Taking Care of Your Own Rentals
If you want to save a little money and start managing your own rental properties, be prepared to put in a lot of effort. You will be responsible for every aspect of property management. This means that you need to have organizational skills, customer service skills, management skills and sometimes even repair skills. You also need to research the property laws in your area and make sure that you are following local laws.
When you manage your own properties you have to do everything that a property management company would do. This means advertising your property, screening tenants, taking rent, arranging repairs, helping to complete applications, checking references, scheduling maintenance, figuring out insurance, managing security deposits and much more. It isn’t an easy process. Before you undertake this responsibility you should know that it will require time, commitment and effort on your part. You will need to be available all day and all night should an emergency arise with one of your properties.
You will also need to work with tenants to complete leases and pre and post move out inspections. When doing this it is a good idea to use a 3 copy report form. You will walk through the property with the tenant and will notate various damages and stains on a special form. You will keep a copy for your records and provide a copy to your tenant. The other copy can be used upon move out if the tenant disputes the damages to the property.
You will also need to pay various taxes and fees. In some instances you will need to secure rental permits, business licenses and more. Make sure that you always pay property tax, insurance and other necessary fees. Neglecting these fees can result in some really unfortunate circumstances for you including the potential loss of your property.
When you get a rent check or other payment, make sure that you always give the tenant a receipt. Also make notes of the receipt of payments in your ledger book. When rent is paid electronically or is mailed in, you should still record the amount received, although a receipt might not be necessary.
It is also your responsibility to keep your tenants happy and content. This means dealing with unpleasant neighbors, evicting bad tenants and keeping things safe. When you are on the property, you cannot disturb the tenants or even enter their dwelling without permission. It is their home and you need to leave them alone.
There are various rules and regulations that you must adhere to if you want to manage your own rental properties. This can save you a lot of money and is something a great way to pick up a little extra cash. Hopefully this guide helps you to understand the process a little better.