Top Three Strategies To Manage Rental Property
If a rental property isn’t handled correctly, then it can become unprofitable business soon enough! However, there are a couple of ways which can help you manage the property, that will match every landlord’s needs.
Sometimes, even all that hard work won’t help you if you don’t know how to utilize your recourses. However, before you select the right strategy, you should be aware of the fact that all different aspects of the rental property are managed separately.
We are going to break down the landlord’s management responsibilities into three sections. It will help you understand better the challenges you will be facing.
The most immediate and the most obvious responsibility of every property manager is the tenants’ management. However, if you want to be a successful landlord, then it involves a lot of duties than just collecting the rent. You will have to handle the following task:
- Rent collection – due dates, collecting rent every week or month and setting up late fees, and managing the unpaid rent.
- Lease agreements – following and fulfilling the tenant’s law and making sure that lease is up to date.
- Moving in and moving out – signing the agreements and covering all the rules and requirements with your tenants.
- Tenant background check – it’s essential for the safety of other people occupying your rental space.
- Tenant complaints – setting up plans to fix the issues.
- Tenant eviction – due to unpaid rent, or to a violation of terms and conditions, at some point you will be obligated to evict tenants. In this case, you need to have all evidence to support your claims.
- Repair request – as a property manager, you need to respond quickly and efficiently.
- Property maintenance and inspection
The second part of your rental property management is maintenance and inspection. The physical structure needs to be maintained, to keep the tenants safe and secure. If you have insurance, then the insurance company will request from you have the property fully functional, to meet the specific standards.
- Maintenance – this involves cutting the grass picking up the leaves, shoveling snow, keep the common areas clean, taking out the garbage, making sure that tenants have running water all the time, and so on. Also, you need to fix the leaks, deal with plumbing, perform repairs, such as broken doors, cracked tiles, and window locks.
- Inspections – property managers go through various inspections, such as town inspection and insurance company inspection. The town inspection makes sure you are following all the regulations regarding safety and health codes, while insurance one inspects the property to determine the amount they are ensuring it for.
Dealing with finances
The third part of management is dealing with funds. You should have a clear picture of how much money is coming every month and how much is going out. This includes a couple of categories:
- Rent – how much can you collect each month
- Mortgage – what you pay each month to the bank
- Insurance – how much money do you spend to insure your rental property
- Utilities – if tenants aren’t responsible for the utilities, which is not often the case, how much money you spend on gas, electricity, and water bill.
- Taxes – consider your annual property tax
- Fees/fines – sometimes, you will have to pay for property inspection or court costs. Also, you will have to deal with will unexpected penalties as well.