Is it your dream to own a rental property, get passive income monthly, and sell the real estate later for a sizeable profit? If so, you’re not alone since that’s the goal for many people.
But here’s the thing. Buying an income property without a game plan will make the ownership experience more stressful than it needs to be. You won’t enjoy a steady stream of passive income if there’s a revolving door of dissatisfied tenants who seek greener pastures. That’s exactly what they’ll do if you take tenants for granted and slack on the customer service front.
You’re better off retaining good tenants than losing them and spending a ton to find replacements. If you want your investment property ownership experience to be mostly positive and memorable for all the right reasons, here are three ways to be a better rental property owner and keep the passive income flowing into your account month after month.
1. Hire a Property Manager
If you want to take your investment property strategy seriously, consider hiring a property manager. Yes, it’ll cost a percentage of the rental income monthly, but you’ll get a lot for your investment. A property manager can give you the best chance of success as a rental property owner. They can provide many landlord services such as the following:
- Find good tenants
- Take care of the property
- Provide customer service
- Deal with problem tenants
- Source materials for maintenance and repairs
- Find qualified contractors for work that must be done
- Collect rent
- Provide advice on how much rent to charge
And that’s just a partial list of the services property managers offer investment property owners. While you could shoulder these duties yourself and keep all the rent income, it’s a worthwhile investment to get help from experts. Doing so will help you avoid stretching yourself too thin.
If you hire a property manager, ensure you find one near your income property. A Fort Worth property management firm is necessary, for instance, if your property is in Fort Worth, Texas. Otherwise, you and your tenants might face needless delays.
2. Buy a Rental Property Near Your Home
Another way to be a better property owner is to get an investment property close to where you live. Even if you have a property manager, you shouldn’t be an out-of-town rental property owner. You must be nearby to keep an eye on things and be readily available. Circumstances may arise that demand you get to your income property immediately. So, it doesn’t pay to have real estate in another state or a distant region that takes hours to get to. Shop locally.
Again, hiring a property management firm will eliminate the need for you to be onsite every time there’s a problem. But you don’t want to be an absentee landlord either. You’ll want to stop by from time to time to stay on top of things and check in on your rental property and tenants.
3. Offer Value
One reason to hire a property manager is you can get help setting the right rental rate for tenants. You can ultimately charge as much as you want, but you’ll miss out on quality tenants if you charge too much. On the other hand, you’ll leave money on the table if you charge too little. A local property manager knows the dynamics of your area’s rental market and can advise you on how much rent is a good amount for your income property. You can also get tips on upgrades and amenities you can add to justify increasing the rent.
If you want to be a better rental property owner, keep these three points in mind. You’ll keep tenants happy, care for your property, and increase your money-generation potential.
