Investing in rental properties can be a great starting point for new real estate investors. It is a good method to build wealth over time. Investors get to benefit from tax incentives and deduction from owning real estate while earning passive income from rent. Rental properties can also provide cash flow and generate value from appreciation.
While investing in rental property can be a lucrative method of real estate investing, it isn’t always easy. It sounds simple. But it isn’t. It is important to note that owning a rental property can be enjoyable or a complete nightmare. So, just as with any investment, you should be well-versed before diving in.
Once you buy a property, you automatically become the general overseer and managing partner of your own small real estate business. Deep down, you know it feels good to own a real estate investing moneymaker and to be a landlord. It’s pretty obvious once you think about it.
Now you must manage the property. You’ve chosen to invest in rental properties; therefore, you aim to attract tenants and at the highest rent per square foot possible. With this in mind, you’ll need to focus on property management as well as the everyday activities of running your property.
In this article, I’ll show you how to successfully manage your rental property. We’ll look at some rental management basics any new real estate investor should know and strive to achieve. Let’s get things underway.
1. Property Condition
The goal of property management is getting the best tenants and commanding the highest rent. It begins with a good-looking building. Consequently, you need to keep the structure, environment, landscaping, and parking in good condition. This will enable you to present an appealing property to new potential tenants. Smart and successful investors make everything possible to maintain and improve their property regularly. Keep that in mind!
2. Marketing of Vacancies
Immediately you are certain of an upcoming vacancy, start advertising your property. Post flyers, use newspapers, post it online or even offer a modest referral fee to existing tenants. These are easy ways to find potential tenants for your vacant property.
3. Tenants Applications and Screening
Remember, it is easier to get a tenant into your property than it is to get them out. So, make sure you do proper screening before accepting anyone. Ask each aspiring tenant to complete an application and then verify their rental history, credit, employment, and if they have any criminal record. You can get your application form from your local apartment owners association. They’ll help you through this process.
4. Emergency Repairs
Make sure you have a reputable and reliable maintenance personnel to service emergency repairs. You are in a serious business and your tenants are your best customers. If you want to build and maintain cash flow, you need your clients(tenants). Listen to your tenants and repair any fault.
5. Keep Accurate Records
Maintain a good income and expense history. This is vital to your property business and it is the foundation of a successful real estate investing.
It takes a lot of work and sacrifice to manage a rental property, especially if you own many rental properties. You can hire a management company to manage your property or you can do it all by yourself. No matter how you choose to do it, just ensure the property is managed properly.
If you can any questions or would like you own personal quote feel free to contact us at 347-916-4900 or email us at info@arc-propertymgmt.com