The promise of this article is simple: to help you reduce your vacancy rate, boost your rent roll, and maximize your cash flow by adhering to the property management best practices of the pros. If you’re just getting started in rental property investing, these ideas will serve as guiding principles and help you avoid most pitfalls, scams and rookie mistakes.
If you’re an old hand in the industry, nothing here will be new, but a little refresher is always welcome.
8 property management practices of the pros:
- Tenant quality matters:
Don’t skimp on screening and vetting would-be tenants before signing a lease with them. Spare yourself potential future headaches by conducting thorough background checks, looking at rental history, and checking references.
Remember this golden rule: it’s better to take time and wait for the right tenant than rush into an arrangement that could turn sour. Also, remember that none of the property management best practices in the world will make a dent to improve your profitability if you’re dealing with lousy tenants.
- Clarity wins the day:
Your lease agreement is the rulebook for your property. Make sure it clearly covers rent amounts, due dates, maintenance responsibilities and the consequences of any rule violations.
A clear and well-defined lease agreement can minimize misunderstandings and spare you future disputes.
- Communication is key:
Be proactive! Reach out regularly to your tenants to deal with any potential issues and address their concerns promptly. Let them know you’re there for them and show them that you genuinely care.
Having a responsive and friendly approach is how you foster a positive landlord-tenant relationship. Communication is really the foundation of all property management best practices. That’s something to keep in mind. Of course, it may not always be easy to stay in touch with your tenants and have an ongoing friendly relationship with them.
If this happens to be the case, then you may want to use the help of a property management company.
Our consultants at Summerfield Property Management are always happy to help.
- “A stitch in time saves nine”
This age-old saying communicates the importance of regular and timely maintenance better than anything we could say. So, be proactive and have a maintenance schedule for every property you oversee. Use the time between tenants to roll up your sleeves and clean, fix and get things in tip-top shape.
Before you sign the lease agreement, make sure both you and the tenant know who’s responsible for what when it comes to maintenance. This not only prevents misunderstandings but also helps you plan and organize things and budget more efficiently.
- The power of networking:
Your tool kit of property management best practices would be incomplete without a solid networking plan. And we’re not talking just about connecting with tenants and landlords here, but also with the essential professionals you’ll need at your property.
There will come a time when you’ll need to collaborate with contractors, inspectors, repair specialists and possibly legal professionals. So, don’t wait for that moment to arrive and start building those relationships right now!
They may come in handy if you need help or even if you just want to score the best deal on a project.
- Don’t let trends outpace you:
Just like any other industry, things are always evolving in property management. Therefore, you need to have your finger on the pulse of the market and stay up to date with the latest stats, industry trends and all that’s buzzing on social media.
That’s how you can capitalize on new opportunities that appear in the market and stand out as the go-to-expert in the industry.
- Know your numbers:
This one is the “biggie” of property management best practices. Why?
Because you’ve got a limited pot of resources and it’s crucial to keep a sharp eye on your cash flow and where every penny goes. That’s the only way you can budget wisely and make informed decisions on where to cut costs, when to tighten the purse strings and when to invest in fancy renovations.
- The importance of marketing:
Use online platforms and forums to actively market your multifamily rental properties and keep the listings up-to-date with fresh photos and descriptions. When you give your rental property a facelift – whether it’s a deep clean, some repairs, or a full-blown renovation – don’t forget to snap updated photos and spruce up the descriptions.
And don’t forget, effective marketing is not just about attracting new tenants. It’s also about keeping your current tenants happy and spreading good vibes through word-of-mouth and online reviews.
How to profit in rental property management?
As we’ve seen so far, if you want to run a profitable rental property, you need to learn to market properly and aggressively. You need to be able to vet your tenants effectively and maintain a good relationship with them. Above all, you need to stay on top of your finances to budget properly and stay in control of your operating expenses.
Sure, getting the hang of all these property management best practices can be a tall order. This is why you may want to use the help of a reputable property management firm like Summerfield Management.
If you want to maximize your profits from your investment property while minimizing your stress, then a good property management company could be a lifesaver.
Look for a company with a good track record, positive reviews from property owners, and experience managing properties similar to yours. Make sure they’re licensed and insured and ask about their tenant screening process. Also, consider their communication style. You want someone who keeps you in the loop without bombarding you with unnecessary details.
At Summerfield Property Management we strive to fit that bill and to provide you with tailor-made plans and solutions that fit your needs.
Contact us today or book a call at a convenient time to learn more about our program.