Real estate investors have found out that renting out your property during the pandemic is quite profitable. Some businesses and establishments continue to operate during the pandemic. This situation would eventually result in requiring employees to report on-site amidst the pandemic.
Employees would instead rent out spaces than travel every day and risk bringing the virus to their respective families. The real estate industry has shown its dominance with the ongoing pandemic, and investors will surely take advantage of the opportunity.
You may be a seasoned entrepreneur in the field of real estate, and you already have properties that are being rented out, yet have difficulty managing them or a real estate investor who plans to start their business with rentals. Here are some tips for managing your rental properties in the easiest way possible.
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For tenants, a promotional offer from their landlords surely sparks interests. Studies have shown that properties that offer lower rates with a longer contract rank higher than an annual contract at its base rate. It’s because tenants want to secure a property wherein they would spend less.
We think it’s a given notion that people, by human nature, will always seek something that costs less. The same goes for rental properties; if you did not offer a rate that will be profitable to you and less expensive for your tenant, you would lose viable candidates to rent out space.
Flip and Renovate
A distressed property priced at a commercial value will not receive immediate tenants especially during the peek of the pandemic. Managing distress properties require renovation and flipping to get a reasonable return on investment.
This is because distressed properties are sold at a pretty low price amidst the pandemic. If you wish to invest in such properties, renovating and flipping them will surely be worth the investment. A great way to start renovating would be as simple as new paint or renovating the flooring.
Managing Customer Service
Just like any business in the industry, customer service is vital and important. Tenants are appealed to the idea that they are being handled with the utmost care and kindness from their landlords.
One of the most difficult aspects of customer service in line with rental properties is assuring that your tenants would renew their contracts. Rental contracts can vary in the number of years and prices for renting. With the asset of great communication between the landlord and tenant, it is assured that the contract is renewed.
These may be important factors in ensuring that your rental properties are being handled and managed to the best of your capabilities. Let’s walk you through a step by step guide to kickstart and manage the properties mentioned above.
As mentioned, flipping the property or renovating your space would be gravely crucial in managing your rentals. This is why it’s pretty evident that the first step would be to consider or follow through with flipping and working on renovations.
Not only can you assess the price of the property for rent in a good sense, but you would also be providing the best option for tenants to occupy your space immediately.
Finding the right tenant will always be a challenge. Tenants aren’t given the ease either in choosing the space that suits their wants and needs. As a landlord, it is your prerogative to ensure that you are making the space appealing and affordable for tenants.
As you manage rental properties fluctuating prices aren’t truly an option since the contracts do not allow such. This is why it would be best to find tenants that are amenable to your prices and will religiously pay their rent.
This is only feasible if expectations were set and the prices meet the tenant’s budget. To know the budget of your tenant you may need to research on the following:
- Consider the average income within the vicinity of your rental property
- Consider the number of people renting the space
- Consider and compare prices for rental spaces near yours
- Consider selling points with amenities that are accessible within the area (ex. Schools, stores, restaurants, etc.)
Advertising your property through all social media platforms, maximizing word of mouth, joining listings online, and at your local post office. This will get your property the presence it needs.
Securing great tenants will always be beneficial for you and the property that you utilize for rentals.
Always check and maintain your property. Tenants can always be trusted to safe-keep your space, however, there will always be room for improvement. As a landlord, your goal is to ensure that they are renewed or that the property is ready for renting should they choose to go at any given time.
This is also to guarantee that you aren’t running dry in terms of profit, but it will also provide your tenants with the assurance that they are being cared for.
Create a collection system. One of the most difficult parts of managing rental properties is collecting dues. It is the responsibility of tenants to pay their rent, however, it is also the responsibility of the landlord to collect this promptly.
To establish and create a collection system would mean that you aren’t collecting rent at random. Fixed dates to collect monthly dues is one of the traditional methods commonly used by property owners. Some landlords find it convenient to have the monthly dues paid bi-monthly to provide convenience to their tenants.
Whichever method you choose, make sure that both you and your tenant make an agreement that you will religiously abide by. This will avoid conflict and promote a healthy landlord-tenant relationship.
Make sure that you are willing to evict tenants that are not paying rent on time. This may seem harsh. However, this is a business and your goal is to generate profit. Providing them with a window or extension to meet payments can be an option but it isn’t mandated that you do so.
The reason why managing rental properties becomes difficult and risky is the thought that you aren’t going to generate the profit you assumed with the unexpected delay due to unforeseen events.
These factors and steps are aimed to assist you in managing your rental properties. If you are still hesitant about managing rental properties or are just starting to pursue the real estate industry journey. You aren’t going to succeed with doubt and hesitation; take that leap of faith and start today!
Change is the only thing constant in today’s society, we can either adapt or choose to accept reality.
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Disclaimer: The blog articles are intended for educational and informational purposes only. Nothing in the content is intended as legal or financial advice.