There is more to managing investment property than just putting a “For Rent” sign on the front of your unit and collecting rent. To keep your investment viable, it is essential to minimize vacancies and secure good tenants – the processes discussed below can help. If after reading, you realize you don’t have the bandwidth to handle everything yourself, we are happy to discuss property management alternatives. Let’s dive in …
Pre-screening tenants
In your excitement to have your property rented, it’s tempting to let the first interested person with cash in hand sign a lease. But wait! What do you really know about this person who wants to occupy your property? A professional Central Texas property management company will take the time to carefully screen each potential tenant. They know what to look for and check multiple databases to obtain a full picture of an applicant’s past rental history, financial responsibility and illegal activity. Background checks can determine prior criminal behavior, including financial offenses, such as fraud or forgery – crimes that indicate your income stream could be at risk. References are also important to gauge the type of tenant they would be. Ask for references from employers and former landlords because references are more accurate if they come from more than just family and friends. Income of a potential tenant should be at least three times the monthly rent, so be sure to verify the income of every applicant. These are just a few of the things you need to assess.
Your legal rights and responsibilities
Do you know all the laws related to leasing residential property? After all, attorney’s fees are high. One legal problem can completely drain your cash reserves. Real Property Management Advisors stay informed about changes to the law and know how to properly comply with those laws to help you avoid legal risks. You need to understand fair housing rules, contract law, landlord-tenant law, anti-discrimination requirements and rules regarding service vs. emotional support animals at a minimum. There’s much more beyond these issues, and having a property management company who is familiar with the applicable legal standards can significantly cut down on your sleepless nights.
Rent Collection Process
Rent collection is the goal of owning rental property. When a tenant moves in, having a firm but fair payment policy in place helps to avoid confusion and keeps the process professional and not personal, which is especially difficult for first-time investment property owners. The rent collection process can be streamlined and more consistent with an experienced Central Texas property management company on your side. Online payment options and tenant portals, with 24-hour access, make on time payments easier. If set up right, rent collection is a seamless and automatic process that reliably puts deposits in your bank account.
Landlords are expected to always be available – that’s very stressful, and perhaps, not realistic. Property management can be easier when you partner with an experienced and professional management company. You are protected legally, more prepared, and worry less about cash flow. If you have investment property in Austin, Cedar Park, Round Rock, Pflugerville, Leander, Georgetown or anywhere in Hays, Travis or Williamson Counties, contact us to learn how Real Property Management Advisors can help.
This content is provided for general informational and educational purposes only and does not constitute financial, legal, tax, or investment advice. Readers should consult with licensed professionals regarding their specific circumstances.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
