Stress and business ownership go hand in hand, with one 2021 survey of small business owners finding that 52% said they felt stressed over the course of the year (an increase of 7% from 2020).
In a post-pandemic setting, stress is sure to remain a factor, especially for new business owners.
For landlords looking to cultivate success from the property investment process itself to managing tenants — all the while keeping stress at bay — here are just three valuable tips worth keeping in mind.
Investing In The Right Property
While a variety of factors play into maintaining a successful rental property business, the property itself can influence things to some degree — thus making it paramount to invest in the right properties.
One Investopedia post suggests starting your search on your own before getting a professional agent in order to avoid getting unnecessarily pressured into investing in a property, though goes on to note that there are a variety of features to keep in mind along the way.
The neighborhood in which a property is located, for instance, will determine the types of tenants you attract (as well as your vacancy rate), however, a range of other factors are also noted to play a role in how well your business will thrive as well — such as property taxes, crime, job market, and future development in the area, to name just a few.
Making Your Tenants A Priority
According to one Entrepreneur post, prioritizing the needs of your tenants can go a long way in running a successful property business.
“Think about it: If your tenants’ needs aren’t met, you’ll quickly face complaints, poor reviews, vacancies or even legal repercussions,” the article points out.
Maintaining standards of habitability in your rentals is particularly important, and will help avoid undesirable situations (such as your tenants having the right to withhold rent or making repairs themselves).
While hiring professional maintenance personnel is just one way to keep your tenants’ needs prioritized, other aspects of successfully maintaining an apartment building can be achieved in the form of enlisting the help of professionals.
Keeping an apartment building clean will not only create a pleasant and comfortable place for current and prospective tenants, but will ensure that the building is sanitary.
Enlisting the help of a cleaning team that is experienced with residential buildings is just one way to ensure that all areas are cleaned properly on a regular basis and with the right equipment.
From services that include taking care of the floors (stripping, waxing, buffing and polishing), to upholstery cleaning, minor maintenance of common areas, maintaining garbage rooms and chutes, and even tidying of parking lots, you can rest assured in knowing that key aspects of the building are kept presentable.
As a result, complaints will be effectively reduced, not to mention that you’ll have peace of mind in knowing that the job was completed in a timely manner by professionals.
Cultivating A Solid Foundation
Maintaining a successful rental property business involves a lot of hard work, though cultivating a solid foundation right from the start will help ensure you’re set up for success.
While this encompasses a variety of tasks itself, one Forbes article notes that preparing your business before signing your first lease is essential.
From asset protection, buying the right insurance, and setting up a bank account, the post points out that you’ll be able to keep your investment secure.
According to the post, “By preparing documents and creating a policy binder, you’ll “get your house in order” before accepting rent and dealing with questions from tenants, leading to a more simplified landlording business.”
In addition to great bookkeeping, ensuring that your property is in good condition before accepting tenants, and making sure that all legal aspects are taken care of, you can effectively set the tone for a successful start.
Setting up your rental property business for success in the long run can also be achieved with the help of a property management company.
Due to the lengthy list of responsibilities that often fall on a rental property owner — from marketing your rental to screening tenants, accounting, etc., doing everything on your own can easily become a recipe for disaster (especially if you’re new to the game).
A property management company, however, will aid greatly with a variety of those time consuming tasks.
One Linked In article by John Vallas notes that one of the many benefits of enlisting the help of a property management company is the fact that a property manager is the point of contact for tenants rather than yourself, meaning that complaints, maintenance calls, etc. are handled by the company.
In addition to taking care of aspects like marketing, a property management company can lead to happier tenants, thus resulting in renters staying longer thanks to a responsive and available team.
While this isn’t the right choice for everyone, Nolo notes that getting a property management company involved as a landlord can be a great option if you have multiple properties/rental units, you don’t live near your rental property, your time is limited, or you’ve suddenly become inundated with management tasks (to name just a few reasons).
Becoming a landlord and running your own rental property business is a large undertaking for anyone, and typically involves a range of responsibilities.
When looking to maintain a successful business, investing in the right property, prioritizing your tenants, and setting a strong foundation will all play a role in achieving the goal.