Every new job, role, and responsibility comes with its own learning curve. Landlords and property managers, too, struggle when they first enter their new roles. However, there are some steps one can take to shorten the trial and error period and ensure optimal profitability. Here are 5 habits of successful landlords and property managers for efficient property management.
Early Bird Catches the Worm
That’s a saying as old as time, and thus the wisdom in it is timeless. Property managers and landlords, in particular, have a ton of daily tasks to complete during the day. Instead of hitting the snooze button on the alarm, a morning jog or meditation may help you give the energy you need to get the tasks done.
As a landlord or property manager, you need to develop a healthy, two-way communication channel with your tenants. You also have to ensure that you engage in professional communication to keep a healthy work, life balance. To do that, we suggest you use property management software and email templates to keep a steady flow of communication. It also makes managing and responding to emails timely a lot more efficient.
Financial Management – Budgeting
Property management comes with a lot of maintenance requirements. Where catering to maintenance tasks and responsibilities timely is essential; you also have to ensure profitability. Make sure you set a budget for yourself. If you are a first-time landlord, here’s how you can plan your finances a little better.
- Take into account the cash inflow and outflow (unavoidable costs such as insurance)
- Set aside the minimum amount you want to earn in profit
- The rest is your maintenance budget.
Of course, there will be months where you will earn more and months you will earn only the minimum profit you’ve set. However, as long as you keep your property well-maintained, the profits will rise within a few months.
Don’t wait for a thing to happen before you start thinking of solutions. Plumbing, electrical wiring, insulation all have a set lifespan. You should get them checked or replaced at the end of their lifespan to ensure they don’t create problems later on. If you leave these fixtures unchecked, they may give you substantial problems late on.
Document it All!
Many landlords struggle with maintaining proper documentation as effective property management involves a substantial amount of paperwork. However, each and every receipt is important, and you will have to keep it all properly organized, from the rental agreement to every maintenance and repair work receipt and every notice ever issued. You will also have to keep a record of all professional communication.
These documents serve as proof if you find yourself facing legal trouble. You can also use maintenance records to get a good deal on your insurance.
Don’t Be Afraid to Get Help
It takes a little bit of discipline and a take-charge attitude for efficient property management. By adopting these 5 habits of successful landlords, you can ensure optimal profitability. However, if you want to be a passive earner, or feel like you cannot manage the responsibilities alone, you can always hire a property manager to help you efficiently manage your properties.