Finance plays an important role in property management. Negotiating leases, collecting rent and utility payments, and tracking daily expenses are the responsibilities of the property manager. Finally, a property manager must ensure that the property they are responsible for remains profitable. An inexperienced investor looking to earn passive income may think that buying a rental investment can only present the challenge of collecting rent.
Many real estate investment programs will showcase the glory and ease of investing, without detailing the services homeowners need to succeed. Whether the landlord manages the rental himself or is hiring a property manager, the landlord will benefit from learning the art of collecting, leasing, maintaining, evicting and reporting rents. Rent collection processes, such as visiting the property or having a local store collect the rent, are options, but the landlord will need a lot of time and effort to ensure that the money gets where it needs to be, on time and in the right amount. Renting rental properties isn't always as easy as posting them online and having tenants knock on your door with requests, unless the manager or landlord knows what they're doing.
Vacancies stem from poor planning, poor marketing and poor relationships. When planning a tenant rotation or vacancy period at any time, consider the rental season in your area. Plan your lease agreements to end at a good time for the lease. You can plan your vacancies in advance and place them in the best rental season to find the best long-term tenants.
Make a budget for maintenance and perform maintenance when needed. If you're within your budget, this shouldn't be a problem. Deferred maintenance is what causes large assets to be wasted. Being responsive not only keeps your asset, it also keeps your tenant.
Maintenance has more or less to do with systems. Build a system that works for you and for the vendors you've established relationships with, and then continue to improve that system. Landlords and property managers may have to face an eviction, that is, the process of evicting a tenant from their home through the use of court systems. It's important to know the local laws when it comes to evictions. These 5 basic concepts and the tips that come with them can help you get started, but they won't be all you need to know.
For best practices, find the best property managers, landlords or investors in your area and build a relationship. Ask them questions and hear about how they got started and what kinds of things you might need to know to have a successful career in real estate. Renting or managing properties is a business, whether you're a professional property manager, work for a professional property management company, or are a self-manager of your own properties. Whether you hire a single real estate agent with a portfolio of 30 properties or a large company with more than 1000, you should feel comfortable with the person you hire and believe that they will do the right thing.
While each market will have different complexities when it comes to the basics of property management, knowing the essential aspects (above) is crucial when choosing a property management company. Many investors who buy and hold quickly realize that it's not worth investing time and effort into maintaining their own rental properties. Whether you're looking for a property manager to hire or want to become one yourself, there are some basic property management concepts that any great property manager must have. Every property manager's toolkit should include basic marketing methods, such as creating a mind-blowing property description and producing a standout video tour.
Residential property managers are in charge of single-family homes, apartments, townhomes, multi-unit properties, and more. These properties are often left unfurnished, allowing tenants to personalize the space with their furniture and decor items. While there are advantages and disadvantages to managing your own properties, it ultimately comes down to personal preferences and ability. Short-term rental properties allow for less than a month; stays can be as short as one night or up to a week.
