Whether you’ve been practicing investment property management for a few weeks or have years of experience, reading a few tips and reminders won’t hurt. As with any other job, you might start forgetting about the basics as you get more experience.
Investment property management can lead to more than a decent income if done right. We’ve put together a few tips to help you stay organized. These tips should also help you manage your property better so you can keep the money coming in while keeping the tenants happy.
The best way to make keep making consistent money from property is by avoiding tenant turnover. Keeping the same tenants for extended periods will translate to economic stability. A happy tenant means you’ll get your rent on time. Additionally, having to keep finding new tenants is too much trouble.
With every tenant that leaves, you’ll have to start the search process all over again. This includes marketing fees to advertise your property. You’ll then have to screen applicants and go through the lease with them. Having to do this several times a year isn’t just exhausting, but will likely cost you more money than you’re making.
One of the main things you can do to keep tenants happy is to keep up with maintenance. Don’t assume that keeping up with maintenance is a voluntary thing. Yes, most property owners and managers do it to keep tenants from complaining and leaving, but it’s also an obligation. Keeping the property safe and clean is listed under the landlord-tenant law. Failing to comply won’t just mean tenants leaving, but could also leave you exposed to legal action. Regular maintenance is valuable for both these reasons.
Hiring a property manager is a great idea for those who are too busy to focus on managing the property themselves. It’s also a smart move if you have different properties in different locations. Keeping up with all of them can be a hassle. A property manager will make sure maintenance is done as required, collect rent, and select or evict tenants.
Finally, don’t forget to pay your taxes. No one likes taxes, and they can be easy to forget especially for people who have a lot on their plates. If you have another fulltime job, you might not realize that you need to pay taxes on your property too. It’s recommended that you hire an accountant to take care of these financial matters for you. You’ll be allowed certain deductions and a good accountant will know what they are and how to make the most of them.
Managing property can be scary at first, and boring later on. You might also realize that you’re not making as much money as you’d like. Take a step back and think about how you’re taking care of business. These investment property management tips should help you figure out what you’re doing wrong. Once you diagnose the problem, fixing it shouldn’t be too complicated.