Managing rentals can be complex and time-consuming. But it’s also an excellent way to generate passive income and recoup the initial investment of purchasing and repairing the property. The key is to keep tenant turnover low and the property in good shape to protect your rental property investment.
The best property management firms have a legal tenant screening process that ensures only qualified tenants occupy the properties. This includes evaluating objective qualification criteria like reliable income, employment verification, credit checks and criminal background checks. They will also prepare the property to rent by advising which cosmetic improvements have the greatest impact on getting homes quickly rented. They also know how to set the optimal rental rate that will attract tenants without scaring them away. Determining the right price requires deep knowledge of the local market, data on comparable units and modern rental rate tools.
A good property manager has efficient, tried-and-true systems to collect monthly rent payments and maintain on-time payment records. This reduces vacancies and costly late fees. They also have a firm grasp on how to craft lease agreements that are both legally sound and enforceable, while respecting the tenant’s rights.
Property management firms typically charge a percentage of the rent collected as their fee for managing properties. They should be transparent about this cost to avoid surprises. They should also have a secure web portal that allows owners to access general ledger, payables and receivables, tenant service issues and other information related to their properties. property management for rentals