Managing Your First Property: 5 Things to Know
Managing your first rental property can feel like a massive task, but it doesn’t need to be overwhelming.
Doing some research and simply understanding the basics is a great first step that will help you get a grip on what you’re supposed to do and help you avoid making some of the common mistakes people tend to make when embarking on a journey like this. To help you through it, here are five things every new landlord needs to know.
Know the Local Rules
Nobody wants to mess around with the law, and this is something that plays a big role in the purchasing and management of a property. Every area is different, so you’ll need to dig deep to figure out what you need to do to be compliant in your state or region.
Local rules can cover everything from tenant rights to safety standards, and these can change depending on where you are. For example, landlord property management in Scarborough requires landlords to be aware of the city’s specific rental guidelines to stay compliant.
Screen Your Tenants Carefully
Your property is a major asset – perhaps even your pride and joy. Naturally, you’ll want to make sure you’re renting it out to people who will take good care of it!
The perfect tenants will always pay on time, respect your property, and are generally easier to work with, but they’re not always easy to find. Make sure you screen applicants thoroughly by checking their credit, rental history, and references. A little extra effort during this process can save you a lot of trouble later down the line.
Keep Detailed Records
It is vital to keep good records regarding your property. Always keep purchase documents, rental agreements, repair logs, rent receipts, and even communications with tenants on file.
You can use property management facility software or a simple filing system-whichever works for you. Staying organized will help you manage your property better and protect you long-term.
Budget for Maintenance
A property entails a lot of upkeep, and most of this maintenance falls on your shoulders, not your tenants’. Not only is it important to schedule regular home maintenance, but it’s also essential that you plan for it financially.
The routine work of stopping leaks, painting, and landscaping will avoid bigger, more expensive headaches in the future. Regularly set aside money for routine maintenance, as well as funds for emergencies, so that you are prepared and not caught off guard by issues that arise.
Build a Team of Trusted Pros
Always a good idea to have some type of list of professionals that you can call in to help you out if there is some sort of problem; these might be plumbers, electricians, general contractors. You will also want easy access to legal assistance should any trouble arise.
This way, you can handle setbacks as part of life without having to scramble around at the last minute trying to find somebody to help. It always works best if you use people you have dealt with before or lean on recommendations made by people you trust.
