Rental property is a business that looks good on paper, but it can be a lot to manage. Many people get sucked in by the prospect of passive income but fail to understand that they'll have to spend a lot of time and money managing their rental properties.
Here are 7 great tips to help you manage rental properties.
1. Delegate and Build a Team
As a rental property manager, it's important to delegate tasks and build a strong team. Be clear about what you expect to be accomplished and by when. This will help your team members understand your expectations and avoid any confusion.
Choose the right person for the job. Not everyone is cut out for every task. When delegating tasks, be sure to choose team members who are best suited for the job at hand.
Also, be sure to set aside some time to check in with your team members to see how they're progressing. This will allow you to provide any needed feedback or help.
When team members have questions, be available to answer them because this will help ensure that tasks are completed correctly and avoid delays.
2. Stay Organized and Keep Good Records
As a landlord, you are tasked with keeping careful records and ensuring that your rental property is well-organized. Keep a detailed ledger of all income and expenses associated with the property. This will come in handy come tax season.
Comply with all applicable laws and regulations. This includes things like collecting and remitting rent withholding taxes.
Have a good insurance policy in place because this will protect you in the event of any property damage or if a tenant is injured while on the premises.
3. Inspect Your Rentals Regularly