- Keep up with repairs and maintenance services to ensure the property stays in top condition.
- Select tenants with verifiable income, references, and credit checks.
- Provide incentives for good tenants to keep them around longer.
- Make a list of do’s and don’ts to avoid misunderstandings between you and your tenants.
- Hire a professional property manager to handle day-to-day tasks.
As a rental property investor, having a successful business involves more than buying and selling properties. To succeed, you must also properly maintain your investment to ensure it is in good working order and attractive to potential tenants. Here are five tips to help you properly maintain your rental investment and be on the path to success.
1. Keeping Up with Repairs and Maintenance
Being proactive about repairs and maintenance is key in protecting your rental investment. Make sure you keep up with regular cleaning services to ensure the property stays in top condition. This will help deter any minor problems from becoming major ones and will keep tenants happy. Additionally, hire a reliable handyman or contractor to take care of any necessary repairs as soon as they arise.
Setting up a preventive maintenance system for your rental property is essential, as this will help keep minor problems from becoming major ones. Make sure you regularly check all systems and appliances for wear and tear and that necessary repairs are taken care of quickly and efficiently. Prepare an emergency contact list if situations arise outside of normal business hours.
2. Selecting the Right Tenants
Choosing the right tenants is key to having a successful rental business. You will want to ensure that your prospective tenants have verifiable income and references from past landlords or employers who can vouch for them. You should also consider running a credit check to ensure they are financially responsible. Understanding who you’re renting is essential to avoid any potential issues down the line.
When selecting tenants, it is also essential to review their rental history. If they have had a negative experience with past landlords, it should be noted and considered when making your decision. Be sure to inquire about any problems experienced in the past and if the tenant could resolve them amicably.
3. Providing Incentives for Good Tenants
When you find good tenants, it pays off in more ways than one. Not only do they pay their rent on time and take care of your property, but they also tend to stay longer. To encourage tenants to remain in your rental, consider offering incentives such as discounted rent or access to amenities like a pool or gym.
4. Make a List of Don’ts for Tenants
To ensure that there are no misunderstandings between you and your tenants, it’s a good idea to create a list of do’s and don’ts that outlines the rules for living in your rental property. This can include no smoking or pets on the premises and details about maintaining the property correctly.
Here are other don’ts you should implement:
Don’t Disturb the Neighborhood
Your tenants should respect their neighbors and not disturb them with excessive noise, parties, or other disturbances. Make sure you explain this rule in your list of do’s and don’ts, so they know it before moving in. Also, remind them to keep sidewalks free from debris and ensure no parking in lawn areas.
Don’t Engage in Illegal Activity
It’s important to outline any illegal activity prohibited inside the rental property. This includes anything related to drugs, alcohol, or weapons and any activities that may violate local laws or ordinances (such as performing construction without a permit). It’s essential to make your tenants aware that violating such rules can lead to eviction.
Don’t Damage the Property
Your rental property is a major investment, so it’s important to remind tenants not to damage it in any way. This includes painting without permission or drilling holes into walls for mounting objects without prior approval. You should also require them to keep the premises clean and avoid doing anything that could impact its value, such as leaving trash inside or outside the property.
Don’t Sublet Without Permission
Your tenants mustn’t sublet without your explicit consent. If you allow them to do this, make sure they understand that they are responsible for the actions of their subtenants and that they are liable for any damage or unpaid rent. Reminding them not to take on additional tenants without your approval is also essential.
5. Hiring a Professional Property Manager
If you don’t have the time or resources to manage your rental property, consider hiring a professional property manager. They can handle all day-to-day tasks, such as tenant screening, rent collection, and maintenance issues. This can be especially beneficial if you own multiple properties or live far away from your rentals.
In Summary
Following these five tips ensures that your rental investment is properly maintained and will lead to a successful business. Keeping up with repairs and maintenance, selecting the right tenants, providing incentives for good tenants, making a list of don’ts for tenants, and hiring a professional property manager are all key components of success in the rental property business. You can be on your way to a profitable and stress-free business with a little effort.
