Managing Properties: Key Tips You Should Follow

“Property has its duties as well as its rights.”

— Thomas Drummond, British Politician

Something you will hear a lot about property management is that it is a multifaceted role and can be much harder than it seems. As a property owner myself, I can confirm this, there is a lot to handle such as rent collection, maintenance, dealing with accounting regulations, and whatnot. 

80% of property managers handle a wide variety of activities themselves. (Doorloop: Key property management statistic) I have been one of them for several years now, therefore I understand how complicated managing property can be sometimes, especially if you are new to it. 

That is why, I have decided to share five valuable tips that helped me manage my portfolio and increase my property value. 

Get Assistance From A Dedicated Management Company

Initially, I overestimated my abilities and thought that I would be able to manage everything on my own, but it turned out to be a mistake. After learning my lesson, I turned to a dedicated management company for assistance.  

These services allowed me to concentrate more on the things that matter for my business and have the nitty-gritty dealt with by those having the team and expertise to perform them. 

So, it doesn’t matter if you’re operating a couple of units or have an extensive portfolio that covers multiple properties, I would advise you to benefit from enlisting the assistance of a dedicated management company. 

You’ve got it wrong if you think these management companies provide their assistance in a limited task or two. According to Perth property management experts, they can help you in various ways, not just by looking after your properties but also by advising you on sales deals, how to boost the returns on your investments, and helping to significantly reduce lost rental income. 

In simple words, I can say that they take a great deal of stress and burden out of your daily life and ensure you place your primary focus on the things that matter the most in your operations.

You can gather from the graph below that the property management market has surged in recent times and is expected to expand even more in the future. 

Understand Local Property Management Laws

Before I bought the property, I had watched several TikTok and YouTube videos and was blown away by how easy it seemed to earn passive income from rental properties. 

After all, these videos state with such confidence that all you need to do is buy a building, find a tenant, and just sit back and watch your bank balance increase even as you sleep. 

However, now that I have experienced it myself, I can tell you that life isn’t so simple. As soon as I started and actually got on the ladder, I was immediately hit with local, municipal, and national laws that highly regulate what you can and cannot do. 

Therefore, before you even decide to get involved in this sort of business, I suggest you learn in advance about what’s expected of you as a landlord and how you might go about the process to ensure regulatory compliance. 

As I mentioned in the previous point, much of this can be dealt with by a property management service, but even if you go down that route, you still need to have a basic understanding of how local laws work to avoid falling foul of them.

Set Clear Rental Agreements Upfront

While accepting tenants into my buildings, I always make sure that any contracts we sign together are watertight and protect my investments as much as possible while remaining within the scope of the law in terms of what’s allowed. 

Being the property owner, I wish to keep my properties in tip-top condition, and who would not when you have spent hundreds of thousands on the properties? In most instances, I prefer to employ the services of a poetry lawyer to help me craft an agreement that adheres to regulations while ensuring that my investment remains secure. 

It is obvious that a big part of this will be to perform due diligence on any prospective tenants, which I will talk about later, and also to set expectations right from the get-go. 

Trust me, it is far better to have your poetry remain empty than to fill it with a bad occupant who never pays rent on time or disobeys your terms and conditions (e.g., no pets, no smoking, etc.).

FUN FACT  Rental agreements have existed for thousands of years. In ancient Babylon, landlords and tenants would write their agreements on clay tablets, which were then sealed by a cylinder to validate them.

Screen Tenants Thoroughly For Reliability

Since my tenants are the ones who are going to be occupying my properties, I take some time to screen anyone who is interested in renting. Usually, I ask for references from previous rentals, and run a background check on them (with their permission) to see how much they earn, what kind of job they have, or if they have any criminal records.

I know all this might seem too much at first but remember that putting in a bit of effort at this stage can help avoid some pretty serious issues later down the line. This becomes especially important when you understand that most jurisdictions, these days, will protect a tenant at the expense of the landlord.

Regular Property Maintenance Prevents Issues

I always keep in mind that just as my tenants have an obligation to adhere to my terms of rental, so do I, to ensure the properties I rent are fully maintained and in a habitable state. In practice, this means scheduling regular inspections to try and catch even minor problems before they spiral into something larger and far more costly.

It is not a hidden fact that managing a property portfolio is not an easy task, but with a proper understanding of what’s involved, one can avoid the maximum number of the more common problems. 

By following the tips I shared in this article, you will be in far better shape to keep your renters satisfied, abide by the law, and keep your investments safe and making you money.

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