Managing rental properties requires significant time, effort and knowledge. The amount of time you’ll spend varies based on how many properties you own, tenant turnover and maintenance issues. However, according to Hemlane, the average owner spends about 4-6 hours per month on each property. Whether you’re a first-time landlord or have multiple rentals, it’s important to have a plan in place that optimizes your management process.
Renting out a property begins with finding tenants. This includes advertising the property, screening tenant applicants with a reliable tenant screening service, checking references, creating a lease and collecting payment. It’s also crucial to understand and follow your local and state landlord-tenant laws.
During the tenancy, it’s essential to perform regular property inspections to identify problems early. This helps to prevent significant repair bills, avoid costly maintenance, and separate normal wear and tear from tenant damage. It’s also best practice to keep all rent payments, security deposits and other fees that tenants are responsible for paying in a separate bank account. This makes it easier to manage your rental income during tax season.
Finally, when a problem arises, you’ll need to be prepared to handle it quickly and professionally. Depending on the issue, this may include negotiating with your tenant to make repairs, terminating a lease, or filing for eviction. It’s also a good idea to set aside money for unexpected expenses. manage-rental-properties