Thinking of investing in a long-term rental property? There’s no doubt that it requires a lot of hard work, but there are plenty of ways to manage your rental property successfully. Here’s a quick guide on how to manage a long-term rental property.
How to Manage a Long-Term Rental Property
By performing these simple steps, you can manage your long-term rental effectively. Continue reading to find out more.
Find Good Tenants
It can be difficult to recognize a quality renter during the interview process, but this ability will prove to be crucial. Make sure to follow these steps to have a better chance at finding a good tenant:
- Verify their place of employment and their earnings
- Check their credit and background
- Check their references
- Have private, in-person discussions with them
Even if you take all of these steps, you can still overlook something that points to a problematic tenant. Because tenant screening can be challenging, you might benefit from using a third-party tenant screening service to assist you in analyzing all of the acquired data and locating quality tenants.
Maintain the Property
Not only does keeping your home in good shape benefit the tenant, it also protects your investment.
To maintain a long-term rental property, here are some best practices:
- Regular inspections: Schedule regular inspections of the property to identify and address any maintenance issues early on.
- Preventative maintenance: Implement preventative maintenance measures such as regular cleaning and upkeep of appliances, plumbing, and HVAC systems to minimize the need for major repairs.
- Response time: Respond promptly to maintenance requests from tenants to address any issues and minimize disruptions.
Communicate with Tenants Regularly
Make sure you’re accessible and easy to get a hold of. Tenants may need gentle prodding to report small infractions or may have questions about the property’s policies. In order to recruit and keep quality tenants, communication and flexibility are key factors.
Ensure Proper Safety Measures are Taken
If you are in charge of maintaining your own rental property, make sure to warn tenants to use caution when outside in bad weather or when utilizing any facilities, like a grill or an elevated porch. Check your lease to see if it covers any significant safety hazards such as a pool, if there are any. Always check the functionality of any alarms, including smoke detectors.
Renovate and Improve
Is it time to take your rental property up a notch? With a few creative and affordable changes, you can really make your property stand out. Whether you want to upgrade the yard with a new style of exterior design or modernize the interior with frameless glass walls, doing some research can help you make decisions that will attract tenants. Renters are always looking for brand-new, developed rentals, so you should regularly consider ways to update and enhance your property.
Keep Your Tenants Happy
Tenant management demands a high level of interpersonal abilities. Naturally, tenants want to believe that their money is being well spent. Landlords should be able to address tenant concerns gracefully while also knowing when to say no to unreasonable requests (like paying the rent past the due date without a late fee). Keeping tenant turnover low and maintaining a healthy cash flow can feel like a delicate balancing act, but with some experience it can become a manageable task.
Filing Taxes and Reporting Expenses
It’s important to always stay up-to-date with your property taxes and reporting expenses throughout the fiscal year. For many investors, hiring an accountant who can explain the tax regulations for rental property may be advantageous. They’ll assist you in reporting your costs and maximizing your deductions. Some of the most common expenses to track include:
- Mortgage payments
- Basic utilities like gas, electric and water
- Marketing or advertising fees
- Maintenance and repair
- Property and rental income tax
RCN Capital offers short-term and long-term financing options for real estate investors. Whether you are looking to fix & flip properties or hold properties for rental income, RCN has flexible options that are suited to your needs. Connect with us today to discuss your next real estate investment.