One of the things that attract investors to rental properties is the ability to retain your net income and not have to share them. However, one of the factors that make renting not “so appealing” is the amount of effort involved in being a landlord.
If you don’t want to deal with the hassles of managing tenants, collecting rent, and maintaining your property, you may consider hiring a property management company which I discussed about in my last article.
It’s important to find a company you can trust, so consider reviews, interview multiple companies, and talk to their references. A lower rate might be tempting, but consider whether it’s worth paying extra to avoid the headaches of a less competent company.
Finding tenants will be one of your first duties if you decide to handle the property yourself. You should list your property so that potential tenants can locate it. Make sure you interview and conduct background checks on all prospective tenant.
For your tenants to sign a legally binding lease, you will need to engage with a lawyer. One of the obligations of rental property owners is to keep the properties in good condition and habitable at all times. Such efforts not only save money, but also serve to improve the aesthetics and perceived value of the assets. Rental properties that are well-maintained are likely to attract and retain high-quality tenants. If you are having difficulty maintaining your rental property, the following recommendations will help you.
Qualify your Tenants
Consider the following tenant characteristics, keeping in mind that it is illegal to discriminate against tenants:
• Smoking or no smoking?
• Employment requirement
• Past rental history required?
• Number of references required?
Having reputable tenants who will take good care of the property is the most effective way to ensure that it remains in good condition. If you discover such tenants, you may not need to spend so much money on maintenance. Landlords who have difficult renters, on the other hand, will always end up with worn-out and unkempt looking houses, regardless of how frequently they undertake maintenance. As a result, you should take the time to do background checks on every potential tenant and only accept those who have outstanding profiles.
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Include a Rent Agreement Maintenance Clause.
Even if you have the ideal tenant with a reputable record, it is in your best interest to include a property maintenance clause in your lease. Through such clauses, landlords can clearly communicate to renters the importance of taking good care of the property, as well as the roles and responsibilities of each party in terms of property upkeep. When a resident understands that they are liable for any subsequent losses, they will take proactive steps to avoid them. The practice is also to attach a certain percentage on the rental fee as Caution deposit to be used for repairs and maintenance of the property when the tenant moves out. Even though may not cover costs sometimes it is cushions the effects.
Contract Qualified Vendors
A well-maintained property necessitates the use of maintenance and repair professionals such as plumbers, carpenters, painters, electricians etc. Regardless of the type of maintenance service you desire, you must thoroughly vet possible vendors. Choose only reliable, cost efficient companies who can offer the required services safely and reliably.
Perform Routine Inspections
Routine inspections, regardless of the time of year, can have a significant impact on the longevity of your rental property. While viewing the exterior of your property, look for water leaks, broken windows, rotting wood, and overflowing gutters.
Tenants are more prone to overlook such faults during their tenancy, especially if they are not actively involved in property care. After all, many renters who actively participate in property upkeep believe that “maintenance” only refers to the interior of the property.
Regularly inspecting the exterior of your investment property can allow you to identify problem areas before they become serious ones. Also pay close attention to ensure they are consistent with paying their bills including Nepa bills and other bills so they don’t bypass power move out and leave you with huge unpaid bills.
The saying “a stitch in time saves nine” is true when it comes to property care. If you detect a tiny flaw or problem on your property, fix it as soon as feasible. A prompt response can save you thousands of in repair charges. For example, timely replacement of a leaking roof can prevent damage to the ceiling or walls. Similarly, repairing leaking pipes will not only protect your home but will also keep your renters from suffering large water costs.
At this point, it’s easy to understand why so many real estate investors prefer to have property managers handle the daily details of their rental property maintenance.
Do it yourself (DIY) Landlord or Property Managers which ever your choice, conducting routine inspections of the exterior and interior where possible of the property after giving the tenant required notice helps to catch small issues before they become big and expensive.