Now that you have purchased an investment property, the next crucial step is managing it and keeping it profitable. After all, you did not buy that property just to have it idle and not make a profit for you. There are very vital management requirements that you need to be good at so that your investment goal will be successful.
Attend to Property Maintenance
Property maintenance is one thing that should be given priority. As an investment property owner, you should not disregard the upkeep of the asset.
Under the landlord-tenant law, the owner is legally obligated to keep the property clean and habitable for safety and health standards. The owner should see to it that tenants do not hoard things in the property or that they know where to dispose garbage.
When a property is not kept well, it is hard to find tenants and keep them as well. People are not keen on living in a rat infested apartment or one that has plumbing issues
Control Tenant Turnover
When tenants are happy with their space then turnover can be avoided. People want a place that they can call home and usually they will not move if your investment property is home to them. One way to keep tenants is to be responsive to their requests like plumbing or heating.
If you have an apartment complex, see to it that other tenants do not disturb others. One reason why people move is due to noisy neighbours. Keep your screening process strict in order to weed out the good ones from those who will give you a problem in the long run.
Know the Landlord-Tenant Law
As a landlord, you have to be well versed with the Landlord-Tenant Law. Knowing the law will help you manage the investment property as well as the tenant. The law was put in place to provide a basic structure for both tenant and landlord to follow. Mistakes can be placed at a minimum thus the property administration is streamlined.
The Landlord-Tenant Law covers:
• how much security deposit to collect and when this can be returned to the tenant
• when can a tenant be evicted and the process to follow
• when is it legal for a tenant to withhold rent
You must also know your state’s tenancy laws.
Pay Your Taxes
Every investment property has certain tax obligations. Part of property management cover financial matters. This part is going to be confusing especially when there are multiple properties involve. It is of your best interest to hire a good accountant who is experienced with investment property tax law. The accountant will be able to guide you on deductions and other legalities. Avoid raising a red flag with the IRS.
Get Help – Hire a Property Manager
Administration of a rental investment property is not an easy task. You would need communication and other skills to be able to successfully manage your business. It will take your time and your patience in some cases.
A lot of owners resort to hiring a property management service company to assist them. An owner will be given regular reports about his property and he need not worry about rental collection or eviction problems.
Should you decide to hire a property manager for your investment property, you should find the best one that suits your needs. There are plenty of companies who offer such service. Choose the experienced one and make a list of your criteria for a good property management service.
It is a big decision and it will cost but the offset is you get more free time and space to be with your loved ones and friends.