Sarah stared at her morning’s workload in despair. She had been managing residential properties for years and thought she had pretty much seen it all…but this day was proving to be particularly challenging.
She had to deal with 6 separate housing lease violation complaints, a tenant who was refusing to pay rent, and an overflowing inbox of emails begging for repairs and resolution of some other issues. Managing residential properties seemed harder than ever and she wondered if her day would ever end.
Managing residential properties can eat up a lot of your time, and if you’re not ready for that, it can leave you spinning.
So how do you know if you’re ready to take the plunge? Here’s what you should know.
Maintenance and Care of Managing Residential Properties
You need to be thorough and consistent to manage properties. You must advertise your property and make sure it is always well-maintained. Maintenance and care of these properties are essential to ensuring they are in good condition.
This involves regular checks of plumbing, electrical, and HVAC systems. Routine yard maintenance, such as mowing, trimming, and edging lawns, as well as painting and repairing external surfaces, also needs to be done.
Managers must keep up with rental laws, pest control, energy usage, tenant issues, paperwork, insurance coverage, and any unexpected surprises. The work can be rewarding, but it takes dedication, experience, and strong organizational skills to be successful.
Identifying Lease Agreement Requirements
The first step to doing this is familiarizing yourself with all applicable rental laws. This includes researching and understanding the tenant rights, lease terms, and any security deposit regulations.
Also, one must consider certain factors when creating a lease, such as the type of tenancy, length of stay, and specific details. It is also important to make sure all requirements are written in the lease agreement. This is to ensure there are no misunderstandings between both parties.
With many questions to ask a diverse range of tenants, hiring a professional to manage the residential property is worth the extra expense.
Setting a Competitive Rent
Many factors come into play when making this decision. It is important to consider the market rate for the area and compare your real estate rent to the local competition. It should also be in line with profit goals.
Knowing the economic downturns and times of heightened rental demand can help in setting a competitive rent. Remember to include any necessary miscellaneous expenses in the rent to ensure you are accurately representing the true cost of living in the property.
To be competitive, monitor the local rental trends and keep up with the market rate.
Don’t Go At It Alone
Managing residential properties is hard, there’s no doubt about it. Dedication and commitment are necessary to be successful, in addition to industry knowledge.
If you are thinking of taking on the responsibility of managing real estate, don’t go at it alone. Get help and advice so you can make informed decisions. Contact VerraTerra, a real estate and property management professional, for advice on getting started.
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