Category Archives: Property Management Tips

How to Become A Profitable Real Estate Investor

How to Become A Profitable Real Estate Investor

Profitable

There is no doubt that the demand for real estate properties is plausibly high in the country. However, it is surprising to note that some investors are not able to maximize profits from their properties, even when their properties are located in “hot areas”. The reason why many property investors are unable to make maximum revenues from their investments is that they are unable to manage them effectively.

The following are five basic tips on how to become a profitable real estate investor.

1. By Installing High-Tech Programmable Devices in Your Properties

We are living in days when technology is rapidly taking over everything we do and many people have changed from analog to a digital way of doing things. As a real estate investor, it is very important to be informed about technological changes revolving around properties and tenant needs. That way, you will be able to know the right high-tech devices that you can install in your properties to make them more appealing to tenants. This will not increase the demand for your properties, but also make them more valuable. That way, you are able to charge higher rates for your properties and earn more revenue.

2. By Managing Your Properties Electronically

Technology

The internet is taking over the real estate industry and smart investors are now shifting to electronic methods when managing their properties. This includes advertising them, receiving applications from potential tenants and collecting rent among others. Electronic property management methods are more effective, convenient and less expensive than manual methods. Most importantly, it is easy and fast to have things done electronically than when doing them manually. Investors who use electronic property management methods are able to reduce costs and maximize revenues from their investments.

3. By Customizing Your Properties

According to the Needs of Your Customers As a property investor, it is important to understand the needs of your targeted niche. This involves knowing the needs of your potential customers so that you can be able to customize your properties according to their needs. For instance, your target clients could be college students, single families, high-end tenants, low-end tenants or even senior members of the society. Today real estate customers are very specific about their needs and will only rent or buy a property if they are comfortable with it. This is something smart that real estate investors can take advantage of and increase the demand for their properties, leading to more revenue.

4. Recruit a Professional Manager to Help You

Property Manager

Many property investors want to be landlords and rental managers at the same time, even when they do not have any clue about what Dos and Don’t s in real estate management. Consequently, these investors end up mismanaging their investments and they are unable to maximize revenues. As a smart investor, it is wise to recruit a professional manager to look after your investments if you are not conversant with real estate management matters or if you are occupied with other tasks.

5. Take a Basic Course in Real Estate Investment and Management

This is a very important for investors who have chosen to manage their properties by themselves and are not conversant with real estate management issues. There are numerous colleges out there offering basic real estate investment and management courses where you can enroll and sharpen your skills. That way, you will be able to look after your investment and maximize returns. You can also look for an experienced investor to mentor you so that you can acquire practical knowledge on how to manage your investment.

What to Do When a Tenant Stops Paying Rent

What to Do When a Tenant Stops Paying Rent

Landlords are business persons and have bills to pay too. This means tenants have the responsibility of paying rent on time so that the landlord can settle his/her bills. However, sometimes landlords have to deal with a rogue tenants who cannot pay rent on time and will always come up with excuses as to why they should be allowed to pay rent late. In some instances, a tenant may stop paying rent completely.

The following are the basic actions to take when a tenant stops paying rent.

1. Address the Issue with the Tenant

As a landlord, it is good to try to be understanding and polite with your tenants all the time. Having said that, the first and most polite thing to do when a tenant stops paying rent is to talk with him or her and see how you can solve the issue amicably. You need to ask the tenant why the rent is in arrears and see whether it is because of a genuine reason or mere ignorance. You can also take the opportunity to explain to the tenant that you rely on the money collected from tenants to pay your bills. The idea is to talk to your tenant and try to assist where you can if the tenant has reasonable excuses.

2. Give the Tenant a Notice to Pay or Vacate

In some incidences, a tenant may be problematic and it becomes difficult to talk to him/her and address the issue of unpaid rent. Similarly, the tenant could give you invalid excuses why rent is in arrears. The best thing to do in such situations is to issue the tenant with a notice to pay or vacate the property. The notice to pay or vacate will also help you in court if it becomes necessary to force the tenant to vacate the premises.

3. File For an Eviction Action

In a situation where the tenant has failed to pay rent after you have issued him/her with a notice to pay or vacate, the next step is to file an eviction action in court. Remember you cannot forcefully evict a tenant from your property by force or even turn off some essential utilities such as water and electricity. The right procedure is to file an eviction action in court so that you can legally evict the tenant from the premises.

4. Convince the Tenant to Vacate Through Cash for Keys Offer

This approach may sound weird because it is the tenant who should be paying. However, sometimes you can save yourself the stress of dealing with rogue tenants and court cases by offering them a small amount of money as a tip to encourage them to vacate the premises. It is also worth noting that eviction processes are expensive and can take up to several months. It could be wise to part with some cash and find another reliable tenant so that you can recover your money.

5. Hire a Lawyer or a Professional Rental Manager to Help You

Dealing with rogue tenants who have refused to pay rent can be very stressing to landlords with little understanding of tenancy matters. If you are among landlords who do not like running after tenants to ask them to pay rent, the best thing is to hire a lawyer or a professional property manager to help you. This is a wise decision if you are not conversant with tenancy issues in your area and you do not want to risk getting into serious problems with law enforcers.

How to Screen Tenants for Your Rental Property

How to Screen Tenants for Your Rental Property

Screening

It is the wish of every landlord to have his/her properties occupied by tenants all the time. However, landlords have the responsibility of ensuring they have reliable tenants who will pay rent on time and cause no trouble.

The following are six basic tips on how to screen tenants for your rental property so that you can accept only the reliable ones.

1. Start by Requesting for an Application

The first thing to do when screening tenants are to ask all potential tenants to submit an application explaining why you should rent them your property. This will give you a prior insight on whom to invite for further screening. By doing so, you get an opportunity to know about the background information of every prospective tenant. Some of the details that you should look for in the application includes what the applicant does for a living, whether he or she is single or with a family, the size of the family and other details that may help you to determine whether the applicant fits for your property.

2. Check Credit Worth and Ability to Pay Rent on Time

Credit Card

It can be very problematic if you accept a tenant in your property without checking whether they are capable of paying rent on time. As a landlord, it is important to make sure those occupying your properties are able to pay rent on time so that you can have minimal cases of rent arrears and defaulters. It is therefore important to make sure the person you are accepting in your rental house is indeed capable of paying for it. Otherwise, you will have to run after tenants every end month so that they can pay rent.

3. Check and Confirm the Background History of the Applicant

As a property owner, it is very important to know the background history of a potential tenant before accepting him/her in your property. This is the only way you can be sure your tenants are not criminals and they are not involved in any illegal dealings. By doing so, you are able to enhance the safety of your properties, the safety of your other tenants and avoid getting into trouble with law enforcers.

4. Ask for Recommendation From Previous Landlords

It is very important to ask prospective tenants to bring recommendation letters from their previous immediate landlord before accepting them in your properties. The letter will help you to know why the tenant left the other property, whether he/she had problems paying rent and if the previous landlord evicted the tenant. This can also help you verify some of the information listed by in their tenancy application letters.

5. Contact the Employer of a Prospective Tenant

Sometimes it could be difficult to contact the previous landlord of a prospective tenant, especially when a person is coming from a different country. On the other hand, it could the first time for the person to rent and there is no previous landlord to contact. In such incidences, it is important to contact the tenant’s employer so that you can obtain some background information to use in the screening process.

6. Arrange for an Interview With The Applicant

Interview

Once you have identified a potential tenant through the above screening procedures, the last step is to arrange for an interview with them so that you can sum up the screening process before accepting the applicant into your property. The interview should also serve as the platform for the tenant to sign the tenancy agreement before occupying the property.

Best Ways to Advertise Your Rental Property

The fact that you own some rental properties is not an assurance that you will make good money from them. You need to market your properties rigorously and reach out for potential tenants so that they can occupy them if you want to make money. As a landlord, you need to know that you do not enjoy a market monopoly and you are competing for same renters with other investors.

The following are five best ways that you can use to advertise your rental property and maximize occupancy.

1. List Your Property with a Popular Rental Manager

Property Rental

The majority of tenants in the modern society no longer go around estates looking for a vacant house to rent. Actually, most of the renters are very busy with other activities and have no time to look for a house to rent by their own. Others feel that going around estates is very tedious and time wasting. They, therefore, approach popular rental managers in these areas and ask them to look for a house on their behalf, based on their needs. This means that as a landlord you can increase the chances of reaching potential tenants by listing your property with a popular realtor within your locality.

2. Posting Your Property on Popular Rental Websites

Websites

The introduction of the internet has changed how people used to look for a vacant house to rent. Days have passed when potentials tenants could get into their cars and move around estates or from one realtor to another looking for a house to rent. Today tenants start by looking for properties posted on popular rental websites and only go out to see a property that has captured their attention on these websites. This means that landlords can easily reach potential tenants by posting their vacant properties on popular local rental websites.

3. Place for Rent Sign outside Your Property

This method of advertising rental properties was very popular in the past decades. Things have changed with time and some of these traditional property advertisement methods are becoming less effective. Nonetheless, this method is still effective, especially if you are targeting tenants above 45 years and probably those with a car and spare time to drive around estates. All that you need is to place for rent sign outside your property. The sign should include a few details about the property and a number that potential tenants can call and inquire more about the property. This method is very effective if you live near your rental properties.

4. Advertise Your Property on Social Media Platforms

Social Media

Today social media has advanced from just a platform for social interaction to a platform where business people can market their products to potential customers. Similarly, social media platform are now being used for real estate marketing because they are cheap and convenient. All that you need to do, as a landlord, is to post images of your property together with essential details and your contact on a popular social media platform. Potential renters will view them, ask you questions when need be and even share your post with their friends.

5. Use Existing Tenants to Reach for New Tenants

This is a very effective method of advertising your rentals if you already have some tenants occupying your properties. It is worth noting that tenants prefer to live with their friends in the same neighborhood and they are likely to ask their friends to relocate to a property if they are comfortable and satisfied. As a landlord, you can take advantage of the situation and offer your existing tenants incentives so that they can bring you more tenants from their relatives and friends.