A beach house has the potential to bring an excellent return on investment. Most owners’ decision to purchase this kind of real estate is based on the idea that they will be able to generate reliable extra income through renting it during peak tourism season.
But nobody ever said that the job of a property manager was an easy one. It takes a lot more than organizing an open house and signing contracts.
Inspections and Repairs
Suppose you want to avoid getting into tenancy disputes with tenants. In that case, you’ll have to conduct all the proper home inspections and do maintenance and the necessary repairs.
Keep in mind that beachside properties generally already have higher insurance premiums since you need to pay more for flood coverage. Moreover, if you don’t change the homeowner’s insurance into a rental policy before allowing the tenants to move in, you’ll be left without coverage of any kind.
Keeping up with property maintenance will make it easy to sell the home at short notice if the need arises. Plus if you update the interior from time to time, it can work for you through when the time comes to attracting quality tenants willing to pay higher rents.
A complete home make-over can get very pricey but changing a few things to keep the place looking modern and fresh is quite manageable.
Stay Organized and Don’t Procrastinate
Considering how many things you have to get done, procrastinating is the surest way to self-sabotage your income potential. You’ll need to keep up with the nitty-gritty details of property management, maintain your paperwork in order, and schedule all the necessary inspections and repairs to avoid any landlord-tenant disputes.
Luckily, modern times provide us with many tech tools to accomplish our administrative duties. You must admit that keeping digital copies of all your documents across all your devices makes it far easier to find a critical file than looking through stacked-up physical shelves in your office.
Be particularly attentive towards the kitchen area, many tenants seem to consider a shabby looking kitchen quite the deal breaker.
Screen for Undesirable Tenants
Avoid antisocial tenants with pre-tenancy screening and credit checks. How do you know you’ve got a good tenant? There is no 100% guarantee you have the perfect tenant; however, looking at the tenant’s rental history, screening, and credit checks, you know you’ve done all you can to get the best tenant available.
Focus on ensuring your tenant is reliable, looks after rental properties, and can afford the rent. Once you’ve handed over the keys to your rental property, removing the tenant is more challenging, so it’s best to get the right tenant to avoid regret later on.
When you don’t screen properly and you get a bad tenant, you’re left worrying and dealing with calls from angry neighbors.
You’ll want to make sure their income is at least three times higher than the rent you’re expecting them to pay. You’ve done a background check and verified references from their previous landlords. Check for criminal history report, credit check and past evictions.
When you ask potential tenants to complete an application, it should specify that they are authorizing you to review such information. It should contain questions regarding job details and some financial information alongside personal info.