Managing multiple rental properties can be challenging, especially for landlords and rental agents who are just starting. From tenant screening to maintenance and repairs, there are many tasks to keep track of and stay on top of. However, with the right strategies and tools in place, managing multiple rental properties can be a manageable and rewarding experience.
Tips on How to Manage Multiple Rental Properties
List Your Property ASAP
Putting your property online immediately after a tenant moves out is crucial. This would avoid losing cash flow due to vacancies. Finding a new tenant fast is important, and marketing your property online is an effective way to do so. Owning multiple investment properties can help offset the loss in rent of vacant properties. However, it won’t be practical to rely on that advantage long-term. Aim to fill all of your properties to maximize rental income.
Effectively market your rental property by focusing on highlighting its desirable features that will appeal to your target market. To find potential tenants, it is important to list your property as soon as possible. Utilize online platforms like Padleads to get your property seen by as many people as possible. By using the listing-syndicating features, you can publish your listings to high-traffic websites.
It’s also important to remember that filling your properties with reliable tenants is key to maintaining a steady cash flow. It ensures the long-term success of your investment portfolio. This brings us to the next tip…
Screen Tenants Strictly
Screening tenants is a critical step in managing multiple rental properties. Develop a strict tenant screening process that includes credit and background checks, employment verification, and rental history verification. This will help ensure that you rent to reliable and responsible tenants.
Sharing the same goal with the landlord, rental agents must recognize that tenants can either make or break a real estate investment. It is vital to have tenants who are responsible, take care of the property, and pay rent on time. These tenants can help ensure that the property is profitable and that the landlord’s investments are secure. On the other hand, irresponsible tenants can lead to issues and headaches for both the landlord and the rental agent. Therefore, it is crucial to be cautious when selecting tenants. Only sign a lease agreement with those who meet the criteria.
Create a Maintenance Plan
It takes time to perform upkeep on one property; when you have multiple properties, the situation may become more complicated. Establishing a regular maintenance plan can help keep your rental properties in good condition and prevent costly repairs down the line. Create a maintenance schedule that outlines when routine maintenance tasks like HVAC system check-ups, lawn care, and gutter cleaning should be completed. This enables you to keep track of maintenance and guarantee that every real estate investment receives the care and consideration it needs. This method ensures that you don’t forget about any property’s specific maintenance requirements.
Generally speaking, any property’s maintenance schedule has to incorporate seasonal maintenance duties as well as unexpected repairs that landlords commonly encounter.
Have a Network of Vetted Vendors
One of the most challenging aspects of managing multiple rental properties is dealing with maintenance and repairs. Having a network of vetted vendors like electricians, plumbers, and handymen can help alleviate these challenges. Make sure to thoroughly screen and vet each vendor to ensure they are reliable and provide quality work.
You only need to phone your local contact if one of your properties needs attention; they will take care of it on their end. That way, especially if you reside far from your real estate investment, you won’t have to deal with property upkeep on your own.
If you decide to partner with a property management firm, make sure to choose one that already has connections with on-call service providers.
Take Advantage of Tech
Utilize technology to streamline your property management tasks. Consider using property management software that help manage rental applications, leases, and rent collection. Invest in smart home devices like thermostats, locks, and cameras to automate certain tasks like temperature control and security.
Using these tools can make your daily tasks more efficient, such as rent collection and property showings. No longer will you need to knock on your renters’ doors or chase them down every month to collect rent. Instead, you can use online rent payment systems. Similarly, if you don’t have time to show a potential tenant your property in person, you can use virtual tours and online listings to showcase the property.
Not only do these tools benefit landlords, but they also benefit tenants. In today’s tech-driven world, many tenants seek landlords who can offer the amenities they desire, such as convenient rent payment and online maintenance requests. By providing these features, you can attract more tech-savvy tenants and increase your overall tenant satisfaction.
Use a Tenant Portal
With so many tenants, it becomes difficult to give each one the time and attention they deserve. If a tenant wants to file a complaint, they may have to wait in line for their turn. It could be too late by the time you receive their complaint. This could leave your tenants feeling dissatisfied, and in the worst-case scenario, they may sue you for failing to address repairs promptly.
To streamline the process, consider using a tenant portal. A tenant portal can help streamline communication between landlords and tenants. This provides tenants with access to important information like lease agreements, payment history, and maintenance requests. It allows tenants to file complaints and concerns at any time, cutting down the time you spend communicating with tenants. It also prioritizes urgent repairs, making it easier for you to determine which repairs to address first. With a tenant portal, you can rank repair requests according to their urgency, which can help you stay on top of things.
Stay Organized
Keeping organized is key to managing multiple rental properties effectively. Create a system for keeping track of important documents like leases, insurance policies, and maintenance records. Consider using cloud-based storage platforms to keep your files organized and easily accessible.
Work With a Property Manager
If managing multiple rental properties becomes overwhelming, consider working with a property management company. Property managers can take care of many of the day-to-day tasks involved in managing rental properties, including tenant screening, rent collection, and maintenance and repairs.
Pros of Self-Managing Multiple Rental Properties
Self-managing multiple rental properties can be a rewarding experience. It allows landlords to have full control over their properties and potentially save money on property management fees.
For those who want full control of their investment properties, self-management is the way to go. If you want to turn a property into a vacation home, for example, you can do so without any restrictions.
Furthermore, self-managing also allows you to decide when to stop renting out your property. If you need to take a break from being a landlord, you can choose not to renew your tenants’ contract and keep the property vacant for a while. This option may be ideal for those who want to be more hands-on with their property management and have more flexibility in their decision-making.
Cons of Self-Managing Multiple Rental Properties
Self-managing multiple rental properties can also be a challenging and time-consuming experience. It requires taking on many responsibilities, from tenant screening to maintenance and repairs. It can also be difficult to keep up with changing rental laws and regulations if your properties are in various states.
Without having developed your property management skills over time, it is unlikely that you will be able to manage your properties efficiently. This means that you may not be able to provide your tenants with the attention they require and this could lead to negative consequences for your investment.
Managing multiple rental properties can be challenging, but with the right strategies and tools in place, it can also be a rewarding experience. From listing your property ASAP to utilizing technology and staying organized, there are many steps you can take to effectively manage multiple rental properties.