How to Manage & Preserve Property

Owning residential rental properties can provide you with a regular income. The key is to purchase properties that will make you money rather than cost you money. However, you do have to be prepared to do more than collect rents each month. The continuous upkeep and general maintenance of a rental property is an asset in a competitive market. While rental properties can be a profitable investment, being a landlord is a time-consuming job that takes commitment.

Instructions

Managing Rental Property

1. Comply with local building codes. Know the laws in your community, which apply to renting and leasing.

2. Clearly state all terms in the lease. Make it clear to tenants what you expect from them, as well as what they can expect from you. Avoid using vague or unclear language.

3. Consider offering both annual and short-term leases to tenants. Although finding tenants who are willing to sign a long-term lease may be preferable, sometimes renting an apartment or house to someone for just a few months can help fill a vacancy until a long-term tenant is found.

4. Understand the eviction laws in your area. While a lease is a legal contract, a landlord cannot simply evict someone who fails to act in accordance with the terms of the agreement. Eviction laws and procedures vary; therefore, it is not just a matter of issuing an eviction notice. In some communities, tenants are given a period of time to contest the notice.

5. Save costs by comparing insurance rates offered by several different insurance companies. Look for an affordable premium that still provides the coverage you need. Insurance on rental properties should include comprehensive property (hazard insurance) and liability protection to cover losses if the property is damaged or if you are sued. Purchase enough hazard insurance to cover the cost of rebuilding should the property be destroyed by fire or other insured disaster. The amount of liability insurance should equal your net worth.

Maintaining Rental Property

1. Make any minor repairs as needed. A landlord who attends to problems quickly is more likely to keep good tenants. Minimum standards require that residential rental properties be maintained in a safe and sanitary condition for living. Tenants can file complaints with the local housing authority if a landlord refuses to maintain the property. Most local housing authorities give landlords 24 to 48 hours to make emergency repairs involving plumbing, electrical or heating. Landlords are usually allowed one week to 14 days to make repairs that are not urgent.

2. Perform routine upgrades. Installing new carpet and repainting walls help to keep the interior of rental properties looking clean and well-maintained. Many landlords make it a practice to repaint walls each time a tenant moves out. Making necessary repairs and routine upgrades can help prevent the need for costly renovations later on.

3. Furnish or upgrade appliances to increase the value of a rental property. Replace old, worn out appliances with new, energy-efficient models to save your tenants money on utility bills. Efficient appliances also make the rental unit more attractive to potential tenants.

4. Inspect the property periodically. As a landlord, you have the right to make certain that tenants are keeping the rental unit in good condition. However, be considerate and give the tenants at least 24 hours' notice when you plan to visit the property.

References

• What Are My Obligations to Repair and Maintain My Occupied Rental Property?
• Easy and Proven Ways of Managing Rental Property and Your Tenants
• Keeping your Rentals in Good Shape