Owning a rental property can be challenging, especially if you have to manage the building yourself. Property management is just as tricky as other businesses, and you have to take great care to avoid making serious mistakes, whether you’re a rookie landlord or a real estate veteran.
Being a landlord is a 24/7 job. You have to look for tenants, draft rental contracts, deal with complaints, do repairs, and collect rent, not to mention staying on top of multifamily lender payments. But with a little bit of preparation, you can make property management easier and more manageable.
- Be kind but firm
It’s normal for tenants to fall behind on their rent once in a while. Showing kindness and consideration to them will help foster a good landlord-tenant relationship. But always remember that you’re not running a charity, and you still have to collect rent. Negotiate a payment schedule that works for you and your tenant.
But if one of your tenants stops communicating and paying the rent, you need to initiate eviction proceedings immediately. If you don’t take action right away, you could end up with a serious shortfall in rental income.
- Act professionally
Many landlords have day jobs, but that doesn’t mean they should treat their rental property as a hobby. It’s still a business, and you need to behave professionally. That means following laws and regulations, maintaining good relationships with tenants, and maintaining a bookkeeping and recordkeeping system.
Make sure that your rental property complies with pertinent federal, state, and local laws to protect yourself from litigation. Real estate properties often come with a host of regulations, so you need to make sure you’re familiar with some of the most important ones before becoming a landlord.
You also need to keep your rental property in good condition. That means that your apartment should be a safe place to live for your tenants. Inspect the sprinklers and smoke and carbon monoxide detectors regularly.
- Advertise online
One great way to attract new tenants to your rental property is to advertise online. Today, most people look for apartments on real estate websites and social media. If you want to reach the broadest possible audience, create a listing on rental sites and promote it on your favorite social media platform.
An excellent online listing consists of high-quality images and a well-written description. The description should tell renters what the rent price is, the location of the property, the number of bedrooms and bathrooms, and other special features the property might have. Listing down useful places nearby such as supermarkets and hospitals is also a plus.
- Think long-term when building the property
Whether you’re building or renovating the property, it might be tempting to skimp on a few things to cut costs. But it’s best to use quality materials that will last for a long time. Small features can also raise the value of your rental properties.
For instance, if the building is facing a busy street, installing soundproof windows will help minimize complaints and increase the apartment’s value. High-quality granite or marble countertops also lasts longer than composite laminates or ordinary tile.
These pointers will help you become a better landlord. Managing a rental property can be a tough business, which is why it’s crucial to stay abreast of basic property management strategies like tenant screening, marketing, and renovations.