Hands-Off Property Management - 5 Key Success Tips
One of the main appeals of real estate investing is the dream of passive income. That means they are looking for ways to let go and take a hands-off approach to investing. After all, you do not want your investments to become a second job.
The first thing to remember is that it is impossible to guarantee your tenants are never going to have a concern that needs to be addressed, so you cannot just walk away and expect the money to flow in. Instead, you need to develop a strong enough infrastructure to support your lifestyle.
So, how do you take a step back and become less attached to your investments? Before I share with you the five key tips to achieve successful hands-off property management, I would like to offer you the key to hands-off mortgage financing. Just click the link below to unlock a free strategy call where my team will share with you our secret to hands-off, done-for-you mortgage financing.
Screen Tenants for the Long-Term
Typically, tenant screening is performed simply to ensure that tenants are going to make rent payments on time and cause minimal damage to the property. This is absolutely fine because those are essential to succeeding as an investor in the long-term. However, if you want to avoid the expensive and time exhaustive process of tenant turnovers and filling vacancies, you are going to want to do more than that.
During tenant turnover, your cash flow comes to a halt. Since you do not have tenants paying the rent you are going to have to pay out of pocket in order to cover your mortgage and expenses. So, you want to avoid turnover as much as possible. You can do this by assessing how long a tenant plans to stay in your property during the screening process.
If a tenant with good credit history and a clean record is looking to stay for one year while another with similar finances wants to rent the unit for five to ten years, you may want to consider the tenant looking for a longer term. That way you can rest easy knowing you have consistent hands-off rent payments coming in each month for years to come.
Use a Leasing Agent to File Vacancies
While screening for long-term tenants can minimize vacancy rates, there will always be turnover periods. That means if you want to stay hands-off you are going to need someone who can help you fill those empty units as quickly as possible.
By hiring a leasing agent, you can delegate the task of staging and advertising your property as well as screening potential tenants to a professional. This not only provides you with less on your plate to tackle, letting you live freely. It also allows you to be confident a professional is looking at prospective renters and judging their qualifications and reliability accurately as opposed to doing it yourself.
A leasing agent may also inform you of any repairs or updates needed in your units between tenants that you can pass on to the appropriate people as outlined in the next tip.
Find Reliable Maintenance Workers and Handymen
Wear and tear are a natural part of life. While we all wish that our homes were built to last forever, time and frequent use will begin to take its toll on even the strongest of buildings. That is why you want to build a relationship with fast, reliable, and skilled handymen and maintenance workers to create a hands-off process.
These trained professionals have the experience and training to tackle your property maintenance and repairs quickly and efficiently, often saving you money that could have been wasted if you attempted a job, you were not trained to complete yourself.
If you can, try to find a single worker or a small group who is capable of responding to urgent repairs at short notice. This way you do not have to take the time to find someone every time a problem arises. As well, by relying on the same worker consistently, you are able to create a realistic expectation of the timeline and quality of work you will be getting, as well as the price you will need to pay in order to get it done.
Discover Residential Property Management With This Step By Step Guide
Automate Reminders for Maintenance and Inspections
Once you have found reliable maintenance workers, it is time to get ahead of schedule and stay on top of potential problems that may pop up in your units. You should create automated reminders for any planned maintenance and inspections. This way your tenants can all be notified at once in a uniform manor.
It also allows you to plan future notifications in advance so that when the notices are sent you do not have to do anything except for respond to any tenant questions or concerns. That means that most of the time, you can stay hands-off and you will only need to engage with your tenants for last minute notices.
Remotely Update Calendars for Lease Renewal and Rental Increase
As a landlord you want to stay on top of lease renewal and provide reminders and notices months in advance as well as right before the renewal date. However, that can become a lot to remember and keep track of and if you accidentally forget, you may cost yourself excellent tenants by letting them think you do not want them to renew and letting them find other housing.
So, in order to avoid this, you can create calendars and automated reminders for yourself and your tenants to stay on top of the renewal process.
Bonus: Enjoy a Hands-Off Mortgage Experience
Applying for a mortgage does not have to be a stressful experience. In fact, with the right broker you can sit back and trust that your agent is going to do anything that is required to help you get the best available rate for your income properties. That means easy, hands-off financing.
Fortunately for you, at LendCity we pride ourselves on providing just that – a hassle-free, relaxing mortgage experience. So, if you are looking for a mortgage for your next investment or are getting ready to renew or refinance an existing mortgage, give us a call. We can be reached at 519-960-0370 or you can visit us online at LendCity.ca Alternatively, unlock the secret to hands-off mortgage financing by booking a free strategy call at the link below.