There are a number of details that go into successfully managing a rental property for the first time.
Here are 10 top tips and advice from our professionals at our property management company in Central Florida to help you get started in the exciting role of owning investment property.
1. Start Out on Solid Financial Footing
One of the first essential tips for first-time landlords is to start out with a solid financial plan that doesn't stretch your budget too thin. You may want to own the property outright or have a comfortable handle on the mortgage.
It is also a good idea to have money set aside for repairs and routine maintenance for all of your rental properties. If that means starting with one unit instead of three, or purchasing a smaller property, that choice could be essential to your success in property management. Remember, although you'll have money coming in when a tenant is in the property, you'll also still have money going out.
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2. Tidy Up But Don't Over-Improve
Before renting, it's important to make each unit clean and presentable. However, you also don't want to over-improving units. A good rule of thumb is to be liberal with finer details such as cleaning and fresh paint and conservative with larger renovations.
“The cleaner the home, interior and exterior, the quicker it will attract a quality tenant, and command a higher monthly rent,” says Glenn W. Cowham IV, a professional Property Manager in Central Florida. “Remember as a first time Landlord that the rental property is an investment and a business. Don't get caught up in over-improving.”
3. Build a Strong Lease
The lease is going to be your covenant with your tenants, so it's incumbent on landlords to make sure that these documents protect their property and financial interests.
A stronger and more detailed lease helps set the foundation for a smooth lease term. Since a lease is a legal document is advised that you seek professional assistance from an attorney or a professional Property Management company.
4. Present Units Well at Showing
Another critical step of Property Management is properly showing the housing unit to a potential tenant.
You’ll want either yourself of a Property Manager at the property on time and well-dressed -- think business casual -- to effectively show prospective tenants the rental. Know all details about the property, and anticipate specific questions such as potential costs of utilities.
Another important tip is to be sure you don't schedule showings too closely together. Allow ample time between showings so no one feels rushed, and of course, leave plenty of time for questions!
5. Vetting Tenants
Thoroughly screening potential tenants in the beginning will pay off in the long run.
"You should have a strict process for vetting tenants. It may take a little time to find the right tenant for the property.
Patience is key," Diane Schlosser, professional Property Manager in Central Florida.
Do a credit check and inspect each applicant's finances carefully. This will give you clues to determine who will be the best tenant in a particular housing unit.
6. Have a Plan for Fixes
For unavoidable maintenance and repairs, gather a reliable set of contractors to work with on an ongoing basis that will be able to make unforseen circumstances simpler.
Everything from mowing the lawn to appliance repair should have a set plan in place to avoid confusion or for later emergencies. Some landlords who manage a large amount of properties prefer to have a handyman or in-house maintenance team to handle any need that may arise. Whatever your plan is, make it consistent and make sure it's in place.
7. Try to See Things From the Tenant’s Perspective
Don't forget to put yourself in your tenant’s shoes.
To be a respected landlord, treat your tenants with respect as well. This will make for happier tenants and you will both have a better experience overall.
8. Plan Regular Inspections
It's also important to have eyes on the property periodically to ensure all is running smoothly and catch any potential maintenance issues before they get out of hand.
"Inspections are very important.” says Central Florida property manager Haley Gerig. “We recommend these every 6 months. This makes tenants aware you will be checking on the property. This also allows you to check on regular routine maintenance as well as assess damages."
9. Know Your Tenants
The more engaged you are as a landlord, the more knowledgeable you are about tenant situations, the fewer curve balls you're likely to see thrown at you.
Knowing your tenants helps in routine communication as you'll seem informed and involved in the property and its conditions. Knowing a little bit about their plans post-lease can also be helpful in your long-term planning.
Having courteous first-hand knowledge of who's in your rental unit helps your tenant feel welcomed and like a 'name,' not a 'number.'
10. Work with a Property Management Company
If they're being honest, most people with experience in managing properties say there are times when they could use a little help.
A professional Property Management Company can assist with all aspects of the rental process from leasing to maintenance. Using a professional team will help ease the rental process of an investment property, and give the property owner more time to focus on other business matters, such as growing their property portfolio.
Consider these excellent property management tips to encourage a successful landlord experience and reach your ROI goal.
Interested in having a property management company handle the tenant process for you? View our full brochure to learn about our property management solutions or request a consultation with a member of our Property Management team.
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