Not only can property management offer a stable stream of income, but it will provide you with a long-term network of investors, renters, and other professionals. To build meaningful connections, you will need to provide effective property management to landlords and tenants alike.
Here are the 10 best practices to help you on your property management journey.
Advanced Education and Training
Advanced education and training will give you the necessary skills to understand your niche and thrive. While most property managers hold a real estate broker’s license or a property management license, pursuing further education can help you stand out. After a few years of experience, consider taking courses to become a Certified Property Manager.
With a higher-tier license, you are more desirable and will be able to reach your property management goals at a much faster rate. Plus, you’ll learn a lot and become better equipped to deal with all kinds of situations with ease.
Communication is Key
Like everything else in life, communication is crucial to property management success. For tenants and landlords alike, one of the most common causes of dissatisfaction is poor communication. Tenants will feel disgruntled and develop a sense of helplessness in their living situations if you don’t communicate. Landowners will be upset if they see a new expense that they were not aware of. To keep everyone happy, keep everyone in the loop.
Be proactive and reach out in regular intervals. Don’t wait until someone reaches out to you about a problem. Reaching out regularly also shows your tenants that you care.
Provide Routine Maintenance
The last thing tenants want to see when they get home is a broken down and unkempt home. But, they may be too afraid or don’t have the time to contact a property manager. That’s why property managers need to develop and maintain an upkeep schedule for every property they manage. Make sure to use the time in between tenants to thoroughly clean, repair, and update.
You should also establish what maintenance items you are responsible for versus what your tenants are responsible for. This will help to clear any misunderstandings while streamlining your maintenance planning.
Proactively Build Your Network
Always be on the search for new networking opportunities. We’re not just talking about tenants and landlords, but necessary professionals as well. All property managers will need to work with contractors or repair specialists in the future, so make sure to form a relationship with them. By doing so, you may get discounted prices and gain access to last-minute calls for urgent matters.
Stay Up With the Trends
Like most industries, property management always changes. Be at the front of the pack and you’ll cement yourself as a desirable industry leader. Look at statistics, industry, and social trends, and react to them before everyone else. For example, let’s look at a hypothetical town becoming increasingly popular with college students. You may want to rent out multiple locations in that area, and pander to that ideal demographic.
Managing Expenses and Accounting
Accounting serves as the framework for property management. With a finite amount of resources, you need to carefully mark and record all monetary transactions for future reference. With these references, you’ll be able to tell if there is a budget for new renovations or if you’ll need to cut back in certain areas.
To manage your expenses and accounting, take the time to properly prepare your property management audit. Compare the physical state of your property with your allotted budget and other important documents. This will help you determine your business-related finances and create a structured plan. Consult an accountant if you need guidance or assistance.
Landowners want to increase their profit margins. They want you to attract new tenants while keeping the retention rate as high as possible. That’s where proactive marketing comes into the picture. To proactively market, use forums or online services to actively promote the property. As the property is cleaned, repaired, or renovated, make sure to update photos and descriptions.
You will want to keep your current tenants satisfied as well. Ultimately, their positive reviews will draw in potential tenants, and benefit you in the long run. Make sure to respond to requests or complaints in a reasonable manner, and always follow up. Happy tenants matter, so don’t let them down!
Even if you don’t have tenants or property in a neighborhood yet, you can still market yourself! Focus on building relationships with locals and become the hot topic of the town. With your name out there, people will trust and come to you when a rental opening comes up.
Embrace Technology and Renovations
Technology and renovations offer convenience, and tenants love convenience! Investing in upgraded kitchen appliances, smart technology, motion-detecting lights, and more can open your property up to an entirely new demographic. Your current tenants will be happier, giving you a reputation boost with them!
Make the Leasing Process Simple
If you decide to work with leasing agents, a simple leasing process will benefit you and them. Create a document that gives them the necessary information about your various offers. With all the relevant information at their disposal, leasing agents will be able to get leases signed in a matter of days. If it takes too long to get answers, potential tenants are very likely to walk away. Plus, you won’t be bogged by endless questions either!
Take Time to Train Your Employees
If you’ve decided to outsource your work, make sure that you train and set each employee up for success. Examples of employees include but are not limited to maintenance professionals, receptionists, or administration. By equipping your employees with proper training, they will be competent to work independently.
Training requires your time, but constantly cleaning up an employee’s messes will burden you. When you set your employees up for success, you are setting yourself up for success!