Landlords go into the rental business to earn a long-term sustainable income based on an appreciating asset. To maximize their profits, they should run an efficient enterprise that requires minimal expenditure while still providing top-quality rental accommodation to tenants.
It sounds like a tall order because it is. Many landlords, even experienced ones, do not make as much money as they should due to inefficiencies.
Being a landlord is a demanding job, and many things can fall through the cracks if you are not vigilant. This is where efficiency declines and expenses increase. However, this situation is avoidable if you follow these property management principles:
1. Get help with Property Management
Most landlords know that seeking rental property management in Fort Collins or in other U.S. cities from companies like Evernest, Helix Property Management, or Touchstone Property Management LLC is the first step toward achieving efficiency.
The alternative is working with one of America’s largest residential property management companies, such as Greystar Real Estate Partners LLC or Pinnacle Property Management Services.
Evernest is an established property management company in Colorado, with locations in Fort Collins, Denver, Boulder, and Colorado Springs. Its agents know how important it is to maximize their clients’ income without compromising the quality of treatment tenants receive.
Some landlords might argue that hiring a property management company bites into their bottom line, making their rental property less profitable. While these companies charge fees for their services, the resultant benefits and cost savings more than adequately cover this expense.
Many landlords lack the experience to manage their rental businesses, while others do not have the time due to other commitments. Leaving the responsibility of managing their rental properties in the hands of a trusted rental agent makes being a landlord less stressful and complicated.
2. Specific agreements
Whether it is your lease agreement with a tenant or a property management contract with a company, always ensure that it lays out the specifics.
Any vague clauses subject to interpretation become time-wasters, causing endless negotiation between the two parties. It is better when agreements are explicit with no grey areas. Tenants should know beyond a shadow of a doubt what they may or may not do on your property.
As the landlord, you should understand precisely what services a property management company offers.
While agreements should be specific, they must remain legal. Therefore, evaluate all your contracts and get legal advice to ensure they are not unreasonable or non-binding. An agreement should preserve both parties’ rights while stipulating their responsibilities. If you try and impose unfair stipulations in a contract, you could face drawn-out, expensive lawsuits.
Being a landlord has tax implications that you cannot afford to ignore. Indeed, many rental property owners can claim several deductions on their tax returns for their rental businesses.
However, none of that is applicable without the documentary evidence to back up claims and deductions. You could lose out on a rebate because you did not keep track of your paperwork, making recordkeeping essential for efficient property management.
Few people like administrative activities that require sorting and filing. However, taking the time to keep accurate records can save you thousands of dollars annually. Where most landlords go wrong is stashing their paperwork in a box and putting off organizing it. They are left scrambling around looking for documents under pressure.
All aspects of being a landlord should be subject to recordkeeping, from rental payment receipts to maintenance bills and everything in between.
4. Managing tenant relations
Many landlords find hiring a property manager beneficial as the agent works as a middleman between them and their tenants.
Landlord-tenant relations often sour when both parties cross the professional line that should characterize their interactions and become personally involved. This complicates matters when disputes arise as people’s emotions get in the way of resolving problems. Landlords who let one or two things slide should expect their tenants to try and take advantage of that, and vice versa.
Having a professional relationship with your tenants or property manager minimizes how much time you spend interacting with them. Interactions are limited to business matters, leaving all parties free to pursue other endeavours instead of becoming involved in each other’s personal lives.
5. Service providers
Many landlords lose time and money working with maintenance and repair service providers who do not deliver on their promises. This leads to inefficiency that wastes valuable resources.
A landlord should have established relationships with contractors and other service providers to ensure that the necessary work gets done on time and does not cost an arm and a leg.
Working with a property management company often makes this process more efficient. Agents have a network of reliable contractors who complete repairs and maintenance without delay, keeping landlords and tenants satisfied with the service they receive. As these contractors get so much business from the property management company, they will respond to calls promptly.
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I am Adeyemi Adetilewa, a media consultant, entrepreneur, husband, and father. Founder and Editor-In-Chief of Ideas Plus Business Magazine, online business resources for entrepreneurs. I help brands share unique and impactful stories through the use of public relations, advertising, and online marketing. My work has been featured on the Huffington Post, Thrive Global, Addicted2Success, Hackernoon, The Good Men Project, and other publications.