Many people, when they first purchase an investment property, will often decide to rent those properties out on their own. It can be difficult know where and how to start and many of these investors become discouraged when they find out that renting properties out on their own is much more difficult than they thought. They quickly discover that investing in properties is much different than being a property manager.
Whether you are just starting out as an investor, or you are about to bite the dust and talk to a property manager, here are a few things to help maximize your experience with renters and to help you take your property managing game to the next level.
1. Finding High Quality Tenants – Certainly the most difficult part when it comes to managing investment properties is finding high quality tenants. This is where some local expertise comes in handy. I always find it’s best to think from the renters prospective. Do some Google searches, and see what websites renters in your local city are using. Some cities have their own platforms that perform well, others will just use Craigslist or Zillow. By figuring out where renters are looking, you can figure out how to get your properties on those sites.
Increasing the pool you have to choose from is step one. If you want to find higher quality of tenants you need more tenants to choose from, plain and simple. Quality tenants are out there, they just need to know where to find you. Do all you can to get your properties and information listed on the most used websites in your local area.
2. Screening Tenants Properly – Many investment property managers, especially when they are starting out, think that Google is a great place to do background checks. Unfortunately this is not that case.
For whatever reason, first time property managers either want to save the money, or they are afraid to charge an application fee. This leads to poor background checks and can lead to bad tenants. It is much harder to deal with a bad tenant than it is to find a good one.
Take the time and spend the money to get proper background checks done. This will be a huge help to you in the future. Good tenants means rent is paid on time. That translates to money in your pocket. Do not take this part lightly.
3. Call The References – Does it surprise you that people will put down fake references? It shouldn’t. If you don’t call the references you are only hurting yourself. However, that being said, take the time to also make sure the references are legitimate. Some people will put down their friends names and make it seem like a rental reference. If you have a series of complex questions, you can make sure you don’t get duped. It’s unfortunate, but you can’t give anyone the benefit of the doubt. Take the time to make sure your renters are good and it will pay you back in the end.
4. Get Airtight Lease Agreements – The last thing you need to do is have good quality leases that will hold up in court. Even the best tenants can become huge problems. If you have to move to court proceedings you don’t want to be the fool with the horrible lease. Spend some time and money to get proper paperwork together. That paperwork will usually last a long time.
Proper paperwork means security for your properties. Make sure you are legally protecting yourself by having the right paperwork.
Managing your own properties is no walk in the park. However, it can be done. The hardest part is usually the start. Once you get the hang of it, things should start to go a bit smoother. You have to always be prepared for a curve ball though, expect the unexpected.
Managing your own properties is possible, however you have to take full responsibility. By being prepared you will have a much more enjoyable experience, and by taking the time to find good tenants you will lower the chances of having any huge problems.
By Karl McPoyle
Since 1946 the Carnahan name has had a reputation for honest and ethical Real Estate Property Management services in the San Fernando Valley, Santa Clarita Valley, Burbank/Glendale, Los Angeles, Westside and Conejo Valley areas.
The reason for our success is helping owners like you when they need it. Below is a partial list of property management services we provide to help you protect your real estate investment.
- Tenant placement
- Tenant screening (including: credit check, landlord and employment verification, social security trace report, California eviction check and criminal check)
- Regular property inspections
- Accounting and landlord bill payment
- Monthly financial reporting
- Maintenance service and supervision (we use only proven independent vendors)
- Collections
- Evictions
- We supply all the necessary forms to meet California’s Landlord/Tenant laws
- 24 hour emergency phone service
- Advertising to the broadest tenant base possible
Call or e-mail us today for more information. We’re ready to get started!
- Carnahan Property Management services Woodland Hills,West Hills, Calabasas, Canoga Park, Tarzana, Reseda, Topanga, Encino, Northridge, Van Nuys,North Hills,Chatsworth, Sherman Oaks, Studio City, North Hollywood, West Hollywood, San Fernando Valley, Granada Hills, Mission Hills, Simi Valley, West Lake Village, Agoura,Toluca Lake, Valley Village, Burbank. Call us at (818) 884-1500 and check if we can service your area.
