Owning a rental property is a great way to make extra income. If you live far away from your rental property, however, taking care of it can be a challenge. Here are some helpful tips on managing your rental property whether you live down the street from it or across the country.
Find a Reliable Property Manager
If you are financially able to do so, you’ll want to hire a property manager. Look for someone with plenty of experience managing rental properties similar to the one you own. Ask the manager for references and check out their online reviews. They should give you a list of the different services they provide. It should include things like screening potential tenants, taking care of repairs, and rent collection. You can negotiate a percentage to pay your property manager that will be taken right out of the rent money they collect from your tenant. Check around to find out what the going rate for property managers is in your local area.
Enlist the Help of Local Family and Friends
If you’re unable or simply don’t wish to hire a property manager, set up a network of local family members or friends who can help out with your property. It may be a good idea to get permission from these friends or family members to give the tenant who is living in your rental property their contact information. That way if something goes wrong at the rental property they’ll have someone local to call who can help take care of the problem.
Gather a List of Contact Information from Local Repair Companies
Whether your rental property is in your neighborhood or far away from you, make sure you have contact information on hand for various repair companies. Find the best HVAC service provider, plumber, electrician, and other home repair specialists in your area. Keep a hard copy of their contact information with you as well as stored in your cell phone. That way, whenever something needs to be fixed at the rental property you can quickly find the right person for the job.
Make Sure Your Tenant Signs a Contract
Draw up a legally binding house rental agreement for your tenant to sign. Include details such as whether or not they are allowed to have pets, which day of the month their rent is due, and any other specific rules you have in place for your rental property. Expert property managers often have forms on file that they routinely use for this specific purpose. If you decide to go with a property manager, you can ask them if they normally use one of these standard rental agreement forms. Take a look at the wording of the form they typically use to see if it suits your needs.
It’s a big responsibility to own a rental house. You want to make sure you provide a safe, comfortable home for whoever rents the property. Follow these simple tips to avoid unnecessary hassles and foster a positive relationship with your tenant.
