“Do’s” – Tips to Follow for a Profitable Property Business
As you build your real estate portfolio, you can avoid costly errors by following the advice on this list from Costa Mesa, CA property management experts at True Property Managers. Years of experience have taught us the “Do’s” of being an excellent landlord and having a profitable portfolio. Avoiding these pitfalls will save you money in the long term.
As a landlord, you should be able to generate residual income and accumulate wealth over time. But, it is important to know a few things before advertising your rental property.
Knowing the Law is Essential
There are many legal issues that property owners must be aware of and follow. The most common legal issue for landlords is the eviction process; their main goal is to get rid of troublesome tenants as quickly and efficiently as possible. But there are certain steps they must take before initiating an eviction, especially if that tenant might have special needs or circumstances that could affect them in the future.
There are also many other laws, rules, and regulations that you must follow to keep your business legal. Check with your state licensing board to gain access to these laws.
Establishing policies and using them is crucial to running an efficient and profitable business. Take time to think through each aspect of your business and make note of what needs to be included. For example, your lease agreement. Your lease agreement should outline when the rent is due and the tenant’s general rights and responsibilities. Other policies might not be appropriate for the lease agreement but they are still important. For example, if you will only accept money orders for payment of rent, you need to let your tenants know. If you don’t want to be bothered about routine maintenance, create a policy that includes a schedule so tenants will know in advance when they can expect regular upkeep on their units. What is your eviction policy? What procedures will you follow during an eviction process?
Once you have established policies for each aspect of your property business, write down and finalize each one. After you have put in all this hard work, be sure you use these policies to keep your business on track.
Soon after becoming a landlord, you’re probably going to realize it isn’t as easy as you thought it would be. The good news is, you don’t have to do everything on your own. Hiring a Costa Mesa, CA property management business such as True Property Managers (link to services page). We manage all aspects of your properties while you enjoy the benefits of owning rental property.
If you want to be a hands-on owner and manage your own units, make a list of the tasks you least enjoy and can outsource for the least cost. Consider outsourcing some of the time-consuming tasks like landscaping and property maintenance.
Screen Potential Tenants
Screening tenants is one of the most important “jobs” of being a property owner – but also the least favorite. Why? It’s time-consuming. There tends to be a lot of “no shows.” It requires a lot of talking. It’s a lot of work. However, screening tenants is something that has to be done no matter how much you dread it. By screening potential tenants you can weed out some bad apples before they become your problem!
Before meeting with the potential tenant, you should learn as much as you can about them before the lease is signed. Among the most important things to look for are the prospective tenant’s rental history, eviction history, bills paid, and stability of job history.
This step of being a property owner can quickly become very tedious. If this sounds overwhelming, or a step in the business you don’t feel you have time for, consider hiring a Costa Mesa, CA area property management company like True Property Managers (link to services page) to do this for you. We have screened thousands of potential tenants following our tried and true process to get the best possible tenants for you.
Avoid Costly Errors
You can avoid costly errors by following these tips from True Property Managers in Costa Mesa, CA. Our years of experience have taught us the “Do’s” of being an excellent landlord and having a profitable portfolio. Avoiding these pitfalls will save you money in the long term as well as provide peace of mind that your investment is protected! We want to help make sure that you are maximizing profit while minimizing risk when it comes to owning real estate investments like homes or apartment buildings. Let our team property management team in Costa Mesa show you how we do it! Call us today at 866-957-6677 to let us know how we can help you grow your business.