When it comes to multi-unit apartment management it is more than just filling vacancies and checking tenants. If you don’t have the right skills, managing properties and handling daily operations can be chaotic and overwhelming. In this article, you’re going to find tips that will help you to manage your properties more efficiently. First, let’s talk about the acquisitions process, as that going to play a huge part in the daily operations and property management as well.
Always, before purchasing a property you are interested in, do thorough research first. As an example, when looking at proformas, you may not necessarily be able to trust these projections, as these may be old numbers or maybe overstated compared to current market conditions. So make sure to pay attention to the current rental prices and estimate your expenses as accurately as possible. Too many factors can affect the profitability of your property, like one block too far from a new mall can be the deciding factor between success or failure.
Work With Qualified Professionals.
Always focus on assembling the right team of industry professionals such as property managers, brokers or competent real estate agent who specializes in multi-unit transactions that will help you to maximize your investment from the get-go. Real estate investing on a large scale, requires a team effort, especially when you need to manage multiple tenants. Where you’re going to find that a professional property manager can help you generate additional rental income by making sure all day-to-day operations run smoothly and without disruption at the lowest cost. You should have professionals on your team to help keep your property in top-notch condition, provide reliable tenants, resolve legal issues, and help maintain your balance sheet.
Property Management Software.
In the times when you receive requests or information about problems in the property, you need to resolve them as quickly as possible. That’s why responding quickly through dedicated management software will prevent the accumulation of further damage and demonstrate your commitment to your tenants and your property, which can reduce tenant turnover. Managing multi-unit properties can be exhausting if you don’t have a proper system to track your maintenance requests, that’s why property management software is one solution to help you keep track of all your property management tasks. Some of the tasks include advertising, attracting tenants, rent collection, and maintenance of the property. Since it is online, you can do this remotely, anytime, anywhere, as long as you have an Internet connection.
Choose the Right Tenants.
From the time of signing a lease agreement, it is important for you to establish the community “ground rules” that you expect your tenants to follow in writing. Try to build a good relationship with every person or family from that moment also, in the place where tenants respect each other, a good tenant can help you keep your property safe and turnover and vacancies will decrease significantly.
While no method for screening tenants is 100% reliable, there are certain questions that you should ask potential tenants that will help you to mitigate the risk of choosing a bad one. Some of the questions are:
1. What is your profession and monthly income?
2. How many people live with you?
3. Can you pay the deposit and rent for the first month after the lease is signed?
4. How long have you lived on your property and why are you moving?
5. Have you ever been evicted or refused to pay rent?
6. Do you have any references from your employer and former landlord?
7. Does your current landlord know that you want to leave?
8. Do you have pets?
9. Does anyone in your home smoke?
10. Do you agree to credit and background checks and have you filed for bankruptcy
11. Are you ready to sign a lease for x-years?
First, if you have a large property, you’re more likely to run into things like unplanned property maintenance and repairs, longer-than-expected vacancies, or expenses incurred by irresponsible tenants. Second, as an investor, one of your biggest responsibilities will be to ensure that your tenants live in a livable, comfortable, secure environment and comfortable, happy tenants mean having fewer vacancies. This means, removing mold when it occurs, controlling pest infestations, repairing damaged structural elements, replacing leaking roofs, and repairing appliances in the event of a breakdown. So make sure to create routines for all items on your list and indicate who will perform maintenance and repairs on the property.
Periodically you should walk around the areas of the complex and look for signs of damage or necessary cosmetic work. And maintenance should remain a priority during coronavirus pandemic, but it should be prioritized so that tenants know that emergency service issues such as broken plumbing will be dealt with first, while maintenance such as a yard that has not been mowed will be done later.
The goal of investing in real estate is to make money, but most of the success that comes from being an investor comes from a good relationship between investor and tenant. Where maintaining good relationships can help retain tenants and may mean more referrals for you in the future. Remember, the first step to becoming a successful real estate investor is by finding the right property. So if you are feeling overwhelmed by the management process, or ability to find good deals, consider hiring a professional property management company.