How To Manage a Rental Property

After buying a rental property you start a journey to being a landlord. A newbie landlord can find a simple equation for rental properties: rental revenue – (mortgage cost + other expenses) = profit. In theory, this formula may seem correct but there are 2 variables that are important for the landlord that not included in this formula: Time and energy. If you try to manage your rental properties you can save some money but you will lose precious time and energy. As the number of real estates goes up, you will spend more time and more energy and after a certain number managing your real estates on your own will be impossible.
Self-managing their rental properties is a way to cut down on their management expenses for landlords. Is your rental property close to your home? Can you be able to respond quickly enough for emergencies or maintenance issues? What if your rental property is on another side of the country?

As a landlord, you have different management responsibilities which can be explained in three major topics :
A – Dealing and Managing Tenants
B – Managing Rental Property Maintenance
C – Managing Financial Attributes

A – Dealing and Managing Tenants
Being a successful landlord need a lot more than just collecting rent each month. Setting due dates, establishing late fees, dealing with unpaid rent are some issues that you have to deal about rent collection. Creating and following your lease, making sure of the lease is covered by the law is important as much as collecting rent.
After signing a lease you have to go over the rules, collect a security deposit and checking your rental estate’s current condition. While moving out, make sure that lease is over, check your rental estate’s condition for a security deposit return. After that, you have to start looking for a new tenant in order to save your monthly rental income.
When a rental property is vacant or vacanting soon, you need to find the next tenant quickly. Finding your next tenant involves more advertising. Don’t forget about property visits, talking with tenants and meeting them for house tours. You will need to deal with rental applications and approve your future tenants.

B – Managing Rental Property Maintenance
Another important topic is maintenance. The physical structure of the rental property needs to be maintained for the health and safety of the tenants. Your insurance company may also require certain parts of the building, such as the roof, to meet certain standards otherwise they will charge you more or refuse to ensure the property.
Maintenance includes cutting the grass, picking up leaves, shoveling snow, keeping all common areas clear. Also making sure tenants have access to running water, gas, and electricity at all times and heating in the winter. Fixing roof leaks, plumbing leaks, cracked tiles, loose handrails, faulty door or window locks, attending tenant complaints, responding to repair requests, prioritizing the importance of repair and eventually doing the repair yourself or hiring someone to do it.
Your rental property can face inspections from the government officials and from your insurance company. The town inspections are to make sure your property is eligible and following certain health and safety codes. The insurance company can inspect the property to make sure the property is worth the amount of insurance.

C – Managing Financial Attributes
The last section of management that you will have to deal with when managing a rental property involves finances. You need to understand how much money is coming in and how much money is going out.

  • Rental Payments: How much you earn in rent each month.
  • Mortgage Payments: How much you pay each month on your mortgage.
  • Insurance Fees: How much you pay to ensure your property.
  • Taxes: What your yearly property taxes are.
  • Utilities: If tenants are not responsible for paying for utilities, how much the water, gas and electric bills are each month for the rental property.
  • Fines and fees: Fees you may have to pay for property inspections or court costs. Unexpected fines for maintenance issues or lack of maintenance at the rental property.

Self-Management or Rental Property Management: Which One Is More Suitable?
Before choosing, you need to determine how much your time costs. For a non-problematic tenant, paying to a professional per month might seem like a ton of money to give someone else to do your work. But if the tenant calls a few times a month, constantly complains about property maintenance, is late on their rent or does any lease-breaking activity, that could require your attention, our patience and hours of your time in a month. Suddenly, a fee for professional management seems more logical.
Professional rental management companies averagely charge between 7-10% of your monthly rent to manage your rental property. For a $1000 property, you will pay $100 per month to your manager to handle all problems for you.
What if there is a better, cheaper and easier solution to this issue? RentFollow gives you an opportunity to manage your rental properties, follow your tenants, keep up with maintenance issues, and letting them know when rent is due.
With RentFollow, you relieve yourself from stress and save your precious time for you and your loved ones. You can easily chat with your tenants, outsource maintenance orders and manage your investments easily from your mobile device, tablet or computer.
By using RentFollow you can save up to %80 of your professional rental management costs. You can sign-up for free and use RentFollow just with an e-mail address.

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1 Response

  1. April 17, 2019

    […] Originally published at RentFollow […]

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