Every investment property owner—new or seasoned—can benefit from expert insight. Whether you’re getting started as a new, ambitious real estate investor or you’re building a significant portfolio in Salt Lake City, professional property management tips and tricks can help you boost your income!
Each of your rental properties requires customized care. However, starting with and maintaining some rental property operational best practices can help you see consistent profits month after month. When you build ongoing monthly income, you also create more long-term wealth!
What should every property investor know? While we aren’t an attorney (and this doesn’t qualify as legal counsel), some of these tips may just help save you some serious hassle! Keep reading to learn some of the best tips and tricks from an expert property management company.
Be Friendly (but Not Friends)
Managing renter relationships is a critical part of your success as a rental property owner. Building good relationships can turn into lasting opportunities for stable income when residents feel at home and enjoy the excellent care you provide for your properties.
However, it’s important to maintain boundaries when interacting with your renters. Property owners should be friendly and helpful—but they should also stop short of becoming friends with residents. When renters see you as a friend more than their rental property owner, they can take advantage of you or bend the rules of the lease agreement.
You’ll find it easier to enforce rental rules and the terms of the lease when building friendly relationships—but not friendships—with residents.
A Ready-Made Lease Isn’t Enough
When creating your lease agreement, you’ll find plenty of free lease forms on the internet. It’s common practice for property investors to download a template to use as the lease for their properties. However, without customizing the lease, you could leave yourself vulnerable with an incomplete agreement.
- Having a strong lease is one of the best ways to protect your investment properties and income.
- A renter can take advantage of the smallest loophole in a poorly-written lease template.
- This ends up leaving you with an expensive problem—and a renter that won’t leave your rental property.
If you aren’t working with a professional property management company, make sure you consult an attorney when preparing your lease. An attorney will help your lease:
- Comply with local, state, and federal laws
- Include all of the critical information
- Protect your investment properties from bad renters
- Hold up in court if you face a lawsuit.
Your lease is the most crucial document governing you and the residents living in your rental homes. Don’t take it lightly when you create it!
Set the Right Rental Price
Matching the price next door isn’t always the best way to set your rental rate. Unless the next-door rental is an exact clone of your property (down to every detail), don’t count on the neighbors to tell you the best price for your property!
The wrong rate is an expensive problem:
- When your rent is too high, you won’t find a renter willing to pay that much to live in your property
- When the rent is too low, you lose the money you should be making on your property every month.
Determine the ideal rate (for each property) by using rental market research, comparing to other rentals in the area, and learning about the property features that renters want (and will pay for). The best rental rate helps you make the most money from your property!
If you don’t have the time to undertake this kind of research, partnering up with a property management firm that offers a free rental analysis can be a smart move!
Never Skip Renter Screening
Even if you think your budget can’t wait another day to put a new renter in your property, never skip the screening process! Bad renters don’t pay the rent, cause property damage, and often leave without giving notice—leaving you with costly repairs and a loss of rental income.
There’s no perfect screening process, but every attempt to dig beneath the surface of the information that a potential renter puts on an application is worth the effort. Take the time to check an applicant’s:
- Employment and income
- Credit history
- Criminal background
- Prior rental history
Even if you have to suffer another day or week without a paying renter, carefully screening and selecting high-quality renters is better for your long-term income goals.
Hiring a Property Manager Is the Best Investment Tip!
Master all of these property owner tips (and more) when you hire a professional property management company! The best way to manage renter relationships, create an ironclad lease, and screen for quality renters is to let a property manager do it for you.
Doing things the ‘right’ way isn’t always easy! Reeder Asset Management takes the frustration out of owning real estate. We work hard to handle your properties and renters the right way—even when it’s not an easy task. Let’s talk about how we can help you use these tips and tricks to generate more profit from your properties!
Want to get started for free? Get help with your seasonal maintenance tasks when you download a free copy of our Seasonal Maintenance Checklist!