About ten years ago, there were at least 10 million landlords that manage small and medium-size properties in the United States alone. Fast forward to 2018; you can already imagine that this number ballooned intensely because of how lucrative this type of venture has become. If you plan to be one of the millions of landlords in the US, particularly in Orlando, you surely want to have a successful career. This way, you can build a steady stream of cash flow, while capturing appreciation for the long-term.
Unfortunately, it is not easy to be a landlord, and it is much harder to be a successful one. From purchasing a rental property to deciding that you will rent out the unit and manage the day to day activities of a landlord can be stressful. However, it does not mean it cannot be achieved. Here are some methods that you can incorporate into your strategy that will eventually lead you to emerge triumphant in your title as a landlord:
Your property requires tenants so you can start earning. Stick to the basics when it comes to ads: print ads, signs, flyers, bulletin boards, and online sources. Find out more about your target market to promote your property accordingly. For example, if your property is near a college, you should post the ad in universities or colleges.
When you work with a property management company like American Dream Homes, we take care of all the advertising for you to attract tenants and to secure them into a lease.
Meanwhile, if you already have tenants, make sure you spend the time to meet and talk to them personally. Learn how they would describe living in the unit and ask them if there are issues they would like to be resolved. You may also want to review their current lease. However, you cannot make any changes regarding the rental terms and rates until their contract expires.
Purchase Homeowner's Insurance
It is necessary that you have full rental insurance as well as property liability insurance. Just one lawsuit, accident, or fire can create a devastating loss that has the potential to lead you to lose the property, or worse, bankruptcy. Recovering from these losses may be difficult.
Treat the property as a business
Your rental investment is not just a side hustle; it is something serious, and you should learn to treat it that way. Make sure that you abide by the state laws or it will result in increasing your liabilities. Additionally, ensure that you manage your finances, which is helpful during tax time.
Have an attractive lease
As much as possible, you should have a fair lease so you will have no problems with vacancy. However, it is also significant that you protect yourself. While there are online sources that you can download, it can be detrimental to your property, especially if you do not read what is in there properly. You can hire a real estate attorney to help you write the agreement. The lease should state the rights and responsibilities of both you and the tenants.
A property management company would take care of the lease for you so you wouldn't need to.
Fulfill your landlord obligations
If repairs are required, do them promptly. From taking care of the weed and feed for your lawn if it is part of the agreement, to plumbing and air conditioning, you should check all these things to ensure you do not have problems in the future with your tenants.
Have a good handyman ready to fix simple issues and have a list of contractors on speed dial for plumbing and electrical.
Partner with the Best Property Management Professionals
To make your life easier as a landlord, you need a property management company to assist you. A property manager provides various property management services, including the following:
- Marketing your property
- Screening and selecting the tenants
- Maintaining and repairing the property issues
- Creating budgets
- Supervising the property
- Collecting rents
Most busy people would choose to hire a Central Florida property management firm merely because they can delegate the tasks of being a landlord to someone else. If you have a limited time to perform the daily responsibilities of a landlord, but would like to build your assets and gain passive income, you should certainly hire a property manager. Note that you are still responsible for overseeing how the manager works on your property.
Determining the Role of the Property Manager
There are plenty of property management services that the manager can provide to you. Often, you can decide the role of the firm by examining your property and its needs. For example, if you already have tenants and they are not problematic, you do not need the manager to screen new ones or place ads online. However, you can enlist the property manager to collect the rent as well as perform day-to-day maintenance.
When you hire, make sure that the agreement with the property management company is clear. You should also state your expectations, and you can list the duties that you expect the manager to perform. Some property managers are an independent contractor, an employee, or a huge firm. Once again, your choice will depend on your situation but make sure that you only choose the one that is most favorable to your investment.
You will also have to determine if the property manager will be paid by the hour or salaried and full-time or part-time. However, if you do hire an hourly or salaried property manager to work for you, you will also need to have the required insurance and file necessary employer taxes for your new employee. Perhaps, easiest solution is to hire a property management company that will take care of the property management for you without the unnecessary administrative burdens.
How the Property Manager Can Help You Become Successful
It is not always simple to find the right property manager in Central Florida mainly because you have many selections available. There are several companies around, contractors, and even employees that you can hire for a great price. Sometimes, the fees they charge can be quite low, and you will instantly take the bait.
Don't get pulled into a contract with a property management company only to find really silly cancellation fees that are 2x to 3x your monthly rent! Be sure to read the fine print and ask good questions to the property management company you are interviewing.
You need to look for someone who will make you feel comfortable when you entrust your property to him or her. You can achieve this by setting up an interview where you ask several questions regarding the qualifications, experience, and other matters connected to the job.
Once you have found the best Central Florida property management firm to hire, you will see how beneficial the manager can be for your investment. You already know that owning a rental property can generate a steady income. However, if you do not have enough time and knowledge in managing the property, it will eventually fail. You may be forced to sell it for a much lower price than when you bought it just to get rid of the property.
Landlords, no matter how many properties they own and how long they have been investing in different rental units, will still face problems. From tenants who always pay late to those who damage the property, owning and managing can be complicated and time-consuming.
With the help of a property management company in Central Florida, you can get rid of these hurdles as these managers are equipped with the ability and the know-how to help save you time and money. At the same time, they will make you feel that owning a rental property is indeed a rewarding experience.
Most of the owners have a problem with screening the tenants. You can eliminate this hurdle with the help of a reliable property manager. The firm will run credit and background checks that you will probably neglect because you just want to have tenants in your rental property. The manager will also run checks on financial and criminal history to ensure that you only have good tenants.
Maintaining a property becomes a breeze with the help of these property managers. They can handle both legal and financial aspects of the rental unit as well as the tenants with their leases and evictions when necessary.
If you need any assistance with your property in Orlando, we would be more than glad to answer any questions you have and to help you achieve your landlording success!
Note: For questions and guidance about investments, please consult your financial investment consultant. American Dream Homes is licensed with the state of Florida to be a real estate brokerage and property management company, and not a financial consulting company.