Owning a rental property can be a great investment, but it requires time and work to maximize the return on your rental. A quality property management company will do much of the heavy lifting for you. They have big-picture rental market knowledge and can quickly help you find excellent tenants. They also have relationships with contractors to bundle labor and get discounts on specialized services and materials.
A property management company can maximize your return on investment (ROI) by providing various services, including rental advertising and marketing, tenant screening and leasing, maintenance coordination and repairs, rent collection, evictions, paperwork filing, and more. They can also save you money by keeping the cost of rent low and negotiating with tenants to keep them in place longer. To maximize your ROI, a property management company must be well-versed in local laws and procedures and handle issues promptly to ensure tenants are happy and the bottom line is protected. This will also help avoid costly repercussions like evictions, legal battles, and lost income from unoccupied properties.
Tenant screening is the best way to ensure reliable tenants occupy your rental property. Good tenants are more likely to treat your property with respect and report issues promptly, saving you money by not having to pay for costly repairs.
It’s important to screen applicants for both rental history and creditworthiness. A rental history report reveals previous landlords and the dates of each residence. In contrast, a credit check, eviction history, and Income Insights can verify an applicant’s ability to pay the rent. You’ll also want to ask for references and speak with them to understand how responsible the applicant will be. You can do this with online tools or paper records stored in file folders. Either way, you’ll be better equipped to politely turn down an applicant who doesn’t fit your criteria. This will help you keep your ROI on track.
All rental properties should be tracked in an accounting system that is automated and transparent. All rent deposits and expenses should be recorded in a separate account dedicated to that property, and that accounting system should be linked to the bank so that all income and expense information is uploaded and synced every month. Reconciling this data can help make preparing year-end financials and filing taxes easier. It is also essential to track rental property costs on a unit-level basis. This will allow you to see which units are performing well and which ones may need more work to hit your ROI goals. For instance, Acorn & Oak Denver’s best property management can handle many aspects of the investment process, including property showings, thorough tenant screening, lease drafting, 24-hour maintenance coordination and inspections, eviction support and rental collection. Their expertise can ensure that your ROI stays high by minimizing tenant turnover and reducing vacancy periods. They can also provide professional Schedule E reports to help you get the maximum tax deductions on your investments.
A property management company can save rental owners money by managing maintenance issues. This includes routine items such as appliance tune-ups, cleaning the interior of a rental and wiping down the blades on fans and blinds. It also includes taking care of major repairs when they arise. Skimping on maintenance can result in more costly repairs down the road and a loss of rental income when the property is unoccupied. A tenant screening process is an important tool for a rental manager, ensuring that new tenants are responsible and financially stable and will treat the property as they would their own home. This typically includes running a criminal background check, credit report and talking to previous landlords. Some landlords may feel uncomfortable raising the rent on their tenants, but this is a necessary part of rental property management and can help increase ROI. This extra income can offset property management fees and other expenses such as building insurance, accounting processes, cleaning and gardening services and wear and tear depreciation.