If you’re a landlord or just looking to make moneywith real estate, it’s crucial to understand how to manage property the right way. It’s not just about knowing how to fix things when they break. As a property manager, especially as a first-time landlord, you’ll be forced to wear many hats. How you manage that property is going to either make or break your chances for success.
If you own a rental property, you can choose to either hire a property manager or manage the property yourself. Most real estate investors prefer hiring a property manager to avoid the many responsibilities associated with rental property management. If you do prefer to go this route, it’s best to read a few professional property management sites reviews so that you can choose the right one to suit your needs.
This guide from us-reviews.com will help you learn the basics of how to manage rental properties on your own successfully. Read on to learn how to work through the different aspects of managing rental properties yourself.
Buying a Rental Property
Even before rental property management comes into play, the first step to being a successful landlord is buying a profitable rental property. And the best way to ensure that you buy a profitable investment property is to do a thorough real estate market analysis and investment property analysis.
After finding a good rental property, you will then need to do any necessary repairs to make the property rentable. A home inspector can help you decide what repairs to carry out and a few good contractors can help you finish the project and get the investment property rent-ready.
Setting Your Rental Price
Now that you have a profitable rental property that is ready to be rented out, the next step is to set your rental rate. To appropriately price your rental property, you’ll want to perform a rental market analysis to know the average rental rate of comparable rental properties in the area. This way, you won’t overcharge or undercharge tenants.
Learning the Local Property Laws
A common mistake that many first-time landlords make is not taking time to learn the fundamentals of the local landlord-tenant laws. Renting out your property without a good knowledge of the property laws of the area is setting yourself up for legal problems.
Make sure to review the local regulations to avoid potentially costly legal action when you break the law. If possible, consult a real estate attorney to guide you on what you need to know as a landlord.
Rental Property Marketing
Once you understand the local property laws, the next step is finding tenants. You should advertise your rental property on multiple channels to get a good pool of prospective tenants to choose from. For instance, you can advertise on real estate websites like Zillow, social media, and local publications.
As a landlord, you shouldn’t just pick the first person interested in your rental home. Without carefully evaluating tenants, you could end up with bad tenants who fail to pay rent on time, damage your real estate investment property, or threaten the safety of neighbors.
To find a good tenant, you should conduct an in-depth tenant screening process for all prospective renters. This may involve conducting a credit and background check, contacting their former landlords, and doing a one-on-one interview with them.
You can decide on your own tenant screening criteria, so long as you keep in mind fair housing laws. It is illegal to discriminate against any tenant. You can also choose to hire a third-party tenant screening service to help you find the perfect tenant.