Many people who get into the business of owning rental property fail to realize that it is a business. They think of effortless property management as never having to do anything but cash the rent checks each month. What you should be doing as a landlord is taking steps to ensure that running your business is as simple and carefree as possible. It will involve some work on your part, especially in the beginning of your relationship with each residents. But the effort will make life much easier for you down the road, especially when it enables you to keep good renters long term.
Qualify Prospective Renters
Have you ever heard the expression; “An ounce of prevention is worth a pound of cure”? Well, that maxim certainly holds true in the property rental business. The easiest, most cost effective way to deal with problem renters is to avoid renting to them in the first place. Carefully qualifying prospective renters is the best way to do that.
One tool you can use, in addition to the traditional photo I.D., credit check, and checking references, is to search for your renter on social media. You can get a very accurate picture of what kind of person a prospective resident is by checking what they post on social media, like Facebook for example.
Issue a Pre-occupency Condition Report
Once your new resident is set to move in, you should do a walk-through of the unit and create a pre-occupancy condition report. This report should include plenty of photos, which is very easy and inexpensive to do in the digital age. As you walk through the unit, take pictures of any damage you see as a record of items that need to be fixed. You should also take pictures of damage that doesn’t necessarily require repair, like dented siding or other cosmetic issues. This serves to protect the resident from future liability for the pre-existing issue, and to remind you of things you may want to repair down the road.
Once this pre-occupancy report is completed, you should give a copy to the resident and have them sign a receipt for it.
Maintain Your Property
Any rental property you own is a valuable asset, not only in terms of what you paid for it, but also in terms of what it pays you over time. You’d be surprised how many landlords lose sight of these facts and unconsciously view their property as a cash cow that will always be there to provide monthly cash flow. This can be a costly mistake.
But by properly maintaining the property, and taking care of necessary repairs brought to your attention by your residents, your property will last longer, and you’ll be able to hang on to those great residents you’ve rented to for years to come.
