders, shared inbox. Draft owner statement template.

3. Lock in vendors with photo policies, confirm attorney for filings, assemble evidence pack template.

4. Publish KPI scoreboard, hold first ops huddle, run drills (create a fake ticket, dispatch, close with photos, send mock owner update, run an eviction drill).

   
   

Perfection isn't required. Repeatability is.

Common Failure Modes — Avoid These

• Undefined standards: tenants get different answers and lose trust.

• Verbal promises for change orders/payment plans: everything must be in writing.

• Master-metered utilities without proper RUBS or allocation — they will bleed you dry.

• Hope instead of preparation for inspections — prepare and pass the first time.

• Hero culture where one person holds the process in their head — you need systems, not a person.

  
  

Closing Thought

Start with one property. Run the full cycle using these systems. Capture what breaks, update the SOP, retrain, and keep moving. When a tenant thanks you for fast service or an owner compliments clear reporting, that’s a process win — document it and codify it into your system.

"When your systems are sharper than your property's problems, you stop firefighting and start compounding your wins."

Aim high, execute fast, and build systems that keep the cash flowing and the headaches down. If you want help building these systems for your exact market and portfolio, consider booking a strategy session or joining a network of operators — getting in the right room saves years and thousands of dollars in mistakes.

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