Owning rental properties is a proven way to earn passive income. But how do you manage such properties? Managing rental properties is a difficult process because you can not just purchase a property and begin renting with expectations for immediate profit. 

In this article, you will learn what property management entails as well as a few tips and tricks for success. Keep in mind that this should serve as a general guide. No one article will provide you all tools necessary to manage your properties. Therefore, you should take the tips provided here and apply them to your current situation as you see fit. 

Property Management Responsibilities

To learn more about managing properties, we need to understand three simple areas of a property that need to be properly managed in order to succeed:

• Managing tenants 
• Managing the property itself 
• Managing your finance 

Your tenants are incredibly important to overall success when investing in a rental property. You should take the effort to make sure you select the right tenants who you know will be responsible and respect your property. Screen tenants diligently to ensure that they are a good fit. 

The Property Management Process

Step 1: Buy and Fix Up Your Property 

Once you acquire a rental property, you must prepare the space in order to make it viable for the rental market. This typically requires repairing any damages to the property and making updates in order to appeal to potential tenants and add potential rental value.

Step 2: Set Your Prices 

Do not get too ambitious with your prices. It is difficult to determine the exact price to charge tenants, but keep in mind external factors such as location, modernity, furnishings, and any other important factors. If a rental property is out of state, research the socioeconomic environment of where your property is located in order to set reasonable expectations.

Step 3: Rent Your Property

It’s time to rent! There are multiple ways you can market your property, whether it be by word of mouth, social media, or using a rental website. You have the liberty to choose which marketing channel will fit your budget and target the kind of tenants you wish to lease to.

Step 4: Maintain Your Property 

It is critical to ensure that your property stays in good condition in order to keep your tenants satisfied. Just because you have found a tenant does not mean you can ignore your property and forget about it. Regularly check in on the state of your property in between lease periods and respond to maintenance requests in a timely fashion.

Step 5: Collect Rent and Generate a Profit

Now is where all your hard work begins to pay off! Establishing a reliably consistent payment schedule and method with your tenants is essential to maintaining income and generating a profit. 

Final Thoughts

This article provides a general outline of the process of preparing and managing a rental property. There are other nuances involved, such as managing evictions, accounting processes, and more. Be wary of your responsibilities and make sure you are transparent with your tenants about the rules and expectations.

There are many tips and tricks involved in managing rental properties. Be sure to read this guide and other thoroughly to get a sense of what action steps to take. 

For more articles and how-to guides for renters and tenants, visit mylighthouse.co.