So you’ve decided to manage your property to rent out for the first time, and opted to not go for a rental manager instead. By doing so, you’re probably saving tens of thousands of dollars and gaining full control of your property. However, you’re also taking on a new venture into the unknown. Mistakes will happen, and you could feel overwhelmed with the amount of responsibilities at hand. Worry not, we’ve got five tips on how to manage a property
Choose your tenants wisely
This might sound obvious, but with many tasks at hand, you will need tenants that make your life easier. Getting to know your tenants well before signing a lease will test your gut feelings for future tenants. You want to be on a friendly, yet professional, basis with your property’s new residents. Maintaining a relationship where they can depend on you and respect you will make lease agreements smoother, rent collection easier, and dealing with tenant complaints simpler.
Know your unit inside out
Property management is much like owning a business, you want to know everything about it to manage it properly. You want to know all of its physical problems to foresee any potential issue beforehand. Extensive knowledge of your own property will help you maintain its physical state easily, make your inspections much more thorough, and give you a better understanding of how to best market your property. Make sure your property is safe to be inhabited by your tenants.
Aim to perfect the lease
One of the most challenging obstacles individuals face in property management is their lack of knowledge when it comes to the legal requirements of fixing up a lease. If you’re preparing a lease without hiring a lawyer, chances are you will overlook a few state landlord-tenant laws. Do your research well, and make sure your lease is as perfect as you can make it up to be.
Organize your finances
Just like a business, property management requires thorough financing. Without hiring an accountant to file your taxes, you’re going to want all your sheets in order, and it would be smart to get a head start before things pile up. As a property manager, you will need to understand how much money is coming in and out – this can be from rent, mortgage, insurance, taxes owed, unpaid utilities, and unexpected fees or fines you may receive.
You’re doing this without a property manager, which means you’re saving a lot of money and taking on a lot of responsibilities. You will be depended on by your tenants, held responsible by any court, and make decent money out of it on your own. So you must take full control, act as your own boss, and excel with time at managing your own property.
iBuildNew can help you to build the perfect rental property! Give us a call on 1800 184 284 or book a call with our team today for free, expert advice.