When you get into property management, chances are you think that you’re going to build passive income immediately. Usually, they’re not totally passive, but you want to make it as passive as possible.
How do you make it more hands-off? Well, read on to find out.
First, you want to screen the tenants for longevity, respectfulness, and not just for the likelihood of getting payments. Usually, you focus on payment, and while it usually is 90% of the work that the landlords focus on, you should also look to see how long they’re going to be here. If you screen them and see that they have hopped around a bit, that may determine whether or not you want them. If they stick around, they can be a better investment, so you may want to consider putting them in over the person that hops around a lot. You can also ask the landlord about their unit, and how high-maintenance they tend to be, and usually, if they aren’t too annoying, that could be considered a great investment.
You should also set up reminders for renewals of the lease, and raise the rent. Usually, there are laws that the landlords must give the person before they raise the rent. If they’re low-maintenance, ideally, you can send a non-renewal notice. If they’ve worked it out, you can send them a lease renewal notice, and a slightly higher-rent. You should always set the rent slightly higher each year, about 1-4%, depending on the market. This also sets up expectations to also keep you on the market, and you don’t want to slap the tenants with a giant rent hike or anything too, cause that drives them away.
You also want to have a handyman that can do almost anything. Most of the time, the maintenance calls are mundane, but you should have someone that knows what they are doing. You should make sure that you get someone who is well-versed and knows what they’re doing, and you should definitely build a relationship with them. You should make sure that you create a good repute so that they want to stay there. This will help because if a tenant calls you about a maintenance issue, you can get one phone call out to resolve it, and you will be able to build a good relationship with someone. One call beats five calls, that’s for sure.
You should also make sure that you’re not hustling for the rent, and you can do that by automating the rent collection from a paycheck. Once again, you didn’t do this because you wanted a second job, but instead, you should make it so that it’s passive income. You should make sure that you get a service that works for you, and as a company, it can save you a lot of time if you set this up.
You should then hire a leasing agent like point Breeze real EState, but also make sure that you do your own management. There is a lot that goes into it, and typically, while the units are occupied, you have to do all of the other little things that involve that. Turnovers take a lot of work though, and you should consider getting a leasing agent to help with this they can advertise for you, get any questions answered, advise on repairs, show off the property, and even screen applicants. You can then have that person, along with the handyman do that, and it can save you so much time. You do want have to pay a leasing fee to the agent, and you don’t have to pay ongoing fees, which get expensive. You essentially delegate the hard part but do the easy part yourself.
When making your life easier with managing a property, here are a few things that you can do. By doing this, you’ll make the job much more manageable, and in turn, it can make everything simpler for you. You don’t want this to be a second job, right? Well, you can prevent that from being the case, and make your life as an investor either, by considering these options that in turn will help you manage your life better.