Property management is a great way to make a profit. However, it requires a great deal of knowledge and skills acquired from both business management and real estate.
Requiring a great deal of preparation and attention to detail, property managers are often responsible for making sure all rental income is accounted for, dealing with paperwork during a transaction, and property marketing. Taking the time to make sure you have a basic understanding of property management 101 will put you on the right path to successfully managing your rental.
If you are thinking about diving into the world of property management, check out our property managers’ handbook for rookies.
Before you jump head-first into managing a property, you need to figure out a management strategy that works for you. In order to do that, there are three key areas of a rental property that need to be managed. They include:
Your property needs to be properly maintained in order to keep it safe for tenants. Check with your insurance company to find out if certain parts of your building, such as the roof, needs to meet specific standards. Failing to do so may result in them failing to cover your property.
Anticipate inspections from your insurance company, lender, and local government. While insurance company inspections are to make sure the property is worth the amount it is currently insured for, local government inspections check that your property is following all required health and safety codes.
Another important factor in managing your property includes general maintenance. This can range from fixing anything that needs repairs, cutting the grass, keeping common areas clean, and making sure tenants have access to running water.
Tenants can make your life much easier or infinitely harder. Take the time to thoroughly screen tenants before letting them sign a lease.
Once your prospective tenants pass the screening process, you will be responsible for managing the following:
Understanding the finances is one of the most important parts of property management. In order to account for the money going in and out of your rental every month, you need to keep track of:
Luckily, Tenant Evaluation’s easy-to-use property management program can simplify your life with features such as comprehensive screening services, an electronic application system, and more. Contact us at 305-692-7900 to find out how we can help you.