1. Tenant Screening and Placement:
One of the most, if not the most, vital parts of owning a rental property is your tenant screening process.
We have met landlords who say they simply meet the tenant and then trust their instincts to tell them whether or not to approve them. Screening is vital to ensuring you get the right person in your home, and will save you a lot of work in the long run.
There are a few qualities you want in a tenant that matter:
- A tenant who pays rent on time
- A tenant who takes good care of the home
- A tenant who does not try to get around a screening process
It can be dangerous to simply trust your instinct or avoid thorough screening measures. If a tenant shows up with enough cash to pay for the deposit and first month’s rent, we usually have red flags going up in our professional minds. This is usually a tenant’s way of trying to avoid the screening process.
This is when a property manager can help. For example, at T&H we have strict procedures that combat application fraud and ensure the best tenant possible is placed. As a company, we have more robust resources for screening than a typical self-manager.
However, whether you are working with a property manager or not, there are a few steps you should take to protect your investment.
A good start is with a credit check. You want to make sure there are no judgments against your tenant. You also want to do a criminal background check and look for tenant performance reports too. These are available to tell you if there have been any landlord evictions of your potential tenants.
You can also reach out to their current landlord, to ensure they are good tenants who pay their rent on time and have had minimal problems. However- make sure you are in fact talking to the landlord and not someone posing as the landlord, as can sometimes happen.
You will also want to confirm income. Check their pay stubs to make sure they can afford the property and rent payments.
Beware though- we have seen an increase in pay stub fraud. There are websites out there that make this quite simple.
At T&H we use a program where we audit their bank account deposits to ensure they made what they say. This is another great resource that combats fraud that the typical self-manager would not have access to.
In-depth vetting now can save you time, money, and legal fees in the future. It is the top way to protect your investment’s future, and we highly recommend that you work with a property management company for this reason alone.
2. Walk-Throughs
Routine inspections are crucial for keeping your property and investment safe. There should especially be a check before the tenant moves in.
Before a move-in you should document the condition and note anything that needs fixed or replaced. You will then need to facilitate getting those items fixed before the tenant arrives.
We also highly suggest an inspection at the time of lease renewal. This ensures that the tenant is taking proper care of the property, and if there are issues, that they are solved efficiently.
Lastly, a move-out inspection is vital to document the condition of the home and to determine whether any charges will be assessed against the security deposit.
These are all items that a property management company can do, and most likely better than a self-manager. We have procedures in place to ensure we see all issues within walkthroughs, have professionals determine damage, and when there is damage we utilize a vetted vendor list.
Having these processes and contacts can be a big advantage in time and money for your investment.
3. Maintenance
Preventative maintenance can save your budget- trust us. There are so many things that might go wrong in a single home, and if you start scaling your investment that risk only increases.
That is why we believe that preventative maintenance is crucial for every property, and the number one suspect of sinking your funds? HVAC.
Pay special attention to your HVAC system to ensure it is in great condition. Check the units regularly to head off any potential problems that will only be very expensive.
At T&H we combat this issue as a part of our Residents Benefits Package. One aspect of this package is that we deliver new air filters directly to the tenant, so it is easy for them to keep up with the HVAC maintenance.
You should also routinely check other high-value items such as appliances. They should also be thoroughly cleaned in between tenants so that they run as long as possible.
If you have any questions about how to maintain your rental property, or what your property manager should be doing to help protect your investment, please contact us at T&H Realty, and we would be happy to show you your Indianapolis Property Management options.
Conclusion:
While self-management might seem like a cost-effective option initially, the long-term benefits of hiring a professional property management company far outweigh the perceived savings. In the dynamic world of real estate, partnering with experts ensures peace of mind and allows investors to focus on expanding their portfolios while their properties are in capable hands.
