Buying a property to rent to tenants is relatively straightforward. However, managing tenants is another thing altogether. There are legal requirements to understand, follow and keep the occupancy rate up – i.e., low vacancy rate, so your investment makes a profit.
The good news is there is a lot of information and support online for self-managing landlords like our discussion forums. Plus, with more people renting for longer, the property management industry is rising – i.e., more people are becoming property managers.
In 2019 the property management sector revenue rose to $75 billion. With home affordability out of reach for so many, homeownership rates are dropping. More rental properties and property managers are needed, so read on for our tips if you plan to manage properties.
If you’re concerned about what you need to be doing when becoming a landlord, this post will help. Keep reading to learn five landlord property management tips to help you better care for your properties.
1. Screen Your Tenants
You hear plenty about bad landlords when talking to renters. But how often do you hear about bad renters?
Unfortunately, there are renters out there who seem to make it their job to cause problems for rental property owners. They take advantage of the law to live rent-free for as long as possible.
The excellent news is screening your tenants can help you find these people before renting to them. Make sure you screen every renter before allowing them to become your tenant.
2. Require Renter’s Insurance
It doesn’t matter how much you do to keep your properties safe. Accidents can still happen. The problem is that a renter may hold you liable for damages.
By requiring renters to purchase renter’s insurance, you can avoid potential lawsuits. The insurance company will cover damages, so you don’t have to.
3. Have a Written Rental Agreement
Talking about responsibilities to a tenant isn’t enough if you want to protect yourself. It would be best if you had your tenants sign your rental agreement. Doing this provides a paper trail in cases where something goes wrong.
A paper trail will enable you to take action if your renter doesn’t follow their part of the agreement. You’ll be able to do what you need to solve the problem.
4. Make Use of Technology
We live in a digital world. If you try to do things the old way, you’re only going to create more work.
You can use software services to keep records and take payments online. Doing this will reduce the amount of work you do and have a way to organize and keep records.
5. Make Use of Smart Home Gadgets
It would be best to have every advantage you could get when managing your homes. The good news is that a variety of innovative home hardware and software tech will make your life easier. You can use these products to watch for problems in your home.
Take your plumbing, for instance. You can use water-saving technology and sensors to manage the water in your home. Water conservation is on most people’s minds, so using tech to lower the water bill for your tenants and also allow you to keep watch for water leaks makes sense.
Landlord Property Management Isn’t Simple
Think again if you can sit back and relax when you manage properties. Landlord property management is a skill you need to practice if you want to become a success. Follow the tips above to get started the right way.
Do you want to learn more about investing in and managing real estate? Keep reading our blog to get everything else there is to know.