04 Feb Real Estate Management
Real Estate Management
Real estate management can be a nightmare if you don’t know what you are doing. For many, the investment in real estate means renting it out for the passive income and appreciation. After all, that is what a real estate investment should provide. But, not every investor is cut out for real estate management. In fact, there is nothing passive about managing rental properties. From finding tenants to maintenance and repairs, real estate management is a full-time job. The fact is being a landlord comes with a lot of demands.
Not only does it require one to contribute a significant amount of time and effort, it also requires you to wear many hats. In fact, unless you hire a property management company to run your business. You will be the one who has to create lease agreements, screen tenants, market your rentals, and evict bad tenants. As a result, you can find yourself in a nightmare that won’t end. So, unless you have all the time and money in the world, we offer some insight on ways you can avoid the nightmares often associated with being a landlord.
Disclaimer: The information provided in this post in not intended to be construed as legal advice, nor should it be considered a substitute for obtaining individual legal counsel or consulting your local, state or federal laws…
Managing A Rental The Right Way
Managing a rental the right way is about transparency, hard work, and communication. Not only does communication play a key role in tenant satisfaction, but also retention. Communication is essential to all good relationships. Without it, issues such as conflict can arise. And, at the end of the day, you have to set the right expectations. This means, writing a solid lease agreement, and being clear with specific rental rules you have set for your tenants to follow. Because, when set down within a lease agreement, gives you legal recourse should your tenants fail to follow them (lease violations).
Real Estate Management: Screening Potential Tenants
Screening potential tenants properly can mean the difference between having a tenant who will pay their rent, or one that will not. The fact is, anyone can act like they would be the best tenant in the world during the initial walk through. But if you want to make sure you are getting a good tenant, make sure to screen every prospective tenant thoroughly before they sign a lease!
A Look At The Tenant Screening Process
- Request rental application
- Run a credit check
- Run a background check
- Contact their previous landlord
- Contact their employer
- Interview the tenant
- AND BEWARE of the Tenant Scams
Real Estate Management Mistakes To Avoid
- Checking Only The Credit Report: while this is an essential component of the tenant screening process, it’s not enough
- Properly Screening: scammers prey on landlords who do not perform proper tenant screenings
- Screening Co-Applicants: screen them the same way and do not overlook this important step
- Complying with Housing Laws: make sure that your marketing, application, and selection do not break any laws
- Checking References: just because a tenant looks good on paper don’t be fooled make sure to check all references
Setting Rules & Getting Them In Writing
Rules for tenants are put in place for a reason. Yet many are still broken. Whether it is a dispute over a late fee or security deposit, despite what you may think, not all tenants are out to get you. In fact, most of the time, they break rules because they don’t know they exist. For this reason, make sure to take the time to explain or clearly define each rule. By explaining them and putting them in writing, you clearly convey your expectations. Setting clear expectations with your tenants not only demonstrates that you value your rental property, it also shows tenants that you want to maintain a respectful relationship with them. So, make sure you do not leave any of your rental rules open for interpretation. Remember, a lease agreement is only as good as the terms outlined in the document. And, those terms are only good if they are easily understood.
Real estate management can be a nightmare. As a landlord, you can make your job easier by setting specific rental rules, screening tenants properly, and being clear on your rules in your lease agreements. Remember, being a landlord will require a significant amount of time and effort. And, unless you hire a property management company to run your rental business, life as you know it may suffer. For this reason, you may want to consider hiring a property management company to help you!
If you have questions about how to screen prospective tenants or need help doing so, please contact us. Whether you are interested in changing property management companies, or simply looking to hire one for the first time, we can help. We take care of all types of residential properties throughout the San Diego County including homes, condos, multifamily such as duplex and triplexes, and even small apartment buildings. Its time to let us manage your rental properties so you can enjoy your life! Call us today at (858) 576-2176 to get started!