There are several things to consider when purchasing rental properties, but it’s also vital not to overlook the risks involved. If you want your investment to succeed, you must have a thorough knowledge of how property management works at all levels!
1. Keep things systemised
One of the golden rules of property management is to keep everything organized and systemized. This will help you keep on top of things, especially if you have multiple properties.
A calendar system will help remind you about what date certain licenses need to be renewed, how often maintenance should be done on appliances such as range hoods/freezers etc., whether there is an annual cleaning + inspection requirement throughout every year; this includes looking at both smoke detectors and carbon monoxide detectors’ expiration dates, as well as making a note of any furniture/appliance replacements that may be necessary.
Other benefits of having a solid organizational system are that you can more easily delegate tasks to other people, and you will have a better overview of your finances.
It’s vital to take a wider perspective and fully optimize your time, while also maintaining procedures and property management being proactively managed.
2. Have a professional property manager
Although it may be tempting to try and manage the property yourself in order to save on costs, it’s often wiser to invest in a good property manager.
The property manager acts as the landlord’s representative, handling everything from tenant concerns to maintenance and repairs.
A competent property manager will handle everything from addressing issues to maintaining records and keeping costs under control while also managing and monitoring a budget. This will free up your time so that you can focus on bigger picture items such as negotiating leases and increasing rent prices.
3. Set clear rules and stick to them
One of the main benefits of having a property manager is that it allows you to set clear rules and expectations for your tenants, and then you can rely on the manager to enforce these. This will help to avoid any difficult situations or misunderstandings further down the track.
Some good examples of things you may want to include in your tenant agreement are: noise restrictions, whether pets are allowed, rules around subletting, and minimum lease periods.
4. Keep an eye on market trends
It’s important to keep tabs on market trends when it comes to rental properties – after all, you don’t want your investments sitting there empty! Make sure you’re aware of what kinds of properties are in demand and what the average rent prices are. This will help you to price your properties correctly and make sure they’re appealing to potential tenants.
5. Have a solid backup plan
No matter how well you plan, things can always go wrong – it’s important to have a solid backup plan in case of emergencies. This could involve having a reserve fund to cover unexpected costs such as repairs, or having a list of reliable contractors who can be called upon in a hurry if needed. By being prepared for any situation, you’ll minimise the chances of anything damaging your investment profits.
In conclusion, property management is essential for landlords and property investors alike – by following these five tips, you’ll be on your way to a successful investment!