Property management is all about maintaining a quality property so as to keep tenant turnover low. This is what every property manager should focus on. It is a bit of a challenge, especially if you are new in this field and you have to juggle with the property, the tenants and the legal matters to ensure that they operate harmoniously. It, therefore, requires that you educate yourself on these matters and to be prepared psychologically before getting started.
When it comes to property management, there are some tips that could make or break your investment. It helps ensure that your return on investment is as high as possible but you should not infringe on the rights of the tenants or to undertake measures that can lead to high tenant turnover.
Here are some tips that that can help you benefit from your investment whether you are an owner of a residential or a commercial property:
Ensure You Have the Right Tenants
Your success or failure depends on the type of tenants that you have. Having the right tenants will ensure that the rate of turnover is kept low which in turn protects your cash flow. Before you admit a new tenant – do thorough background check. You can ask their previous landlords for references to establish their credit history. You may also want to know their criminal records and whether they had been served with any eviction notices.
Be Ready To Get Your Hands Dirty
You cannot sit in the office and wait hoping that a good tenant will come knocking. Get out there and to everything from accounting and sales to light maintenance. In this way, you will protect yourself and your property against unscrupulous clients, agents and tenants. Doing things on your own ensures that you know and understand the tenants that you are dealing. You can only hire experts in legal matters if you can’t handle the on your own. There are certain things that you can learn and do on your own. These include bookkeeping, balancing your books and prediction of cash flow.
Have Consistent and Clear Procedures
You need to establish a consistent and clear procedure for various property issues so that your clients know from the word go what is expected of them. The procedure for handling maintenance requests and tenant disputes should be written down and availed to the tenant before they occupy your premises. They need to know how to raise a complaint and what to do when something breaks in the building. Set-up a separate phone number or email address through which the tenants can reach you. Also create a checklist on the steps which you use to address various tenancy problems.
Have Some Cash Reserves
As you collect the rent, it is not wise to consume everything. You need to have some emergency money to take care of any eventuality. Your tenant can call anytime, even in the middle of the night, with an issue that needs your urgent attention. You would not want to embarrass your tenant or to fall into a legal quagmire for failing on your duty as the landlord.
Know the Law
Once you become a landlord, you will always be dealing with legal issues and there is no substitute for having the knowledge of real estate and rental laws. The tenants you work with will expect you to have answers to their problems which may touch on a wide variety of issues ranging from settling disputes to repairs and what it takes to break a lease. You need the up-to-date information on eviction notices, tenancy agreements and any other thing that touches on landlord-tenant relationship. For example, do not engage unlicensed contractors for plumbing and electrical work if this is illegal in your area because you can be held liable by the insurance company in case of an accident.
Foster a Good Landlord-Tenant Relationship
You may have the best building in the best location in town but if you do not know how to handle your tenants, your building will always be empty. Tenancy is a relationship business and that’s why you need to foster a good relationship between you and your tenant by approaching them with respect. Show them that you care by attending to their needs as soon as it gets to your attention.
As can be seen, property management is an overwhelming undertaking. You need to act as a manager, lawyer, mediator, accountant and salesperson all at the same time. You may not be in a position to handle all these and may want you engage an expert in this area. You don’t need to look further than Los Angeles Property Management Group (lapmg.com). They have been in the business of providing professional property management for over 20 Years. Engaging them will ensure that you enjoy peaceful nights as they take care of your interest in your investment.