22 Jan 4 Property Management Tips For New Landlords
According to the Rental Protection Agency, the growth rate of new renters is increasing with 2,654 people entering the market each day. Managing your property as a landlord requires that you take on many responsibilities yourself if you can’t afford to hire rental property management services. If you buy realty as a new investor, you need to understand what these responsibilities are to avoid many of the pitfalls that come when trying to manage a property on your own. Here are four property management tips for new landlords to help you avoid potentially costly mistakes:
Finding high-quality tenants can be a time-consuming task. You will need to be proactive about marketing your rental property to the type of people you would like to rent to. It’s important to be careful when choosing potential tenants because they can cause you headaches down the road. You may have to deal with things like late payments, property damage, and late night maintenance calls. Hiring a property management services can take care of these issues for you.
When reviewing tenant applications, you will need to comply with fair housing rules. This requires you to complete a background and credit check of the tenant, contact references, and make sure all the information provided is accurate. Once an applicant is qualified, you will need to give them a certain set period of time to come up with payment for the security deposit and any additional move-in fees.
The lease agreement is the most critical aspect of managing a rental property. This legally binding contract should clearly state any and all expectations and responsibilities for both you and the renter. It should clearly define how the property is to be treated, any rules that should be followed, and procedures for resolving conflicts. You can find generic lease agreements online that you can customize for your specific needs.
However, you need to make sure that everything is legally covered within the lease. If you make mistakes, these could cost you dearly in the future. Hiring an attorney that deals with landlord-tenant law can help make sure your documents meet the standards that are required of them in court.
As a landlord, it is your responsibility to fix things that go wrong with the property according to the lease terms. This typically involves any plumbing or electrical issues that you will be expected to do yourself or hire a professional to take care of. You may also be expected to do seasonal maintenance tasks such as changing furnace filters and replacing carbon monoxide and smoke detectors. An experienced property manager can handle all these tasks for you.
Lease Renewal Notifications
When a lease agreement is about to expire, it’s up to you to submit a notification of lease renewal. If you need to raise the rates, you will need to research your state tenant protection laws. Some states limit how much you can raise the rent. You are expected to follow certain procedures and could be penalized if you don’t follow them correctly.
Learning the basics of property management as a new real estate investor can help you speed up the learning curve and simplify your life. By following these four basic tips for new landlords, you will be able to buy real estate, find great tenants, and avoid the common pitfalls many new landlords face. If you find yourself struggling, then consider enlisting the help of a reliable property management manager to help you.