3 Key Components of Strategy for Rental Property Management
Having the right strategy for managing rental property will protect your investment and increase its value over time. There are multiple aspects of a rental property that need to be taken care of effectively. A good property management company prepares its strategy around 3 key components.
As a landlord, you can also understand these components and structure your management for efficient execution. Here are these 3 components to improve your rental property management strategy.
- Tenants Management – This is the most obvious and immediate component of rental property management. It includes the following responsibilities –
- Tenant Screening – Marketing the property. Fixing meeting. Doing a background check of tenants before renting the property.
- Rent Collection – Timely rent collection. Fixing due dates, late payment fee, and grace period. Dealing with tenants who don’t pay rent on time.
- Rental Agreement – Including all necessary information, rules, regulations, and legalities in the agreement required by you, tenant, and state law. Keeping the rental agreement up to date.
- Move-in – Preparing a rental agreement. Giving tenants a walkthrough and recording the current condition of the property unit and amenities.
- Move-out – verification of all the agreement terms. Verifying the current condition of the rental unit for any damages.
- Tenant Complaints & Requests – Resolving tenant’s complaints quickly and prioritize their request to keep them satisfied.
- Eviction – Preparing and sending a legal notice with the court’s evidence if the case reaches there.
- Managing Property Maintenance and Inspections – The second key component of your strategy should be the well-being of your property itself. Your property should be in a perfectly maintained and cleaned state for the safety and satisfaction of your tenants.
- Inspections – Dealing with inspections from the local authorities to ensure that you are following all property and tenants’ laws. Your insurance company will also visit the property to verify that the property is in shape as on papers, and its value is as worth as mentioned. If not, the insurance company may deny the property insurance.
- Maintenance and repair – Lawn mowing. Garbage disposal. Maintaining a clean environment in common areas. Running and drinking water availability. Fixing any damages and make sure all the installments are healthy and functional.
- Managing Finances – Rental property is like a business, and you have to manage all sorts of finances to optimize the revenue from it. It would help if you worked on all financial fronts with complete understanding and proactively.
Rent – Managing the rent that is coming in each month.
Mortgage – Managing your monthly mortgage payment.
Insurance – managing insurer payment on time.
Taxes – Managing property tax calculations and payment.
Utility Bills – Managing amenity and utility bills payment.
Other – Fines, maintenance, and repair costs.
Now you know all the three components to prepare your strategy for rental property management. You can also consider hiring the best property management company to take care of all this. If you are thinking about hiring one, Give us a call.