5 Must-Have Property Management Tips for Beginners

property management tips

Current statistics reveal that rental units comprise about 30% of the housing market. But with the rise of short-term rentals like Airbnb, lots of people are joining the ranks of property managers. 

If you’re new to property management, there are a few things you must know! Keep reading for 5 must-have property management tips for beginners. 

1. Do Your Due Diligence

Most of the problems you’ll run into when it comes to property management are due to bad tenants. Make sure you understand leasing laws in your state. Then set high standards and screen your applicants. 

Be aware that you can’t discriminate based on age, race, and other factors. But you can deny potential tenants for bad credit. If a potential renter’s story doesn’t add up, be wary. 

2. Use a Written Lease Agreement

Never rely on a verbal agreement. Always have a written lease signed by both parties. It’s worth paying a real estate lawyer for an iron-clad lease. 

Make sure the lease is based on your state since every state has different rental laws. Both you and the tenant should defer to the lease if any questions arise. Spell out all potential issues in the lease. 

3. Make Payments Easy

Make rent payment easy for your tenants by setting up an online payment system. The easier it is, the more likely the rent will arrive on time each month. Beware of shoddy online rent collection agencies. 

Do your homework and find a reputable company or another easy way for your tenants to pay. You can require online payment in the lease unless you live in California. 

4. Inspect Quarterly and Make Repairs

Inspect your property every 3-4 months. The key to keeping any home in good repair is regular maintenance. Don’t expect your tenants to do any maintenance on the home. 

Respond to maintenance requests as soon as possible. It’s not fair to keep tenants waiting on repairs. 

When it comes to inspecting, know the law. You can’t enter the premises without giving your tenants “proper notice.” Each state has its own laws. 

5. Never Withhold Deposit Without a Good Reason

The deposit is for actual damages. Never withhold the deposit without a documented reason. 

You can withhold the deposit for excessive damages beyond normal wear and tear. If the tenant owes you rent or late fees, you can use the deposit.

Make sure you can document actual material or financial damages if you keep any of the deposit. 

Welcome to the World of Property Management

These five tips will take you a long way in the world of property management. Always screen your renters by running at least a credit check or using a screening company. 

Always use a written lease and require online payment in the lease. Online payment is easier for your tenants too. 

Inspect the property on a regular basis and do any repairs or maintenance. Never enter the premises without first giving notice to the tenants. At the end of the lease, always refund the deposit unless there are documented damages. 

Does property management sound overwhelming? If you need some help, give us a call. 

3 Tips for Developing a Rental Property Investment Strategy in 2020

rental property investment strategy

About 36% of millennials and 30% of baby boomers prefer to invest in real estate over stocks. They would instead invest their extra cash in long term rental property than put it into the stock market. 

You, too, can successfully invest in real estate. The key to success is having a well thought out rental property investment strategy. 

Try one of these three tips for creating your investment strategy for 2020. 

1. Create a Five Year Plan 

The height of property flipping may have passed, but that doesn’t mean you can’t make money at it. You need to have a longer-term plan. 

In the past, house flippers would buy, improve, and sell all within a few months. These days, house flippers will plan to hold the property for about five years. 

They’ll make improvements slowly over that time while also making money renting the home out. The goal is to have the home’s value appreciate during that time. 

If done correctly, the rental income should cover the cost of the home during the five year improvement period. You shouldn’t be in the hole when you go to sell. 

2. Keep It Long Term 

Just because the real estate market is red hot doesn’t mean you have to sell. Maintaining your rental property creates a positive cash flow. You can maintain this income over many years and have passive income well into your retirement years. 

The advantage of this is that you can depreciate the value of the property. This will help to lower your yearly tax liability. 

For some, the ending of the depreciation period marks when they’ll sell the property. For others, it’s the monthly income that’s important. 

Remember to set aside money for yearly property maintenance and improvements. That way, you can get the highest price for your property when you do finally sell.

3. Choose a Sale Trigger 

For some investors, they go into a property knowing that they’ll sell when a trigger happens. This trigger can be anything that you choose. 

You could hold onto the property until your child goes to college. Then sell and use the money to pay for their school

Or maybe you’ll hold onto the property until it needs a significant repair. The first sign that it needs a new roof or HVAC system means it’s time to put it on the market. 

For others, they know it’s time to sell when they’re ready to move to their dream locale. They’ll hold onto their property until it’s time to retire. Then they sell it all and invest in their retirement property. 

Create Your Rental Property Investment Strategy

Which one of these ideas will work for your rental property investment strategy? Remember, the most important thing is to choose a strategy that you’re comfortable with and makes the most financial sense. 

If you’re looking for a short term investment, then the five year flipping strategy may work the best. If you want long term passive income, then our second tip may work better for you. Or you could choose a trigger that signals it’s time for you to sell. 

Contact us today and let us help you create a property management plan for your rental property. 

Is Owning Rental Property the Right Choice for Me?

owning rental property

Owning rental property is rewarding and builds your wealth. In 2016, 65% of Americans under 35 years of age were renting an apartment or home. That number is expected to grow over the coming years.

But it’s not for the faint of heart.

Before you start purchasing random properties to flip and rent, there are a few things to know about this industry. Owning rental property requires a little elbow grease, commitment, and knowledge.

Here’s what you need to know to decide if it’s the right choice for you!

Owning Rental Property is a Good Investment

The up-front costs of purchasing a house or building may sound expensive. However, many rental property owners borrow money and can use their property as leverage. You spend less money up-front buying a rental property than you do when buying stocks, for instance.

Owning rental property allows you to directly manage your investment. You’re the one who inspects properties, decides rent costs, and personally manage your property. There’s no middle-man, board, or managers micromanaging your investment.

Be Ready for a Little Manual Labor

Finding and purchasing rental property is only part of the rental property journey. You can buy a property and rent it “as is” but you’re less likely to attract good tenants and make a profit.

Owning a rental property means you’ll have to put a little blood, sweat, and tears into your rental for the best return on investment. After inspection, you’ll need to clean up the building, both inside and out.

A few things to fix up and replace are appliances, windows, carpet/floors, wall paint, and cleaning. Your rental property must be up to code regarding fire and building safety. Presentation and safety are crucial when advertising your property.

You can do many minor renovations yourself to save money or hire a contractor to assist you with more invasive renovations.

Owning Rental Property is More Stable than You Think

Everyone needs someplace to live. Even in the toughest of economic times, you’re sure to find tenants and continue making a profit on your rental property.

Watch the rental and housing market in your area. Keep rent within reason and plan for long-term gains rather than making a quick profit right away.

Calculate your rental property ROI by factoring in monthly rental income, mortgage, change in property value, taxes, insurance, and other potential costs. This may seem like a lot at first, but over a short period, you’ll start seeing a profit.

Let’s Get Renting

While owning rental property doesn’t make you wealthy right away, it’s a great long-term investment. If you prefer managing your investments directly and don’t mind a little hands-on labor, owning rental property is the right choice for you.

Have questions or want to get started today?

Let us know! Our agents are ready to help you make your rental dream a reality.

Picture Perfect: 5 Home Staging Tips to Bring in New Renters

home staging

Home sweet home is a rental for more U.S. residents than ever before!

It’s never been a better time to become a property manager.

If you’re trying to rent your property, home staging is the perfect way to showcase the space.

Help potential renters fall in love with your property. Here are 5 home staging tips you need to know about!

1. Inspire them to Dream

When you stage a rental, you’re doing much more than just making it look pretty. You are helping the potential tenant imagine themselves living there. This gives them an emotional response. They should feel at home the moment they step foot inside.

It might take a little extra research to know exactly what type of home staging will work. A great real estate agent can help you too!

2. Match their Style

When you’re decorating a space, step into their shoes and see the home from your renter’s perspective.

Create a space that matches their style. If the space feels like someone else’s decor, then they’re not likely to want to live there. Aim for a simple approach without too many bold colors. This will appeal to a variety of people.

You should also learn about your demographic and the area. What age group will be renting out your space? What is their financial bracket? These can also determine what direction your accents and furnishings will go in.

3. Meet their Needs 

This goes along with understanding your demographic, but with a more practical approach.

If you are selling to a couple who is looking to start a family, you can stage one room as a nursery. Or if the space is better suited for a group of friends, you can stage a room that would be perfect for entertaining.

The idea is that you want to give ideas to the potential renters as to how the space can be used. It is difficult for people to visually see the size of a room without furniture in it. So by filling the space with strategically placed furniture, you are actually making it look bigger.

4. Try Virtual Home Staging 

If you don’t have the budget or the time to stage your rental, then virtually home staging your rental is the way to go.

First, have professional photos taken of the space while it is empty. You can then use these photos to try out different staging techniques. For example, you can test the photos online with different setups in the rooms. 

Virtual staging can allow you the flexibility to suit a variety of preferences because you can quickly re-stage a bedroom as a home office. It also saves you the time and hassle of physically moving furniture in and out.

5. Curb Appeal is a Must

First impressions are everything, so you don’t make the outside of your rental home an afterthought.

Make sure you have someone mow the lawn, plant flowers, and trim hedges. The rental should look well cared for and inviting. You might want to hang something like a wreath or welcome sign on the door. 

Do You Have to Stage a Rental?

Ultimately, if you have no trouble renting a property in your area, then you don’t have to worry about home staging a rental property. Can it hurt? Never!

Home staging a space to rent or sell is never a bad thing. It might not be necessary for a rental if you don’t have the budget or time required to stage a space. But if you are having a hard time renting your property, it can make a huge difference!

Want more advice on renting your property? Check out our website for more helpful tips!

First-Time Landlords: How Often Should You Conduct a Rental Inspection?

rental inspection

As a landlord, it’s essential you put the work in to look after your property. Even if your tenant is a perfect angel, it’s always a good idea to check around prevent problems that could arise down the road. 

A presence as a landlord also encourages your tenant to better take care of the property. If you show that you care about the upkeep of the home or apartment, it’s more likely that they will too. 

That being said, keeping up a good relationship with your tenant will depend on communication and cooperation. You don’t want to be bothering your tenant all the time. How often should you conduct a rental inspection? 

Read on and we’ll walk you through what you should consider.

The Importance of an Inspection 

Your property only remains valuable if it is well maintained. If you allow it to fall into disrepair, you’ll be damaging the future value of the property.

An inspection can help you ensure the property is retaining its value when it’s not currently in your day-to-day control. It can help you budget and account for costs. After all, if there is damage to the property, it can be paid for out of your renter’s security deposit. 

Most tenants will expect that some rental inspections will be part of their rental process. Inspections show that you’re responsible and have proper expectations for the home. 

Move-In and Move-Out Inspections 

There are a few moments that are key to have a rental inspection in. Almost all renters will expect there to be a move-in inspection, for example. 

This inspection is done by both yourself and the tenant prior to their official move-in. Together, you will search for any existing issues with the property. Photos of existing damage should be documented. A sense of how the property existed prior to the tenant’s stay should be established. 

This can help prevent things from getting legally ugly later on. 

A move-out inspection will occur on the other side of the process when the tenant leaves. New damage or changes to the property that resulted during the tenants stay will be documented and discussed. 

You’ll want to schedule this walkthrough inspection on the very last day of your tenant’s stay. This way further damage can’t happen after your inspection. 

Routine Rental Inspections

Between the beginning and end of your tenant’s stay, you’ll want to drop in a few times and check on the property. It’s advised that you limit these inspections to once every three or six months. 

To visit more often than that can begin to feel like an invasion of privacy to your tenant. It can begin to cause undue tension between the two of you. But to do inspections less often is also not advisable. 

Once every three to six months allows you to stay on top of maintenance responsibilities and more easily track changes to the home. 

The All-Important Rental Inspection

A rental inspection is one of the key cornerstones to your time as a landlord and property owner. The inspection allows you to maintain the value and care of your property while establishing a working relationship with your tenant. 

Have more questions about working with tenants? Contact us anytime for assistance.