Renters make up about 36% of the 122.8 million households in the United States. Because of this, there are many rental property management companies that take care of each of these properties.
Being a rental property manager comes with many challenges. To simplify this job, it is beneficial to learn ways to manage your properties more effectively.
Do you want to learn more about strategies to help improve your rental property management? Keep reading this property management guide for the top six tips for effective rental property management.
1. Pick the Right Tenants
The most important thing you can do as a property manager is picking the right tenants. This is easier said than done, as it can be difficult to learn about someone you have never met. One thing that can help you find high-quality tenants is developing a tenant screening process.
This can include a tenant background check to make sure they do not have a criminal history and that they have had no previous issues with a rental property.
Another important part of doing a tenant credit and background check is that you will make sure they will be reliable with their rent payments and that you will not have to worry about property damage.
If you need help with the tenant screening process, Rent Safe can help.
2. Try To Reduce Tenant Turnover
When you choose the right tenants, it is much easier to reduce tenant turnover. When you have tenant turnover, it ends up costing you more as a property manager. Not only will you have to pay to get the property ready for a new tenant more often, but you will also have weeks or even months where you are not making money from your property.
To reach your profit potential, you should find ways to keep your tenants satisfied with your property.
It is also important that you are able to turn over your property as efficiently as possible. The faster you clean your property, the faster you can find a new tenant.
3. Choose the Right Property
Another important tip to make your rental property management more effective is choosing the right property. This is one way you can reduce vacancies in your property and make the most money possible.
You need to find a property that has a good location. Properties that are close to public transportation, schools, shopping, and other amenities will have more success finding tenants.
You should also find homes that have a good layout with good curb appeal. This is more attractive to potential renters. Similarly, you should try to find homes that have additional amenities that renters want.
For example, homes with a fenced-in yard, laundry hookups, and more will often have fewer vacancies than other rental properties without these same amenities.
4. Set the Right Rent Price
Next, you need to set the right price for your rent. This is something that will affect your tenant turnover and your profit, so it is important to do your research before you set the price for rent.
First, you should look at other similar properties in your area to find a fair market rent price. If your rent is priced too high, you may have a higher turnover of renters, and your property may sit vacant for longer.
If your rent is priced too low, you may have a hard time attracting good tenants.
Finally, you should compare your rental income to your rental expenses, like property taxes, mortgage payments, and other fees. You need to make sure your rent is priced well enough to pay for all of these expenses!
5. Have a Written Rental Agreement
Another important tip to make rental property management more effective is having a written rental agreement. In your rental agreement, you can communicate your expectations for your tenants and you can protect yourself from legal situations.
Your rental agreement should have specific rules and regulations for your property. For example, you should include when your rent is due, how tenants can pay it, and if there will be a fee for late rent.
You should make sure your rental agreement is customized to you and your needs so that you can deal with problematic tenants properly.
6. Consider Outsourcing Your Property Management Tasks
Finally, you should consider outsourcing your property management tasks. This is the easiest thing you can do to make your life easier as a property owner, and it will help you with every aspect of your property management.
Property management companies can help you market your property to find tenants, collect rent payments, and will deal with maintenance and other tenant issues. This way, you can have more time for yourself and your other responsibilities rather than dealing with the day-to-day tasks of property management.
A property manager is also a great investment. While many property owners worry about the expense, a property management company can help you maximize your profit in the long run.
Need Help With Rental Property Management?
When you own a rental property, it can be difficult to stay on top of all of your property management jobs. By following each of these six tips, you can make your job much easier and have more effective property management.
Do you want to learn more about rental property management and ways you can make it more effective? We can help! Our website features articles on business, technology, and home improvement and can help you find easy ways to improve your management.
Check out our website today for more tips on managing properties!