Many do not buy rental properties to gain a second job, rather they buy rental and tenant properties in order to acquire passive income. One of the biggest deterrents to investing in rental properties is tenant management. Here are some “hacks” to make tenant management more hands-off.
Knowing whether or a not tenant will pay is very important.
However it is not the only important aspect of determining if you are going to add someone to be your tenant.
As a landlord the most time consuming aspect of the investment is the turnover between tenants. Therefore it is most important to sign renters that will rent long term, decreasing the time needed as a landlord to clean the units between renters, gathering the proper paperwork for the new renter, and determining deposit refunds.
Make sure to look at the potential tenant’s previous moving patterns and how they were as a renter to their previous landlord.
If tenants have shown to be difficult, or more hassle than worth, you can send them a non-renewal notice. Make sure you look at your state laws in terms of time you need to give your tenants notice. If your tenants have proven to be low maintenance you can send a renewal notice – however with a slightly higher rent.
Raising the rent periodically year by year is important because it will keep you from realizing the your rental rates are 10-15% below market levels, to then raise your rent 15% all at once. This would definitely cause a renter to consider renewing their lease.
When you become a landlord it is important to gather many contacts for potential handymen and test out which one will work the best for you.
As you find handymen that you like, start building a relationship with them. Ask after their family.
The point for the extra work? When tenants call you about a maintenance issue, it will take you one phone call to solve it.
One call, instead of calling five different contractors, negotiating fees, and all the back-and-forth involved.
Have your tenants rent pay come directly from their pay check, so that you will have a direct deposit of the rent in your account.
This will decrease the hassle of trying to track down your tenants and get their rent check.
There are only a few companies that do this, but one is called RentDeduct.
Set out reminders for both yourself and your tenants of inspections twice a year.
This will help make sure your property is in the best condition it can be, and it will also make sure that your tenant is obeying rental agreement contracts as well.