Essential Tips You Need to Know When Starting a Rental Business
By Space Coast Daily // July 15, 2021
If you’re starting a rental business, you’ve probably done at least some preliminary research. You likely know what the typical rent is in the area you’re considering buying or have recently bought it. You probably have a sense of the property taxes and any renovations you need to undertake to meet legal requirements.
The following will explore some of the bigger and smaller tips you might not have encountered to help keep your rental business running smoothly.
Be Aware Of Property Management Options
Even if you’re planning on doing the majority of the property management yourself, there will be those days when fifteen things go wrong, and you can’t show up to the property to deal with the burst pipe because you’re on the way to the hospital with your kid who sprained his ankle at soccer practice.
You also will want a vacation from time to time. More than this, if your business is going to continue to grow and you want to continue to gather properties, you’re going to need the extra help and because of this, developing a good relationship with a local property management team is crucial.
When searching for a property management team, you, foremost, want someone local. If it takes an hour for them to drive over to the property, that’s not going to cut it.
For example, if you’re located in Phoenix, you’re going to want an Arizona property management company that serves Phoenix on speed dial. This way, no matter what comes up, you’ve got help handy if you need it.
Think About Drains
It’s pretty common knowledge that people don’t take as good of care of their rental units as they do their own homes. One of the things that can quickly add up and cost you a lot of money is your tenants letting food, hair, and other things go down the drain.
One of the easiest ways to minimize this serious plumbing damage is to place drain nets or drain screens over the drains in all your units. Yes, each net costs a dollar or so, but the amount of money it can save you is absurd.
Address Problems Immediately
As a landlord, you might find yourself humming and hawing over how to solve problems cost-effectively. In most situations, however, the longer you wait to address an issue, the more likely it will grow and cause more damage and end up costing you more.
If someone mentions a leaking pipe, fix it as soon as possible. If someone mentions flickering lights, fix them as soon as possible. Neglected plumbing, electrical work, roofing, etc., almost always costs more money the longer it’s left alone.
Schedule Regular Maintenance Check-Ups
As mentioned above, people don’t often take care of their rental units in the way they take care of their homes. It’s possible to slow damage being suffered by your property without you or your tenants noticing. Having a regular check-up of the plumbing, roofing, electrical work, and other features can save you an intense amount of money in the long run.
You Can Pay People To Leave
This tip isn’t talked about enough, but it’s crucial to be aware of it as a last resort. Sometimes a tenant needs to go, but you’re having trouble getting them to leave.
Maybe your tenant blasts music at 2 am, and it drives all your other tenants crazy. Laws often protect tenants over landlords and the process of eviction and legal proceedings to get owed rent can be long and expensive.
Sometimes it costs much less money and causes far fewer headaches to say: hey, I’ll give you $200 to move out next month. Especially if someone is struggling to make ends meet and pay rent, they might think that looks like a pretty good deal.
Keep Track Of All Your Costs And Income
Not only will keeping detailed records help you when it comes to tax season, but it will also help you keep your business on track.
Just like all other business management, you need to keep yourself aware of all of your expenses as well as your revenue so that you can constantly be updating your business strategy to ensure that you continue to turn a profit. It’s also a good idea to keep a record of each ad you post, the number of responses you got, and how long the tenant stayed.
The above tips should help you get your real estate business up and running smoothly. In addition to the above, be sure to read up on the regulations in your area so that you know you’re meeting all your legal requirements.