Property management comes with its share of challenges. As a landlord, you have to deal with government regulations, tenant complaints, budgeting, and more. Plus, you need to be prepared for unexpected repairs and other issues that may occur.
A recent survey found that most tenants complain about noise, black mold, bed bug infestations, or health hazards. Deposit refund disputes are common, too. Not to mention broken or damaged appliances, heating-related problems, or plumbing issues.
Given these aspects, it makes sense to hire a property manager rather than try to do everything yourself. But if you're a new landlord, you may not know where to start. Here are some tips to help you out!
Treat Your Property as a Business
Property management isn't too different from running a business. You need to find the right tenants, discuss the terms, negotiate prices, and comply with the law.
First of all, make sure you understand the regulations governing rental investments in your state.
Second, research the different types of insurance needed for rental properties. Landlord insurance, for instance, covers property damage, lost rental income, and liability claims, among other aspects. Plus, you can opt for additional coverage, such as emergency or flood insurance.
Third, invest your rental property to make it more appealing to potential tenants. Determine what needs to be done, set a budget, and create a unique value proposition.
Understand the Legal Implications
As a new landlord, you may not be aware of the implications of renting out a house or apartment. Managing your property requires more than just finding tenants and closing the deal.
For example, did you know that it's against the law to reject tenants based on age, race, religion, or marital status? Perhaps you'd prefer to rent out your property to couples or families rather than students, but it's not legal to do so.
Make sure you also research the tax laws in your city or state. Failure to pay your taxes and comply with the law can result in hefty fines.
Set a Fair Rental Price
You may think that your property offers excellent value for the money, but you can't just come up with a random number when setting the rent.
Generally, it's recommended to charge around 0.8% to 1.1% of a property's value. If your rental home is valued at $300,000, you could charge $2,400 to $3,000 per month. To stay on the safe side, check the market prices for similar properties before you make a decision.
Setting a rent that's too high will deter potential tenants. If the rent is too low, you might not afford to cover the maintenance costs and other expenses.
Property Management Made Easy
These are just a few of the many factors you need to consider when renting out your property. Finding quality tenants, drafting a rental agreement, and managing your rental income will pose further challenges.
Your best bet is to reach out to a property management agency. Our team can handle this process from start from finish to free up your time and reduce unnecessary stress. We can screen tenants, market your property, conduct inspections, collect payments, and much more.
So, are you ready to take this step? Contact us today to discuss your needs and see how we can help!