Rental Property Management Made Easy

Having your own rental property management plan is key to residential rental property investing.

Its 8:30 at night, your tenant calls and says water is leaking very badly under the sink. Its 8:30 at night, your tenant calls and says the toilets clogged. Its 8:30 at night, your tenant calls and says a window just got smashed. Its 8:30 at night, your tenant calls and says the roofs leaking. Its 8:30 at night, your tenant calls and says the heats not working. Its 8:30 at night, your tenant calls and says the bedroom doorknob fell off.

How about a gutter gets disconnected. No big deal, when it rains make sure your not standing underneath it. Winter comes, where water hits the ground, it starts to collect and then it freezes. Whoops, someone slips there and you get sued. Big problem. It pays to have a rental property management plan.

How about that exterior porch wood that needs painting. No big deal. Next year. Next year comes and goes and you saved 700 bucks not doing it. Three years later you spend $2000 having wood replaced because its to rotted. Big problem. It pays to have a property management plan.

You get the idea, whether something breaks or routine maintenance – things need to get fixed and maintained. A good rental property management plan helps ensure easy and profitable multifamily property investing.

There are three main factors for a good rental property management plan. Knowing who is responsible for managing the properties maintenance, who is going to fix things and when will things get fixed are the three main factors. Having a game plan for these three things is vital for maintaining your rentals. Theses three factors should be addressed and included in the lease. This ensures the tenant knows ahead of time what to expect when things need repairing or maintenance.

Lets start with who will be responsible for managing your rental property. Seventeen years experience of owning rentals has taught me that know one else will be better than the property owner for being responsible for managing the maintenance of your rental units. So the most cost effective rental property management plan has the owner doing the managing.

Before you say, oh god, what a nightmare managing rental property is, let me say I have learned and you can too, how to make property management simple and profitable.

In fact, for those who understand and implement a solid rental management plan correctly and continue investing wisely in cash flowing residential multifamily properties will find that their hourly pay time for managing their rental properties is extremely lucrative.

Needless to say, I personally strongly advise against hiring a management company for residential rental property.

Lets address who is actually going to be fixing broken items or doing the required maintenance?

You, the owner, your payroll help, a hired handyman, who is going to actually be doing the physical work for fixing and maintaining your rental units. Why is it important to have this be part of your rental property management plan?

Well, what you don’t want is having every time something needs to be repaired become a stressful costly headache.

By knowing who is going to be doing the repairs ahead of time, through your rental maintenance plan, you eliminate two potential problems.

One, when a problem does occur, your somewhat prepared by having had developed a list of contacts ahead of time. Secondly, being prepared like this, tremendously reduces stress and makes managing your rental property easy.

Hopefully you see the importance of knowing ahead of time who is responsible for and who is actually going to be doing the maintenance work.

Later, I’ll tell you the third important key for a cost effective, easy to implement rental property management plan.

A few additional things to consider regarding rental property management. If your just starting out and you buy a multifamily house, and your a hands on type person you may want to do as much of the maintenance and repairs as possible.

If you go on to keep investing in multifamily houses you’ll find actually doing the physical maintaining of your income properties to burdensome.

Understand that managing rental properties and doing the physical work are two different things.

If you decide to hire a maintenance man or handyman to do the maintenance, ask around local hardware stores for referrals or ask people in a Home depot or Lowes. They’re not supposed to refer people but I have been pleasantly surprised how many people moonlight or know someone fair priced and reliable.

Look in a local paper for a handy man you can enlist to do the maintenance. Call a few people placing adds, not big print adds, rather the small adds and tell them what kind of help your looking for. Listen to them give their spiel, ask questions and ask if they can offer you anyone who they worked for in past as a recommendation. If they check out tell them you’ll be giving them a call when you need them.

Personally, I do not recommend hiring an outside company to do your rental property management.

Another great place to get names of reliable people to do your repairs and maintenance is through your local REIA group. The more names and numbers for cost effective, reliable maintenance men, the better. Put their names, numbers and what they do into your cell phone or keep them in a special book. I’m sure I’m not the first or last person to put a name and number in a book and later not remember who they are or what they do!

Who might you want to have on your rental property maintenance list before you even need them? A few general handymen, a furnace repair man unless you want to get repair contracts from the gas company if your property heats by gas, an exterminator ( I actually have contracts for quarterly prevention with exterminator on all my units), an appliance repair man if you supply appliances, a plumber, a drain cleaning company and someone to shovel or plow your dwellings.

If you went on to own a lot of multifamily units, you may want to considering hiring someone on full time for doing the physical maintenance work. Personally I prefer having a large network of contacts I can call on for maintenance and repair work over having employees.

If you follow these rental property management guidelines, managing your cash flow units is simply a very profitable job of receiving and making phone calls.

Earlier I mention there was one more important factor to address regarding how to manage your rentals.y.

When will things be repaired? Put in the lease or addendum how long you have to make arrangements to have things fixed, twenty four, forty eight, seventy two hours? Put it in the lease so tenant knows how you maintain your property. It may seem silly, but I’ve found by having the tenants being aware of how you manage and maintain your rentals the less misunderstandings you’ll have.

Remember, your in charge. Its your property and having a solid rental property plan and informing your tenants how you maintain your rental property will make owning investment property all the better.

Rental Property Management – It Will Make Or Break Your Rental Property Investment Business

Don’t get freaked out about the term “rental property management”, it sounds threatening but all it really means is:

A game plan to keep your rentals headache free, cash flow animal .

Does that sound a little better than rental property management?

You better believe it does and guess what. Managing rental apartments is simply a matter of having the proper mind set and doing some planning in advance.

I don’t care if your talking about one two family property, a six unit property or twenty rental properties, having a game plan for managing your rental units is key!

Before I go any further, you should know that I always manage my own rental units. The most I ever had was I believe 42 units comprised of 2-6 unit buildings. I would never have an outside property management company manage my properties. It costs too much, they do a lousy job in my experience and its easy to get ripped off. I knew a roofer who had a gig set up, where he would give a kick back to the guy in charge of getting bids for a property management company!

Learning whats involved ahead of time for managing rental houses will save you a lot of time and aggravation.

Your rental property management plan has to cover:

Who is going to do the basic maintenance repairs,i.e. clogged sink or toilet, broken facet, doorknob ,window, electrical plug not working, etc. Are you going to do any basic maintenance? If not, you’ll want to find handymen that won’t break the bank. How do you find these guys?
Will you be able to financially handle more severe problem, such as roof leaking, need to replace a hot water tank, need new furnace, vacancies…
How to screen tenants. After all, they are the source of your profit center.
How to manage your tenants so that their personal/financial problems are not your concern.
When someone moves out or you evict someone, who is going to prep the apartment for the next tenant.
Speaking of evictions, do you know how to do one? How much does it cost? How long does it take?
How to adapt the proper mindset for successfully owning rental property.

You have to have a property management plan that works for you. This is key. You see, some people are white collar, some are blue collar, some are hands on, some can’t and don’t want to know how to turn a screw driver, every bodies situation is different. Understanding this and having a system to manage your property will keep your rental property a cash flow animal.

Let me rephrase that. Having a property management plan that works for you will keep investing in rental property headache free and running like a well oiled machine.

Having your rental units be a cash flow machine is a primarily a function of buying the rental property at the right price. However, even having bought a multifamily house at the right price, you can end your rental property being a cash flow animal without a good property management plan.

Remember, a good rental property plan will

Help you find good paying tenants who won’t do much more harm to your apartment than normal wear and tear.
Allow you to charge top rent because your apartment warrants it.
Make sure things get fixed quickly and cost effectively when needed.
Keep your tenants happy, so you don’t have frequent vacancies due to poor property management.
Make owning rental property stress free.

Understanding what a rental management plan should entail and implementing it will make your rental property business enjoyable and successful.

Mark Petrelis has owned rental property, primarily 2-6 unit buildings since “92”. Some of the rental properties were total rehabs while others had existing tenants and only needed cosmetics.

Risks And Gains Involved In Rental Properties Management

If there is ever a time to invest in real estate business and probably become a landlord, it is now when the US real estate has just started to recover from the whooping 489 billion dollars loss incurred between January to November 2009; a significant reduction from the previous 3.6 trillion dollars loss in the previous year. The consequences of this reduction means that properties will be priced lower giving investors the opportunity to buy at a lower price to sell at a higher price.

The concept of properties management is embedded in the lowers price versus higher price condition. What is property management and how does it concern you. If you are a prospective tenant hoping to become a landlord or landlady one day this means a lot to you. On the other hand if you are a prospective investor eying the possibilities of engaging in buying and selling of properties, or renting one, how to manage your property business concerns you too.

In the property business sphere there are two broad players and they are the rental prospectors and the acquisition prospectors. No matter the category you belong, the knowledge of hired assets management is a must. What are the benefits or gains of going into rental property management?

What is rental property management?

Rental has to do with the act of leasing properties to another for use. Of course, to be in the position to rent assets, one must be a property owner and that means at one time in one’s life, properties was acquired, which enables the implementation of the leasing business effectively. You cannot lease what you do not have, can you? So, to the person putting up properties for rent and the one renting it, the knowledge of rental properties control is very important.

Real estate business like any other business can either make or mar you if you don’t have the right information. For those already considering going into the rental business, before you do, how much of the risks and gains involved in this business do you know?

Risks and gains involve in rental properties

One of the risks involved in rental property business is long-standing situation. Imagine what will happen if after acquiring a property for rental purposes, renters don’t just show up. The solution to this situation will be to base your business in locations where the population is growing consistently. Another idea is to focus on apartment with multiple family structures.

Tax reduction and increase can affect property rental business adversely and favorably. Depreciation and repair problems, natural disasters, change in government policies, etc. These are some of the risk factors that can affect the renting of properties adversely; next is the benefits.

Gains of rental properties management

Investing in properties, if done properly, can convert to a great source of income and that is because it is a long-term investment. This fact is actually the reason why many investors and upcoming ones are turning to leasing properties. This business provides one the opportunity of preparing for their retirement age.

All in all, the best way to deal with risks and possible problems that could arise from dealing in rental properties is to understand how to manage your rental properties business.