by Managing rental properties takes time. The amount of time spent varies depending on how many rentals an investor owns, tenant turnover and the condition of each property. But regardless of the number of properties managed, there are some things all investors should keep in mind.
The first step to managing rental properties is finding and screening tenants. The process involves advertising the home, checking renter credit, reviewing references, creating a lease and collecting rent. It’s important to take the time to do this right because bad tenants can cost you money and lead to a host of issues.
Landlords must also be familiar with landlord-tenant laws, especially when handling tenant-related issues. This includes knowing how much notice is required to enter the property, how to handle tenant complaints and enforcing late fees in a way that complies with local law. Additionally, landlords should be aware of any specific requirements in their state for addressing maintenance issues.
Another critical step is setting and achieving a budget for operating expenses each year. This should include the cost of insurance, repairs and cleaning, utility bills, management fees, landlord-tenant accounting and other professional costs associated with owning a property. It’s generally a good idea to set up separate bank accounts for the property and its income, so that expenses can be easily tracked and accounted for come tax season. manage-rental-properties
