America is not for rent. But most American properties are. Nearly 20 million residential properties are available to renters, containing 48.2 million individual units.
If you want to make money, you should consider managing rental properties. But you can’t just buy a house and stick a “for rent” sign in the front yard.
How can you attract tenants to your property? What should you do to find the best tenants? How can you keep tenants inside your apartment building or home?
Answer these questions and you can master how to manage a rental property in no time. Here are six tips for managing rental properties.
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Select a Good Rental Property
Renters consider several different properties at once. You need to put a good property forward in order to encourage the renters to rent from you.
Think about the location of your property. It should be near public transportation, grocery stores, and schools.
At the same time, your property should not be on a loud or busy street. The neighbors should be friendly and construction work in the area should be minimal.
Your property should have a good layout. If you plan on managing an apartment building, you should have apartments with different layouts. You should offer studio, one-bed, and suite apartments.
You should also offer plenty of amenities. You should have a fenced-in yard, a laundry machine, and a personal gym. The more amenities you have, the more renters you can appeal to.
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Make Repairs and Renovations
After you acquire a rental property, you should spend time repairing it. Focus on repairs that will help the integrity of the home. You should fill in holes in the walls and ceiling, and you should reinforce the foundation.
You should make renovations whenever they are necessary. Installing a patio or putting in new flooring can increase your property’s appeal.
If a tenant complains about a broken feature in their property, you should fix it right away. A leaking pipe can spread mold and cause flooding, especially in a basement.
A tenant may suggest a renovation to you. You should take their suggestion into consideration. But if it would be too expensive, you should try to find a cheaper alternative.
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Write a Good Lease Agreement
You must draft a good lease agreement before you can start accepting renters. You should talk to rental property management companies to get an understanding of what your agreement should include. You may also want to talk to a housing lawyer who can look over your document and advise you of your rights.
Your agreement should contain clauses that discuss rental payments, inspections, and eviction timelines. You must describe what will happen if the tenant fails to pay rent on time.
You need to find a reasonable amount for rent. If you charge too much, you will scare potential tenants away. But if you don’t charge enough, you won’t earn money for rental property management.
You can look at common fee structures to find the amount you should be charging. Visit websites like memphisinvestmentproperties.netto see what they charge for rent and property management.
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Screen Your Tenants Well
Don’t accept every tenant who applies to you. Develop a screening process with several steps that weed bad applicants out.
You can start the process with phone interviews. Ask applicants to talk about their lives and why they’re interested in your property. You can end the interviews by asking for pay stubs and proof that they can cover the rent.
Do not allow anyone who does not have a steady job or cannot pay the rent to continue. The applicants you want to consider further should receive tours of your property. You should ask them questions about the features they like.
You can run background checks on your tenants. But you shouldn’t deny someone just because they have a criminal record. You should assess what happened and whether the applicant has turned their life around.
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Prevent Tenant Turnover
Developing a good tenant screening process will reduce tenant turnover. You can take further steps to keep your tenants from leaving you.
Remain in close contact with your tenants. Send them updates about when renovations will be done and what you are doing to make the property better.
Feel free to give your tenants gifts, especially during the holiday season. You can even offer them a “Christmas bonus,” reducing the rental amount during December.
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Develop a Rental Property Management Team
You shouldn’t be involved in home rental property management on your own. At a minimum, you should use rental property management software.
But you can consider hiring management professionals to help you. This is a very good idea if you are managing multiple properties at once or a very big apartment building.
One professional can act as a landlord. They work with tenants directly, handling their complaints and collecting rent from them.
Another professional can act as a liaison. They go from property to property, making sure everything is okay. You should also have a plumber and a repairperson on standby.
Start Managing Rental Properties
Managing rental properties is a little complicated. You need to offer a property that people want to live in. You should make renovations to make your property safe and sparkling.
Write a good rental agreement that describes your rental payment structure. Then screen your tenants through a series of interviews.
Once they’re living in your space, you should keep them there. Be kind and communicate with them often. Hire a team of professionals to meet all of your tenants’ needs.
Being a great property manager requires a lot of knowledge. Read more property management guides by following our coverage.
