Property investments can be a great passive income if you’re able to hire a property manager or agent to take care of the daily workings of the property and handle any tenant issues. However, just because you now have a middle manager doesn’t mean you’re exempt from the risks that other property owners and landlords face every month.
There are so many things that can go wrong, including a tenant sneaking out, an angry tenant, late payments, or the property sitting empty. In an effort to avoid these things, make sure you really interview each agent or property manager candidate thoroughly to be sure they hold the same management beliefs you do.
Here are seven other tips to help you get the best return possible on your property investment:
1. Organize your paperwork. Previously we’ve stressed the importance of filing forms properly for each tenant. It’s also important to have everything written down so there are no misunderstandings of verbal conversations you might have had in passing.
2. Write down your expectations for the agent. Make sure that you have clearly outlined what you expect the agent to do. You want to make sure the agent and their company know exactly what you want done and can handle it. It’s good for them to give you written feedback as well.
3. Meet your tenant. Your relationship will be better if you think of each other as specific people and not just a nameless landlord or tenant.
4. Show your appreciation with a gift. The agent and the tenant are a huge part of making your rental a success. Why not send them something that indicates you appreciate their help and business? A simple gift could go a long way to sending you to the top of your agent’s priority list.
5. Offer a bonus. You could offer to add a certain amount to the tenants’ deposit whenever they meet your requirements. For example: if they pay on your specified due date and allow your agent to inspect the property to show they are taking good care of it – you will add money to their deposit. It should not be taken off their rent but it could add up and help them with a down payment for a house in the future. It won’t hurt you to be holding a larger deposit either. If it works well for the tenant, they will probably tell their friends who are looking for a place to rent and you won’t have to search for new tenants. Another possibility is offering a bonus for setting up a direct deposit for their rental payments. Then you will have more of a guarantee when you will get paid.
6. Hire a weekly maid service. If you are in a college area this could be an especially good idea. You would quickly hear if there is anything wrong so you can take care of it right away.
7. Improve the property. In number 3 we mentioned that meeting the tenant is a good idea. While meeting, you could ask if there is something they think would improve the property. The person who lives there every day is the best person to know what it needs. They might just like a window air conditioning unit or a small heater.
Most of these tips will benefit you and your property for years to come without costing much at all. Truly some good investments for your investment property.
