We’re here to tell you the effective ways on how to manage rental property by self!
Rental property: an avenue in real estate where you can easily ‘earn income even while sleeping.’ While such saying is true (thanks to the lucrative passive income it generates), it doesn’t necessarily mean you should sleep on your rental property management tasks.
The decision to invest in rental properties often comes with a crucial choice: ask for property management services or embark on the journey of self-management. While the convenience and expertise offered by professional property managers seem enticing, the benefits of managing rental properties on your own brings unparalleled benefits as well.
If you are up to the challenge (and just as excited to reap the amazing benefits that comes along with it), join Vista Land International in navigating the ropes of managing a rental property by yourself and discover the advantages of doing such. Dish out the option of calling property management companies as we bring you the intricacies of navigating tenant relations, overseeing maintenance tasks and financial matters.
Rental Properties: A Lookback
As we’ve discussed in our previous articles, rental properties could either be residential or commercial properties that are purchased and rented out to tenants for a monthly cash flow. Prime examples are apartments, two-storey townhouses, and even condominium units. It is important to note that as the property owner, you have direct control over such properties.
How to find the best rental property?
There are various involved when finding the best rental property to venture into. It is crucial to consider the following when finding the best investment property:
- Location- Locations plays a vital role in the success of your rental property. A high-traffic area such as central business districts will more potential tenants than other locations.
- Knowing your market- Conducting a research about your target market is just as crucial as the location itself. Do you want to single professionals or small families? Perhaps, you are more inclined to deal with enterprises and businesses?
- Budget- After identifying the two factors above, it’s time to establish your budget. Of course, you will need finances to keep your business rolling. There are many ways to secure financing for your rental property business such a bank loans or other types of loans.
How to Manage Rental Property by Self?
Find high quality tenants
Your tenants serve as the ‘blood of your business.’ They are the reason you decided to venture one in the first place. Conduct a tenant screening process to ensure you are getting renters that can pay dues on time while at the same time, takes good care of your property. You can start by investigating their credit history. A good credit history means these prospective tenants are good payers– you don’t have to worry about missing rent payments. If you have the time, you can talk to their previous landlords and ask about how their lease agreement went. By taking such necessary steps, you are certain to filter bad tenants from the high quality ones.
The last thing you want is a vacant property and a high tenant turnover– that’s bad news.
Related Read: Qualities of A Good Tenant You Should Look Out For
As the property manager, your tasks do not end there. Managing tenants include listening to their common complaints and taking proactive actions to solve them. Conducting routine inspections is also crucial to ensure that your property isn’t damaged or vandalized.
Maintenance and Upkeep of the Property
Self management means you are also in charge of the property maintenance and upkeep. From conducting regular inspections to detect leaks, repairs,changing of lighting fixtures, and other construction issues. Chances are, you will have a hard time finding (and maintaining) good tenants if you leave such issues hanging.
While there is no standard frequency when it comes to property inspection, you might as well do it at a healthy pace and interval. Frequent inspection may come off as ‘invasion’ on your tenants’ part. On the flip side, being lax about it may result to unresolved issues and problems piling up.
Managing rental property finances
As the business owner, you need to keep track of the money that goes in and out. For starters, you can download money tracking apps to your phone so you can easily monitor your revenue and expenditures. From rental income, security deposits, insurances, property taxes, mortagage payments, maintenance costs, and other utilities, you can easily keep them in check!
Document management is another crucial part, aside from the financial aspect. As the landlord AND the business owner, you should store legal documents in a dedicated filing cabinets. It may also be helpful to create a copy of each in case some documents go missing.
Ultimately, managing rental properties by yourself can be a rewarding experience if done with the right effort, time, and research, and careful attention to detail. By taking on the responsibilities of screening tenants, handling maintenance issues, and overseeing financial obligations yourself, you are seeing to it that your rental property needs are attended accordingly while at the same time keeping a close eye on your business.
Plus, learning how to manage rental property by self eliminates the need of hiring a property management company (plus that hefty property management fees). By taking matters into your own hands, you are certain to have full control on your investment and maximize its profitability.
So, in order to successfully manage a rental property business, one needs to be proactive and committed to providing quality housing for your tenants. While it may take some time and efforts, the hefty rewards it gives in return makes it a viable investment and business option nonetheless.
Looking for an affordable property? Contact us today
A lot of Filipinos dream of owning their first apartment or house and lot. With today’s booming real estate opportunities, there are so many options to choose from.
Here at Vistaland International, we have a roster of affordable property listings from several locations across the country. Whether you’re looking for a place to live in Manila, Cebu, Davao and etc, we’ve got you covered. So contact our real estate agents today!
Vista Land International was primarily created to bring OFW closer to their dream of finally acquiring a home in the Philippines. And with the rising cost of living in the country, OFWs and their families are looking for ways to earn extra cash flow to support their daily needs. Luckily, you can also join the global network of Vista Land International as a real estate professional and earn a commission!
Vistaland International Marketing, Inc. (VIMI) is the international marketing division of Vista Land. Aiming to provide OFWs and migrant Filipinos a home in the Philippines, VIMI has established long-lasting relationships with brokers and clients around the world.