42 million Americans currently live in rented properties. That means that there are a lot of landlords out there! Some people go into property management deliberately, with a clear strategy, but others end up as landlords accidentally.
Either way, running a rental property can be time-consuming and if you're a new landlord, it may all seem a little overwhelming. Read on for some helpful tips on the do's and don'ts of property management, to help you make the best of your rental property.
Follow a Tenant Screening Process
If you want good tenants, you have to put the work in. This means having a consistent process for screening tenants. The process needs to be the same for each tenant. If there is any hint of discrimination, you could be breaking the law.
You are entitled to check applicants' employment history and financial standing, though, as well as references from previous landlords. All of this information should help you to find tenants who will pay the rent on time and look after your property well. If you're too busy to manage this process yourself, it might be wise to use a property management company to help you.
Don't Hike up the Rent Mid-Lease
An ethical property manager does not impose rent hikes mid-lease, unless in extraordinary circumstances. If you are asking your tenants to abide by the terms of the lease, you should do so too.
You can avoid getting into trouble with your profit margins if you set your rental price correctly in the first place. Using a rental analysis tool can help with this.
Don't Underestimate the Effort Needed
This is one of the most important property management tips. Running a rental property is not just about collecting the rent each month. You need to know all about the local area and what the property market is doing at any one time, as well as how to select the best tenants.
in addition, you'll need to know a lot about property maintenance and have good contacts within the local community of tradespeople. Your tenants will expect repairs to be carried out promptly, so you'll need to know who to call to fix the boiler if it breaks down in the middle of winter!
Respect Your Tenants' Privacy, but Keep in Touch
As a landlord, you don't have the right to drop in unannounced on your tenants whenever you feel like it. You need to respect their right to privacy in their own home.
However, it is worth making an effort to build good relationships. The dream tenant is one who stays in your property long-term and respects it as much as you do. Those relationships take time to cultivate, so you should make sure you put in some effort here.
Looking for Denver Property Management Services?
If you're looking for some assistance in property management services in the Denver area, then we would be happy to help you out. Don't hesitate to give us a call, to see how we can help you to manage your rental property to its full potential.