It is not going to be that difficult to become a DIY landlord or a self-trained property manager. If you are a real estate investor or if you have invested in a few properties that you intend to manage on your own, it is not going to take rocket science or a tremendous amount of genius to wrap your head around a few principles that deliver results. You just have to be a little more observant and a lot more practical. The following section gives you a glimpse of a few principles or to-dos, if you will, that you must remember if you want to become an incredible landlord:
This Is Your Business So Run It Like It
Remember that you are in for a profit. This is a business that you have to turn into a money-making machine. For that, you should create practical and repeatable processes that make your business successful from the start.
- Remember to outsource and delegate a few tasks that you know for sure you won’t be able to perform as efficiently as a dedicated professional.
- Remember to maintain watertight control over your finances and keep complete track of your entire cash-flow system. Document every penny and never let anyone mess with your accounts in your absence.
- Get a clear understanding of all the rules, laws, and regulations applicable to the real estate industry. This will help you understand market trends and also the pricing strategies of other landlords and real estate investors in the market.
Always Go With A Solid Lease/Agreement
The lease agreement has to be state-specific and precise at all costs. All the duties and responsibilities of the landlord and the tenant have to be spelled out clearly with no ambiguity at all. Remember, this document defines the business relationship between you and your tenants. It is the most important piece of paper that you will be preparing and therefore, it has to be absolutely flawless.
Screen And Find The Best Tenants Using The Right Tech
It is not going to be possible for you to sort through so many paper applications and pinpoint the tenants that you would want to keep on your property. There have to be certain fields, criteria, and characteristics that you should be able to point out and compare to be able to choose the right tenant for your residential building or commercial undertaking. You are going to need the help of dependable and robust landlord software for DIY landlords if you want to make this possible. The best part about these tools and applications is that they give you:
- The freedom to screen all your tenants
- Look for any criminal history
- Go through their credit report
- Examine their rental history
- Identify and weigh their sources of income and their overall financial stability
If they pass all the minimum qualifications that you have set for your tenant profile, you can go ahead and notify them of the same.
Deal With Your Contractors Through A System
Getting into the real estate business necessitates that you associate with contractors and subcontractors, local handymen, plumbers, electricians, and people who arrange for these professionals as well. It could be a corporate entity or a single freelancer working in that capacity. The point is to keep all your skilled and working professionals in the loop and create a system to constantly stay connected with them. Again, you need to invest in a software platform that allows you to keep the processes streamlined and makes the allotment of tasks easier for you or any of your assistants working with you.
Managing Tenant Turnover With A Calm Mind
Remember, none of your tenants are going to stay on your property forever. Eventually, they will move out. Tenant turnover can turn out to be a big cost for your company. If you own a family-run business, minimizing these costs is going to be even more difficult. Therefore, the most practical thing to do within this time window when your property is empty is to make necessary repairs, changes, replacements, and fixes that are going to get you better rent in the next tenant cycle. You also need to set clear expectations from your tenants regarding how they should contribute towards the upkeep of the property, security deposits, responsibilities relating to pets, and much more.
In The End…
Becoming an incredible landlord is all about practice. It is a process of learning and gathering experiences. This was a small attempt at enlightening you and showing you the right direction.