5 Tips to Improving The Way You Manage Your Rentals

Buy and Hold real estate investing is one of the most effective ways to create additional income through monthly passive cash flow. Since starting this blog, I've had a few conversations with people interested in buy-and-hold investing. A common concern that's come up throughout these conversations is about the difficulty in managing properties. I most often hear things like, "You have to be very handy to manage properties" or "I don't want my tenants calling me round the clock" While these are completely reasonable concerns, it is not as difficult as one might think. Fear of the unknown will most likely prevent action. But because I am an advocate of action, I want to share five tips that helped me when I started managing my property.

1. Communication is key

It is incredibly important you communicate effectively with your tenants on what your expectations are and your hours of operations. You want to encourage your tenants to reach out to you whenever there is ever an issue within the unit or at the property that needs attention, but they should understand the difference between normal questions versus emergencies. Be strict about your business hours. I recommended giving your tenants a preferred method of contact for inquiries. You can setup a separate email or a Google Voice phone number for free. That way, you will be able to maintain separation between your personal and rental emails/phone calls. This allows you to keep open and easy lines of communications for your tenants. Aside from your tenants proactively reaching out, make sure to initiate conversation with tenants occasionally. Letting your tenants know that you care about the condition of their unit and their concerns goes a long way.

2. Value your time and do not be afraid to outsource

You still have a life outside of your rental properties and deserve to enjoy your free time. You do not need to fix everything yourself. There is an assumption that if you manage properties then you must be a handy person. That is not necessarily the case, and I am the perfect example, as I am not a very handy person. I am able to do easy things, like painting and floor installation, but I understand my limits when it comes to certain projects. You will be able to save yourself, time, frustration, and stress making sure that big projects and repairs are handled by qualified professionals. It's better to have the job done right the first time than addressing the problem multiple times because it was not fixed correctly. Now if you are a handy person, then more power to you! That is a great way to save money.

3. Get organized

There are a lot of random expenses that come with managing a property. This is not always a bad thing because these expenses can be written off around tax time. It is very important to keep thorough records for different activities regarding your rental business. From mileage to all other property expenses, you should be recording all related items. I recommend setting up a Google Drive folder to store PDFs of receipts and create a spreadsheet to log your expenses and any routine maintenance . You can also download an easy mile tracking app like Everlance. You will save yourself a large amount of stress and work by developing good organizational habits early on.

4. Keep your boots on the ground

While you should trust that your tenants will let you know whenever there is an issue at the property or with their unit, nothing calms stress like verifying it with your own eyes. Always set aside times to inspect the property yourself. If you don't live at the property but are local, I recommend that every two weeks stopping by the property and inspecting the exterior and any common areas. Regardless of proximity to the property, it's important to schedule a full walk through of the property two or three times a year times to inspect the exterior and interior condition. There are also effective ways for you to monitor activity at the property if you are not local to the area, such as installing security cameras.

5. Follow through

If you notice something is wrong, you either need to fix it, even if that means replacing, purchasing or outsourcing to make it happen. Make sure you plan for repairs and budget for your expenses so money is never the reason you don't follow through on a request. Be a landlord that cares about the properties you own, ensuring a safe and stable living environment for your tenants.

While buy-and-hold real estate investing is considered to be passive income, there is more activity involved in the management role when you start out. There is more than one way to effectively manage a property, and as long as you are open to different options, you will find the best fit for your business. Your business will thrive on your motivation, creativity and willingness to learn. What are your recommended tips for managing your rental properties? Share your thoughts in the comments!

Happy Investing!

Josh