Managing multiple residential properties is often a complex task. It’s true no matter how successful you were in renting out one property in the past. Multiple headaches result from multiple tenants, multiple rent checks, and multiple problems that come with multiple properties. You definitely need a good strategy in managing multiple residential properties if you plan to put yourself in such a position.
By following a few guidelines, successful multiple residential properties management can be achieved. This post has outlined the guidelines for you below. They work whether you’re managing single properties in several locations or multiple units in one apartment building.
1. Make Organization A Priority
Misplacing important paperwork can set you up for some serious disaster down the road and lead to huge financial consequences. That’s why you can’t afford to get disorganized when managing multiple properties.
Even for a single property, owners tend to have a sizable amount of paperwork they need to keep together. From inspection checklists, leases, to rental applications, and invoices, implementing an organizational system to have these documents well kept becomes a matter of survival when managing multiple rentals.
A unique filing system can be of great help. The savvy landlords use it to keep documents organized. You either can file papers by tenant or by property. A per-month-per-property filing system is also a good idea to implement.
2. Hire A Property Manager
Managing all of your residential rental properties on your own feels amazing. It has some value in it, and that’s for sure. It gives you complete control over each aspect of the management process. Not to mention the fact that it also allows you to save money since you won’t have to pay other people to do the work for you. However, when you come to a point where doing everything on your own isn’t practical anymore, don’t hesitate to hire a property manager.
Getting the help of property management services can iron out your day-to-day responsibilities of managing multiple residential properties. If you want to experience passive income at its best, then this option is right for you. Hiring a property manager is one of the best steps you can take in transforming your business into something more of a source of happiness than a burden.
3. Don’t Take Property Maintenance For Granted
People need to walk away, having a sense that you’re an excellent landlord after visiting your properties. To achieve it, you have to give your multiple residential properties a chance to speak for themselves. Whether you’re looking to sell, deal with investors, or rent out, showing that you have a good handle of maintenance and repairs goes a long way in making your business thrive even during this pandemic. The key is to deal with issues as soon as you’ve identified them or your tenants have reported the problems.
4. Hire The Same Maintenance And Repair Contractors
As already mentioned, maintenance is crucial to the effective management of multiple residential properties. All of your properties will most likely need similar maintenance. That being said, it actually makes sense to use the same electricians, plumbers, or painters to do the work. That way, you can ensure that there’ll be consistency in the quality of work done among all your properties.
In addition, using the same contractors may qualify you for some discounts as a repeat customer for their services. Most importantly, it also means that help will quickly arrive at the right location if an electrical or plumbing emergency or problem arises since they’re already familiar with your properties.
5. Screen Tenants Diligently
The job of a landlord becomes a breeze if they have trustworthy and cooperative tenants. Honest tenants pay on time and respect your properties by not attempting to hide issues. However, your life will be hard as hell if your tenants never pay on time and trash your properties. How can you prevent dishonest tenants from getting into your business? Well, meticulously screening them is the key.
Always remember to only sign lease agreements once you’re already sure that the people you’re dealing with are trustworthy. Screening your tenants diligently doesn’t mean you’ll be able to select good tenants all the time. However, you can be confident that you’ll end up with far more good ones than bad.
6. Stay Friendly With The Tenants Of Your Properties
Building relationships with your tenants is even more important than screening them. Tenants are more likely to become honest with you and help you in keeping your multiple residential properties in good condition if they feel like you’re a landlord they can easily turn to with problems. Indeed, staying friendly with tenants and establishing relationships built on trust and respect will pay off over time.
The tips above should help you manage multiple residential properties in the most effective ways. However, don’t forget to be aware of your limits. If ever you find that you no longer have enough time to manage your properties due to life changes, such as new work obligations, seek help. One of the options landlords like you can consider is to hire a property management company that specializes in multi-unit management.