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Everyone needs somewhere to stay. For some, this might be a house in the countryside. Others might choose a cabin in the woods. Still, for many people, this means an apartment in the city or suburbs. While renting is a process in itself, what happens with those who want to gain a net profit off their real estate? If you’re a new property manager and need to know what to do to gain tenants and reap a hefty profit, read these most successful tips for new landlords.
Remember To Treat It Like a Business
Real estate is a business and that means treating it like such. Property management requires constant supervision and undivided attention. If there are serious issues with renters or building violations, they will fall on you. Therefore, it’s imperative you establish short-term and long-term goals. One universal short-term goal should be attracting as many potential tenants as possible. There are many ways to do this, such as creating detailed listings, committing to sustainability, and offering parking or competitive rent prices. Long-term goals relate to your short-term goals. You want to retain all tenants you attract. The longer people rent from you, the greater your profit margins will be.
Conduct Background Checks
Screening potential tenants is another important step. Since these are the people renting from you and living in your building, you want to make sure they fit a certain profile. This includes a clean background check, stable income, and a responsible personality. You don’t want to accept renters who might damage the building, prematurely break the lease agreement, or fail to pay rent at its respective due date. Any prospective renter’s failure to complete a background check or has a history of evictions or late payments should raise red flags. Stick with tenants with good credit and reputability.
Keep Conditions Well-Checked
Regular property inspections are another successful tip for new landlords. As with any business, issues can happen especially in buildings or property management. Burst pipes, electrical wiring frays, weak water pressure, or even pests can be issues in both old and new buildings. Take all necessary precautions when you’re on the lookout for these issues. Hire contractors or subcontractors to ensure the building is in excellent condition before tenants move in. Also, take note of when tenants move in or move out. Make them sign property rental checklists so they can report any issues they find while also showcasing the room as they’ve moved in. This way, if there are any issues from them during their stay or after moving out, you can take all necessary actions to reprimand and receive financial compensation.
Prepare a Well-Written Lease
Most of these tips revolve around one major asset to the property manager: the lease. Every landlord understands a well-written lease saves time, money, and energy from constant loopholes or arguments tenants may facilitate. You can also incorporate your own rules or regulations with respect to your building’s codes, such as no pets, no undocumented roommates, and incorporating parking stickers to validate parking spots. The lease is the final legal document between you and your tenants, so be sure to have a lawyer review it before sending it off.