Success as a landlord can come whether you’re managing a single investment property or a portfolio of properties. You want the process to be smooth, hassle free and profitable, but as tenants move into your properties you’ll be confronted with a number of new responsibilities. It’s how you handle these opportunities that will determine your success as a landlord.
Hiring a property manager
The first decision you need to make is whether you want to hire a property manager, or manage your properties yourself. While lots of people manage their own properties – saving hundreds, if not thousands of dollars in management fees – there are benefits to hiring a professional.
Managing properties comes with a workload that not all people can or want to take on. You need to weigh up your options and decide what works best for you.
What is involved in managing a property?
Effective property management involves more than collecting the rent on time. A property manager is responsible for maintenance, liaising with tenants and dealing with disputes and concerns. They might also need to deal with evicting tenants, advertising vacant properties and conducting thorough checks on any potential tenants.
There are different legal requirements for managing properties in different states so it’s important you understand what your rights are and what the tenant’s rights are. A good place to start is the Residential Tenancy Act in your state or territory. Again, enlisting a professional property manager is a great option if you want to avoid the headaches involved.
Getting the right tenants
It’s much easier to fill an empty property than it is to remove a terrible tenant. You’ll want to protect yourself as much as possible by screening potential tenants to the best of your ability. Meet with them in person (if you are managing the property yourself) or make sure your property manager knows what you’re looking for. Rental history, employment status and even personal and professional references are all reasonable things to know about a potential tenant.
While you might never be able to predict which tenants will become a hassle in the future, doing the work before they’ve moved in will hopefully pay off in the long run.
As a property manager you will need to undertake semi-regular property inspections to ensure that the tenants are keeping maintain the property. Inspections help you keep an eye on the property and make sure that it’s not being damaged.
Part of managing your own properties is knowing how to handle tricky situations. For example, when a tenant is late with the rent or damages the property.
Your rental agreement with the tenant should outline the correct processes for dealing with these situations. However, there are also legal requirements to adhere to. If you’re managing your own properties you want to make that you can approach these situations in a professional manner.
To become a successful property manager you need to commit. Whether it’s taking the time to vet the tenants yourself or it’s staying in touch with a professional property manager, it’s important to make sure you always know what’s going on in your properties.
Get the right advice
If you’re interested in investing in a property, Choice Home Loans mortgage brokers can help you find the right loan, and give you tips on finding a suitable property manager.
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