The time has finally come…
You’ve invested in a terrific house, taken care of the necessary renovations, and are ready to welcome your first tenants into your rental property. Navigating the Ins and Outs of real estate investment is tricky, but you’ve made it to the other side. Now what?
While many real estate investors choose to leave the day-to-day operations to someone else, you have decided you’d like to take an active, hands-on approach with your investment. While being your own property manager has its challenges, it can be a rewarding and fun job for the right person. Let’s explore whether property management is the right choice for you, and how to go about being a landlord your tenants are encouraged to rent from year after year.
1. Get Ready To Work
Do some market research in your area and decide what a fair rent price is for your property. Consider public transportation access, school districts, and the rental price of other comparable homes in your area before you make your decision. It’s going to take some work to absorb all these factors, but once you feel you’ve done your research, set a rent price.
When you’re the property manager, you will be responsible for fielding all questions, complaints, and requests from your tenants. Be ready to take on this challenge and meet tenant requests with a positive attitude to foster a good relationship.
2. Clarify Your Expectations
Envision the tenants who would be the best fit for your rental property. Are they a family? A group of friends? A single individual with a pet? Consider any expectations you may have moving forward, such as a no pet policy, no smoking policy, or any late fees (or lack thereof) you would like to enforce. Deciding how you will manage things before your tenants move in will create clarity for you and your renters.
Begin to clarify your expectations with yourself, but keep in mind there is no perfect tenant, and discrimination against tenants is against the law.
3. Stay On Top Of Your Finances
One of the worst mistakes you can make is not having enough cash flow to finance your investment. When you take on a rental property, you have to be prepared for not only the mortgage payments but repairs as well.
It’s a safe bet to have a few months of mortgage payments saved up, but in the event that you need a loan to buy your investment property or advice on further expanding your portfolio, property investment experts like Visio Lending can help.
4. Advertise Your Property
As a property manager, it is your responsibility to fill any vacancies with new tenants. This means it’s time to spread the word, and in 2021, there are countless platforms to advertise your property.
If you have a good relationship with your current tenant, you may ask them to spread the word to their friends and family. Kick it old school by hanging a “for rent” sign in the window, or advertise your vacancy on rental websites and social media. Don’t forget, quality photographs are the key to attracting tenants! If you aren’t good with technology, hire a photographer or partner with an agency to display your property in its best light.
5. Trust Your Instincts
It’s not enough to find just anyone to fill your rental property. If you are taking a hands-on role as a property manager, you want to be sure to find good, responsible tenants who pay their rent on time and cause minimal disruption for the duration of their lease.
Trust your instincts when meeting with prospective renters, asking yourself: will this person treat my investment with care and respect? As the property manager, you are now essentially working with this person to create a habitable space. Go with your gut when choosing the best fit for you and your rental property.
When you invest in real estate, you’re making an intelligent, future-focused choice for yourself and your family. While acting as your own property manager isn’t for everyone, it can be a rewarding job. Take the money you would have spent outsourcing tasks and put it back in your own pocket when you follow these tips to become your own property manager!
