Property management can feel overwhelming, and for good reason. There are many factors that come into play when renting out properties and maintaining them. Whether you’re already renting out properties or taking your first steps into the world of property rental, there’s always more you can learn to ensure your success.
Risky Business
If you’re not aware of the difficulties and needs of property management, you could be setting yourself up for failure. From not keeping up with building maintenance, buying the wrong property, overcharging or undercharging your tenants, and many more factors. Fear not, though. We’re here to help you along your journey.
The Key Points of Property Management
There are countless factors that go into property management, and even though they might not all apply to you, there are some basic guidelines that you can follow to keep your rentals profitable and manageable.
Purchasing Properties
Naturally, the first step to renting out a property is to actually buy one. You may be enthusiastic about buying one, but if you’re not being realistic about what you can afford and manage you may end up being overwhelmed before you even turn a profit. Whether it’s commercial or residential, researching the property will help you figure out if it’s the right property for you. If you hire a professional building inspector or choose to do it yourself, it’s important to physically inspect the property so you have an idea of how much work and money you’ll need to invest in it.
Advertising Your Property
While finding free ways to advertise your property is a good idea, paying for advertisements will give you a much better chance of reaching potential tenants. Do some online research to find the most popular sites to advertise on so you’re getting the most value for your money. The more visible you are the more likely that tenants looking to rent will choose your property. You’ll want to make sure you’re only renting out to people that have a good track record. Some examples of how to figure out who would make a good tenant is by doing a credit score and background check, meeting them in person to get a feel for them, confirming their income and where it comes from, and contacting their references and previous landlords.
Pricing and Rules
Setting a realistic price for rent is a big part of not only making a profit, but also attracting and keeping tenants. This is another time that researching the property beforehand will come in handy. The price of rent should reflect the location of your property, the condition of the building, and the amenities available to the tenants. Deciding what your tenants can and can’t do should also affect the price. For instance, allowing pets can potentially lead to property damage which can be balanced by increasing the rent to cover the cost of repairs or upkeep. Having a solid set of rules is a great way to ensure you stay in control of your property.
Maintenance
Maintenance is a vital part of property management. Waiting too long to address a problem with your building could end in the problem becoming even more expensive and time consuming to fix, as well as hurting your reputation with your current tenants and even your future tenants. With consistent maintenance you’ll be saving yourself from trouble down the road. Doing the work on your own can save you some money, but hiring a professional to fix the issue if it’s out of your area of expertise is the safe bet. Over time you’ll want to create a list of reliable contractors that you can call on when you’re in need of help.
Closing the Deal
As you can see, renting out a property can involve many different factors. However, keeping these tips in mind will increase your odds of success. If you’re interested in renting a property feel free to contact us at our website or call us at (336) 485-4584.
