The flexibility and affordability of renting have become an alluring option for real estate consumers in 2025. This phenomenon has created a surplus of first-time landlords. While these investors are poised to capitalize on the latest market trends, they often don’t know much about property management 101.
As a third-party originator (TPO), your success hinges on your client’s success. That is why experienced TPOs help guide rental investment newcomers beyond the close, instilling the insights and wisdom needed for effective property management.
Below is a property management 101 crash course, equipped with key information your clients need to know, so they can discover how to be a better property manager.
As a third-party originator (TPO), your success hinges on your client’s success. That is why experienced TPOs help guide rental investment newcomers beyond the close, instilling the insights and wisdom needed for effective property management.
Below is a property management 101 crash course, equipped with key information your clients need to know, so they can discover how to be a better property manager.
Property Management 101
To Manage or Not to Manage?
So, your investor clients have read market trends, entered the rental investment business, and purchased a property in a top real estate market. Now what?
First, long-term investment beginners must decide whether to self-manage the property or hire a property manager. In most cases, investors looking to save money or take a more hands-on approach to their rental will choose to self-manage. While others, looking to streamline the landlord process or expand quickly, will often hire a property management professional. However, for investor clients still on the fence, providing the pros and cons of each option can help in the decision-making process and overall success of the property.
Let’s look at some of the biggest pros and cons of both self-managing and hiring a property management company for your rental property:
First, long-term investment beginners must decide whether to self-manage the property or hire a property manager. In most cases, investors looking to save money or take a more hands-on approach to their rental will choose to self-manage. While others, looking to streamline the landlord process or expand quickly, will often hire a property management professional. However, for investor clients still on the fence, providing the pros and cons of each option can help in the decision-making process and overall success of the property.
Let’s look at some of the biggest pros and cons of both self-managing and hiring a property management company for your rental property:
Self-Managing
Cons:
- Time-Consuming: The time and energy required to play landlord can make scaling a successful investment business difficult. Landlords often must be a jack-of-all-trades and available 24/7 for tenant and property issues.
- Liability: Self-managing a property leaves investors more vulnerable and liable to financial penalties and legal troubles. Landlords must remain updated on the latest tenant rights, fair housing laws, and eviction procedures.
Pros
- Cost savings: One of the greatest benefits of learning how to manage a rental property by yourself is the cost savings. By cutting out a property management team, self-managing property owners save between 7-10% of their monthly rental income.
- Autonomy: By self-managing, investors have complete control over any and all property decisions, including:
- Tenant screening and selection processes
- Maintenance scheduling
- Financial decisions
Hiring a Property Management Organization
Pros
- Proven Systems: Effective and efficient property management operations are how property management organizations keep the lights on. With proven systems, investors have peace of mind that each phase of tenant and property administration is skillfully facilitated.
- Less Turnover & Higher Tenant Approval: With vast industry experience, proven systems, and great marketing. Property management firm processes often lead to:
- Higher tenant retention and approval ratings
-
- Less turnover
-
- Shorter vacancies
Cons
- Costs: As mentioned, property management services generate ongoing expenses, impacting your overall rental income. Generally these services cost between $145-$208 monthly, according to Zillow.
- Less Autonomy: Rental property management teams come with uniformity, meaning investors will have little say in screening processes, marketing, and maintenance schedules.
Tenant Screenings & Application Processes
If investor clients decide to venture into self-managing, the first phase of rental property management 101 requires learning about tenant screening and application processes.
Finding, vetting, and approving the right tenants is a fundamental piece to landlord and rental success. Late payments or unruly and destructive tenants can quickly turn a great investment property into a money pitfall. That is why implementing adequate tenant screening is essential to effective property management and business success.
You can encourage investor clients to utilize the latest tenant screening technology (RentPrep, SmartMove, Experian Connect) to simplify the tenant screening process. However, remind them that tenant screenings and application processes are not a set-it-and-forget-it operation–especially in today’s constantly evolving real estate rental market.
A great property management 101 tip for investor clients is to add annual tenant screening and application audits to:
Finding, vetting, and approving the right tenants is a fundamental piece to landlord and rental success. Late payments or unruly and destructive tenants can quickly turn a great investment property into a money pitfall. That is why implementing adequate tenant screening is essential to effective property management and business success.
You can encourage investor clients to utilize the latest tenant screening technology (RentPrep, SmartMove, Experian Connect) to simplify the tenant screening process. However, remind them that tenant screenings and application processes are not a set-it-and-forget-it operation–especially in today’s constantly evolving real estate rental market.
A great property management 101 tip for investor clients is to add annual tenant screening and application audits to:
- Ensure they are approving reliable tenants
- Minimize tenant turnover
- Enhance neighborhood and property safety
- Help maintain legal and regulatory compliance
Maintaining Rental Compliance
Speaking of compliance, staying up-to-date on evolving local and state rental laws, fair housing regulations, eviction moratoriums, and tenant protection laws is essential to self-managing success.
To ensure compliance and avoid fines and legal challenges, encourage investor clients to:
To ensure compliance and avoid fines and legal challenges, encourage investor clients to:
- Familiarize themselves with long- and short-term rental laws specific to their property’s jurisdiction.
- Partner or seek guidance from local and accredited affordable housing organizations.
- Implement thorough cybersecurity software and protocols to protect tenant and personal data.
Building a Strong Tenant / Landlord Relationship
At the end of the day, a rental property’s success depends on tenant satisfaction. Self-managing newcomers must strike a balance in the tenant-landlord relationship to facilitate effective communication, respect, and satisfaction on both sides.
Another property management 101 tip for new landlords is to become a proactive landlord. Being a proactive landlord means:
Another property management 101 tip for new landlords is to become a proactive landlord. Being a proactive landlord means:
- Being transparent when it comes to payment dates, down payments, and late penalties.
- Creating a list of tenant responsibilities (landscaping, changing lightbulbs, etc.)
- Promptly fixing faulty or broken appliances.
- Maintaining fluid communication when it comes to any home issues, repairs, and scheduled maintenance.
Securing Reliable Financing
Rental properties often require renovations before and after they go on the market, and investors learning how to be better property managers will need fast and accessible financing. As capital providers, TPOs must provide reliable and flexible financing options for their clients.
That is why countless TPOs turn to Roc Capital for their financing needs. For over a decade, Roc Capital has disrupted the private lending industry, bringing the structure, agility, and expertise private brokers need to outpace the competition and help investor clients win in today’s markets.
Best of all, with Roc Capital white-label table funding programs, we work entirely behind the scenes. This allows TPOs to maintain an authoritative and professional relationship with their clients.
Additionally, our Single Property & Rental Portfolio Loan programs offer investor clients:
That is why countless TPOs turn to Roc Capital for their financing needs. For over a decade, Roc Capital has disrupted the private lending industry, bringing the structure, agility, and expertise private brokers need to outpace the competition and help investor clients win in today’s markets.
Best of all, with Roc Capital white-label table funding programs, we work entirely behind the scenes. This allows TPOs to maintain an authoritative and professional relationship with their clients.
Additionally, our Single Property & Rental Portfolio Loan programs offer investor clients:
- Competitive 30-year term loan options
- DSCR with no W2s, paystubs, or tax returns required
- SFR, warrantable cons, townhomes, PUD, and 2-4 units eligibility
Providing property management 101 tips, along with the fastest, most flexible, and reliable lending options on the market, will go a long way in helping investor clients succeed. If you’re ready to help clients while growing your business, CLICK HERE to schedule a FREE consultation with a Roc Capital team member today.
