Managing rental properties may seem like an easy way to make passive income, but it requires a significant amount of time and energy. From advertising, finding and screening tenants to addressing maintenance requests, there is much more to the job than picking up the rent check. While it is possible to manage a property by yourself, it is often wise to hire a professional property management company. But they can be expensive and may minimize your profits. Ultimately, it comes down to the individual landlord’s needs and ability to manage the property.
Whether you decide to manage your own rentals or use a PM, it is important to keep good records of all expenses and income. It is advised to set up a separate bank account for your business and use software that allows you to collect rent online, track other fees and record payments in order to have detailed records for tax season. It is also a good idea to have enough in savings to cover any unexpected repairs or tenant issues.
Tenant-related tasks are often on the property manager’s docket, including screening applicants, signing lease agreements and addressing tenant issues (such as late payments or violations of lease terms). In addition to these duties, a property manager will analyze market conditions to ensure they are charging a competitive price for the rental unit and keeping their margins high. Lastly, they will maintain good communication with tenants so they are aware of any changes in the property or new rules that could impact them. managing rental properties