4 Basic Tips for Managing a Rental Property
Do you think you have what it takes to buy an investment property and become a landlord? That’s not surprising. Real estate is one of the best ways to put your money to work and create wealth.
With over 44 million renters in the United States alone, owning a rental property is an excellent choice for real estate investors. The question is, do you know what it takes to manage your properties?
Managing a rental property is more complicated than many new landowners assume. Follow the four tips for rental property management below to get started the right way.
1. Find the Right Tenants
Finding the right tenants is one of the most essential parts of managing a property. The last thing you want to do is sign a lease with a problem tenant and end up dealing with someone that doesn’t care for your home. You’ll spend most of your time and energy managing this person in hopes that they don’t wreck your home.
That makes tenant screening something you can’t get wrong. Look into the common tenant screening tips to filter out the bad tenants from the good ones. If you find the right person to rent your properties, you’ll spend less time and energy worrying about your rentals.
2. Get Everything in Writing
One of the most common mistakes new landlords make is making verbal agreements. There’s no way to verify that you and a tenant agreed to terms when you have no proof. That means you need to have all agreements in writing, whether it’s a tenant contract or an agreement in text or email.
The most important part of this is your lease. You need to include all tenant requirements in your lease to ensure your tenants know what they’re responsible for when renting your home. It will be your guide for resolving disputes.
3. Find the Right Insurance
Typical homeowners insurance doesn’t always cover properties that are rented to tenants. You’re only covered for typical home and property damage in these cases.
It won’t necessarily cover damage caused by tenants or damage to your tenant’s property.
Look into your insurance options like the ones offered by Property Insurance HQ. You can also require your tenants to get renters insurance to make sure your tenants have coverage for accidents on your property.
4. Build a Team
While you may be able to handle a single property when you first become a landlord, that won’t be the case when you start growing. As the number of rental properties you own grows, you’ll end up spending more and more time on menial tasks that take your attention away from more important work.
Building a great team is how to solve this problem. You’ll need people to handle tenant calls and repairs when needed. Start building your team early so you don’t get stuck later on with too much work to handle on your own.
Don’t Take Managing a Rental Property Lightly
Many people get into real estate investments because they want passive income. However, managing a rental property isn’t always easy and does take work. Make sure to use the tips above to make investing in real estate and rental property easier.
Do you want to learn more tips for real estate investing? Head back to the blog to learn how to make the most of your real estate investments.