Today's rent prices are around 30% higher than they were before the pandemic, making investment properties a tempting idea for new landlords. If you're managing a rental unit for the first time, you're far from alone!
However, good property management can be trickier than newcomers imagine, and the keys to success aren't always clear. From regular rental analysis to legal considerations, there's a lot to take into account.
Let's take a look at some of the most important elements to keep in mind for better property management.
Follow Best Business Practices
If you're an accidental landlord, run your new investment property like a business if you want to succeed.
This means maintaining accurate records. Create a budget to account for all of your expenses, from maintenance costs to taxes. Save all documentation and paperwork related to the property.
Set clear expectations with your tenants as well. Always follow best practices like collecting a security deposit and the first month's rent up front, as this helps you lower your financial risk.
Do regular inspections of the property. Keep your investment well-maintained!
Perform Regular Rental Analysis
Analyze the standing of your rental properties at least once a year. You should always calculate rental rates that are profitable but competitive for the local market. To do this, consider the qualities of your property versus those of similar real estate in Rogers.
Don't forget to analyze your finances as well. Do an annual audit to find tax deductions and other benefits available to Arkansas landlords.
Know Your Local Laws
To keep yourself out of legal hot water, familiarize yourself with regulations around rental properties in Arkansas.
This includes things like tenant rights, security deposit limits, and evictions. All of your documents and policies should comply with these laws!
Screen Potential Tenants
A thorough tenant screening process is crucial for your success. This includes all of the following:
- Rental applications
- Interviews
- Assessments of financial stability
- Credit checks
- Background checks
- Reference checks
Even with these practices in place, make sure you also know the process for handling tenant disputes or evictions.
Keep Good Tenants Around
Last, make efforts to retain good tenants. This will always be more lucrative (and less time-consuming!) than having a revolving door of new tenants. To do this, treat tenants with respect and fairness.
Maintain an open line of communication with them, and consider setting up a system for handling requests. Address maintenance and repair concerns right away. In addition, be open to negotiation during lease renewals!
If you don't have time to give your tenants the attention they deserve, consider hiring a property management company to help.
Get Expert Property Management Now
Whether you're a new landlord or you've been investing in real estate for years, the tips above can help. From diligent budgeting to open communication, proper rental management will help you keep the right tenants for longer.
To save yourself time and effort, consider working with PMI Heritage. As a locally owned, full-service real estate asset management company with almost 20 years of experience, we'll help you tackle everything from maintenance requests to billing to inspections. For a free rental analysis, connect with us today.
