Managing property is not for everyone, but there are many real estate investors that could benefit from managing their own properties. In this blog post we’ll go over the steps one must take when managing property for themselves. We’ll also give you some tips on how to make the entire process easier.
Initial Steps to Making it Easier to Manage Property
Step 1. – Buy properties in clusters. What I mean by the aforementioned statement is that as a property manager, you’ll want your properties relatively close to each other. When your properties are close to each other, you’ll be able to manage them all at the same time.
Conversely, if you have your properties spread out all over the state, you’ll end up spending much of your property management time in your car.
Step 2. – Invest close to home. Another way to make managing property easier is to invest in property that is within an hour of where you live. Any further than an hour and a simple problem or task can end up costing you over two hours of your time. Do you really want to drive a few hours just to make sure the lawn crew is doing their job correctly?
1. Get your tenants to do some of the work for you. Often-times it can be easier to reduce the rent in exchange for your tenants doing some of the upkeep. Many tenants are willing to mow lawns and shovel sidewalks for a simple rent reduction. Just make sure the tenant knows that if they do not do the work on time, they will not get their rent reduction.
2. Inspect your properties from time to time. An inspection is a proactive way of managing property. Remember, managing property isn’t just about collecting rents and taking problem calls. Just because your tenant isn’t calling you, doesn’t mean there aren’t any problems.
Sometimes a laid-back tenant can cause a lot of damage just by not reporting a problem. For instance a small leak in a pipe can eventually cause a lot of damage and an enormous amount of mold.
3. Do not waive deposits. A large deposit ensures that even if your tenant becomes destructive, you’ll still be able to turn a profit on your property. Managing property is never any fun when it’s not profitable.
4. Do not give grace periods. When managing property, many property managers tell tenants that rent is due on the 1st, but that they have until the 5th to actually pay it. What this really means is that rent isn’t actually due until the 5th and you probably won’t be paid until then. Why wait five extra days to receive your rent money?
5. Make the safety of your tenants a priority. A tenant that does not feel safe will break their lease. At the very least, you’ll want to make sure that all of the doors and windows can be properly secured from the inside. Nolo.com suggests that the most inexpensive way to increase security when managing property is to simply have good lighting and a trimmed landscape.
Now that you know all about managing property, why not contact us to talk about investing in property?