Best Practices for Managing Rental Properties

Managing a rental property can be quite difficult for real estate investors, especially the first time you purchase an investment property. On the surface, it seems quite simple. You purchase an investment property, find a tenant and collect the rent when it’s due. The problem is that the process is far more complicated because sometimes it’s hard to find a tenant and then there are other instances when you find a tenant but things does quite work out as planned. You may end up having to evict someone, which means you have a legal issue on your hands. 

As a real estate investor, you also have to deal with issues that require your attention when you least expect it. For all of these reasons, and many others, most real estate investors end up realizing the value of hiring a property manager. Rental Properties from Image Properties is a perfect example of effective property management. 

A great property management company will start by finding the right renters through the development of strategic marketing plans that are designed to reduce the turnover and vacancy rate. For example, there are some neighborhoods that tend to attract and accommodate retirees. Under those circumstances, a savvy property manager will target that demographic, which will likely result in a lower vacancy rate. Similarly, you’ll need to stay up to date on trends in the neighborhood so that you can be proactive and market the property accordingly. 

Another practice is consistent marketing, even when there are no vacancies. This helps to ensure there is a consistent flow of applicants. You’ll also generate interest in the property. Depending on the size of the community, you can cultivate relationships through newsletters and local events. The relationship-building aspect of property management should not be undervalued because it can lead to word of mouth advertising and referrals from satisfied tenants and neighbors. An effective property manager cultivates positive professional relationships and maintains a strong network of vendors so that you can call upon them in an emergency. 

Proactively managing the daily functions of a property can take a lot of effort, but it’s critical in order to maintain a highly regarded property. This means that all HVAC, landscaping and general maintenance functions must be resolved promptly. In fact, a robust preventative maintenance program is imperative to keep everything on track. It’s also important because a property that is not up to par can receive negative reviews that could impact your ability to rent the property in the future. 

Effective property management means paying attention to the bottom line. If you run into a problem with renting your property, then you may need to improve your marketing efforts. A vacant property can quickly eat away at your profits, so it’s important to pinpoint the problem and resolve it right away. Whether you decide to hire a property manager or manage your investment on your own, it’s important to maintain updated knowledge of industry trends, laws and regulations.

 

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