5 Simple Steps to Managing Your Home Investment Properties
Being a landlord is a great way to make extra income. To be an effective and smart landlord, there are some simple steps to take to make your experience easy and enjoyable. Follow the steps below to take your dream of managing properties into reality.
Buy and Repair the Property With many options to purchase on the market, it is important to find the right one. But sometimes this means a quick turnaround is needed. Hard money lenders can help you secure the funding you need to get a property quickly. Once you have secured the property, be sure to repair it and get it in top renting shape. A property that is clean and highly functional will attract ideal tenants whose income you will be relying on. Make a good impression.
Determine Who You Want for a Tenant What are the requirements you are looking for in a tenant? By having an ideal tenant in mind, you will be able to market to them more directly. Keep in mind that you cannot discriminate against tenants. Consider the following points:
- Minimum income
- Employment status
- Credit requirements
- Past rental history
Find Tenants There are specific laws that you should be sure to research and follow when searching for tenants. You must treat all prospective tenants equally. You can make sure tenants know that your rental is available by posting it to rental sites. Depending on your community, bulletin boards and newspapers can be a great place to post your rental. Social media and word-of-mouth can also bring great tenants to a property. Always be sure to respond quickly to prospective tenants and maintain professionalism at all times.
Maintain the Property Things break, appliances die and mistakes happen. Be sure to respond to any emergency maintenance requests on all of your properties. Your tenants will expect it and will remain at a property longer when their needs are properly met. Additionally, be sure to have regular maintenance performed to prevent future problems. Have the HVAC checked annually, enlist seasonal pest control and have the roof and attic checked on a regular schedule.
Collect Rent and Pay Taxes Be clear with your tenants about the complete cost of rent, what they are responsible for and how they can contact you. A rental contract should be created carefully to provide all of the information your tenant will need. Have a system in place for receiving rent as well as the consequences for late payments. Always be sure to plan for taxes on your rental income as well.
Having rental investments is a great way to increase your own income. It all begins with your initial property purchase. When looking for a property and in need of a loan quickly, consider how a hard money lender can get your purchase from dream to reality.