Just over 44 percent of landlords manage their own properties. Most of them have more than three properties to take care of, which can take a lot of time.
If you're a rental property investor, it's good to have strategies to help you with your property management. Here are some great tips to help you be a great landlord.
1. Open Separate Bank Accounts
Taking care of the financial details is one of the property management challenges you will encounter. Using a different account for each rental property will help you keep track of the details by unit. You'll be able to monitor the cash flow for each property at a glance.
When you mix personal and business expenses in one account, it is harder to sort out your taxes at the end of the year. You won't be able to pass your books on to an accountant to help you out.
2. Get Professional Help
Successful property management takes time and patience. Your time is valuable, and it may be better to look for another rental property instead. You may prefer to have an investment property management company do the work for you.
They can take care of tenant interactions and collect the monthly rents. When it's time to find a new renter, they may have pre-screened applicants available.
3. Perform Regular Maintenance
Create a schedule to ensure that you remember to perform regular maintenance tasks for all your properties. When you don't maintain equipment such as furnaces, you may have a major repair.
One of the best property management tips is never to let your tenants do their own repairs. Ask them to notify you when something needs repairs. Perform regular inspections to catch minor problems before they become large ones.
This includes looking under the sinks in your property to find leaks. The base of toilets is another area that can develop a slow leak. Over time this leak will rot the floor in your bathroom, leading to a much larger problem.
4. Prepare a Budget
If you treat your rental property like a business, you'll have a formal budget that tracks your rents and expenses. If you count on the rent to pay your loans, you may have a problem if a tenant leaves. Build in a contingency for unexpected events, and be sure to expect vacancies.
5. Keep Your Options Open
If you plan to buy properties and renovate them for a quick resale, be aware that things don't always go as planned. Be flexible and willing to change your plans if needed. If there's a downturn in the market and you can't get the price you want, be ready to rent the property until things change.
If you plan to use the property as a rental, you might find managing your property takes more time than you have. You could decide to get some property management advice or have someone take care of it for a monthly fee.
Hire a Property Management Service
We can take care of the details so you can reap the profits. Our team can assist with all aspects of your rental property, from acquiring and managing tenants to eviction assistance when required.
Contact us at Home River Group for full-service property management in the Colorado Springs area.