Most people acknowledge rental property management as an excellent way to make money. With the right properties, you can make a profit every month, with recurring positive cash flow and a path to capital growth on top of it.
However, many people are reluctant to get involved with rental property management because they know how many headaches come with it. Chasing down tenants for late payments, dealing with emergency repair requests at 3 am, and managing evictions are just a few of the complications to consider.
So how do you solve the biggest headaches in rental property management?
Hiring a Property Management Company
The best and most comprehensive solution is to hire a property management company in your territory. For example, if you have properties in and around Fort Worth, you can hire a Fort Worth property management company.
In exchange for a fixed percentage of your gross monthly income and potentially some minor itemized fees, your property management company will take care of most of the responsibilities associated with your rental property on your behalf.
This includes:
- Property marketing. Marketing a property is difficult, especially if you’re in a highly competitive area. Which channels do you use? How much money do you spend on advertising? How do you make sure that your property is visible to the right types of people? If you’re working with a property management company, you won’t have to worry about it; they’ll take care of everything for you and close your vacancy as soon as possible.
- Tenant screening. Finding the right tenants can also be an issue. You want to make sure that your tenants can consistently pay rent on time, but you also need to avoid any possible accusation of discrimination. Most property management companies screen tenants thoroughly, ensuring that only the best candidates make it into your property.
- Leasing and onboarding. Property managers also help with leasing and onboarding, so you don’t have to deal with boring legal paperwork or repetitive questions.
- · Rent collection. Sometimes, tenants don’t pay rent because they’re dealing with financial hardship. Sometimes, they just forget. But it’s always a pain to follow up and collect rent – which is why property managers typically make it a built-in service offering.
- Maintenance and upkeep. Maintaining a property is sometimes an exhausting effort, with hundreds of individual checklist items to keep in mind. You won’t have to do the work or find someone to hire if you have a property management company on your side; instead, you can trust that they’ll do the work for you.
- Emergency repairs. Property managers will also handle emergency repair requests, with someone available to take those requests 24/7. No more worrying about late-night phone calls.
- Tenant complaints. Some tenant complaints are legitimate. Others are a bit frivolous. But they can all be stressful and time-consuming. Property management companies field and address these complaints on your behalf.
- Evictions. Many property managers also offer eviction services, so you don’t have to dirty your hands to get rid of a chronically problematic tenant. They’ll gather the evidence on your behalf, they’ll process the eviction, and you can find a tenant that’s a much better fit for the property.
These services will mostly be handled without any need for intervention or effort on your part, turning your rental property into a genuine passive income engine.
Alternative Solutions
Of course, not everyone is willing or able to hire a property management company. If you’d rather continue managing your rentals yourself, or if you have no other option, these are some tips that can reduce or eliminate most headaches associated with rental property management on your own:
- Use the right software. A good software program can make it much easier to manage your properties, facilitating everything from rent collection to ongoing tenant communication. Shop around to find the platform that seems like the best fit for you.
- Be proactive. Try to prevent problems rather than merely reacting to them. Investing heavily in tenant screening, property renovations, and preventative maintenance can save you a lot of time and money in the long run.
- Establish good communication. Good communication can prevent most problems and make it easier to solve others. Make sure to reach out to your tenants regularly and maintain good working relationships with them. Get to know their preferences and needs so you can better address them – and hopefully increase tenant retention.
- Build a robust network. Professional networking is valuable for any career, and property management is no exception. Build a robust network of contacts who can help you with any conceivable property issue (for a reasonable sum of money). If you know three competent, quick-responding plumbers, those incoming emergency plumbing repair requests aren’t going to seem so devastating.
Managing rental property can be challenging but also extremely rewarding. As long as you have strategies in place to minimize or get rid of the most annoying problems in this space, you’ll be able to continue pursuing this investment strategy – without losing your hair – indefinitely.
