Being a landlord to multiple rental properties is one of the simplest ways to earn a living and build long-term wealth. Although, managing multiple rental real estates by yourself can be an ordeal, and the challenges you face along the way can discourage you.
The success of your investment real estate largely depends on adequate property management. If you decide you’ll manage your rental buildings on your own, you need to have the necessary experience and resources and understand how to avoid mistakes to ensure an uncomplicated investment. Here are some tips to help you manage multiple rental real estates like an expert realtor.
Screen your tenants
Every landlord wishes to have nice tenants who can take care of the real estate as if it were their own. Once you have them, your work will become a walk in the park. However, finding responsible and honest tenants can take a while, which is why it’s always a wise idea to screen your tenants.
There are a lot of red flags you should worry about, and although you can never be completely certain about your picks, you’re still more likely to end up with good tenants if you screen them before making a leasing contract. After all, irresponsible tenants can cost you more than a single rent or two, so it’s completely understandable that you need to know quite a few details about your potential tenants.
When you manage multiple real estates, you can’t afford being disorganized. Misplaced paperwork can lead to big financial consequences and set you up for catastrophe down the road. From invoices and rental applications to inspection checklists and leases, property investors tend to have a quite big number of documents to keep together for even a single real estate. When it comes to multiple rentals, it becomes a matter of survival to incorporate an organizational system for your business.
Every landlord has their own filing system they utilize to keep the paperwork organized. Some decide to organize by real estate, while others prefer to file paperwork by the tenant. Some even develop a per-month-per-building filling system. Search for something that works for you and stick with it.
Take strata property, for instance. The concept came into existence 50 years ago, and by now, there are more than 270,000 such schemes encompassing more than two million individual lots across Australia. A strata scheme is a type of ownership, where a building or a collection of them has been separated into multiple ‘lots’ (individual apartments/units).
This is where programs like Rockend’s reliable property management software can work as a successful strategy for managing multiple rental real estates. They offer extensive auditing to monitor user activity for meetings, transactions and corporations, besides acting as a robust platform, ensuring minimum downtime for your business. While their database structure enables easy navigation between multiple entities.
Keep up with the maintenance
Real estate investors require a system in place to keep their rental real estate in pristine conditions and ensure that they always deal with repairs and maintenance problems as soon as they happen. If there is a lot of work involved, you can consider hiring a full-time handyman to deal with these issues. In addition, when managing multiple rental real estates by yourself, you need to have access to other contractors such as an air conditioning company, a great plumber, an electrician and a roofer.
Remember that maintenance and repairs can be much more than you anticipated when you manage multiple rental real estates. Every time you evict a tenant, you will be responsible for making the building rentable again, for instance, by repairing and cleaning it up. This also means you won’t receive any rental income during that period.
Even with innovative technologies being ever-present, a real estate manager still has to visit the building that is being managed. This can show management presence and offer the opportunity to speak directly with your tenants to ensure all parties are satisfied. Many careless real estate owners fail to realize that their listening ear and presence would aid in resolving problems as well as address issues at a quicker rate with the personal touch compared to being an absentee realtor.
Managing multiple rental real estates can be an arduous task, but by using the available resources around you, you might just be able to manage it. These resources include proper organization, the utilization of technology, increased visibility, performing maintenance and screening the tenants.