After purchasing an investment property, you need to learn on how to manage it to have optimum profits successfully. Management is not an easy task and hence needs you to have managerial skills that will enable you to be a good manager.
The following five tips are on how you can successfully improve your management:
Carry out maintenance practices regularly
Maintaining your investment property is very important both to you and your tenants. It is important for two reasons:
- The law requires landlords to maintain health and safety standards for their tenants to avoid cases of disease outbreaks or accidents from poor maintenance. Among other services, landlords should offer a garbage disposal tank.
- If you properly maintain your property, you will easily keep and find tenants because most people prefer living in clean environments which are well maintained.
Avoid frustrating your tenants
To keep your tenants happy should be your priority to make them continue renting from you. Therefore, you should try to do things which improve your relationship with your tenants such as:
- In case of a repair request, you should respond quickly to fix it
- Try to rent out your houses to good tenants by doing a background check before renting out the house. Bad neighbors can make other tenants move out since they can’t cope with them. You can avoid this by having strict screening procedure before renting out a new tenant.
Hire a property manager
Sometimes, hiring a property manager is a wise decision to avoid losing money and tenants due to incompetence. If you are busy or have little experience handling tenants, hiring a property manager is the best decision to maintain competence and high-quality services to your tenants. However, you should do enough background check to avoid hiring being conned or hiring a bad manager. After hiring a manager, you can discuss the duties he/she is supposed to undertake to have clear roles.
Adhere to landlord tenant law
For you to be competitive, you’re supposed to read the state tenant laws to be able to make sound decisions. Also, knowing your local town or municipal rules is also important to be able to handle your tenants. Knowing tenant rules enables you to:
- Know how much you’re supposed to collect as security deposit
- Know the conditions under which you must return security deposit to a tenant
- Understand the process of evicting a tenant
- Know the reasons why you can evict a tenant from your property
Paying taxes is a financial obligation to every citizen and more so to property investors. Taxes are a “source of revenues to a government, and you can lose a lot of money, get jailed or even lose your property if you evade paying taxes and get caught.” says James Jukeful, an owner of a Charlottetown Property Management Company. Since paying taxes may be confusing, you can hire an accountant who understands tax law to help you when paying taxes. He/she could also help you understand the deductions you’re supposed to make through considering certain factors e.g. depreciation rate.
To become a successful manager, you are required to follow the tips discussed above while incorporating other personal skills that may be needed.