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Managing one property, although a bit challenging at first, is not that difficult once you get the hang of it. Managing multiple properties, on the other hand, is a whole different story. You’d have more tenants, things to check, rents to pick up, properties to invest in, and potential headaches to handle. However, with a bit of effort, managing multiple properties can become just as easy as managing only one – and here’s how.
Practice Good Organization
When you have more than one property to manage, being disorganized is not an option. From the inspection checklists to the rent payment confirmations, you will probably have quite a lot of paperwork. Plus, you can’t allow yourself to misplace any important documents, since that could lead to more than just financial consequences. So, come up with your own filing system – you can organize your papers by property, tenant’s name, month, or something else that makes sense to you. Just make sure to stick with the system.
Screen Your Tenants
Every landlord wants to have good tenants who will take care of the property as if it were their own. Once you find such tenants, your job will become a walk in the park. However, finding honest and responsible tenants can take a while, which is why it’s always a good idea to screen your tenants. There are a number of red flags you should worry about, and while you can never be 100% certain about your choice, you’re still more likely to end up with good tenants if you screen them before leasing. After all, bad tenants could cost you more than a single rent or two, so it’s completely understandable that you should know a few details about your potential future tenants.
Keep The Tenants
Once you do find good tenants, you’ll want to keep them for as long as possible. In other words, you want them to be happy so they keep renting from you. There are a few simple ways to do so. For example, if something gets broken, make sure to fix it as soon as possible. Or, when the time comes to replace a washing machine or some other item, don’t go for the cheapest option – investing in your property will show your tenants that you care about them, so they will be more likely to take care of your property as well. Also, if you’re renting two properties next to each other, the above-mentioned screening can help you ensure that your tenants have good neighbors as well.
Go The Extra Mile
Another way to keep your tenants happy – and keep them around for longer, is doing what other landlords probably wouldn’t. For instance, don’t be afraid to allow pets. True, you might need to replace a carpet after a while, but that’s a low price to pay for having good tenants for years – and they’ll be less likely to leave knowing how hard it is to find a landlord that allows pets. Or, if your tenants have a car, motorbike, or even an expensive bicycle, consider providing them with a safe space where they can park it and not worry about the weather or theft. For instance, if your property doesn’t include a garage, you can always use a strong industrial shed which will be something your tenants will appreciate.
Hire a Property Manager
Last but not least, you should consider hiring some professional help down the road. Of course, managing all your rental properties successfully on your own is something you should be proud of. However, no matter how good you are at it, it is a very time-consuming job, and eventually, it will probably become impractical. Plus, if you have a job and a family, you might not always be available to take care of your tenants’ needs too. Hiring a property manager to help you keep everything under control would allow you to focus on yourself and your family while experiencing the true benefits of passive income. True, a part of that income would go to the manager. However, you’d get much more free time in return – and time is the one thing you can’t buy today. Just make sure to screen your manager before hiring them as well.
Being a landlord is a great way to earn some extra money, but it’s far from simple. Next to all the responsibilities that come with it, it can just as easily become overwhelming. So, consider the above-listed tips, and take things slow. Consider hiring a manager to help you out, and you’ll have a good and safe passive income in no time.
Author Bio: Emma B. Joyce is blogger based in Australia. She is a true home decor and DIY fanatic. Emma is also a mum who likes to spend her free time with her daughter. Finding new designs and patterns is her daily task. She is a regular contributor to Smooth Decorator (https://smoothdecorator.com/)