If you have a rental property, you’ll know your challenges while managing it. In fact, most rental property owners feel that setting aside 50% of the rental income is necessary to pay for maintenance expenses.
So if you’re having trouble managing your property, then this article is here to help!
Set a realistic price
Once you have set up your rental property, it’s time to set some realistic expectations and price ranges.
For this, you must conduct market research first. For example, check how much other property owners charge in your area for similar properties.
Figure out things like the average income in the locality, average family size, and whether your location has extra benefits such as easy commute, hospitals or schools nearby, or highway access.
A clear idea about these things will help you to set up a proper price that tenants will feel comfortable paying.
2. Manage your property well
You can only rent out a property to interested tenants if the property itself looks clean and impressive. Landlords are required to keep their properties in safe and habitable conditions.
One good way to ensure that the rooms or house you’re renting out are in good shape is to conduct regular inspections, especially if you haven’t given it on rent for a long time.
Check if the electrical wirings and water lines are functional or not. Or you can even complete a moving-in checklist before your tenant joins so that everything is in order.
3. Find good tenants
Don’t just find “tenants,” but rather seek “good tenants.” This is why community management solutions are an important aspect of renting your property.
You have to build a positive community among your main tenant, their family, and your family.
Good tenants respect your property, pay you on time, and stay away from unnecessary hassles.
If you really wish to see how good a potential tenant will be, prepare a short questionnaire beforehand. Imagine you’re an employer who wishes to hire only the best employees at the workplace.
4. Don’t offend your clients
While it’s important to ask questions to your potential tenant, it’s also equally important not to be disrespectful.
Ask questions about their employment location and the references that they mentioned. Don’t ask about the person’s race, sexual orientation, or family size.
Many landlords feel that asking questions about the tenant’s disabilities is important. Well, you can ask that too, but only if you plan on ensuring that your property won’t be a problem for the disabled person.
For example, if they’re in a wheelchair, you can ask them if they would like a makeshift ramp installed at the entrance.
5. Keep track of your investment and earnings
One major responsibility of a landlord is to keep track of every penny you have invested in the property and the amount you have earned from your tenants.
For example, monthly rent payments, late fees, and security deposits need to be recorded in a log book and signed by both you and the current tenant of your property.
The same applies to maintaining expenses such as repairs, maintenance, property taxes, and insurance.
However, you only need to keep track of these areas, and your tenants won’t be involved.
6. Collect the rent and be strict about the lease
You may have purchased the rental property to make money, but that can only happen if you collect your rent on time and be firm with the payments.
Instead of waiting around and checking your mailbox daily, walk up to your tenant and ask them politely but firmly to be punctual.
You can even use online payment systems for same-day fee payment, including any processing charges. Since most tenants nowadays prefer paying their rent online, this option will also increase your tenant base.
7. Manage evictions calmly
No landlord would ever want to evict their tenant, but sometimes, you might not be left with any other choice.
You might feel awkward and embarrassed if you’re a relatively new landlord. So research a little about evictions before leasing your house to a tenant.
You can either ask someone in your social circle or look at the local news for updates. It’s important to file for an eviction notice first and then go through the entire court proceedings.
The entire process might take some time, and both parties can get frustrated but never take matters into your hands, as that is a criminal offense.
Over to you…
It’s not easy to get tenants or keep them in the long run because of the competitive market. So, it can get tough if your only source of income is property renting.
So, use these tips and tricks, and you will effectively manage your rental property and gain many more tenants!
Read Also: How to Spot Good Investment Opportunities
