Pro Tips For Managing An Investment Rental Property

Your investment rental property represents the possibility for a reliable stream of passive income in the future. Continue reading to learn professional tips for maximizing your probability of success as a private landlord – including focusing on your property as a business entity, setting the best rent price on your lease agreement, effective tenant screening, and using the power of technology.

Treat Your Rental Property Like a Business

As a private landlord, your property and its structures are sources of income, and you have to protect them as their assets. You need to keep a clear head and keep your emotions from getting in the way of making solid business decisions.

Make sure that you always stay in compliance with local, state, and federal laws regarding landlords. Keep good books and follow the rules, so you run a proper operation and do not incur any fees or legal problems. Let your tenants know you care about this professionalism and expect the same from them.

Take care of your investment property to maintain its value and protect your renters. Inspect your property, looking for leaky roofs, trip hazards, exposed electrical wires, broken glass, or other areas that present risk. Give your tenants a safe place to live. That's always better than incurring an injury lawsuit.

And on that note, keep your insurance policies paid and up to date.

If you live in Charlotte, you may want to consider enlisting the services of a knowledgeable and experienced local property manager. Working with some of the best property managers in Charlotte can give you insider knowledge of the local market, access to unbiased advice about setting rent prices and managing tenants, and make sure that all of your property management activities conform with the current laws in the area. This extra layer of protection can save you money as well as time in the long run.

Set the Right Rent Price

The money you collect from rent payments is your income source for a given property. Be sure to set the rent at a number that covers fixed costs like:

• HOA fees
• Property taxes
• Insurance premiums
• Mortgage payments

Also, set the rent price to cover variable expenses like routine maintenance and inspections, property improvements, unexpected repairs, and any utilities you're responsible for. And, of course, the best rent price will leave a dependable profit for you to sustain and to grow operations.

Create And Follow a Tenant Screening Process

Evictions can cost landlords up to $10,000, even more in some cases. It can also take a month to complete the eviction process. Then there's the process of making necessary repairs and deep cleaning the property to rent again—all unpleasant news – and unnecessary in most cases.

Private landlords need to adopt and stick to a stringent tenant screening protocol. Run a tenant background check before prospective occupants sign your lease agreement. It makes sense and can help you avoid extended vacancies, property damage, hassles, and lost money.

Have a Written Rental Agreement

A well-defined rental agreement defining all important variables concerning your relationship with a new tenant is crucial. This contract lays out the rules of occupancy, rent and deposit fees and due dates, conditions that need to be met to have the deposit returned, and any other terms and conditions you want to be included as the landlord.

Collect Rent Payments Online

Modern technology makes collecting rent payments online automated, hands-free, effortless, and convenient. You won't have to wait for a paper check to arrive in the mail or go track down your renters to collect the rent in person. Automated online payments are better for everyone, and your renters will appreciate them too!

Conclusion

Look at your rental properties as investments, not just a current income source. Upgrade them when you can and always provide a safe and respectable place for your tenants while also staying in compliance with all applicable laws. Schedule upgrades to your properties, and keep them in good repair to ensure that they provide a reliable source of long-term passive income.