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Step 1
Buy a good property. Managing a rental that is clean and in good shape with out a lot of problems is the first and most important step. Look for properties with newer appliances. Either negotiate getting everything fixed as part of the purchase of the rental, or immediately have everything fixed once it is yours. Make sure all plumbing and electrical issues are taken care of appropriately.
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Step 2
Get good tenants. Research craigslist and the classifieds to establish a reasonable rent. Ask potential tenants to fill out an application with references and to sign an agreement allowing you to check their credit report. Follow through. Pick the best one and get a reasonable deposit. Look for people than seem to be long-term tenants.
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Step 3
Develop a good support team. Identify a reputable plumber, electrician, appliance repair person and yard maintenance company. Even if you plan on doing most repair work and maintenance yourself, still find these people and put their numbers in your contact file. Use them when a tenant calls and doing the work yourself is too inconvenient.
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Step 4
Do a annual review. Once a year, in late spring, walk through every property and fix anything that needs to be fixed. Have tenants sign a new year lease with options to go month-to-month or six months at more expense rents.
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Step 5
Automate your paperwork. Have one checking account for all deposits and expenses. Put your bills on auto pay. Put a note on your calendar on the 5th of the month that says "rents due." On that day, make sure all rent checks are in and all monthly bills are reasonable. Come tax time, use the expenses in your rental checking account to fill out your paperwork.
Comments
arogges said
on 11/17/2009 You can easily use a free online property management system which will let you know when payments are due, who owes what, when... damages, properties, EVERYTHING (it's very easy) at: www.rentiseasy.com