Proper management will be the link to having lucrative investment properties. So much is at play when it comes to investment properties such as: collecting the rent on time, maintaining the property, advertising, keeping up on the laws, finding the right renters and making sure positive cash flow is generated. Having several investment properties multiplies the opportunity for success or failure. Having a solid property management firm like Far West Realty to manage your Prescott properties is paramount to success.
There are two ways to go about managing your rental properties: do it yourself or hire a property management firm. Managing a single property, may not be as challenging, since you may have found the perfect tenant who pays on time, performs upkeep on your property, and stays a long time. However, when managing multiple properties, the work can get out of hand if you are not an expert and the cash flow can turn negative fast.
Here are some property management tips that will help with managing that single property, but will be essential to your success when multiple properties are involved:
Organization – You need to be organized to manage the multiple properties. Collecting rent, signing leases, paying taxes, maintenance, advertising and adhering to the law, all have time deadlines. Not keeping up with these deadlines can get you into trouble. And, your properties may not all be on the same time schedule. Documentation needs to be thorough and correct.
Marketing and market value – Setting the right price for your investment property(s) requires knowing your market. The expenses of the home do not dictate the rental price, the market does. Do not lose money by simply guessing. There are many factors to look at such as location, size, neighborhood, condition and more. Advertising and marketing the property will keep it occupied if done correctly. Proper marketing and advertising can result in quality tenants and positive cash flow.
Proper Screening – In a rental climate like Prescott, finding tenants is not hard, but finding the right tenants is a different story. Experience over time will most definitely hone the skill of recognizing what “right”
looks like with renters. Are you prepared to do a criminal background search, credit check, sex offender check, past rental history, income stability and reference checking? What about roommates and pets? All of these aspects must be considered when screening potential tenants. Not adhering to proper screening will negatively impact your investment opportunity.
Having one bad renter may be manageable, but you do not want the headaches and income losses associated with bad screening on several properties. Eviction is a topic all in itself. This is something you do not want to tackle without knowing the law, your rights, tenant rights and timeframes.
Going at it alone is possible, but very risky if you are without experience. Managing that one rental property may be rewarding and perhaps even easy if you have found the right tenant and all is going well. Good can turn bad quickly, especially when you have multiple properties. Don’t risk losing significant cash flow by not investing in a property management firm to manage your properties. Trust the experts at Far West Realty to handle your investment properties in Prescott. Call for an appointment at 928-772-9400 and learn more about us.