Renting out a part of your property is one of the best and most sustainable business ideas.
Plus, it can also be done on the side, so you can work a daily job as well. But, more important than everything else; is it easy?
Perceptions say yes. Experiences say “try and learn”.
Well, surely it’s better to learn before coming across inconvenient experiences. And that’s why here we are talking about seven rental property management tips that every landlord should go through.
So, buckle up. Here’s how you can scale up your property renting business.
1. Realize The Importance Of Strictness
We all know the difference between a good and a not-so-good tenant.
While a good tenant will be regular with rent, will take care of your property, make sure there are no careless damages, a not-so-good tenant may not worry much about any of these.
It sounds like an inconvenience, right? We know the feeling. And most probably, you do too.
But are you able to manage this fine? Well, if you aren’t, it’ll be better to turn up the strictness.
Now, this doesn’t mean offending your tenants in any way.
The idea is to let them know that anything against the norms and rules will not be tolerated. Plus, the rent needs to reach you on time; every month. Yes, delays of a day or two may still work, but shouldn’t be taken for granted.
Also, spread the word that security deposits will be used for covering damages if any.
2. Don’t Get Into Wrong Alliances
Regardless of the business and industry, success rides a great deal on the choice of partner.
While the right business partner will be active, supporting, encouraging and a sincere business owner, a bad one may throw $$$ bills assuming that’s all the role they need to play.
As a result, frustration and conflicts may start building up adversely affecting business and its potential growth.
But we don’t want that. And so, we will steer clear from such company and be as careful while choosing a business partner as we’d be while hiring a new employee.
Pro Tip: Partnering with someone who you’ve known for a good time is always better than getting a completely new individual on board.
3. Make The Most Out Of Your Property
One of the common mistakes that many landlords make is they limit their income opportunities.
Think about it. If you have a property that’s available for lease, who else apart from the tenants can rent it from you?
We’ll tell you.
- A bank can use a small space for their ATM (if that’s a thing in your area)
- Communication networks can use your roof for installing their cell phone tower
- Any individual or business can hire a small space for their personal storage
- Billboards and other print advertisements can also make extra income
A sea of opportunities, isn’t it? Well, it’s of no good if you don’t use it for your best.
4. Don’t Neglect Housing Laws
Every state has housing laws and regulations of its own. And these apply to all landlords. Plus, the consequences; not the best for you or your business.
Your best bet?
Educate yourself correctly about the housing laws in your region and make sure your business complies with them in all senses.
It’s crucial to understand that when legal issues are a concern, any half-measure can be lethal. So, educate yourself and make sure you are safe from such fiascos.
5. Avoid Unnecessary Renovations
Repairing the paint of your building is good for its health. Repairing the structure will make it stronger. Keeping the property clean will attract and satisfy tenants. But does your building really need a lift? Does it really have to have a super-aesthetic build?
Think about it. By spending in these, you may just be draining your company’s resources for nothing. So, better not do that.
Instead invest in providing useful electronics and strong & comfortable furniture.
Note: This in no way means that you can go easy on repairs, painting, electricals, floors or cleanliness.
6. Pay Attention To Genuine Problems
Yes, strictness is important. But not for disturbing your tenants. Just for ensuring that you don’t have to suffer.
One common reason why tenants leave a property is that their problems aren’t solved.
For example, a broken water heater during the winters can become a severe trouble for the user.
Or similarly, a broken air conditioner during summers can seriously trouble the tenants. And when they realize that you are indifferent to their problems, they start looking for other properties, and a responsible landlord.
A direct loss to your business. So, try to keep this problem away by paying attention to your tenants’ issues.
7. Smartly Find Tenants
One of the most crucial steps for scaling your rental business is learning the art of finding good tenants.
While your property may be good enough to promote itself, to find good tenants, you’ll need to play a part.
For reference, here are some critical factors to look for in a tenant while leasing your property.
- First things first, Don`t discriminate on the basis of:- Race
– Family size
- Verify Income: Don’t rent your property to financially irresponsible or unstable individuals. It’s recommendable to demand income proof before finalizing the contract.
- Consider taking a criminal background check: One of the worst things you can do to your rental business is offering the property to a criminal. Now, you may not do that intentionally. That’s why it’s important to run a criminal background check of the person before signing a contract.For this, you can get in touch with a legal advisor or simply go for a federal court record search.
Also, apart from these, trust your instincts,
Yes, managing a rental business can be one heck of a task. Keeping the money flowing and making sure that the tenants are happy and satisfied is a great deal, of course.
But if you follow the tips above, management will become easier. And if it still gets overwhelming, a good block management service can always rescue you. Click here for more information.
So, don’t worry as even on the worst days, you’ll be making a good deal of cash.