As the owner of a property, you must be aware of how important it is to ensure that your investment is managed well. If you don’t keep track of your cash flows or guarantee that you are legally protected as a landlord, you might be heading for a financial crisis!
The solution to this extremely challenging situation is a property management company with sufficient experience. Having a professional manage your property would lead to the maximization of returns from your investment and minimization of risk. There are certain ways in which your property can be managed without much stress.
8 Stress-Free Property Management Tips
Here are eight property management tips that will ensure that your property is managed conveniently.
Choose Your Tenants Wisely
An efficient property manager will ensure that the tenants that meet your criteria are selected and shortlisted after rigorous screening. The decision regarding final approval of the tenant will rest with you. The screening process will cover their employment record, their credit history, financial stability, current income, genuine references, and background checks to see if they have criminal records. An easy way of conducting this screening is by using reliable databases for tenants like TICA and Equifax.
Maximizing Return on Your Investment
You can expect the best market rates for your property depending on the condition of your investment. One of the top property management tips would be ensuring that your property is well maintained and presentable, so that the potential tenant would be willing to pay the top market price for it. With the best rental, your return on investment would be maximized.
Setting Aside Emergency Funds for Maintenance
You need to create an emergency fund with your rent to ensure that your property is well maintained throughout the tenure of the tenancy. It would be best if you finalized a maintenance plan with your property manager.
You will avoid any sudden and exorbitant cost of repairs. You will also not experience any adverse fluctuations in your cash flow if you have an emergency fund. It is recommended that you create a reserve equal to 2 months’ rental. Your returns will also not be affected.
Know Your Local Tenancy Laws
As far as property management tips are concerned, this should be on your priority list. If you violate the local laws, you will have to pay a heavy penalty. You need to know the Residential Tenancy Laws of your state. The Tenancy Authority will provide all information regarding tenancy agreements, dispute resolution, and investigation. The rights of both you and the tenant will be protected.
Cut Down the Time Between Leases
If you want to ensure that your property is vacant for the only for the shortest possible time, you need to start the lease renewal process around 4 to 5 months prior to the lease period. There are higher chances of lower vacancies.
Understand the Rights Of Both Parties
You need to know both the tenant’s rights and your rights regarding eviction. Eviction is a costly affair, and you should protect yourself through landlord insurance. Find out how landlord insurance works and then pick the option that is best for you.
Make Sure That Your Accounting Process Is Streamlined
You should be able to concentrate on your business and let the property management company take care of the entire property management accounting process. Starting from payment of invoices to the finalization of accounts and payment of taxes should be handled by the property management company. You should be able to claim tax depreciation on time.
Choosing the Right Property Management Company
Your return on investment will also be affected if you choose the wrong property management company. Shortlist some property management companies in your area and find out their strengths and weaknesses. Make a comparison and select the best one.
Get Stress-Free Returns from Your Property
You can enjoy high returns with low stress from your investment if you follow the property management tips given here. Your returns depend, to a great degree, on the property management firm you have hired. If you hire the right property management firm, they will take care of the entire process which includes shortlisting the tenants, renewing the lease on time, complying with statutory regulations to ensure you pay no penalties, lowering the vacancy period and ensuring that the financial statements are prepared on time.
Hire a property management firm today, and watch your rentals soar!
OHI is a fifteen-year-old real estate services company working with 50+ commercial and residential real estate developers, funds and property management companies across USA. Our deep expertise in real estate accounting, financial analysis, lease administration and asset management has helped clients cut associated costs by 40-50%. We currently provide these services to a portfolio of 50000 units across clients.
We invite you to experience finance and accounting outsourcing through us.