Investing in real estate is only the first step when you plan to create a sustainable rental income. The real long-term challenge is to manage your property successfully and keep your tenants happy.
You may be good at investing in properties, but that doesn’t automatically make you good at managing them. Here are a few vital things to keep in mind when you are ready to start managing your property.
Keeping up with your property maintenance is one of the key things that anyone investing in real estate should focus on. This is vital for two reasons: At first, the landlord-tenant law in California requires you to take responsibility for maintaining your property up to a certain standard of health and safety.
Secondly, a poorly maintained property will quickly start losing quality tenants and it will be hard to stem the slide. Just as you may have followed various real estate investment tips while buying the property, you now need to follow this vital tip for managing it.
While a well-maintained property is a prerequisite to keeping tenants happy, there is more to be done. Make sure you are sensitive to their needs, respond quickly to their requests for repairs, and most importantly, screen your applicants carefully.
A major reason why quality tenants move out even from nicely maintained properties is that they are unhappy with their neighbors. So, when you have a very high percentage of quality tenants, the overall environment and outlook of your property dramatically improve.
Make an effort to comprehend various local and state laws related to landlord-tenant issues. This will enable you to manage your tenants and your rental property more effectively. Put clear policies and structure in place so that there are no digressions from the law.
For instance, once you know the limits on security deposit amounts that you can collect from tenants when you are required to return that deposit, or how and when you can evict a tenant, you can create a clear set of policies for your rental which will always keep you on the right side of the law. In addition to state laws, check whether any additional local regulations apply to your property.
You may have worked with a real estate investment firm to buy your property. Now it is time to hire the services of a professional property management company in order to ensure your rental property produces consistent and growing returns on investment over time.
It can be hugely time-consuming and overwhelming to try and manage a rental property on your own. A resourceful and capable property management firm will able to handle everything from collecting monthly rent to handling repairs and maintenance to screening applicants and filling vacancies.
However, it is important to remember that you cannot expect exceptional results unless you hire an exceptional property manager. The market is full of me-too operators who don’t have the requisite skills or commitment and do more harm than good your rental property. So, choose your real estate management firm wisely.
Optum Real Estate Management is Orange County’s premier property management firm. We have the ability, knowledge, and resources to deliver exceptional real estate management services. To schedule a consultation, call us at (949) 478-4695 or contact us online.