Unless you own multiple properties, it is often the more affordable solution to manage your own rental properties as you will be able to save a small fortune in the process. Even though you may initially assume that managing your own property rentals will be a massive responsibility, you will likely find that the task is not entirely that tedious. If you are considering investing in properties with the intention of renting them out to earn a passive income, doing your sums to determine your affordability for buy-to-let mortgages is crucial. Here are a few top tips to help you successfully manage your properties while saving along the way.
While you may opt for a fixer-upper home as an affordable starting point on your journey as a landlord, you will be able to manage your home repairs, remodels, and renovations and save a small fortune in doing so. However, it is vital to understand that you will be making certain repairs over the years regardless of who your tenants are. Each time your tenants move and you welcome new tenants, you will need to conduct a thorough inspection to determine what kind of home improvement projects you will need to do. Maintaining your investment over the years should be of utmost concern. When considering that property management companies may not be as concerned about minor repairs, it would likely be the better idea to manage your property yourself as you would be able to uphold certain standards.
If you are not the handiest individual out there, you may be wondering how you could save on home maintenance costs when hiring a professional contractor. Comparing quotes is generally one of the best ways to save, however, it is also a great idea to keep the same contractor or service over the years rather. If you opt for a property management company, you will be obliged to use the contractors that they provide, which means you would not be able to shop around for the best rates.
While countless property management companies don’t allow potential tenants to view a property until it is completely vacant, it would be best to invite candidate tenants to view your property while it is still occupied. This will give candidate renters the best idea of just how homey your property is. However, when doing this, you should be respectful towards your current tenants personal schedule and keep in mind that if your current tenant is extremely messy and disorganized, showing a vacant property would be best.
One of the biggest mistakes that you could make as a landlord is to avoid the screening process of potential tenants. You will need to establish affordability among other things. Screening applicants can be done by requesting proof of employment, bank statements, and conducting a credit check. In the event that you avoid doing this, you risk the possibility of allowing tenants in your property that will not pay their rent.