Setting up your home as a rental property can certainly generate decent monthly passive income. That is if you do rental property management right. Read on to learn some important rental property management tips.
Contracts, late fees, maintenance and repairs, and more play a role in your profits. But don’t let this scare you away from becoming a rental property management superstar. Doing it yourself can definitely be rewarding. And the profit margins on your rental property will be larger.
From market research and property maintenance to property management marketing, let’s dive a bit deeper with a few key tips for rental property management success.
1. Pricing Can Make or Break Your Rental Property’s Success
With a rental property ready to go, you need to be ready to rent it out. However, one of the most important rental property management tips is to price the rental appropriately. This can prove challenging. You want to serve up a fair rental price to fill the property, but definitely don’t want to give it away.
How can you strike the best balance? Market research. The market can highlight the best rental price for your property. You may have already done a bit of research to get you ,moving in the right direction. Here are some important questions to ask?
- What is the average rental property price in the area?
- What is the family size for rentals in the area?
- What is the average income in the area of the property?
- Does the property have any added benefits for the location?
These questions will help mold the right price for you to get the property filled quickly, as well as making a great monthly profit.
2. Marketing the Rental Property and Finding Exceptional Tenants
The rental process is certainly easier discussed than actually done. The truth is, it can be difficult to fill a rental with an exceptional tenant in a short amount of time. Difficult? Yes. Impossible? No. In many ways, it all comes down to marketing your rental property effectively.
To market the rental, you will need to advertise in the right places. This will ensure you get the rental filled quickly, and have great tenants. For instance, you may not want to market the rental at the grocery store via flyer. This is an outdated marketing method.
Instead, turn to the internet and digital marketing to rent your rental. For example, Zillow, Apartments.com, and other digital rental property platforms on the internet can prove useful. Be sure to take professional pictures and write a strong rental property description for your digital advertisements.
To find an exceptional tenant, you do need to have some guidelines. You may even want to create a tenant checklist with the following:
- Credit and background check
- Check previous rental references
- Confirm employment and income
- Hold multiple interviews
It is essential to do your due diligence when it comes to vetting tenants for your rental. Otherwise, you may end up having serious issues down the rental road.
3. Ensure Rental Is Safe and Clean
With a tenant living happily in your rental, it is time to cover checking up on the property, as well as performing maintenance. This is where your role is more passive as a rental property owner. However, make no mistake, this is an important time.
You are now a landlord, and landlords need to remain attentive to the tenants’ needs. If an issue arises at the property, you need to be available to help the tenant resolve the issue in a quick manner. This will keep the rental relationship strong throughout the lease term.
First, you will need to schedule two rental property visits a year. This allows you and the tenant to discuss any issues, as well as allowing you to do a walkthrough. Walkthroughs can give you insight into any issues that need to be fixed before serious problems arise.
You or a property manager will also need to ensure the rental is maintained properly. This includes doing regular maintenance. Maintenance can be tricky, so it may help to have a few aspects at the ready, like a list of local contractors, and a list of basic repairs you can manage on your own.
It’s Time To Get Your Rental Property On The Market
Having a rental property can certainly be rewarding. You can turn your property into a profitable passive income that helps pay the mortgage on the property while boosting your bank account. The time has also never been better for rentals. Are you ready to put your rental on the market?