In the beginning, it can be a heck of a daunting task for new property owners because things can be pretty overwhelming and challenging. From screening prospective tenants to collecting rents, marketing your property, insurance policies, and adhering to the rules of your homeowners’ association. There’s a lot to manage and remember.
A pro-tip for a new property owner is to plan, prepare, and get organized from the start. These beginning steps are crucial and can have a big impact on your chances for rental property success. There are a few things you should do right off the bat, namely:
Set aside time to study and understand your state’s laws regarding landlord-tenant relations. Firstly, identify and understand what is allowed versus what isn’t. This will enable you to avoid unnecessary conflict, and it’ll equally prevent you from accidentally overstepping some boundaries of regulations you weren’t aware of. Bear this in mind; there’s a likelihood that you’ll have separate city and state laws to know besides federal laws that apply to everyone.
It’s obvious that you had an inspection done when you first purchased the rental property. However, your first time inspecting it wasn’t enough, this time around you need to really examine it as if you were a potential tenant. There are key questions you should ask yourself when examining your property: Are there any updates that need to be made to attract the best quality tenants long term? What needs to be replaced or repaired, these could be appliances or carpeting? Is the exterior aesthetically pleasing? With this in mind, you’ll have a critical approach on what to improve in order to make your property more marketable.
If the acquisition of your property didn’t include insurance, you should get it right away. The importance of Insurance cannot be overemphasized; it is crucial to protecting your investment in the case of damage. Additionally, It’ll be a smart idea to equally get liability coverage in case of damage or injuries to guests or tenants on your property. If you obtained an insurance policy when acquiring the property, take time to review it thoroughly and be sure it’s correct for your situation and it covers your needs. Want to know more
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If the rental property you purchased already has occupants, introduce yourself, make an acquaintance, ask questions, understand their needs, and inform them on how best to contact you. If there are any changes you plan to make soon, make it a priority to tell them. Some tenants are intimidated by the presence of a landlord and in some cases, this can cause them to move. With this in mind, try to make the process amicable and pleasurable for everyone.
It'll be best to set up efficient systems for payment and maintenance as soon as possible. With regards to maintenance, will you handle maintenance issues yourself or hire someone to do it? You’re better off outsourcing this task to professionals, make sure you compile a list of companies to call for heating and cooling, electrical problems, plumbing, and more.
More so, set up a payment system that is reliable and conducive to both you and your tenants. If you own multiple rental properties or plan to do so in the future, it’s imperative for you to hire the services of an accountant to handle and manage your finances.
In conclusion, managing a rental property or multiple properties can be time consuming, tasking, and exhausting. A smart property owner would consider hiring the services of an experienced property management company. Leveraging the services of a property manager comes with many benefits such as tenant screening, shorter vacancy cycles, better tenant retention, market analysis, tight rent collection process, assistance with taxes, lower maintenance, and repair costs, increase in the value of the property, etc. Personal benefits to you the owner are more freedom, less stress, and the ability to free up more of your time (time is money).
Do you need help with your rental properties? If so we would love to answer any questions or lend a hand. 530-410-6085
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