Rental property business is not a set it and forget it type of business. You need to develop a strategy to manage your rental property. An effective property management strategy focuses on maximizing ROI, ensuring tenants have a good living environment that is also safe, properly maintaining the property, and minimizing potential emergencies.
Here are three popular property management strategies.
Outsource Property Management Completely
Managing a rental property is a time-consuming and labor-intensive job. As rental owner you have better things to do than chasing tenants down for rental payments and managing maintenance requests. If you have too much on your plate, consider working with a property management company.
An experienced property manager understands the ins and outs of property management. A rogue tenant is a rental property owner’s nightmare. However, if you have a troublesome tenant, your property manager will know how to deal with them according to legal requirements.
Property management companies offer full service end-to-end property management solutions. Your San Jose property manager will handle everything, including-
➢ Tenant screening
➢ Repairs and maintenance
➢ Evictions and inspections
➢ Day-to-day operations
➢ Rent collection and distribution
Some other duties and responsibilities of a property manager are
➢ Marketing the property
➢ Preparing leases
➢ Notifying the tenants about rent increase
➢ Ensuring adherence to local, state, and federal regulations
➢ Maintaining records and generating financial reports
There are a lot of benefits with hiring a property manager. They will save you a lot of time and the headaches compared to managing your property by yourself. A experienced property manager will come up with a strategy to maximize ROI and minimize costs. They will also help you identify ways to improve the marketability of your property and attract and retain high-quality tenants. The key to having a profitable rental is selecting the right tenants and retaining them for a long period.
In this approach, the rental property owner is responsible for everything. They need to screen tenants, collect rents, manage repairs, maintain financial records, and handle evictions.
A DIY approach to property management does not work well for most owners. Many rental property owners think they can save more by managing their properties, but most are surprised by the time and effort it takes to manage their property.
If you try to do everything yourself, you will not have much time to do the things you would prefer to do. You might feel overwhelmed by effort and may make some poor decisions that can erode your profitability.
Hybrid: Part Do-it-Yourself/Part Outsource
With this rental property management approach, the property owner manages some aspects of property management and outsources some specific items to a property management company.
Many rental property owners prefer to handle the day-to-day management of their properties, but don’t have the time or the desire or the expertise to market their properties and screen new tenants. Such property owners can hire a property management company that provides one-time services.
A one-time service typically includes-
➢ Conducting property tours for prospective tenants
➢ Screening and conducting credit checks on prospective tenants
➢ Conducting inspections before tenants move in
➢ Executing the rental agreement
➢ Handing over rental documents to the property owner
➢ Collecting first-month rent and security deposits
Whether you own one or multiple rental properties, Valley Management Group can help you with property management in San Jose or elsewhere in within Santa Clara County. Our proven track record of success speaks volumes. To learn more, call 408-286-4200.