You’ve just found out that you’re going to be a rental property owner. Congratulations! Now, how do you manage your rental property effectively? This is a question many new rental property owners ask themselves. There are many things that need to be done in order to better manage your rental property. In this article, you’ll learn some of these steps and tips on what you should do for an effective management style.
Create a list of tasks that are needed for rental property management
First, you need to know what you have to do around your property to maintain and manage it. This includes tasks such as:
- fixing or replacing broken appliances
- leaky faucets
- fences that need to be fixed/maintained
- cleaning out gutters periodically
- checking with tenants in regards to any damages they may have caused
Fixing anything that is broken inside and renovating the rental home should be done before putting out an ad for tenants. This should include things like ovens, dishwashers, etc. Anything else could technically break at any time so it’s important to know what can happen beforehand!
Hire professional help
Professional caretakers can be found in rental property management companies. They are trained to handle a wide variety of rental property tasks, while also providing excellent customer service and maintenance.
By hiring professionals, you can rest assured that your rental properties will get the care they need without taking up too much time or money on your part. Involving these experts also ensures that you have someone on hand to help with any rental property issues or emergencies. This is an option for any rental property owner who wants to spend less time working with their rentals and more time enjoying what life has to offer.
Keep track of expenses related to maintaining your rental property
Knowing how much money goes into and out of your rental property is the best way to make sure you can afford it. You need to keep track of expenses as they happen so that when you do end up paying taxes on this rental income, all information will be available for deductions from previous years.
Maintain a spreadsheet with each expense category listed in column A, then list how much was spent within each category for every month of the year in column B. You should also include any ongoing monthly expenses not included in other categories such as mortgage or insurance payments and provide an estimate for annual costs like maintenance fees by using 12 months divided by a number of months per row.
Do regular check-ups
Checking in with tenants and making sure everything’s fine is a great idea. Not only does it give you a chance to clear up any rental issues that have arisen; but it also allows you to get to know them on more of a personal level and help build trust in your business as the renter’s landlord.
Regular check-ups can be a good way for landlords to learn about what is considered reasonable expectations from tenants when renting or what is seen as an acceptable living situation. It also gives landlords time to fix any problems before things get out of hand.
About once every six months rental property owners should schedule a time to stop by and check-in with their tenants; at which they can ask about any problems or issues that may have arisen during the rental period as well as answer questions from tenants if they are available for discussion.
Screen potential renters
A good background check for tenants can help you weed out the good tenants from the bad ones; and ensure that your rental property is a safe environment. A background check process typically includes checking credit history, criminal history, and reference checks to learn more about each prospective tenant.
This way, you can evaluate the tenants’ ability to pay rent, their background and criminal history for any violent or drug-related charges; and whether they are likely to be good tenants. If your rental property is a leaseback with an owner who lives somewhere else in the country; it’s important that tenants have sufficient credit and references so the owner doesn’t risk losing his/her home.
Meet with your tenants to discuss their needs and expectations
Always make sure people know where they’re moving into by meeting with tenants face-to-face. You can save yourself a lot of headaches by understanding needs and expectations before the move-in date.
This will give you time to make adjustments, so nothing is overlook on moving day. Give them a rule book to review, and highlight any changes you made or important information they should know. This will also set expectations for them on what to expect before moving in.
The process of managing a rental property can be challenging. From hiring professionals to screen your potential tenants; it’s important to stay on top of all the tasks necessary for running a successful business. Make sure the expenses are affordable and the people living there are good. Do check-ups to see if everyone is behaving and if anything needs fixing. With these tips, your rental property can turn into a gold mine.