As a property investor, buying an investment property is just the first step. Its management is next. As a rental property owner, there are certain investors’ property management requirements you’ll have to keep in mind. Here are a few tips to make your investment a success.
Keep Up With Maintenance
Keeping up with property maintenance is the most important thing to do with your investment property for two main reasons. First, you’re legally responsible for the upkeep of the property so it meets specific health and safety standards under landlord-tenant law. This comprises keeping the common areas in good condition and ensuring that the tenants have a proper place to dispose of their garbage. Second, if your property isn’t maintained, you’ll have difficulty keeping and even finding tenants. Understand that people don’t want to live in a rat-infested rental with unending plumbing issues.
Avoid Tenant Turnover
Keeping your tenants happy is the next important way to manage your rental property successfully. This will want them to stay where there are, and keep renting from you. You can take certain steps to keep tenants happy, such as making an effort to place other good tenants in the property and responding swiftly to repair requests. One of the main reasons tenants move is because they’re not happy with their neighbors. If you want to weed out the good from the bad, having strict tenant screening procedures will assist you tremendously.
Follow Landlord-Tenant Law
Following and understanding US landlord-tenant law will assist you in managing your tenants and your rental property. Guidelines stem from it that you can take into consideration, allowing you to make fewer mistakes, and streamline the investors’ property management process.
For instance, you’ll learn the rules regarding how much you can take as security deposit, reasons a tenant may legally withhold rent, the process of evicting a tenant, reasons you can evict a tenant in your state, and when you must return a tenant’s security deposit. It’s important to understand every statewide landlord-tenant law and keep within legal boundaries. It’s a good idea to also check with your local authorities on whether more laws are applicable.
Appoint a Property Manager
Managing a rental property can be both time-consuming and overwhelming. For certain property investors, appointing a property manager is the right way to eliminate this problem.
You can appoint a property manager to do as little or as much you want. Certain landlords only want them to gather the monthly rent, while others want investors’ property management firms to do everything from handling repairs to filling vacancies.
Appointing a property manager isn’t cheap and is undoubtedly a big decision. You need to weigh the financial benefits and drawbacks to identify if it might be the correct choice for you. Remember that there are a ton of bad property managers out there who can ruin your rental property and its reputation. It’s important that you thoroughly screen property managers, just as you would potential tenants.
Pay Your Taxes
Finally, if you want to make some decent bucks as a property investor, ensure you’re properly managing your financial obligations. Having to pay taxes is one of the most important financial obligations to which all investors must accede.
It may be confusing to pay taxes as a rental property owner. Since it’s a business, you can usually deduct home office expenses, and since it’s property, you can claim numerous deductions involve depreciation, as well. It’s often in your best interest to appoint an accountant who is skilled in investment property tax law. They can help you understand the deductions you’re permitted to take, along with the deductions that may raise a red flag with the IRS.