Investing in real estate is a great way to create passive income, but it can be difficult for property owners to manage rentals and maximize returns. What should property owners keep in mind to help refine strategies and generate more income?
Today we discuss some landlord tips and tricks from the best property management Atlanta offers! Apply these property management insights to maximize ROI.
Stay Professional and Impartial With All Tenants
You residents are not your friends! Keeping tenants happy is not an easy feat, but it's worth your time to offer quality services while maintaining professional boundaries. Make sure they’re enjoying their stay with you and work toward positive relationships from your first interactions during the screening process.
However, building friendships can lead to preferential treatment for some residents over others that you don't consider friends. When this happens, landlords put themselves at risk for a lawsuit from renters who feel they aren't treated equally compared to other residents.
Plus, renting to friends or family can make it hard to enforce the lease when they cause property damage or don't pay the rent on time. If you find it challenging to be 'friendly' without becoming friends with tenants, an Atlanta property management company can help!
Skip the Pre-Fab Lease Template
If you aren’t working with a professional property management company, then consider hiring a lawyer to write a lease. This is one of the most important things you can do to protect your rentals and income!
You can find these forms online for free, but make sure you have them reviewed by a lawyer before signing anything! Pre-fabricated lease forms often leave out critical information that applies to your property. Many templates also fail to comply with all local, state, or federal laws regarding legal lease agreements.
Never enter into verbal agreements about rent increases, pets, or parking spaces until it has all been entered in writing on the signed document. Be clear about what each tenant can do on-site (ex: pets allowed) before completing the leasing process for a new tenant. Communicate rules clearly and make sure everyone follows them by issuing warnings when necessary. Get everything in writing, so there are no surprises later on down the line!
Charge Competitive Rental Rates
Trying to get top dollar for your rental property will leave you with a tenant turnover rate that is much higher than it needs to be. It's better for your ROI to charge competitive rates in line with fair market values then find quality renters who find your property within their budget.
However, be careful about setting the rate too low, as well. When the monthly rent amount is below market averages, investors lose money every month--even with a tenant who pays the rent on time!
An Atlanta property manager helps investors set the ideal monthly rent amount. We apply rental market research to find the 'sweet spot' that best suits the quality of your property, location, and target renters. With the right rental rate, you reduce vacancy times and turnover!
Thoroughly Screen Every Potential Tenant
No process is perfect, but doing a good job here will save you a lot of time and stress down the road. Without a review process, investors risk placing bad residents and dealing with expensive problems throughout a tenant's lease term.
Whether you choose to screen on your own or use a resource like a private investigator or property manager, thoroughly screen every potential tenant before choosing one to move into your Atlanta rental home. When reviewing rental applications, look at each applicant’s credit score and history of late payments before deciding whether they should qualify as a renter. Check their rental history, contact references, and verify income and employment as part of the process, too.
Hire a Property Manager
The more time you invest in these critical steps upfront, the less likely you'll be dealing with costly turnover costs down the line. The steps required when renting out a property might seem like they are just part of doing business. After all, there's no way around taking care of everything that needs to be done if you want to make any money off your investment--but rental properties often require more careful oversight than other investments. Dealing with homes and people can be a recipe for disaster (and income loss) without the right expertise!
Let Atlanta Property Management Handle These Tips and Tricks
Enjoy the peace of mind that comes with a profitable property under expert care! Managing an Atlanta rental property is no easy task, and it’s one that many people would rather not handle on their own. If you are looking for an expert to take care of your investment from start to finish, Revolution Rental Management, formerly known as GTL Real Estate, can help!
Our team provides everything from screening tenants to setting the right rates for rent each month. We also make sure the property stays in tip-top shape year-round with proactive seasonal maintenance! With all this free time, as well as peace of mind, knowing your home will be taken care of by property management professionals, maybe now you have more time to spend at the beach or golfing? You deserve it!