4 Tips on How to Manage a Rental Property
Rental properties are a great source of income. To ensure the value of your investment or rental property is preserved, you need to take care of your property and its tenant. Here are four tips to help you manage your property in a successful, profitable way:
1. Scheduled maintenance
Sometimes, there are unexpected maintenance expenses. But most of the time, you can plan for maintenance based on the unit you’re renting and its contents. For example, if you know a water filter needs to be replaced once every 6 months, don’t wait for the tenant to call and complain – or worse, get a citation from your local municipality. Schedule the maintenance in advance and let your tenant know when you or your vendor will be showing up to take care of the property.
2. Value your tenants
It’s important to remember that to your tenants, this is not just a business transaction. This is their place of business or their home. Be respectful of their time and privacy. They will appreciate your professionalism, and, in turn, you will see lower turnover for your property. And that’s a great thing, because turnover can be costly.
3. Know and obey the laws
Consult with your local real estate lawyer to make sure your contract is valid and get a rundown of the local laws you must obey. This will help you avoid costly lawsuits, and it’s also the right thing to do. Local laws are in place for rental properties to ensure both the landlord and its tenants are safe. Aside from safety, you’ll also want to know and understand the tax laws for rental income. Meet with your accountant or ask your real estate attorney for their professional advice.
4. Hire a property manager
Managing a rental property is a full time job. Professional property managers can help you sort through the details, stay current with all laws and tenant issues, and save you a tremendous hassle from projects and expenses that may pile up or play second fiddle to your full-time gig.
Building your reputation as a landlord will take time, but if you are ethical about your rental property principles and fair to your tenants, you will see a long-term return on your investment. Managing a rental property is not a short-term money maker. Properties need to be maintained and laws need to be abided in order to ensure your property is profitable.