Advice for Owners who are looking to rent out their home or commercial property ...
Some investors think being a property manager is easy, until about 30 days in when they realize there is a lot more to it. At this point in time I will get, what I refer to as, “a Call for Help”. Over the past 10 years, I have worked very closely with investors in commercial and residential real estate. Throughout this time, I learned the checklist that I provide to investors, can seem never ending. Although the most important items I feel are as follows:
- HIRE A PROPERTY MANAGER. It’s so important to find a licensed management company that you can trust with your assets and experience. If you have a commercial property, they should know the different options in commercial leases.
- Price your property for the maximum return on your investment. Run a competitive market analysis and see what the commercial and residential market are quoting rents at. Some areas and properties may be subject to rent control regulations.
- Use a well thought out rental contract that clearly covers all responsibilities for both parties. Make sure all of the lease terms relevant to the property are clearly defined.
- Address all deferred maintenance issues with the property. It’s important to provide a tenant with a property that is well maintained. This will set the tone for the tenant to continue this same level of maintenance during their occupancy.
- Carry Landlord insurance. Contact a few insurance companies and see what options they can provide to make sure you are carrying the proper coverage, at a competitive price.
- Do your homework in qualifying tenants. Evictions can be very expensive and during this time, very lengthy with a multitude of steps to be taken beforehand. Invest in the right property manager that has the capability to have your best interest at heart.
Most importantly, if you don’t have the time or access to the above information … please, please, please HIRE A PROPERTY MANAGER. A property manager that is licensed with the proper credentials, should be knowledgeable in tenant & landlord laws, which seem to be changing on a very regular basis lately.
Long story short, save yourself the call to a property manager 30 days in, and make the call for management services the first thing you do when becoming an investor.