Managing a rental portfolio can be easier said than done. It does not find the right tenants and see to it that everything in the property is fine. As a matter of reality, it barely begins from there.
The failure of an air conditioning system in a particular unit of a property, the lawn that is not appropriately maintained, the bathroom tab which stopped working, or that washbasin leakage – tenants’ problems with the property can be endless.
Regardless of whether your portfolio includes dozens of properties, or just one rental home, or a multifamily property – these issues are sure to spoil any landlord’s sleep.
Getting tenant calls all day long can be one of the most annoying things, which is why many landlords turn to asset management companies to manage their rental portfolios for them.
But at the same time, it is also true that not every real estate investor has the luxury of outsourcing portfolio management, and many of them have to do it on their own.
Whether you are a landlord who wants to manage your rental portfolio on your own or just wants to be a better manager of your rental portfolio – these actionable tips can help.
1 – Be proactive
The number one tip we can provide for tenants who want to manage their rental portfolio is proactive. As generic and straightforward as that may sound to you, indeed, most landlords are not aggressive when dealing with the problems their tenants might face.
This is why last moment delays will hamper the tenants’ experience at your property while also creating lots of unnecessary stress for you.
Being proactive can mean different things to landlords who have properties in other locations and can change according to different seasons. For example, if it is late summer – ideally, you have an air conditioner repair vendor on standby as you can expect some problems with ACs in your property.
Similarly, if it is winter – you should have your lawn maintenance, and cleaners companies list handy who can attend to problems in less time. Essentially, it would help if you built your team of dependable vendors who will take your call and prioritize your work in exchange for quick pay and a good amount of work from your side.
Ensure that you do not rely only on one vendor and have many backup options in case a particular vendor is not available.
2 – Follow up
You were following up with your tenants about their problems even after you think you have fixed them. Your tenants will undoubtedly appreciate you if you can give them a call after repair to see how everything went to ensure that everything is in place now.
This is an important step to let your tenants know that you care for them, which will motivate them to deal with you patiently the next time something breaks down.
Follow-up will only cost you some time but can be very rewarding in the long run. This will also help you strengthen your relationship with your tenant.
3 – Be a good listener, even when it’s hard
One of the biggest reasons why most tenants get frustrated with their landlords not fixing their problems immediately is because they don’t feel heard. Many landlords have a lethargic attitude towards fixing tenants’ issues and have an “it can wait” attitude.
This primarily annoys your tenant, making them rather furious. Instead, try to be a good listener and hear out to your tenants’ problems are trying to talk to you about.
While you don’t have to fix it immediately unless the situation demands so, it is vital to provide the tentative timeline to your tenant concerning its repair to rest assured that the problem will be fixed.
4 – Be quick in understanding when it’s immediate
While there are some things for some repairs which can wait, in reality – there are some others that just cannot. For example, A clogged commode is a problem that needs immediate attention and fixing.
At the same time, a lawn with some extra weeds growing on the front is a problem that can wait. Be quick in understanding the issues which need immediate fixing and ensure that you attend to them as soon as possible. In this regard, it is also essential to be empathetic with your tenant who thinks that something needs immediate fixing.
For example, for a tenant who has a toddler at home, a broken tile might be an issue that needs quick fixing, although, in reality, it’s not much of a problem for a family with adults. Being empathetic towards your individual tenant needs is primary.
5 – Budget right
When you plan out your rental property investment budget, it is essential to include savings for capital expenditures that your property might eventually need.
Whether it is a water heater, an air conditioning system, a new roof, a maintained lawn, or something else – you never know what might come up, and thus, it is vital to be prepared for it by budgeting for it well in advance.
6 – Know when it is the right time to outsource
While every landlord wants to believe that he or she can do a perfect job at maintaining their rental portfolio, the truth is that most of them need help in doing it right.
Landlords need to know when is the right time to outsource their rental portfolio management to an asset management company. It decreases their load and devotes more time to words improving the portfolio than being too focused on managing it alone.
Managing a rental property portfolio can indeed be challenging. However, it will NOT be if you are proactive and are prepared to handle it wisely and efficiently using simple tips, as we’ve mentioned above.