Property management is a great way to add another revenue stream. Or, you could decide to do this full-time and manage several hundred or thousands of units. How to get started? Let’s look at all the expectations of a property manager. What duties does a property manager need to perform and how can you prepare yourself for the job.
Your job is to find great tenants and keep the vacancy rate minimum. In order to do this, you have to understand the local market, determine what the going rate for similar units are, screen tenants and find the right renter for the property that the landlord is trusting you with. You have to find the right avenues to advertise the property. HomeKasa can help you with automating many of these tasks so that you can be productive from the get-go.
Find out if your tenant can afford the rent
You need to convince the potential tenant that this location is great and that the property is worth the rent you are asking. You also need to be able to find enough leads so that you can pick the right tenant.
You have to negotiate the rent. You need to negotiate with services for repair costs. You also have to negotiate and enforce leases. You have to negotiate to resolve disputes and tenant complaints. Therefore, it is important for a property manager’s resume to reflect prior negotiation experience.
Regular update keeps the property looking great and attracts tenants looking for a higher standard of living. This requires you to understand the cost estimate for each type of repair, renovation, update of rental properties. You should also have the right contacts in the industry to hire people quickly and reduce the vacancy time. HomeKasa can help you with tracking all your expenses.
You have to maintain documents related to lease agreements, tenant communications, expenses incurred, bills, etc. HomeKasa lets you store all of this in one place so that you can access it from anywhere, anytime. Let’s face it, once you become a successful property manager, you won’t always be able to access the paper files sitting at your desk. Focus on improving productivity from the get-go.
Investment property is a business and you need to run it like one. Once you enter a contract with the tenant, you need to be able to collect the security deposit. After that, you should collect rents in a timely fashion. This allows you to take care of expenses such as paying bills. When tenants are behind payment, you can remind them and also keep proof of your communications. HomeKasa allows you track all of this from one place.
In addition to managing income and expenses, you have to calculate overhead costs and help with taxes. Get a clear picture on whether the property is profitable and also forecast when it is going to breakeven. Prepare budget for the year, how you performed against the budget, and identify how to course correct. HomeKasa gives your entire financial picture in one easy to visualize chart.
By contracting with the right tenants, the worry about interior of the property can be reduced. However, its important to periodically inspect the property. In addition to that, you are required to maintain and secure the premises. Contract the right agencies for patrolling, CCTVs and other security devices, and enforce policies. You need to have a proper procedure in place to respond to emergencies.
Read about the tenant screening process
While you are not required to be a lawyer, you should understand the housing law well and stay current so that you can comply. You don’t want a lawsuit for a violation. Keep in mind that the landlord is trusting you with their property and asking you to represent them.
How to differentiate yourself as a property manager
Use the above roles of a property manager to adapt your skills and prepare yourself for the job. Keep in mind that any business is only as good as the reputation you build based on the services you offer and how you act. With the right help from the technology like HomeKasa, you can do it.
Conducting yourself as a property manager