When you purchase a new property to rent out, you need to make sure that it stays in good condition. Take the following steps to increase your property’s value so that when it’s time to sell, you can make a profit.
While property management may seem like a simple task, it is actually complicated. You need to understand your county’s laws regarding details such as how big your buildings can be. City ordinances may be stricter than county codes, so be sure to check both. If you do not have a background in this field, consult a company such as Yardi property management to receive advice on how to best maintain your asset.
Keep up With the Landscaping
If you are renovating a property before renting it to tenants, it’s tempting to let the landscaping slide to save money. In the long run, though, this practice will cost you more. When you’re ready to rent, you do not want to spend time clearing away vines that have taken over your fences and cutting grass that is a foot high. Instead, hire a landscaping company to perform maintenance at least twice a month during the spring, summer and fall. During the winter, you can reduce appointments to once a month.
Set Rules for Your Tenants
Once your building is ready for tenants, you need to establish rules that maintain its condition. Outline which services you will provide for your tenants and which ones they must perform themselves. Do not allow them to hammer nails into the walls and, if they want to paint, tell them that they must repaint the property with its original color before they leave. Most importantly, stipulate that any damages must be promptly reported to you. You should hire a professional to handle repairs to make sure that they are completed properly, and have your tenants cover the bill.
Regularly Inspect Your Property
At least once a month, inspect the entire outside of your building, its grounds and any interior common areas. Respect your tenants’ privacy as much as possible, but if you are suspicious about whether they are damaging your property, have regular inspections. Include your right to look over tenants’ rooms while they are present in your leases.
Being a landlord is a great way to make passive income. However, you must take these steps or you risk losing money on a property.