Self-managing a rental property is difficult, and making mistakes can lead to significant financial losses. Because of how much money is going into a rental property, you need to know what you are doing before starting out as a property manager. Here are 7 things to keep in mind about managing your own property.
Have a written agreement.
A written agreement serves as a protection for both the tenant and the owner. The agreement should set time limits for when rent is due as well as outline the responsibilities of both owner and tenant. After drafting this agreement, be mindful of the responsibilities you have laid out for yourself and hold your tenant to theirs as well.
Perform routine maintenance.
Having to pay for large or emergency repairs on your property can be costly, which is why it is much better to take care of problems while they are still small. For example, fixing a leaky faucet is much easier (and cheaper) than fixing a flooded kitchen.
Screen your tenants.
Having good tenants helps your management run smoothly and your property to stay in good condition. Look into your tenants before signing a rental agreement with them. It is fairly common to have background checks performed on prospective tenants, which includes looking into their credit history and any references they may have. A good tenant keeps your property in good condition, which in turn will save you time and money.
Provide warning and notice before entering the property.
You may be the owner of the property, but you should still give advanced notice if you plan on entering the property for inspection or repairs. Tenants have a right to privacy, so you cannot simply barge into the property at any time. In fact, most states require at least a 24-hour notice before the owner enters a rental property.
Make sure your properties are secure.
Ensure that your property will not be the target of criminals by making sure all of your properties are secure at all times. Additionally, having good security for your property will make the property more appealing to tenants. This makes it easier to find tenants and reduces the vacancy time for your property.
Watch your finances.
Consider opening a new checking account to handle the payments from your rental property. This will make it much easier to keep track of incoming payments and give you an account to pay for repairs or any other expenses from, instead of using your personal account. Additionally, some states will require security deposits to be kept in a separate account, so keep this in mind when making accounts for your properties.
Get insured.
Having liability and other property insurance ensures that you will be covered in cases of damage to your property as well as legally protected. Some tenants may become angry with you for one reason or another and attempt to bring legal action against you. In these circumstances, having a well-designed insurance program makes sure you are legally covered and protected
