Property Management

If you decide to manage your own properties, below is some information that will help. Once you have accumulated several properties, it may be a good idea to hire a property management company.

Rules of Thumb

1. 1. Select the right tenant. Go overboard to qualify the tenant. Don't trust anyone. Do your homework and a background check on the individual.
2. 2. Play the numbers game. Ensure you have a good network of applications. Selet one out of six applicants, not the first person that comes to you with money.
3. 3. Develop strong tenants leases. Don't be taken advantage of by a tenant. It is your property. They are just borrowing it for a while.
4. 4. Keep control of the cash and security. Security deposits are mandatory. In fact, ask for a security deposit, plus first and last months rent.
5. 5. Spend the time and effort to keep good tenants. Reward them with a discount or a party. Build the relationship.
6. 6. Get help once your property count gets too high, a professional property management can help.
7. 7. Use lease options contracts to make the tenant responsible for the property. Pride in ownership is valuable.
8. 8. Evict if necessary. The process takes three weeks to three months. Every state has different rules. Ensure you know the regulations in the local community.

Do's & Don't's

Do:
1. 1. Refinish the floors
2. 2. Paint the walls light colors
3. 3. Replace old light fixtures with simple new ones
4. 4. Replace old head registers with new ones
5. 5. Consider replacing the kitchen countertop
6. 6. Spruce up the bathrooms
7. 7. Change the covers on light switches and electrical plugs

Don't:
1. 1. Upgrade the basement at great expense
2. 2. Renovate the front a house until you are ready to sell it
3. 3. Landscape the back yard
4. 4. Convert three small bedrooms in to two larger ones
5. 5. Replace kitchen cupboards
6. 6. Do total renovations
7. 7. Buy used appliances from people's garages or basements