Learn from our property management experts!
Entering the world of real estate investing can be both a scary and exciting time. Whether you have just bought your first rental property or you manage an entire apartment complex, staying organized is an essential part of successfully managing any investment property. The following three tips will help you escape the minutiae of the daily tasks of owning a rental and bring your business to the next level.
Managing communications with your tenants can be one of the most challenging aspects of owning a rental property. Implementing the use of templates can save time and energy by reducing the need to recreate the same documents over and over again. Some examples of useful templates to create include new tenant forms, maintenance requests, or lease termination documents. If you have a website for your business, you could upload all of these templates there; if you do not have a website, these templates can be emailed to your tenant when they move in for future use.
For tax purposes, rental income is reported on the IRS Schedule E form. While you will need to set aside money for taxes throughout the year, it is equally important to accurately track any and all of your expenses. Expenses such as advertising, insurance, management fees, repairs, and travel expenses can all be written off, reducing your total taxable earnings from the property. In order to keep track of all of these expenses, new property managers should look to use software such as Google Sheets or Microsoft Excel. Maintaining these records will make filing your taxes much easier, and this information can also provide a great deal of insight when considering future investment properties.
Any experienced property manager will tell you that choosing the wrong tenant for your rental can create a laundry list of problems. This can make the difference between owning a profitable rental property and losing money due to missed payments and damages done to the home. While there is not a sure-fire way to ensure every tenant will work out, implementing a pre-lease screening process can greatly reduce the likelihood of renting your property to the wrong person. This process should include a criminal background check as well as a credit screening to ensure that the person is a law-abiding citizen with a proven record of timely payments. If the prospective tenant passes both checks, meet them in person for a final vetting to ensure you feel that they are the right fit.
While managing a rental property can be stressful, implementing these recommendations can be a great way to start getting organized. However, if managing your property is not working out for you, call the property management experts at MMC Properties to take your real estate investing to the next level. MMC offers a comprehensive range of management services including professional real estate advising, a veteran maintenance staff ready to service your property, and tenant vetting services to ensure you find the right client. In the world of real estate investing, experience can make all the difference – contact the property management pros of Middle Tennessee.