Top 5 Rental Property Management Tips – The How’s and Why’s of it
Over the last decade the equation giving out properties on rent and managing them has changed quite a bit. It has become more professional for sure. But there are still times when the whole landlord – tenant equation goes for a toss like for example: The tenant won’t pay rent on time; the tenant will make unreasonable demands; the tenant may cause damage to the property and so on. It is always a wise decision to not be the bad guy as a landlord and hire a professional manager to take care of such issues. However one should always keep in the mind the “Top 5 Rental Property Management Tips – The How’s and Why’s of it” that will help manage rental properties a breeze.
Inventories: As a thumb rule, before giving a property on rent do document the inventories at the rental property. For example: A list of furniture and fittings and the condition they are in. It is done in the interest of both the landlord and the tenant. When a tenant is on their way out, the property manager/ landlord can match the list and in case of any deviation settle it amicably.
Create a Policy: As a landlord giving out one or many properties on rent, one should have a policy in place which can be shared with prospective and actual tenants. For example: Rent to be received by 10th of every month; the landlord will be available between 4 and 7 pm for a call; a late fee will be charged in event the rent is received late. This policy making may seem tedious in the beginning but it makes things very easy. For example a tenant may come and want to negotiate the payment date or pays late, then one can always refer to the policy and say “Well I am sorry, but our policy states that….” This helps in clearing any doubts.
Avoid Family: Include friends as well. Giving a property to friends and family is always tricky. It may swing both ways as a relation but most likely it is going to be negative, going by our experience. It is advisable to stay clear of family if they are looking for a place to rent. One can guide to similar properties, locations or agents but stay clear of giving your own property on rent to them.
Be Organised: Treat every transaction with your tenant as professionally as possible. Keep files pertaining to all the tenants that will include all documents like the Landlord- Tenant agreement, copy of all rent received and receipts issued, inventories of the property, damage and repairs done. The more organised one is, more easily things will be actioned upon.
Hire a Professional: If one is not full time into property letting out business, they should consider hiring the services of a professional who can act as a bridge between the tenant and the landlord. This way for a small fee all headaches like rent received, deposits, chasing late payments and looking after repairs, can be taken care of.