You don’t need a property manager to manage your own properties or have any experience, even if you’re from out of town.
This is what I use to think and I was terribly wrong. How do I know I was wrong? I have tried it and made many expensive mistakes. Any inexperienced landlords will also make mistakes and to help them minimize them I have created a MUST do list from life lessons I have learned.
DO:
- Require a solid rental application from all prospective tenants over 18.
- Require five year job history and five year residence history
- Verify everything on the application
- Use a complete comprehensive lease and have it notarized
- Check credit
- Check criminal history
- Do move in inspection with pictures or video.
- Require security deposit equal to one months rent (minimum)
- Know the laws (Federal and State) governing landlords and tenants
- Treat your rental property as a business, your tenants are not friends, they are customers that have specific contractual requirements to meet
- Create strict qualifying requirements and follow them.
- Minimize vacancy; however vacancy is better than a bad tenant.
This is only a short list and will not guarantee a problem tenant. It will stack the odds in your favor of not placing a bad tenant.
Even good tenants can have rough times that make it impossible for them to meet contractual requirements. You will still have to make your mortgage payments or lose the property. So be proactive and know how you’re going to remove tenants that can not pay the rent or are violating the lease in some other manner.
You must do what is on the list above to have a chance of being successful. If you not willing to remove (in a timely manner) a tenant for violating your lease or screen properly. Then hire someone who is, a good property manager. It is worth the money and will save you money in the long run. Also create a team of other specialists to help you be successful. Get a good Attorney, Realtor, Mortgage Loan Specialist, Handyman and Accountant on your team. You may have a specific skill sets that allow you to wear multiple hats and that can work for you.
Now this might sound like I’m trying to get property management business. I’m not; I don’t manage other people properties. I tried it and found that a good fulltime property manager can better protect your interests and property value.
For free property management forms or more information visit www.MarkWatterson.com or call me 801.815.0411