Rental Property Management – 5 Steps To Success

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Anyone taking on the task of managing rental property needs to have good organizational and management skills. They need experience and solid knowledge about the property market.

Here are the major things you will have to take care of.

Step one is to set your monthly rent amounts and advertise the property to rent. You can do this in different ways. One way is to work with a listing broker. High end property lends itself well to using an agent as they have access to reliable tenants. The exposure that an agent has will be greater through her personal network and agent listings. The downside is you will have to pay the agent a commission.

Another way is to put up a rent sign in the front yard while still renovating a property. You might start getting phone calls right away. You should get a large group of applications to choose from and will not have to pay commission.

The simplest way to determine how much to charge in rent is to compare what other rental property in your area is being rented for. You can contact local home sales brokers as well.

Step two is to interview prospective tenants and screen the best candidates through written applications and references. You will need to evaluate the prospective tenants by checking out their background, credit history and any personal references they give. It is especially important to see how well they have paid their rent in the past. Meet with them and make notes about how you felt about them. Did they arrive on time for the interview? Do they seem like clean, respectful people? Many times, you should just go with your instinct.

Step three is to take out insurance on the property including fire, theft and liability. These policies will cover many major problems if they should occur saving you from having to pay out of pocket.

Step four is to arrange to have a budget for regular maintenance and unexpected repairs set up. The manager will need to supervise any repairs and work done on the rental property . He should make periodic inspections of the property for any needed maintenance and make sure the tenants are meeting the terms of all the policies and procedures. The manager will be aware of his renters needs and will communicate with both the tenant and the rental property owner on a regular basis. 

Investors need to budget for repairs when they are considering the purchase of the rental property . Many repairs can be anticipated. Take a look at your roof. How old is it? This will give you an idea of when you might need to replace it. Same goes with your air conditioning and heating systems or the carpeting. And you need to budget for cleaning and repainting when the tenant leaves and the property is vacant again.

Step five is to set up an organized system for collecting rent payments and security deposits. They will need to have maintenance and housekeeping schedules set up for routine care.

A company that specializes in renting property can be hired to manage the investment if you find it is not for you or you must manage the property in another city. But no matter which route you take, you should be involved as much as necessary in the investment.

Miramar RV Storage

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Disclamer: This entry is intended to promote our partner StorageMart and some or all participants received compensation.