Managing your residential properties can be a smart and rewarding choice. It allows you to make decisions on your own and gain experience in real estate, which can help broaden your expertise in this industry.
Once you start managing properties, expect to face several challenges, such as late payments and maintenance requests. Although these issues can be stressful and take up a lot of your time, you can handle any difficulties and stay on top of all your responsibilities as long as you have the right mindset and tools, including the best property management software in the UAE.
Best Property Management Tips
Below are some tips to help you get on the right track to managing residential properties:
Invest in a property management system.
A property management system (PMS) streamlines several tasks, such as rent collection, maintenance tracking, lease management, and tenant screening. This type of software helps reduce the risk of errors and delays.
A PMS allows you to manage new and existing tenancy agreements and set up automated reminders for contract renewals. You can also use this tool to record payments and other transactions and specify payment modes.
This tool lets you settle outstanding bills and landlord deposits efficiently. You can also use it to generate and send statements of accounts to your tenants, schedule maintenance work orders for your rentals, and manage work orders and associated expenses.
These features make a PMS an essential tool for real estate professionals, making it as valuable as real estate broker CRM software.
With a property management system, you can save time while staying on top of all your responsibilities as a property manager.
Establish fair rental prices.
Overpricing an apartment or house for rent can drive potential renters away, while underpricing it may mean losing out on potential earnings. As such, you need to set competitive prices for your rentals.
Research similar rental properties in your area to establish competitive prices. Look at online listings, talk to local real estate agents, and check market trends as well.
Remember to consider other factors, such as the size, location, and amenities of the properties when checking the current prices.
Also, keep abreast of the current rental trends since the market may change due to economic conditions and housing demands. Adjust your rent accordingly to get the most out of your rental.
If you’re adjusting your prices, consider the rent control laws in your area since some cities regulate how much rent can be increased annually.
Implement a thorough tenant screening process.
When you have a thorough screening process, you can avoid having problem tenants. You can lower the possibility of getting late payments, having your property damaged, and dealing with lease violations.
Your screening process should include having the applicants fill out a rental application that requires them to share their personal details, employment history, and references. Next, verify their income to ensure they can afford the rent.
Run background and credit checks to evaluate the applicant’s financial responsibility and rental history. Look for red flags, such as past evictions, frequent late payments, or a history of legal disputes with landlords.
Also, ask the applicant for reference letters from their previous landlords and speak with them. Doing so will give you a good idea if they will be a good tenant or not.
Create a detailed rental lease agreement.
A well-drafted lease agreement outlines the expectations and responsibilities of both the landlord and the tenant. It should cover essential details like rent amount, due dates, security deposit policies, maintenance responsibilities, and lease duration.
The contract should cover essential details like rent amount, due dates, security deposit policies, maintenance responsibilities, and lease duration. Make sure it includes rules regarding pet ownership, guests, smoking, and property modifications to avoid future disputes.
Ensure the lease includes consequences for lease violations, including late payments or property damage. It should also provide details regarding the process for lease renewal and termination.
If you’re drafting your first lease agreement, consider having a lawyer go over it to ensure it complies with state and local rental laws.
Implement a strict rent collection policy.
Late rental payments can affect your cash flow and ability to pay for property expenses. Because of this, set clear expectations regarding payments to avoid these issues.
Include rent due dates, payment methods, and late fees in the lease agreement. Make it easy for your tenants to pay on time by offering options, such as online transfers and direct deposits.
Although it is understandable that tenants may occasionally have difficulties paying their rent, being too lenient may encourage them to keep delaying their payments. As such, enforce late fees to discourage overdue payments.
If a tenant consistently pays late, speak with them to find the reason for the delay and decide the right action to take, such as issuing formal notices or starting the eviction process if necessary.
Maintain your rentals.
Keeping your rental property in good condition allows you to attract quality tenants and protect your investment at the same time. It also prevents minor problems from turning into more complex and expensive issues.
Conduct routine inspections to pinpoint and address typical problems, such as leaking pipes and faulty wiring. Also, invest in professional preventive maintenance services for HVAC systems and pest control to keep your properties functional, safe, and appealing.
If a tenant is requesting for a fixture to be repaired, address it promptly to keep them happy and encourage long-term tenancy.
Lastly, establish a maintenance schedule and work with reliable contractors to ensure your properties are well-maintained and all repairs are handled efficiently.
With these tips, you can manage your residential properties efficiently and expand your skillset to be a successful property manager.
