Owning property is a great means of generating income and the wealth. However, being a landlord in Burbank comes with its own challenges, and therefore property owners should be prepared to put in all the necessary effort and time in order to become successful. We have some tips for property management which can make or break ones real estate investment.
Make sure you do thorough screening of your tenants
For the rental property management to be successful, it all starts by renting of the property to the suitable tenants. One great mistake that a landlord can do is the failure to conduct the rental and credit history check of the potential tenant. Despite of how polite, nice and professional potential tenant looks, failure to carry out their rental and credit history check might just end up leaving you with a lot of emotional and financial stress.
Get a good rental or lease agreement
You must have the rental or lease agreement in written form. Any other form of agreement such as having simply a downloaded agreement from the website may land you into trouble. Hiring the real estate attorney to assist you is advisable. Good lease agreement states the responsibilities and rights of the two parties involved in a clear way helping to avoid regular landlord-tenant disagreements. When the landlord-tenant laws are understood and followed it makes rental property management to be easy. The agreement provides the structure to be followed enabling the landlord to make fewer mistakes hence streamlining the process of management.
As a landlord fulfill your obligations
Repairs are supposed to be done on time by a good landlord because it is among the very important duties for the landlord. As the landlord you should also ensure the lawn mowing is regular, confirm and ensure all plumbing is in the working order. In case the landlord is not knowledgeable in some areas such as carpentry, electrician, and plumbing matters, a handyman who is good at these areas should be hired by the landlord.
Rewarding the good tenants
Though a good landlord is supposed to stand up and be firm about the tenants who do not abide by the set rules, being very tough will not be motivational to your tenants on doing their part. Those tenants who are normally paying rent on time and cause no problems can be rewarded periodically for them to know that you appreciate them. Even just a simple basic gift card to one of the popular restraints or the local grocery will lead to building of a strong positive relationship between the two parties.
Strategize property management plan
When you choose the wrong agency to be in charge of your property investment, it might end up in disaster. For example it may result to poor property management, high rental arrears, extended vacancy rates and poor maintenance leading to drastic effects to your invested money. Before you choosing the appropriate management agency, short list some property management companies within your locality and visit each one of them.
By weighing the pros and cons of all listed companies and comparing them, you can select the company which best suits your investment. You are supposed to weigh the pros and cons in terms of finance of the companies for you to firmly decide which company to go for. And should always remember we have many property management companies that are bad and can destroy your rental property completely. Therefore you must screen the property management company thoroughly in a similar way you will screen the prospective tenants.
Purchase the insurance
It is necessary to have a full property liability and rental insurance. The insurance in important because it normally takes one lawsuit either accident or fire to cause a devastating losses from which the landlord may not be able to recover from. Additionally, the landlord is expected to set aside some amount of money to cater for unforeseen repairs and costs that are not covered by the insurance.
Proper management of financial obligations is important for you to be guaranteed of making money from property investment. One very large obligation entitled to each investor is payment of their taxes. The payment of rental property owner taxes could be quite confusing. Being a business, you will often deduct the home office expenses and being a property you have many deductions that involve depreciation costs that you are permitted to take. Because the confusion, often it will be in the best interest of the landlord to hire the accountant well skilled in property investment tax law. The accountant helps you with understanding those deductions.