A rental property is one of the biggest assets you can own and one the smartest financial investments you can make in your lifetime. If managed properly, it can be a steady source of passive income. However, venturing into the world of real estate by yourself is not always a rewarding experience. This is especially true if you have no idea how to navigate your way through its various processes.
As the best NYC property management company, we are here to help you capitalize on your investment and grow your money. In this article, we will share with you three vital steps you should take as a rental property owner:
1. Hire a property management company
The two most common mistakes in managing a rental property are doing it all by yourself and hiring a leasing company. Accomplishing all the responsibilities of being a landlord by yourself can potentially cost you more in the long run, especially if you are new to real estate. On the other hand, while real estate agents are capable of selling your home, they do not specialize in property management.
The best thing that you can do is to hire a reputable property management company. They are skilled in screening tenants, taking care of maintenance and repairs, and other aspects of handling properties. This way, you can focus more on dealing with your business operations effectively and worry less about looking after your property and tenants.
2. Screen tenants carefully
Filling in the spaces of your rental property and finding qualified tenants can be challenging. While it can be tempting to rent out your property to just anyone out of your desperate need, it is best to take your time to look for honest, dependable, and long-term renters.
If you want to achieve this, you must implement a proper tenant screening process. This will save you from being stuck with stubborn, rowdy tenants who may start commotions and be the cause of complaints from other residents. Also, this will help you get rid of renters who can become unreasonably delayed in paying their rent.
3. Be clear and fair with tenant rules and regulations
Let your tenants be aware of your expectations from them and your relationship with them. To do this, create a rental agreement and have your renters acknowledge this.
Set specific rules and put them in writing. Discuss these with them, ensure that they understand these regulations so that they won’t break any rule, and be clear about the consequences of violating them. Most importantly, be fair to all your tenants and treat them with respect when enforcing these rules.
By creating a specific set of guidelines, you are legally allowed to take action should your tenant repeatedly violate your rules. Make a monitoring system to put a solid structure in place and to keep track of the names of your tenants and their respective violations.
Investing in a rental property can provide you with financial stability and security. However, if you want to successfully make a profit off your property, you first need to implement a thorough tenant screening process, put rules and regulations in place, and work with a property management company.
If you need assistance in accomplishing your landlord tasks, then you can turn to the best property management company in NYC. Get in touch with us to see how we can help you!