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15 Compelling Property Management Tips for Landlords to Make the Most of Their Time and Investment.

Written by Sachin Latawa Posted On Friday, 24 September 2021 21:52
15 Compelling Property Management Tips for Landlords to Make the Most of Their Time and Investment.

Being a landlord comes with the responsibility to execute every task related to property management. According to a survey, over 42 percent of all the rental properties are run day-to-day by the property owners.

There are pros and cons of DIY property management and the high costs of hiring a property management company are a big concern. Another option is to go for online property management platforms that help save both your time and effort.

Effective property management allows you to retain good tenants and keep your property in a good condition. Property management can sometimes become a tough task. Here are some compelling tips for streamlining it and becoming a successful landlord. 

Tips to Choose the Right Rental Property

Acquiring the right investment property is the initial step towards better property management.  It is important to set forth the parameters of an ideal investment property. This will allow you to find a property that has the potential to become a profitable rental property in the long run. 

1. Get the Key Information

You should emphasize the type of property, size of the property, amenities on offer, property location, etc. This vital information will help you make the right decision when finding an investment property.

2. Choose the Right Neighbourhood and Location

Location and neighborhood play a major role in what type of tenants will approach you. A well-connected neighborhood from where the shopping centers, a school, local transit, and restaurants are easily accessible will attract a pool of uber tenants for your property.

3. Check for Average Rent and Vacancy Rate

You should check for the average rent and vacancy rate around the neighborhood to make sure you get the expected response and rent for your property. A lower vacancy rate means a better potential of making a good monthly income.

4. Finance Your Purchase

After determining all the necessary things make sure the property fits in your budget and proves to be profitable enough to cover your mortgage, taxes, and related expenses. Taking a loan to purchase a rental property will minimize the risk of putting your own money and allow you to have ample cash reserves.  

Tips to Manage Your Tenants Effectively

Managing your tenants is an important aspect of property management. Treating your tenants with respect and having open communication helps you become a good landlord and builds your relationship in the long run. 

A proper tenant screening provides landlords the key information about the potential tenants to make sure they pay the rent on time and upkeep your property.  

1. Check Credit History and Background

A potential tenant’s credit history gives access to the information related to their credit score, payment history, any bankruptcies, debts, etc. allowing you to make an informed decision. A background check allows you to verify the authenticity of a person and understand their criminal history. 

2. Check the Rental History

Along with the background check and credit history, you should consider looking into the rental history of a tenant to understand the duration of the previous tenancy, behavior with landlords, any late payment, and evictions.

3. Create a Solid Lease Agreement

Draft a solid lease agreement from a licensed attorney that legally binds both parties. Make sure to include the essential clauses like security deposit and pet policies in the lease agreement to avoid future misunderstandings or disputes.

4. Communicate Effectively

Having open communication with the tenants makes it easier for you to understand their problems and take steps towards resolving them. Being more attentive and listening to their suggestions allows you to build trust in them and establish transparency.

5. Establish House Rules

Make sure the tenants abide by all the house rules established by you. You should explain to tenants the general house rules like proper garbage disposal, quiet hours, proper parking, and the general maintenance work of the property they are responsible for.  

6. Collect Rent Online

You can seamlessly send payment reminders, collect rent online, tally related taxes, calculate and keep track of the monthly expenses, and execute other financial transactions using online property management platforms. Tenants can also make secure online payments using these platforms.

Tips for Property Maintenance

Regular maintenance of the property is the key to successful property management. Keeping your property neat and clean will encourage the tenants to maintain the property like an owner.

1. Inspect your Property

You should carry out a property inspection yearly or half-yearly to determine any maintenance issues that could have been left unnoticed by the tenant. Determine the smallest maintenance work you are responsible for and quickly resolve it to avoid future hassle.

2. Check the Essentials

Make sure to timely carry out the plumbing work, check for the wiring and power supply, make sure the HVAC system works fine and seamless water supply. Determine if the smoke and carbon detectors in the house are functional.

3. Service and Upgrade Appliances

Timely service home appliances like dishwashers, washer-dryer units, water heaters, etc. You should also check the warranty on the appliances and upgrade them if needed.

4. Handle Maintenance Requests Online

Get rid of the standard maintenance forms and opt for AI-based online property management platforms, such as tirios.ai, to seamlessly manage tenant maintenance requests. You can avail of hassle-free maintenance through professional service providers using these platforms to better serve your tenants.  

Accept and quickly respond to tenant maintenance requests online. Tenants can use the platform to communicate with landlords, make maintenance requests, keep track of the repairs, and provide their feedback on the service.

5. Protect your Tenants and the Property

Using smart home security systems will help you protect the tenants and your property. Surveillance cameras are a great way to keep track of unprecedented activities or events. These cameras are very helpful in identifying the criminal in case of theft or burglary.

Smart smoke detectors use the sensors to detect smoke in the house and trigger the alarm as an indicator of a potential fire. The carbon monoxide detectors are smart devices that detect the presence of carbon monoxide (CO) gas in the atmosphere and immediately give notification on your mobile devices.

Burglar and intrusion alarms use smart sensors to detect any unauthorized entry into the property and quickly send notifications to the owners of the abnormal activity.

Conclusion

Property Management is a greater responsibility towards managing the tenants and maintaining your property. It takes a lot of effort and time to execute every task related to property management. Landlords can make the most of technology in an effort to seamlessly execute the tasks related to property management.

Performing tenant screening is important to understand if the potential tenants are reliable. Checking their credit history and background will help you make an informed decision.

Regular inspection and maintenance of your property are essential to understand potential repairs and renovation. Advancement in technologies and the emergence of AI-based Proptech platforms like tirios can lower the hassle of managing all these tasks.

Sachin LatawaSachin is the Founder and CEO of Tirios, a Proptech platform for management of  Single Family Rental Homes.

Prior to starting Tirios, Sachin held the positions as Chief Financial Officer of Builders Capital, Chief Financial Officer of the Real Estate Segment of Icahn Enterprises, Director at PwC Capital Markets, M&A Vice President at Fortress Investment Group. 

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