Owning rental property is a smart way to grow your wealth. However, managing your portfolio of rental property can be hectic. With the average apartment rent going down over the last few years, you need your property to be in the best shape for you to attract tenants who are comfortable to pay the rates you’ve set.
Owning rental properties in Centennial, Colorado is just the beginning of the journey to earning passive income. As a landlord, you need to do many things to reap maximum benefits from your new investment. Whether you chose to manage your property yourself or hire a manager, you have to keep your tenants happy by making sure that your property is in excellent condition.
Tenants, in essence, are your source of income. They should be your focal point. Tenant management starts from the point you receive inquiries from people interested in the property after advertising. Screening should be the first step when you receive applications. You need to ascertain and verify all the information provided to determine if they are the kind of people you want to live in your property. You might have neighborhood rules, which you also need to consider when screening for applicants. Once you pick the right tenant, what follows is getting into some agreement. This should involve taking the tenant through an updated lease, which should spell out tenant-landlord terms in line with local laws. Ensure that everything is in place to avoid conflict due to misinformation.
The property’s physical structure needs to be maintained to meet health and safety standards. The compound needs to be clean with unwanted vegetation cleared. It is your responsibility to make sure that your tenants have access to clean running water and that the electrical work meets modern standards. Garbage collection, fixing leaking roofs, and sealing all cracks should also be among the things that you offer to your tenants. You will have to facilitate regular inspections by local authorities, lenders, and insurance to meet requirements. This aspect of management will not only keep your property in top condition, but tenants will also want to stay for longer.
When managing your rental property, remember that it is a business that you are running. In any industry where funds are involved, what comes in and goes out should be captured. Rent is your income, and as the finance manager, you need to know how much has been paid and when it was paid. You will face expenses like insurance, local taxes, and levies. In case your property is financed, then you should facilitate monthly mortgage repayments on time. If you are responsible for paying for some rental utilities, make sure to do it on time.
Managing rental property can be difficult at times. You are tasked with everything, from searching and booking in your tenant to looking after their welfare while they stay in your building. Your property will need constant monitoring and maintenance. Above all, you must pay attention to finances. These processes are manageable, but if you can’t cope up with this burden, its better get a property manager. Just ensure to choose a management company with a good reputation.