Who wouldn’t love to have a nice stream of passive income that you can rely on every month? One way you can do that is by buying a rental property. In this guide, we’re going to give you a no-nonsense look at manage an investment property and keep making extra money!
Real estate investments are the best investment you can make. Even investing legend, Warren Buffet, swears by them. But buying the property is only the first step.
Holding onto it is where you get the most returns. To maintain your hold, you have to maintain the real estate.
But managing an investment property isn’t a picnic. It takes hard work, a firm hand, and attention to detail. Anything less and your gold mine will soon become a swamp.
Never fear, though. Our tips and no-nonsense approach will have you counting green in no time.
Maintain the Property
Sure, brokerage firms like Coldwell Banker Lake Tahoe can get you a property. But it’s up to you to keep it. How? The answer lies in another question.
What do rats, roaches, faulty plumbing, and broken fixtures have in common? No one wants to live with them.
You have to keep everything fixed and keep the pests away. Exterminators and plumbers cost money, though. Plus, you can only fix problems you know exist.
How do you keep up with everything?
Establish a system to allow residents to notify you of any problems. This system often takes the form of maintenance requests. Hire a maintenance crew to fill them and make general repairs.
You can pass major repairs and extermination costs onto the tenant. Offer both as amenities on the lease and factor cost into the rent. That way, you don’t shell out too much.
Keep Your Tenants
Empty apartments don’t make money. Tenants are your lifeblood. Reducing turnover will lead to an increase in revenue.
You have to make them happy. Fast maintenance and excellent communication are excellent ways to start.
Tenant screening is another. Give people a good community and they’ll repay you in every way.
Hire a Property Manager…Or Don’t
Screening tenants, keeping up with maintenance, it can overwhelm you in a hurry. You may need to hire outside help.
Property managers can take away the hassle. They can cover maintenance, tenant screening, and communication between you and the tenants.
But they don’t come cheap. Property Managers may charge anywhere from 8-10% of your total rent income. Moreover, they can destroy property as much as help it.
The decision to hire one depends on you, your management style, and experience. If you’ve owned rental properties before, you may be better off alone. Rookies may want to get help to cover the areas they don’t know.
Obey the Law
Sounds obvious, right? But real estate law can get tricky if overlooked. It details what you can charge, eviction procedures, and the wording in the lease.
Then there’s tax law. You’d have to pay the appropriate property taxes. However, since you run a business, you can deduct expenses and depreciation.
A good lawyer will help you navigate your legal obligations. For your financial ones, hire an accountant. They’ll keep up with the cash and find deductions you didn’t know you had.
Make Managing an Investment Property Easier
Managing an investment property requires a business mind. You can’t go easy on tenants, and you can’t skimp on the details. Follow our tips, and you’ll see an immediate return.
And if you have other business interests, we can help. At Your Business dedicates itself to all things corporate. Check out our blog for more insight .
Got a question? today. We can’t wait to inspire your entrepreneurial spirit.
