Managing rental properties over the years has taught us invaluable lessons that every property owner should know.
1. The most crucial takeaway is the importance of conducting thorough tenant screenings. This involves more than just checking credit scores. It’s about digging deep into rental history, employment stability, and references to ensure you’re renting to individuals who are not only capable of paying rent on time but also likely to stay long-term. By prioritizing this step, you will lease to tenants who have the highest probability of paying on time.
2. Another vital lesson learned is the necessity of maintaining firm payment policies. While it may seem compassionate to give tenants the benefit of the doubt when they fall behind on rent, it’s essential to enforce late fees consistently. Running a rental property is a business, and adhering to payment schedules ensures financial stability. While tenants may have convincing sob stories, it’s crucial to remember that leniency can lead to financial strain on your end. The saying give an inch and they will take a mile definitely applies here!
3. Controlling expenses on repairs is also a significant aspect of successful property management. Whether you handle repairs yourself or employ a property management company, it’s essential to scrutinize repair costs and seek multiple estimates when necessary.