Are you an entrepreneur looking to bring in some passive income?
Adding real estate investments to your portfolio is a great way to bring in immediate and long-term returns and build wealth.
Maybe you're a seasoned investor or you're just starting to scope out the market for your first acquisition.
Regardless of where you are on your investing journey, here are 5 important property management tips for real estate entrepreneurs!
1. Always Have a Lease Agreement
You should have a strong understanding of the types of ideal tenants you want renting from you.
Once you've got a tenant lined up, make sure you have everything in writing.
A comprehensive lease will protect you, your tenant, and your investment.
Whether you're working out a month-to-month lease or a yearly renewal, having a contract is crucial. If you're not sure where to start, contact a real estate attorney.
2. Don't Take On Too Much
If you're handy with tools, it can be tempting to want to manage repairs and renovations yourself.
Depending on how the agreement with your tenant is written, you might be responsible for repairs over a certain monetary threshold.
While it's not a set in stone rule, don't take on too much work and don't be afraid to outsource repairs and maintenance.
Even if you're good with carpentry, paint, plumbing, or electric, there are some tasks best left to professionals.
3. Keep an Open Line of Communication
In case of damage or an emergency, your tenants will be counting on you for prompt responses and guidance.
Let tenants know upfront about what to expect regarding phone calls and emails.
Strong communication can keep small issues from turning into costly repairs.
If you are feeling really ambitious, you can set up a simple contact or repair form on your website that tenants can use to keep you in the loop.
4. Get A Security Deposit
Collecting a security deposit when a new tenant signs a lease will help mitigate risk to your property.
These upfront funds can be used for any damages that occurred during the course of the lease.
Additionally, consider collecting the first and last months' rent along with the security deposit for extra protection.
5. Safety Is Key
Last but not least, providing a safe environment for your tenants should be a top priority.
Perform regular inspections. Ensure that the home is secure with locks, lighting, and possibly a security system.
For your own peace of mind, get liability insurance. Make sure you have enough insurance coverage to protect you and your investment in the case of an accident.
Keep These Property Management Tips on Hand!
With these 5 property management tips in mind, you're on your way to a successful real estate venture, with happy tenants and properties that grow in value!
Looking for more real estate tips? Our blog has you covered!
Need help managing your property? Feeling overwhelmed? Contact us and we'll be happy to help with maintenance services!