There is no doubt that managing properties was never easier. It takes effort, proper care, time-to-time maintenance, collecting rent, and many other hassles. Also, occasionally, you need to handle legal aspects of things such as taxes, evictions, and even facing court.
We have been working as a property management company in Rhode Island for over 30 years. From my practical experience as a property manager, I will give you valuable insights into managing your properties.
These tips are intended to make you proactive. So you can manage your property without facing too many troubles.
Let’s get started.
What are professional tenants, and why should you avoid them in the first place?
As a landlord, you should be aware of professional tenants, who they are, and why you should avoid them in the first place.
The term “Professional” may confuse you in this context. They may seem good, and you’re safe to place them in your rental apartment. However, this is not the case.
Professional tenants are individuals who are experienced in navigating the rental market. But they misuse their knowledge and experience. They exploit legal or procedural loopholes. These tenants often have a history of disputes with landlords, may be well-versed in tenant rights, and could potentially engage in behaviors such as late payments, causing property damage, or exploiting lease agreements.
Ultimately, they make huge issues in your rental properties. One single professional tenant can make you busy facing court, damaging properties, complaints, etc. This type of tenant is very hard to evict. Moreover, they don’t pay rent on time or in full.
So professional tenants are a big no.
Tenant screening
Tenant screening is crucial for numerous reasons. Every landlord expects rent payments on time, a habituated environment, and proper care of their assets. If you have multiple apartments, you don’t want a tenant to make a disturbance for others.
A proper screening process ensures that you place the right tenant and remove all the unexpected hassles & vulnerabilities from your property.
I already discussed professional tenants. Aside from these, you also check for rental history, eviction records, financial solvency, criminal history, etc. (tenant screening report). For more details, see how you find out who is renting a property.
Proper marketing for your vacant properties
There are various channels, online platforms, and ways to market your properties. If you found a way to get better results, stick to it. But if you have a hard time reaching out to the right prospect, seek paid help from professionals who work in this field, especially marketing rental properties.
Make sure your property is clean enough and well-prepared. This hygienic environment will help you attract high-paying prospective tenants. For a complete checklist, see how to clean a rental property before showing it to tenants.
Become proactive in reducing the vacancy rate
Apartment or rental property vacancy is standard and can happen to any landlord. No tenants live in rental apartments for a lifetime. However, having a high vacancy rate is abnormal, and something must be wrong with your strategy if your property stays vacant for a long time.
Aside from your strategy, I can give you one piece of advice: always try to show the apartment to prospective tenants when it’s occupied. The occupied property gives a clear picture to the prospects. They can clearly understand and imagine the view of their upcoming living space and surrounding environment. However, respect the existing tenant’s privacy and ask for their permission.
This strategy gave us reduced vacancy rates, and it can do the same for you (if you use it correctly).
It’s hard for prospects to imagine a clear picture of a vacant apartment; they may think of many negative aspects of the vacancy.
You can learn more in-depth instructions in the following post: how can a landlord show an occupied apartment?
Think of your rental properties as a business
Of course, you think this way, as we do. But do you act accordingly?
During the last 30 years, we have seen many apartments needing work. You can double the rent by just renovating. At least, it will increase the rent significantly and attract high-paying tenants.
So, if your property looks outdated and old, you should renovate it. I encourage you to do it (if necessary), and you will get results shortly.
We did and proved it many times over and over. If you need help renovating your apartment and updating the features, call us at (401) 622-1658. For more details, see our “Apartment Renovation & Remodeling Service.”
Regular inspections and maintenance
Property inspection helps you make informed maintenance decisions and gives you a clear picture of to-dos. It also protects your home from future vulnerabilities.
Even though a regular inspection generally takes between 30 minutes to two hours, many private landlords ignore it. As a result, they find issues after the problem executes. And it leads to significant damages and costly repairs.
Generally, there are two types of inspections: regular & on-demand. A regular inspection typically takes place once or twice a year. On-demand inspections are done when there any issues arise.
Find a complete checklist in the following link: What is a home inspection?
Proper care of your tenants
Tenants are the clients of your rental business. A successful business depends on client satisfaction.
Paying attention to your tenant’s complaints and promptly answering those queries are crucial to maintaining a better relationship.
It involves repairing and upgrading certain features, providing safety equipment, ensuring habituated living space and quiet enjoyment, turning the heat on in the cold months, and fixing other reasonable issues.
Some of these are fundamental/basic rights. It does not need to have a lease agreement to fulfill fundamental rights. They deserve it by the law.
To learn about your tenant’s rights, read the following post: What rights do tenants have without a lease?
You’re obeying government rules and satisfying your clients by fulfilling tenant’s rights. The more advantages you can provide, the more rent you can raise.
Understanding different fees
As a landlord, you may encounter various fees, especially if you maintain large properties with many apartments.
Understanding these fees helps you make a better budget and plan. I linked some of them below.
- CAM fee and how you can calculate it
- What are condo fees and HOA fees?
- Who pays the rental broker fee?
Evaluate your ROI
It is primarily the difference between your property maintenance cost and rental income. Property managers typically generate an owner statement monthly or for a certain period. It gives you a clear picture of your financial performance.
You can calculate ROI by dividing net profit by total investment and multiplying by 100. It helps assess the overall viability of an investment.
To learn more, see a good return (ROI) on a rental property.
Understand the legal aspect of eviction
Eviction is a necessary evil. Tenants, landlords, or no one likes to face or go through eviction. However, it’s the last resort when resolving an issue, especially removing not-paying renters.
Here are seven main reasons for evicting a tenant.
Eviction does not happen very often. But as a landlord, you should familiarize yourself with local regulations.
Get professional help from a property management company
From the above discussion, you must understand how much effort it takes to manage a property. Also, you may notice it from your practical experience, especially if you were managing properties yourself.
Property managers are a bridge between you and your tenants. They fulfill your tenant’s needs, maintain your property, collect rent, market your rental apartments, tenant screening & placement, renovate & remodel your apartments, and everything in between. If you hire a property manager, you get the monthly rent on time, even if the apartment is vacant.
Hiring a property management company costs money. Sometimes, it may seem expensive, but if you think of it in the big picture and long-term vision, it is more profitable than you think. They also help you to raise the rent by upgrading your rental home (if applicable).
To better understand their workflow, see everything you need to understand property management workflow.
Not all property management companies are equal. Also, not every company has the same level of trust and reputation. So, you need to figure this out in your location.
We operate in Rhode Island (Providence, Pawtucket & Woonsocket). If you’re located in our service area, call us at (401) 622-1658.
Conclusion
Managing rental properties can be daunting. You can manage your assets efficiently if you have the right strategies, tools, and workforce.
In this comprehensive guideline, I explained the most essential aspects of managing properties for landlords. Also, I included links to related resources where you may want to know specific topics thoroughly.
Property management companies play a vital role. You can get personalized help to manage and improve your properties. At the same time, they also take care of your tenants. So, if you find managing properties hard, management companies can save you and ultimately generate more revenue in the long run.
