You’ve decided to rent out a property you own. And while you’ve been researching, you’ve discovered that there’s a bit more to it than merely collecting a rent check at the start of each month. In fact, you may be wondering if there’s anything you missed during your search. Because I’ve been investing in properties for decades, I’ve also learned a thing or two about property management. So, now I’m bringing that knowledge to you. This way, you’ll have a go-to resource when you start the process to rent out your 1st property.
Understanding the laws
If you haven’t yet heard of factors like fair housing laws, you need to get caught up before you continue the process. Ensuring you’re in compliance with renting laws is a huge part of managing your 1st property, or even your 10th property. These laws are in place to protect you just as much as your tenants.
Treating your tenants right
But let’s talk about your tenants. I’ve said it time and time again: from the start of my investing career, I’ve always treated my tenants right. Think about it: if they’re safeguarding one of your biggest financial resources, wouldn’t you want to treat them especially well? That means showing respect, being friendly, and yes, even giving them the benefit of the doubt sometimes.
Staying objective during the process
Of course, you also want to stay objective when it comes to managing your 1st rental property. Just because you treat your tenants right, doesn’t mean they can do whatever they want. If you feel particularly attached to your rental property from the start, pair up with an experienced mentor to help you maintain objectivity when it comes to important decisions in the process.
Remembering there will be wear on your property
At the same time, one aspect seems to always surprise new landlords. And that’s that tenants put a little wear on the property. They’re living there after all! If you’re treating your tenants right, in the majority of situations, they’ll also treat your property right. Still, over time, every property shows signs of wear that will need to be addressed, even with the best tenants.
Factoring in your goals
Another tip that has often helps new landlords is fairly simple: factor in your goals. I’ve been talking about this one for a number of years, and when it comes down to it, if you aren’t re-stocking your seed corn, as I like to say, you may be putting your finances at risk. What I mean by this is that you need to run the numbers for how much cash your rental property will generate for you, taking into account what you’ll need to spend on repair and maintenance.
As an experienced investor, I’ve managed properties from single-family homes to entire apartment complexes. If you have a question about your 1st rental, I’m always happy to answer questions. Just send me an email!
Terry Records
Broker/Owner
Records Results Real Estate
Residential Sales and Property Management Service