Owning rental property is like owning a business, and there are specific things that set successful business owners apart from struggling business owners. Pay attention to these 5 habits of successful housing providers.
To run a successful rental property, you need to rigorously screen your tenants and verify all the information they provide you on the rental application. Check credit, criminal backgrounds, prior evictions and employment. Verify that the tenants earn enough money to cover rent every month. Talk to current and prior landlords to find out what kind of tenant your applicant has been in the past. You want to know everything you can ahead of the lease signing. Proper tenant screening will protect your property and your financial interests in the long term.
Document During Inspections
To avoid disputes over the security deposit, you'll need to conduct a thorough inspection of the property before a tenant moves in. Then, you'll do an inspection after the tenant moves out. The best way to compare the condition at move in to the condition at move out is through photos and videos. Document every inspection so you have proof that explains why you're withholding money from the security deposit to pay for damages.
Maintain a Business Relationship
Your tenant is not meant to be your friend. If you want to succeed as a rental property owner, you need to maintain a professional distance from your tenant and keep everything respectful and businesslike. You are running a business, and all of your decisions need to be made with a business mind, not an emotional mind. Put everything in writing and use a strong lease so there are no surprises.
Low Maintenance Homes
The most successful property managers take care of preventative maintenance so that small repair problems don't become costly nightmares. When you set up regular inspections and servicing of systems like your HVAC, you'll have the peace of mind that everything is running smoothly. Manageable maintenance costs and proactive repairs are traits of successful property managers.
Successful property managers avoid vacancy and turnover costs by retaining excellent tenants. When you respond to their repair requests immediately and keep rent at a reasonable and competitive rent, they are going to want to continue renewing their leases.
If you'd like to become a successful rental property owner, please contact us at Zell Associates, Inc., and we'll tell you more about how to succeed with your investment property.