What your Rental Needs from You
Self managing your rentals instead of using a property manager has some advantages. You save on the management costs, you are personally invested in your investment, to name a couple. However, there are a few things your rental needs from you. Commit to these 4 things and you’ll be better prepared to manage your own rentals.
4 Things your Rental Unit Needs from you:
Aside from the mortgage, ongoing costs like insurance, taxes and utilities need to be paid whether your unit is rented or not. Ideally this will be covered by the rent and there are times when you may need to carry the property or pay for upgrades or repairs. Having a budget so you know what your income and expenses are will help you plan for maintenance and upgrades.
The only way your rental unit is helping you is if it’s rented so the expenses are covered. And it isn’t going to rent itself. Scheduling showings and screening applicants is your responsibility. Without tenants your mortgage and other expenses will be coming out of your pocket instead of being covered. Having said that, it’s worth taking the time to find great renters.
Even if you are on vacation, your rental unit isn’t. An emergency comes up while you’re at the cabin – you have to deal with it (or have a plan in place for someone to take care of it). No matter what is going on in your life, you’re still responsible for your rental unit. That includes keeping it rented, maintenance, emergencies, and more. I’ve painted while pregnant, we scheduled and screened tenants with a newborn in the carrier and spent time on our weekends doing repairs. Fortunately, if you have good tenants then your work load is minimal aside from when they switch over.
In general, tenants won’t take care of your unit like you would. Nor will they handle things the same way you would. This can cause frustration for you and damage to your unit. Outlining what tenants can expect from you, what constitutes an emergency call at 1 am and promptly following up on issues will maintain a respectful relationship with your tenants and help reduce damage you your unit.
Did we miss anything? Let us know in the comments!
Denise and Sean