Jumping into the rental market is a risky endeavor for even the most successful business owners. For many first-time landlords, the margins are so low that it makes it difficult to keep the lights on especially if the property is not well run. Therefore it is important that the right management decisions are made from the beginning of the property management process. Here are some tips for first-time landlords to help keep them in the black.
Start with Technology: Thirty years ago property managers and landlords did not have anything close to the technology available that we have today. New landlords can purchase property management software that organizes documents, saves important information and even integrates with payment portals so that landlords can easily collect rent. Therefore, whether your starting with one property or 10, jumping into the rental market and starting with property management software will make it easier for you to manage your property. In addition, you will not be weighed down by the cost of money and time when you acquire more properties and have no choice but to switch to a software-based system to effectively manage your additional properties because your property management system in already software based.
Do not delay marketing: if your property is vacant or will be vacant shortly, market it right away and don't wait. Every day you're not collecting rent your losing money. Therefore, market your property on several popular rental listings, make sure to have great descriptions and pictures and if required hire a broker to get the property filled fast.
Try to reduce turnover: If you can re-sign your tenants even with a small increase in rent every year, you will save time and money in marketing, and lost rent due to vacancies. In addition, you vastly reduce the risk of having a new tenant that causes noise issues, breaks things or does not pay rent if you already know they have been great tenants for the last year.
Screen tenants & employees: Allowing the wrong tenant into your property can cost you money in lost rent, legal fees, and even damage to your property. Spending time and money suing and chasing after tenants that do not pay rent is a sure way to lose money quickly. Also, higher inexperienced and problematic employees can lead to unwanted issues with your tenants and constant repairs that need to be fixed often. Therefore, only hire employees and contractors once they have been vetted.
This post is provided by RISSOFT Residential and Commercial Property Management Software, specializing in innovative and cutting-edge property management software for all 50 states. Request a demo or contact us today to receive more information.
Disclaimer: The information provided in this post in not intended to be construed as legal advice, nor should it be considered a substitute for obtaining individual legal counsel or consulting your local, state, federal or provincial tenancy laws.