The Most Important Steps in Managing Rental Properties

The Most Important Steps in Managing Rental Properties

The Most Important Steps in Managing Rental Properties

The performance of an income property will depend largely upon the management strategy. Rental investments without a doubt, require a hands-on management approach. A hands-on approach will ensure direct control over the rental property and the ability to influence its performance. Investors that prefer to take more of a hands-off approach can choose to do so with the help of enlisting a professional management company.  

The steps in managing rental properties are simple, but are important to follow if you want a successful income property.  

1. PRICING THE PROPERTY FOR THE MARKET

Pricing the property competitively is key to keeping vacancy rates low and allowing investors to maximize their returns. It can easily take anywhere from one week to three months to rent a property. Often though, the speed at which a property will rent is directly related to the pricing strategy. For this reason it’s important for investors to set a price that’s high enough to provide a good rate of return, while at the same time keeping their rates competitive enough to attract interest from prospective tenants. A good property manager can assist accurately with pricing. This naturally allows investors to get the most out of their investments.

2. FINDING THE RIGHT TENANTS AND KEEPING THEM

The tenants that investors allow into their property will also have a significant impact on the performance of the investment as well. To ensure that only qualified applicants make it into the rental, it’s important to establish a solid, thorough tenant selection process.  This process needs to include screening out unqualified applicants. Investors should also take care to ensure that their screening process is in compliance with the Fair Housing Act –and doesn’t discriminate against any protected classes.

3. PROVIDING OR SECURING DAY-TO-DAY PROPERTY MANAGEMENT

Property management requires a great deal of work and involves a significant investment of time as well. The job does not stop once the property is rented and occupied.  Because of this, there must be a plan for daily management.  Proactive management is best.  Many investors don’t have the time, desire or inclination to deal with sourcing and screening tenants, managing financial accounts, performing inspections, repairs, and maintenance as well as handling issues with late paying tenants and other violations of the lease. Investors who are looking to save time or do not have time to invest themselves in regular management duties should consider enlisting the services of a qualified property manager to act on their behalf instead.

4. GUARDING AND PROTECTING AGAINST THE UNEXPECTED

Finally, investors should ensure that they’re protected in case of unforeseen circumstances. Being prepared for the unexpected or emergencies from a financial and strategic standpoint should be part of the management plan. This includes having a team of specialists that can help with repairs and maintenance, legal issues like evictions and of course insurance for the the things that don’t go as planned.  Utilizing a property management company can leverage these things for investors and help safeguard against some negative situations.  

If you are interested in learning more about what a professional management company  can do for you and your asset, give Tri Home Life a call today at 303-390-1665.   

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