Managing a rental property is not an easy undertaking. As a landlord or property owner, there are many responsibilities you need to take on and a variety of issues to address. Since your rental property is a considerable investment, it is important that you treat it as a business that provides you with livelihood. If you are new to this industry or want to be better at managing rental properties, here are some tips to help you out.
One of the core skills you need in this field is organizational skills. With the number of tasks you need to accomplish every day, you need to learn how to manage them efficiently. Devise a system that works for you. If you are more comfortable with manually listing your tasks instead of using an organizational template, go ahead and do that. Regardless of the method you choose, the important thing is you are able to keep everything in order. In addition, you also need to know how to manage your time better so you can be more proficient and productive. Try sticking to a daily routine, and create a visual checklist of your tasks and set it up where you can see them.
Be professional in every aspect
Since your rental property is your business, it would be best to act professionally in every aspect. Even if you were able to cultivate a friendly or an almost family-like relationship with your tenants, you still need to create a healthy boundary. If you want to be taken seriously, make sure that you constantly interact with your tenants professionally. Make it a point to communicate with them in a cordial manner, and never treat your tenants disrespectfully, no matter how difficult they may be. Remember to follow through with all the terms you have agreed upon, and do not be afraid to cut ties with the difficult ones, especially if they haven’t been making their payments.
Develop an efficient screening process
Choosing high-quality tenants is one of the hardest parts of being a property owner or landlord. While there is no one-size-fits-all method for screening tenants, there are certain factors you should take into account to ensure that they will be an excellent fit for your rental. According to the American Apartment Owners Association, the top five traits of a quality tenant are being responsible, low maintenance, tidy, committed, and honest.
Keep in mind that if your property is in an excellent state, it will undoubtedly attract a lot of interested renters. Therefore, it is imperative that your screening process is well-crafted, compelling, and to a certain extent, fool-proof. It would also help if you have an eviction plan in place in the unfortunate event that you encounter a problematic tenant.
Consider outsourcing some of your tasks
As a property owner, it is understandable that some tasks may not be within your expertise. To help you better streamline your operations, consider outsourcing some of your duties, especially those that are too tedious or repetitive. For instance, if accounting or bookkeeping is not your forte, getting an accountant to manage your finances can save you valuable time and resources.
If you have no time to engage with prospective clients on your social media pages, consider hiring a social media manager or virtual assistant to help you with the process. By outsourcing some of your duties, you can focus on other important aspects of your rental property business.
As mentioned earlier, you don’t need to be an expert in every facet of rental property management, but you should have at least a basic or working knowledge of the essentials. Aside from managing a property, it would also help if you are well-versed in real estate. Make sure that you are updated with the current trends and challenges of the industry, as these will give you better insights.
Also, you should be familiar with the local property laws in your state before renting out your property. As a landlord, you are legally compelled to follow these laws, so make sure that you understand which ones apply to you.
Take advantage of technology
Over the years, technology made everything easier for us. In today’s digital world, there are several real estate and property management technological advancements you can utilize to make your job easier and manageable. You can use these innovations to help you collect rent, advertise a rental, engage and screen prospective tenants, and even calculate the cap rate of a particular property.
Being able to manage a rental property efficiently takes time. With patience, hard work, and a strategic mindset, you will be able to master this profession and ensure that your investment thrives.