If a rental property is not managed correctly, it will fall into shambles. Luckily, there are several different ways to manage property to fit every landlords’ needs. You can be completely hands on, or you can decide to outsource everything. Here are three management strategies for every potential landlord to consider that will keep your property up, running and generating revenue.
Before you are able to select the right strategy for you, you need to understand all the different areas of a rental property that need to be managed. A landlord’s management responsibilities can be broken down into three sections, which can be considered the three main strategies for managing rental property.
This is the part of rental property management that is most immediate and most obvious. However, being a successful landlord involves a lot more than just collecting rent. Other aspects of successfully managing your rental property include:
Rent Collection: Setting due dates. Collecting rent each week or month. Establishing late fees and grace periods. Dealing with unpaid rent.
Lease Agreements: Verifying that lease includes all legal terms required by your state’s landlord tenant law. Making sure lease is up to date with most recent version of law. Managing lease start and end date of all tenants.
Tenant Screening: Advertising vacancy. Setting up appointments. Verifying information on applications. You may also determine if certain tenants are a good fit.
Move-In: Signing lease agreements. Going over rules, requirements and regulations. Collecting security deposit and first month’s rent. Walking through and noting current condition of rental unit.
Move-Out: Verifying that lease term is actually over. Checking the condition of the rental unit for any damage. Beginning the process to find a new tenant for an apartment.
Tenant Complaints: Fielding complaints. Setting up a game plan to fix the problem.
Repair Requests: Responding to requests quickly. Prioritizing the importance of repair. Doing the repair yourself or hiring someone to do it.
Tenant Evictions: Sending tenant legally required notices before eviction. Filing for eviction with the court. Preparing your evidence which supports reason for eviction.
Managing Property Inspections and Maintenance
The second main part of rental property management is the property itself. The physical structure needs to be maintained for the health and safety of the tenants. Your insurance company may also require certain parts of the structure, such as the roof, to meet certain standards or they will refuse to insure the property.
Inspections: You will have to deal with inspections from the town and even from your lender and insurance company. The town inspections are to make sure your property is following certain health and safety codes. The lender and insurance company inspect the property to make sure the property is worth the amount they are lending or the amount they are insuring it for.
Maintenance: Cutting the grass. Picking up leaves. Shoveling snow. Taking out the garbage. Keeping all common areas clean. Making sure tenants have access to running water at all times and heat in the winter. Fixing roof leaks, plumbing leaks, cracked tiles, loose handrails, faulty door or window locks.
The third part of management that you will have to deal with when owning a rental property involves the finances. You need to understand how much money is coming in each month and how much money is going out.
Rent Payments: How much you collect in rent each month.
Mortgage Payment: What you pay each month on your mortgage.
Insurance: How much you pay to insure your property.
Taxes: What your yearly property taxes are.
Utilities: If tenants are not responsible for paying for utilities, how much the water, gas and electric bills are each month for the property.
Fees/Fines: Fees you may have to pay for property inspections or court costs. Unexpected fines for maintenance issues at the property.
Think you’ve got it all figured out? Let Landlord123 help you efficiently manage your rental properties!