Having your very own rental property management program is important to residential rental real estate investing.
It’s 8:30 at night, your tenant calls and says water is leaking very badly under the sink. It’s 8:30 at night, your tenant calls and says that the toilets clogged. It’s 8:30 at night, your tenant calls and states a window only got destroyed. It’s 8:30 at night, your tenant calls and says that the roofs leaking. It’s 8:30 at night, your tenant calls and says that the heats not working. It’s 8:30 at night, your tenant calls and says that the bedroom doorknob fell off.
How about a gutter becomes disconnected. No big deal, when it rains make sure your not standing under it. Winter comes, where the water hits the ground, it begins to gather and then it freezes. Whoops, someone slips there and you get sued. Big issue. It pays to have a rental property management program.
How about that outside porch wood that requires painting. No big deal. Next year. Next year comes and goes and you saved $700 not doing it. Three decades after you spend $2000 having wood replaced since it’s to rotted. Big issue. It pays to have a property management program.
You get the idea, whether something breaks or regular maintenance – things will need to get repaired and maintained. A fantastic rental property management strategy helps ensure profitability and that is made possible with the right property investing company.
There are three chief factors for a fantastic rental property management program. Knowing who is responsible for managing the properties upkeep, who’s going to fix things and when will things get fixed Are the three chief factors. Having a game plan for these three things is crucial for maintaining your leases. Theses three factors must be addressed and included in the rental. This ensures the tenant knows ahead of time what to expect when items need maintenance or repairing.
Lets begin with who will be responsible for managing your rental property. Seventeen years experience of owning leases has taught me that know one else will be better than the property owner for being responsible for managing the upkeep of the rental units. So the most cost effective rental property management program has the owner doing the managing.
Before you say, oh god, what a nightmare managing rental property is, allow me to say I have learned and you can too, the way to make property management easy and profitable.
In actuality, for people who understand and implement a solid rental management strategy properly and continue investing wisely in money flowing residential multifamily properties will discover that their hourly pay time for handling their rental properties is very rewarding.
Needless to say I strongly advise against hiring a management company for residential rental property.
Lets address who’s going to be fixing broken things or doing the necessary maintenance?
You, the owner, your payroll help, a hired handyman, who’s going to really be doing the physical work for fixing and keeping your rental units. Why is it important to have this be part of your rental property management program?
Well, what you do not need is having every time something has to be mended eventually be a stressful costly headache.
By knowing who’s going to be doing the repairs ahead of time, through your rental maintenance program, you eliminate two possible issues.
One, when a problem does occur, your somewhat ready by having had developed a list of contacts beforehand. Secondly, being prepared like this, tremendously reduces stress and makes managing your rental property easy.
Hopefully you find the value of knowing ahead of time who’s responsible for and who’s actually going to be doing the maintenance function.
Later, I’ll let you know the third important key to get a cost effective, simple to implement Rental property management program.
A few additional things to consider about rental property management. If your just starting out and you get a multifamily home, and your a Hands on kind person you might want to do as much of their repairs and maintenance as possible.
If you go to keep investing in multifamily homes you will find really doing the physical maintaining of your income properties to burdensome.
Understand that managing rental properties and doing the physical work are two distinct things.
If you opt to hire a maintenance man or contractor to perform the care, ask around local hardware stores for referrals or ask people in a house depot or Lowes. They are not supposed to refer people but I have been pleasantly surprised how many people moonlight or know someone honest priced and dependable.
Look in a local newspaper for a handy guy you can enlist to perform the maintenance. Call a few folks placing adds, not major print adds, rather the little adds and let them know what sort of help your seeking. Pay attention to them give their spiel, ask questions and ask if they can give you anybody who they worked for in past for a recommendation. If they check out tell them you will be giving them a call when you need them.
Personally, I don’t recommend hiring an outside organization to perform your rental home management.
Another terrific place to get names of reputable people to do your repairs and maintenance is via your regional REIA group. The more names and numbers for cost effective, dependable maintenance guys, the better. Put their names, numbers and what they do into your mobile phone or store them in a particular book. I am sure I’m not the first or last person to place a name and number in a novel and later not recall who they are or what they do!
Who might you want in your rental property maintenance list before you need them? A few general handymen, a furnace repair guy unless you Want to find repair contracts in the gas company if your house heats by gasoline, an exterminator ( I really have contracts for quarterly prevention with exterminator on all of my components), an appliance repair guy if you provide appliances, a plumber, a drain cleaning company and someone to shovel or plow your dwellings.
If you went on to have plenty of multifamily units, you might want to considering hiring someone on full time for doing the physical upkeep function. Personally I prefer having a huge network of contacts that I can call on for repair and maintenance work over having workers.
If you follow these rental property management guidelines, managing your cash flow units is a very profitable job of making and receiving phone calls.
Earlier I mention there was yet another important element to address regarding how to control your rentals.y.
When will things be mended? Put in the lease or addendum how long you’ve got to make arrangements to have things repaired, twenty four, forty eight, seventy two hours? Put it in the rental so tenant understands how you keep your property. It may look absurd, but I have discovered by having the tenants know the way you handle and maintain your leases the less misunderstandings you are going to have.
Bear in mind, your in charge. Its your property and with a strong rental property Plan and informing your renters how you keep your rental property will make owning investment property all the better.
As they say in the hood, everyone knows what time it is.