Finding a viable property is often hailed as half the battle in real estate investing, but seasoned investors know that the true test begins once the ink dries on the purchase contract. Getting a unit rent-ready, landing quality tenants, and keeping daily operations running smoothly separates struggling landlords from successful ones. In a recent episode of the Real Estate Rookie podcast, co-hosts Tony and Ashley Kehr tackled the intricacies of transitioning into long-term rentals, offering a candid look at the make-ready process, marketing strategies, tenant screening pitfalls, and costly mistakes to avoid along the way.
For years, Tony has built his real estate portfolio primarily around short-term rentals, mastering the fast-paced turnover, guest communication, and styling required for vacation properties. However, facing a major lifestyle shift—moving out of his current primary residence into a new home and keeping the old house as a long-term rental—Tony finds himself preparing to self-manage a traditional lease for the first time in nearly seven years. Because his previous long-term investments were entirely handled by third-party property managers, Tony sat down with resident long-term rental expert Ashley Kehr to undergo a comprehensive crash course in self-management.
The discussion immediately turned to the fundamental first step of the transition: preparing the property for its new occupants. While short-term rentals demand high-end furnishings, professional staging, and continuous cosmetic refreshes between guest stays, long-term rentals require a different operational mindset. Ashley outlined a practical make-ready punch list, starting with targeted touch-up paint rather than a full interior repaint, provided the existing walls are in solid condition. She emphasized addressing deferred maintenance—those minor household issues that owners often learn to live with in their own homes simply because they are too busy servicing paying customers elsewhere.
Market expectations also dictate what stays and what goes during a turnover. When discussing appliances, Ashley and Tony debated whether to leave the refrigerator and laundry units. While ovens, stovetops, and dishwashers are typically expected fixtures in most single-family markets, supplying a washer and dryer can vary by region. Leaving major appliances can attract stronger tenant interest, as purchasing thousands of dollars in appliances is a massive hurdle for renters moving into a new space. However, landlords must weigh the ongoing maintenance headache against tenant convenience. Ashley noted that some landlords choose to leave appliances as a courtesy without taking on repair liabilities, using lease addendums to outline replacement responsibilities if an appliance eventually fails.
Safety and liability formed another crucial pillar of the make-ready conversation. Landlords must meticulously inspect properties for potential hazards, such as missing handrails on staircases, window screens that prevent fall risks, or broken steps leading up to the front entrance. Overlooking these details can introduce severe liability risks that far outweigh the minor cost of immediate repair. Beyond cosmetic and safety checks, preventive maintenance like snaking drains and servicing HVAC filters can prevent midnight emergency calls from panicked tenants. Ashley recommends establishing clear lease terms regarding minor clogs, often taking responsibility for initial plumbing issues within the first sixty days to account for pre-existing conditions, while holding tenants accountable for subsequent blockages caused by negligence or improper disposal.
Once the physical property is prepped, the conversation shifted toward marketing strategy and listing timelines. A common debate among sellers turning their former homes into rentals is whether to wait until all repair work is finished and the property is completely vacant before taking photographs and launching advertisements. Ashley advised leveraging current photos of the occupied space to gauge immediate market interest and build a robust lead pipeline early, provided the listing clearly states that the home is currently occupied and specifies the exact date when physical showings will begin.
To streamline the marketing and leasing workflow, Ashley recommended utilizing dedicated property management software such as TurboTenant, which syndicates listings across numerous rental websites while offering centralized lead management tools. Unlike some major ecosystems that isolate listings or lack batch-action capabilities, robust property management platforms allow landlords to issue mass showing invitations, pre-screen candidates with customized questionnaires, and schedule appointments efficiently in timed intervals. When dealing with high market demand, hosting an open house during a dedicated time block can also prevent landlords from wasting countless hours conducting individual private showings for prospective tenants who ultimately fail to show up.
When showings conclude and applications begin rolling in, establishing a rigorous screening process is vital. Ashley stresses the importance of looking beyond surface-level application details by manually verifying supporting documents, including government-issued photo IDs, payroll stubs, bank statements, and tax documents. In an era where digital manipulation and artificial intelligence make fabricating financial documents increasingly accessible, verifying the legitimacy of employers, addresses, and income figures is a critical safeguard for independent landlords. Setting clear, transparent financial criteria—such as income requirements relative to monthly rent—helps filter out unqualified applicants early, protecting investors from potential default and costly eviction procedures.
After selecting an approved applicant, securing a holding deposit within a strict timeframe helps ensure commitment before officially executing the lease agreement. The lease itself acts as the ultimate referee for any future disagreements, making comprehensive documentation essential. Must-have clauses should explicitly outline utility responsibilities, appliance maintenance, common area upkeep, landscaping obligations, and snow removal where applicable. For single-family homes, landlords have broader flexibility in requiring tenants to maintain the property meticulously, though structural repairs and major system failures remain firmly the landlord’s responsibility.
As Tony prepares to step into the neighborhood landlord role just around the corner from his former home, the insights shared by Ashley highlight the operational nuances that distinguish traditional leasing from the short-term rental world. By approaching the transition with a structured make-ready checklist, robust digital screening tools, and clear lease agreements, independent investors can navigate the complexities of self-management with confidence.