Having your own rental property management plan is key to residential rental property investing.
Its 8:30 at night, your tenant calls and says water is leaking very badly under the sink. Its 8:30 at night, your tenant calls and says the toilets clogged. Its 8:30 at night, your tenant calls and says a window just got smashed. Its 8:30 at night, your tenant calls and says the roofs leaking. Its 8:30 at night, your tenant calls and says the heats not working. Its 8:30 at night, your tenant calls and says the bedroom doorknob fell off.
How about a gutter gets disconnected. No big deal, when it rains make sure your not standing underneath it. Winter comes, where water hits the ground, it starts to collect and then it freezes. Whoops, someone slips there and you get sued. Big problem. It pays to have a rental property management plan.
How about that exterior porch wood that needs painting. No big deal. Next year. Next year comes and goes and you saved 700 bucks not doing it. Three years later you spend $2000 having wood replaced because its to rotted. Big problem. It pays to have a property management plan.
You get the idea, whether something breaks or routine maintenance – things need to get fixed and maintained. A good rental property management plan helps ensure easy and profitable multifamily property investing.
There are three main factors for a good rental property management plan. Knowing who is responsible for managing the properties maintenance, who is going to fix things and when will things get fixed are the three main factors. Having a game plan for these three things is vital for maintaining your rentals. Theses three factors should be addressed and included in the lease. This ensures the tenant knows ahead of time what to expect when things need repairing or maintenance.
Lets start with who will be responsible for managing your rental property. Seventeen years experience of owning rentals has taught me that know one else will be better than the property owner for being responsible for managing the maintenance of your rental units. So the most cost effective rental property management plan has the owner doing the managing.
Before you say, oh god, what a nightmare managing rental property is, let me say I have learned and you can too, how to make property management simple and profitable.
In fact, for those who understand and implement a solid rental management plan correctly and continue investing wisely in cash flowing residential multifamily properties will find that their hourly pay time for managing their rental properties is extremely lucrative.
Needless to say, I personally strongly advise against hiring a management company for residential rental property.
Lets address who is actually going to be fixing broken items or doing the required maintenance?
You, the owner, your payroll help, a hired handyman, who is going to actually be doing the physical work for fixing and maintaining your rental units. Why is it important to have this be part of your rental property management plan?
Well, what you don’t want is having every time something needs to be repaired become a stressful costly headache.
By knowing who is going to be doing the repairs ahead of time, through your rental maintenance plan, you eliminate two potential problems.
One, when a problem does occur, your somewhat prepared by having had developed a list of contacts ahead of time. Secondly, being prepared like this, tremendously reduces stress and makes managing your rental property easy.