Stepping up from a casual or part-time landlord to operating as a business is a stressful proposition. This can be a profession with a seemingly endless stream of problems and stresses.
However, smaller landlords can manage their rental properties smartly, using proven strategies to streamline their operations and reduce risk and time spent on repetitive tasks.
These strategies will help you keep on top of your tenants and properties.
1. Define Your Goals With A Business Plan
What is your ambition? Identify that and write it down as the ultimate goal. Is it to generate a fixed income, build a property portfolio, or meet a growing need (students or professionals) in your area?
Then decide how you are going to get there in terms of rental stock, charges and the level of service you are willing to provide. Based on that, create a business plan that highlights your goals, identifies target tenants, and provides realistic financial projections.
Base your decisions on those goals and projections, and stick to them.
2. Learn the Local Market
Examine the local property market and development sector in detail, identify growth areas, streets that are highly competitive for rentals, or underserved locations.
Learn all about the local property and rental laws, property regulations, and the costs of operating. Armed with this information, you will be best placed to make rental decisions in line with your goals.
3. Find Software to Manage as Much of Your Role as Possible
The big players use software to manage their portfolios and track tenant requests/complaints, and so should you. Modern property management software automates many tasks like sending replies, booking appointments, and tracking bills.
Anything that can free up your time is worth the monthly fee of most rental market software as a service (SaaS) tools. They also help you maintain detailed records of tenants, your income and expenses for accounting purposes, and so on.
4. Find the Gaps in Rental Marketing
Look at how most renters in your area do their marketing and find a gap, be it using online social media, radio adverts, or taking to the streets and heavily advertising in key areas.
Being different and building a smart brand can make a small landlord look like a more effective and welcoming proposition to prospects through smart marketing.
5. Find the Right Properties
In the good times with a property market in high gear, there are plenty of rental properties to consider. Choose properties located in good locations with the right amenities for your target market.
Conduct thorough inspections and consider long-term maintenance costs.
6. Screen Prospective Tenants Thoroughly
Before you give them the keys, thoroughly check out your prospective tenant’s financial and property history. There’s also nothing to stop you from going through their social media to see if they like to throw big parties or lack basic social etiquette.
Use a rigorous tenant screening process, including background checks, credit score ratings, and landlord references. You can also use parents or guardians as counter-signees for younger tenants to keep them in good order.
7. Get to Know the Right Trades People
Property maintenance is a minefield in its own right, and while you might be able to change a lightbulb for an older tenant, there are many jobs that require professional expertise. Partner with experienced and competitive trades across gas, electric, plumbing, and so on to deliver a good service.
Alongside these troopers, hire an accountant if necessary (if your rental property software for small landlords
Doesn’t offer an accounts feature) to manage the money side of business for tax reporting and so on.
8. Create A Regular Maintenance Schedule For Your Properties
Using your trade partners, build a regular schedule of checks, inspections, and updates to properties that is flexible enough to work around tenant needs, but keeps you in line with local regulations and gets ahead of any issues becoming a complaint or costly repair.
9. Stay Ahead of the Money Markets
Buy-to-let mortgages are typically the most cost-effective way to let properties, but as markets shift in these dramatic times, finding the best rates with long-term fixies should be a regular part of your job to improve your profit.
Keep shifting to the best options, and look for other alternatives as your business grows and other credit opportunities become available.
Conclusion
By following these ideas, sticking to them, and implementing them as part of an overall business strategy, you will be far ahead of a lot of other small landlords, and more likely to build a business that can compete with larger players. Even at the most basic level, you are creating a rental system that is good for meeting your long-term goals and a pleasant experience for your tenants, who can spread the word most effectively on your behalf.
