Did you know that the rental market size will grow at a 10.7% CAGR in 2022? The real estate industry is growing following the demand for better housing services.
For a successful rental business, ensuring your property is well serviced allows you to enjoy maximum leasing benefits. As a landlord, you should practice good leasing management procedures.
This measure helps you to maximize the potential of your rental property investment. Additionally, it helps in maintaining a positive reputation with potential clients.
Below we discuss four property management tips landlords can use when leasing out property.
1. Hire a Property Manager
Hiring a property manager reduces your workload as a landlord. Property managers play an integral role in the success of a rental property.
The managers are responsible for overseeing and reporting tenant issues. This ensures that all services run smoothly at all times.
Before hiring a property manager, ensure they are qualified for this role. It helps to interview multiple candidates before settling for one person.
2. Screening Tenants
As a landlord, you should never overlook the screening process. Without proper screening, you risk hosting poor-quality tenants on your premises.
To find quality tenants, advertise your rental property on different platforms. You can invest in property management software that eases the advertising process. Once you receive the application, you can proceed to the screening process.
The screening process gives you essential information about your potential tenant. This includes their name, contact information, and landlord references.
It would be best if you looked into the tenant's financial records to determine whether they can pay their rent promptly.
3. Set the Right Rent Price
Pricing your rental units depends on the location of your property. You should conduct market research to determine a fair market price. Setting a reasonable rent price is important to avoid having long vacancy periods.
It will also help if you compare your rental income to your expenses. You should account for the mortgage, insurance, taxes, and repair costs. This allows you to determine a rent price that balances your monthly rental income.
4. Draft Written Lease Agreements
Oral agreements are less effective because it’s difficult to agree on terms previously discussed. Written lease agreements, however, legally bind and protect the landlord and the tenants.
As a landlord, ensure that the lease complies with the local laws of your area. It’s also advisable to run the lease agreement through your lawyer before sharing it with your potential tenants.
The lease should include terms of the lease, security deposit, and rent amount. The lease should also state the procedure for late payments and eviction.
You can also discuss a pet policy in your rental property. For more guidelines, click here to know the terms you should include in the lease terms.
Leasing Management Tips
For a successful rental property, it's crucial to have extensive knowledge of the real estate industry. This involves employing the right tools and resources to help you manage your property.
The management of rental property can be overwhelming, especially for first-time landlords. However, our guide on leasing management tips will help you smoothly manage your rental property.
Contact our team today and let us help you establish a profitable rental investment.
