One of the benefits of owning investment properties that produce passive cashflow is you don’t necessarily need to be there all the time. If you hire good property managers, you can be earning income from your homes while you’re on the other side of the world. Making that go off smoothly takes effort and skill, though.
Below are some vital property management tips if you want to manage your properties while you’re off on a beach somewhere or touring Europe.
Know your home
When you buy a new property, you should get to know it and every system that’s in it. Every system in the property has a lifespan and service interval. The last thing you need when you rent the home while you’re far away is for a system to fail. Sure, you have a property manager, but you want to be on top of the property’s major maintenance items. Also, connecting with rental home experts will help you learn how things work in property management.
You can use helpful services such as Breezeway or Home Manager that lets owners and property managers track home systems and perform preventive maintenance. If you hire a property manager, find out the software they like to use to manage the property.
Reinvest in the property
You need to reinvest some of the property’s income to keep it in good condition so you can continue to rent it. Ensure you have cash in your budget for regular maintenance and upkeep that your property manager can perform.
Have a financial plan
It’s essential to understand how much revenue the home can produce each year. This depends on where it’s located, how large and luxurious it is, and its amenities. Professional property management companies calculate how much income the home can produce. You may have to do your due diligence to figure out the numbers.
Think about if you’re going use it
If you have rental properties in a vacation destination, you might think about using the home yourself at times. Note that you may fetch two or three as much in rent and possibly more during the high summer season. If you want to stay there yourself, don’t stay there for long during peak season, or you could end up costing yourself a lot of revenue.
Be realistic about the rent
A common mistake homeowners and some property management companies make is setting prices too high. You should be realistic. Do your research and see what other people are charging for similar homes in the area. Finding that perfect price could be challenging, but that’s the key if you want to rent it quickly every time it’s vacant.
Be serious about preventative maintenance
You should devise a preventative maintenance plan for the home and follow it diligently. That is a vital component of effective property management. You don’t want the AC compressor to break in mid-August and have to pay through the nose to get an emergency repair.
Have a great marketing plan
Listing your home for rent on Craig’s List or AirBnB is a start, but you’ll need to have a way to get the house rented quickly, and that involves more marketing. Consider hiring a skilled real estate agent to get good renters every time the lease is up. You only have to pay a small commission for this service, so it’s worth it.
Many people dream about owning rental properties while they are far away, enjoying the good life. That’s within reach, but be sure that you have the systems set up, including a good property manager, to keep the money flowing and problems to a minimum.