These days, investing in real estate can be incredibly promising. Indeed, you can invest in a home, a duplex or triplex, or even a whole building and rent out the space to tenants. This is what you call an income property – real estate that is profited upon based on rent and other fees. The goal is to cover your mortgage and make a profit. In a buyer’s market, you can actually make a lot of money by going this route. However, if you want to be sure to protect your investment, you need to properly manage your property – or else rent won’t get paid on time and you will have mounting repairs. Here are five helpful tips for managing income properties.
- Make sure to have an excellent superintendent on staff – you want to be sure that plumbing issues and other problems are fixed right away. If you don’t have a superintendent on staff, you will be dealing with plumbing issues and other structural issues that could decrease your tenants’ quality of life.
- Make sure that you have a complaint box – you don’t want to let tenant disputes get out of hand. Ideally, you want to make sure that you resolve issues before they turn into major issues. You can usually install a complaint box in the common area. It will be important to read each and every complaint.
- Make sure that you are up to date on all your property taxes – you don’t want to be late or else you could be in serious debt. When it comes down to it, defaulting on property taxes could get you in serious trouble. If you have a rental property full of tenants and you default, you could be forced to evict and sell your building. Not only will you be dealing with tax issues, but you could also risk a class action lawsuit from your tenants who won’t be happy about moving. Simply paying your taxes will help you avoid this issue.
- Make sure that you hire a specialized property management team – having a property management firm will save you a tremendous amount of time and it will prevent an incredible amount of stress. Indeed, if you live in Missouri, you may want to find a St Louis property management company – if you in California, you may want a Los Angeles based property management company. A property manager will be sure to facilitate the handling of receiving rent, deposits and applications from potential tenants. They will also use their resources to make sure your rental property is completely occupied.
- Make sure that you obey your tenants’ wishes and you remain diplomatic – these people are living their lives in your rental property, so you want to create an ideal environment. When it comes down to it, you want to make your rental property as inviting as possible. The rule of thumb is to add amenities that you would want. If there is a pool, you want to be sure that you keep the water clean and warm. In the end, this is the best way to make sure that there are no complaints and no disputes.