Managing your rental properties can be a challenge considering the fact that it involves a great amount of patience and requires you to make the right decisions to minimize headaches and avoid pitfalls. Affordable real estate prices have lead to an increase in the number of investors, and so have increased the responsibility of rental property management professionals.
It can be tough to be a good landlord. You will have to face various types of tenants; some will be easy going, while others will be nerve-racking. You’ll be running after the tenants who delay payments as well responsibly dealing with maintenance issues.
Rental Property Management Tips
Here are a few tips that will help you to manage your portfolio.
• You will have to ensure that you have measures in place to deal with any maintenance issues or repairs, sometimes immediately. Keep a good contractor on standby so that you can deal with such issues on a timely basis.
• Once a tenant is evicted, you must ensure that you renovate the property as quickly as possible and with the bare minimum expenses. The longer the renovation takes, the more you’ll skip on money earning opportunities, so make sure you get it done quickly.
• Finding tenants is not an easy task. You’ll have to take measures to advertise in classified ads, signs and through flyers.
• One error that many investors make in managing their rental property is that they have a lack of communication with their tenants. You should keep in touch with your tenants as this is important for building a strong relationship.
• Without a doubt, no one can care for your property like you will. This is why regular property inspections are important. Keep an eye on your property to make sure it’s being taken care of.
• There are various federal and provincial laws that outline your responsibilities and liabilities. If a problem arises regarding these, ignorance of such laws will further aggravate the situation. This is why it’s essential for you to read them thoroughly; after all, spending 10 hours reading is better than 10 hours in court.
• Joining a Landlords’ Association can provide you with lots of experience and guidance as well as copies of sample leases, laws and regulations, lists of good lawyers, contractors and inspectors.
• Ensure you have the right insurance in place. An insurance professional can help you select the right package for your specific rental property.
• Get acquainted with a lawyer and a commercial mortgage broker – you may need legal assistance or help with commercial mortgages.
• While it is understandable that you will be expecting a positive cash flow, be reasonable with your expectations.
• Don’t forget to run credit checks on your prospective tenants. It is not recommended to rush in filling vacant properties as it is better to have an empty property than have a tenant that defaults on their payments.