Let us look at some basics of income property management.
- Finding the right property.?Searching for solid properties with good rental potential; what to look for during inspection; how to analyze income and expenses.
- Buying the property.?How to negotiate price, terms, and other considerations in your favor; what type of mortgage to use, and when to refinance; when to use creative financing to purchase the property.
- Attracting and retaining tenants.?How to bring in tenants, keep them happy and generate profit from them; knowing what channels to use to attract the best tenants; how and when to increase rental income.
- Resolving building and property issues.?Handling repairs, weather damage, code violations, equipment replacement, and updates; dealing with neighbors and community issues; complying with regulations and requirements.
- Handling tenant issues.?How to deal with delinquent payments, damaged property, community violations (loud noise, unsafe conditions), occupancy violations, and other lease issues, handling special requests.
- Dealing with vacancies.?Limiting empty space; promoting rental openings; preventing vacancies by creating long term relationships.
- Financial activities.?Paying expenses such as repairs, maintenance, updating, and waste removal; paying debts on the property; collecting rental payments on time.
- Dealing with contracts.?Creating effective agreements for purchases and leases; handling clause violations directly (minor offenses) or through litigation (major offenses); and ending a contract.
- Complying with laws.?Meeting structural codes (fire, safety, others); operating according to property owner and tenant laws; meeting housing regulations.
- Keeping good records.?Performing financial accounting; documenting activities; maintaining complete, accurate, and updated records.
You do not have to be an expert in each discipline of property management; however, you will have more success and fewer headaches if you become familiar with each aspect. Remember, if you want to remain in this career for the long run, you will be better off if you take the time to become more knowledgeable.
As a future client or tenant and if you have any additional questions feel free to contact at [email protected] I'm a licensed realtor in the great state of California. CalBRE 02040644