Real Estate Investing Guide: Property Management Tips for First-Time Landlords
Managing your first property can seem like an intimidating task until you get some experience under your belt. First-time landlords have a lot to learn but that doesn’t mean the challenge in front of them is too big to handle. With that said, I’ve put together a few tips for first-time landlords to help you make the best out of your property management experience!
#1 Use Digital Tools
For starters, there are plenty of digital tools available nowadays that can help first-time landlords get their way around long to-do lists. Property management apps allow you to virtually manage your rental properties and keep track of rent payments, fees, repair requests, and property income and expenses. These tools also allow you to communicate with the tenants and stay on top of any requests or complaints they might have. You can also collect rent online and have it deposited directly to your bank account so you don’t have to worry about rent collection. Depending on which online tenant management program you choose, you can easily manage two or more properties without mixing up tenants and payments.
#2 Be Strict when Screening Tenants
Speaking of managing tenants, chances are you’re going to run into conflicts and issues every now and then. The best way to avoid serious problems is to choose your tenants carefully and make sure to only allow tenancy to people who meet a certain standard. That is why you need to go through a thorough screening process with each applicant to ensure they are able to pay rent on time and that they won’t be causing any issues. However, screening tenants can be difficult and you might be tempted to let anyone through just because it is an opportunity to secure a tenancy. Make sure to take the tenant screening procedure seriously and create a well-thought-out screening process to ensure all requirements are met.
#3 Follow the Laws
One of the biggest challenges for first-time investors is staying on track with the laws regarding purchasing a property and managing one. You might think that you’re done with laws and paperwork after closing the deal. However, there are still plenty of tenancy laws that you need to learn about and start following. I recommend getting help from a professional lawyer or a consultant if you’re not already being mentored. Someone else’s experience in this field can help you avoid legal issues and headaches that come along with them. If you’re going to research the laws yourself, make sure to look for the ones that apply in your state or location.
#4 Set Up Extra Income Sources
The great thing about rental properties is that you can diversify your income by introducing different income sources. Depending on the type of property, you might be able to collect additional payments for storage sheds, garage or parking space, or pets. You can also set up a laundry station to collect a few extra dollars every month. Either way, additional sources of income can give your budget a great boost and cover expenses such as repair and maintenance.
#5 Always Have Insurance
One of the biggest mistakes you can make as a first-time landlord is to jump into property management without insurance. You should always have property insurance in place to ensure your property and belongings are protected. On top of property insurance, it is best for the tenant to have their own renters insurance as well. This will additionally protect their own belongings and provide additional liability protection for you. This is especially important if the tenant has pets in the property.
Learn how to Manage Your First Income Property
Property management lessons are some of the most important lessons in Your First Income Property Program where students can learn how to screen tenants, have them move in with ease, and manage the property in the long run. Educating yourself on something as complex as property management can be difficult because there is so much information out there. It is nearly impossible to put all pieces of the puzzle together. However, with the right guidance and a mentorship program, it will all be laid out in front of you in the correct order. If you’re interested in learning more about Your First Income Property program, feel free to schedule a call here.