Property Management Strategies For Every Residential Rental Property Owner

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Residential rental property is an investment hotspot for many real estate investors worldwide. This is due to its high demand, relative stability, and profitability as compared to other property types. Australia’s 2016 Census of Population and Housing data established that almost 26% of residential dwellings in the country are rented from private landlords. Managing a residential property is a vital aspect of ownership that every landlord must be abreast with. So, if you’d like to find out how to manage your residential property more effectively, then take a look at these points below.

1. Financial Management

A survey revealed that the average Australian spends about 27% of their weekly income on rent. Indeed, rental profits are what drives many property investors to pump money into residential property. Therefore, effectively managing this income stream is crucial to your success as a property owner. Consequently, it would help to keep proper track of all cash flow. Know how much you make from rent payments, what amount you are paying on your mortgage, and how much your insurance company is due. You should also track other personal expenses like taxes, utilities (if applicable to you), and any outstanding fees or fines you may have to settle. Many real estate experts advise that you keep proper records of all this information to help you budget effectively. Also, proper records will prevent run-ins with agencies like the Internal Revenue Service (IRS), and others. Therefore, prioritize appropriate financial management to help you effectively manage your residential property.

1. Property Maintenance

Property maintenance is also another vital aspect of ownership. Proper care will improve your property’s curb appeal, increase its value, and preserve your tenants’ safety and health. Several property management experts agree on the 1% rule that says you must budget roughly 1% of your property’s value towards yearly maintenance. General maintenance practices include mowing the lawns, roof repairs, fixing plumbing issues, etc. Hiring professional strata cleaners to maintain your property’s common areas is also necessary to keep the place in top shape always. Personal inspections also constitute effective property maintenance, so it is vital to conduct regular checks to detect and address problems early. It would help if you also planned for occasional inspections from your insurance company, as well as town officials who will come around to determine whether your property is upholding health and safety codes.

1. Tenant Management

Tenant management is the most immediate aspect of any rental property management that owners would have to confront due to rent collection. Many real estate experts advise that you should have an effective and stable rent collection arrangement that ensures a steady cash flow from your tenants. This arrangement must involve due dates for rent collection (either weekly or monthly), establishing grace periods, fees for late payments, and dealing with unpaid rent to ensure that you never make losses. Effective tenant management also involves managing lease agreements. As such, make sure your lease agreement is up to date and satisfies all legal terms that your state’s rental laws require. Dealing with tenant complaints and repair requests is also crucial to managing tenants. Therefore, you must have a strategy for handling these concerns like having a directory of repairmen you can contact to fix reported problems.