The concept of property management can feel overwhelming. The idea of having to play tenant, landlord, maintenance worker, marketing director, and more is enough to make anyone break out in a sweat. But with the right tools, you’ll be able to streamline this process. You will be able to create a streamlined process that benefits both parties involved. This quick property management guide provides all the necessary steps for managing properties. From finding the right tenants to designing ads that will stand out among others. Read on…
Find the Right Tenants
Before you can even think about placing your property on the market, you need to find a tenant. Believe it or not, this is actually the most important part of being a landlord. This means that you have to do everything in your power to weed out less-than-ideal tenants. Which can be difficult if you aren’t exactly sure of what you’re looking for.
Depending on where you live, state laws can be in place. E.g. if you live in Texas, you will have to manage your Texas rental by adhering to some unique state laws that apply only to you. For example, in Texas, your tenant must have a credit score of at least 640.
The best way to find the right tenants is by marketing your property specifically to certain demographics. Also emphasizing all of its benefits over others. This means writing an eye-catching ad and placing it where potential candidates will see it. You will also want to make sure that you screen your applicants thoroughly.
Even though someone may seem like a perfect fit, criminal convictions or previous evictions can make them risky tenants. Here are some other things to keep in mind when finding the right tenants…
Make Sure They Can Afford Rent
One way to weed out less-than-ideal tenants is to look into whether or not they can afford rent. Which seems simple, but can be difficult. You can do this by requesting current proof of income, which will let you know if your potential tenant makes enough money to pay the bills every month.
Those who make too much money are generally unfit choices because they often won’t need housing assistance. At the same time, those who make too little (or no) money may ask for a smaller security deposit. Or even skip paying their monthly bills altogether. That’s why renters must meet the requirements you set forth before finding a tenant.
Another important part of this quick property management guide is another way to make sure your potential renter is a good fit. Check their references. This can help you weed out those who will trash the property or bring the wrong crowd over. You do this by simply asking for personal references from their landlords, friends, former employers. In fact, anyone.
Make sure that you follow through with at least three of these references and actually contact them. Nothing sways an opinion faster than hearing directly from the source themselves.
Run Background Checks
In addition to making sure they meet your criteria, you should also run background checks on potential tenants to ensure they aren’t a danger to other tenants living at the property as well as your property itself. You can do this by checking for criminal charges or lawsuits, eviction records, and any other legal proceedings that could put your investment at risk.
Set Up a Rental Application
Once you have found potential tenants who meet all of your standards, you need to set up a rental application that they can fill out. This is an essential aspect of the entire process because it prevents people from making false claims about themselves to get approved. Something that happens more often than not.
So make sure to include information about rent amount requirements, background checks, credit scores, evictions, prior landlord contact, and contact information.
Communicate, Communicate, Communicate
Finally, the last step is to communicate with potential tenants. Make sure that you set up a time to speak with them in person. Either over the phone or in-person, so that you get a feel for who they are as a person. Also whether or not they would be a good fit for your property management company. This will help you weed out those who aren’t serious about leasing from your firm.
Once you have found a tenant that meets all of your criteria, it’s important to provide them with an exact agreement that outlines what is expected of both parties going forward. The legalities of this document are complex, but the basic tenets should include rent amount due each month, when it needs to be paid, terms of the agreement (lease length and type), and fees associated with late rent, nonpayment of bills (water, gas, etc.) and property damage.
Hopefully, this short property management guide helps you to achieve your goals. It contains just a few things you need to take into consideration before leasing your property out or starting a property management company. Good luck.