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Owning a rental property can be a great financial investment, but it also comes with a lot of responsibility and risks.
Finding the right tenants and maintaining and managing a rental property effectively requires a combination of organization, planning, and communication skills.
Read on as we share 10 tips on how to manage a rental property.
Let’s check them out!
Being A DIY Landlord: What Does It Imply?
As a DIY landlord, you are responsible for managing all aspects of your rental property on your own without the assistance of a property management company.
It can get overwhelming since you’re juggling a wide range of responsibilities and tasks, including:
- Finding and screening tenants – You’ll need to advertise your property, show it to potential tenants, and decide who to rent to.
Afterward, you’ll have to check potential tenants’ rental history, creditworthiness, and employment status to determine if they’re a good fit for your property.
- Maintenance and repairs – It is you who will handle all maintenance and repairs for your rental property, from routine tasks like lawn care to more complex repairs like plumbing and electrical issues.
- Financial aspects – It’s your responsibility to create a lease agreement that outlines the terms of the rental agreement, including rent, security deposit, and when rent is due.
Moreover, you need to collect rent from tenants on time and enforce a strict rent collection policy.
- Keeping accurate records – You’ll have to track all rental income and expenses, including repairs, taxes, and utility bills, and report them accurately on your taxes.
Running a “one-man show” hospitality business is time-consuming and stressful, but our first tip should help you streamline the whole process and make it more efficient.
How To Manage A Rental Property in 10 Effective Steps?
1. Choose a Property Management System
A property management system (PMS) helps property managers and landlords manage rental properties more efficiently.
The software usually includes a suite of tools and features to automate various aspects of rental property management, including administrative work, lease management, rent collection, maintenance and repairs, accounting, reporting, etc.
OTA SYNC, a cloud-based PMS, facilitates and automates the management of all property types and sizes.
Furthermore, it encompasses features such as billing and invoicing, reporting tools, payment processing solutions, etc., and makes everything accessible via a centralized dashboard regardless of your property numbers.
2. Establish a Fair Rent Price
Determining a fair rent price can be a complex process influenced by a variety of factors, including location, property condition, market trends, and local amenities.
Therefore, research rental prices of similar properties in your area to gather data
and to ensure that you’re charging a fair rate.
Moreover, take into account the local amenities that might draw tenants, such as schools, parks, shops, and transportation.
Properties closer to these amenities might justify a higher rental price.
Another important aspect is the state of your property: Is it move-in ready? Are all appliances in working order?
In addition, calculate your expenses to ensure that your rental price accounts for all your costs, such as property taxes, insurance fees, mortgage payments, etc.
Finally, be open to adjustments and keep in mind that the rental price that you set is subject to change, depending on the market trends and feedback from potential tenants
? ProTip:
OTA SYNC’s Bidding feature allows your potential tenants to offer you a ‘bid’ price so you don’t lose them.
For example, if your rental price is 1000 euros, and your potential tenants want to pay 950, they can bid at a lower price than your advertised rate.
Once they’ve made a bid, you can choose whether to accept or decline it.
3. Market Your Property For Rent
Marketing your property for rent is critical in attracting tenants and filling vacancies.
However, before you start marketing, you should consider your target tenants::
- Students,
- Families,
- Couples,
- Professionals, etc.
Knowing the type of tenants you’d like to attract will eliminate guesswork and direct your marketing efforts to the specific group.
After selecting your desired tenant profile, you can try to advertise your property via:
- Popular rental websites like Zillow, Redfin, Apartments.com, etc.
- Placing a rental sign in the public area near your property to boost walk-ins.
- Listing on social media platforms to target prospective tenants who are active there.
- Referral marketing by encouraging current and past tenants to refer friends and family to your property.
4. Create A Rental Lease Agreement
A rental lease agreement is a legal document that outlines the terms and conditions of a rental property.
It is extremely important because it specifies and clarifies responsibilities between you and your tenants.
Moreover, it provides essential information, such as:
- The terms of the lease,
- Payment amounts,
- Security deposit,
- Maintenance expectations,
- Late fees,
- Renewal information, etc., that guarantees that both parties are on the same page.
? ProTip:
Whether you rent your property in your home country or abroad, the lease agreement should comply with local tax regulations.
OTA SYNC can accommodate different tax rates and set up other necessary settings specific to a market or region.
This way, you can be sure that you’re not putting yourself at risk of penalties or legal issues.
5. Collect Rent On Time
You should enforce a strict rent collection policy and ensure tenants pay rent on time, as late payments can adversely impact your cash flow.
It may surprise you, but tenants actually prefer online payment and are more likely to pay the rent if they have that option.
? ProTip:
OTA Payments is a fully integrated payment gateway that uses automation to process transactions instantly.
Furthermore, it provides multiple payment options via credit cards, Google Pay, Apple Pay, etc.
It also has integrations with payment systems, such as Stripe, PayPal, Flutterwave, etc., allowing your tenants countless payment possibilities.
6. Keep An Eye On Your Property
Just as it’s important to check the state and condition of your property beforehand, it is also paramount to regularly pay visits and make sure all is well.
The more attentive you are to doing repairs and maintenance, the more grateful and appreciative your tenants will be.
? ProTip:
If you are in charge of your property’s housekeeping services, OTA SYNC’s Housekeeping Module & App provides a centralized platform for efficient task assignment, real-time updates on property status, etc.
With features like automated cleaning schedules, maintenance alerts, etc., the solution ensures that your property meets the highest standards of cleanliness.
7. Consider Using An Accounting System
A rental property accounting system can help you keep track of all financial documents, such as invoices, receipts, bank statements, etc., and view them from a centralized dashboard.
This way, you get a structured and organized platform that maintains up-to-date and accurate records to comply with accounting standards and auditing purposes.
? ProTip:
Did you know that you can create unlimited pro invoices with OTA SYNC?
The system pulls all the info automatically, and you can choose the status and insert additional services if needed.
8. Pay Attention To Financial Reports
Manual bookkeeping can be prone to errors, but using a PMS can automate most financial operations.
Thus, it provides you with data-based insights through financial reports to guide your
future decisions.
These reports usually show key metrics of the property’s performance, like occupancy rate, rent roll, maintenance expenses, etc.
? ProTip:
OTA SYNC provides Advanced reports and analytics to manage revenue, finance, and in-property reports.
You can even receive reports on your email at your preferred frequency without adjusting the parameters manually!
9. Manage Your Income
Keep track of all income and expenses related to your rental property to calculate your rental income and taxes.
In addition, make sure you have funds set aside for unexpected repairs and other expenses that may occur.
10. Communicate Effectively With Tenants
Keep an open line of communication with your tenants, and respond promptly to requests and complaints to build goodwill and avoid conflicts.
Consequently, being attentive will increase the chance of tenants staying in your property longer.
Manage Your Rental With OTA SYNC
Being a landlord, no matter how seasoned, always brings a combination of excitement and challenges.
Opting for a robust property management system enables you to get an all-in-one solution to automate important but also mundane tasks.
OTA SYNC, an all-encompassing property management system, does just that. With its advanced business intelligence tools and features, it:
? Reduces the duration of operations and tasks by automating them.
? Increases efficiency.
? Helps you manage your revenue.
? Provides a Multi-property dashboard that allows you to manage multiple properties from a centralized dashboard in a single view.
? Enables you to be updated and see all the changes and notifications via its mobile app.
And this is just the tip of the iceberg.
Ready to dig deeper?
Sign up for OTA SYNC today to maximize your rental property’s potential.
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