If you’re interested in adding some variety to your investment portfolio, you’re likely considering getting into real estate. One of the most common ways people do this is by getting an investment home loan and purchasing a piece of property that you then rent out.
While this can be a great financial move, it can also be challenging for those who are wanting to manage their properties but don’t necessarily have experience doing so. To help those in this type of situation, here are three tips for managing your own rental properties.
Understand What Managing Rental Properties Entails
Before you jump right into managing a rental property, it’s good to know exactly what this job is going to entail for you.
According to Erin Eberlin, a contributor to The Balance Small Business, being a property manager really means that you’ll be managing three aspects of this investment from a business standpoint. You’ll be managing the tenants you’re renting to, the property you own and any of its maintenance, and all of the finances that go into making this business venture work.
If you don’t think you can handle all of these aspects on your own, you can always hire a property management company to take care of some of this business for you. But if you’re wanting to be very hands-on with your investment, just be prepared for the reality of the tasks you’re taking on.
Spend The Time To Learn How To Be A Great Property Manager
When you’re new to real estate investing and management, you might think that it’s something that you can easily pick up without putting too much effort toward it. And while this might be the case for some people, if you really want to take care of your investment, you’ve got to put in the time to learn how to be a great property manager.
To help you in doing this, Brandon Turner, a contributor to Forbes.com, advises that you really invest some of your time into learning about property management. Read books, listen to podcasts, talk with other property managers in your area, or join online forums so you can learn from others’ experiences as well as get answers to any specific questions you may have.
Make Finding Great Tenants Your Priority
One thing that can make being a property manager so much easier, despite everything else that might be going on with your investment, is if you’re able to find great tenants to occupy your property.
To ensure you’re always filling your property with the best possible tenants, Andrew Beattie, a contributor to Investopedia.com, recommends that you always call to check their references and that you run a credit check. These two things can give you almost all the information you’ll need to know if someone is responsible and trustworthy enough for you to rent to.
If you’re going to start managing your own rental property or properties soon, consider using the tips mentioned above to help you do so successfully.
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