Career in Property Management

Considering a Career in Property Management? Here’s What You Need

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Did you know that property management is 18th among the 20 happiest jobs in the U.S?

Beyond job satisfaction, property management is also a growing field with significant earning potential. Considering those facts, pursuing a career in property management is a great decision.

As the overseer of real estate big and small, property managers wear a lot of hats, which means their skill set is long and varied. But more than those soft skills, there are also training and educational requirements for property management.

If you’re ready for a career change, property management is a growing field with an excellent salary. We’ll tell you more about what it is and how to get involved in this guide to starting a career in property management.

What Is Property Management?

Property managers are overseers of real estate entities and all the responsibilities that go along with them. Real estate entities can include residential buildings, commercial buildings, or even building projects.

On the day to day, a property manager may be responsible for a number of operational, administrative, and maintenance-related tasks. These include:

  • Showing, inspecting, and evicting tenants from residential properties 
  • Collecting rent
  • Filing taxes
  • Maintaining listings
  • Asset management

Property managers may also be involved in marketing and communications, depending on the company for which they work.

How to Pursue a Career in Property Management

Property managers make an average salary of nearly $60,000 per year. Property management has also been voted among the jobs with the highest job satisfaction in the country. With stats like that, it’s no wonder that more and more people are looking to pursue a career in property management.

But how exactly do you go about that? We’ll explain the education, training, and skills you need to succeed in this field.

Education

There is no particular education required to be a property manager. Each company will have its own requirements, according to what they do and where they’re located. 

While it’s technically true that you can be hired with only high school education, most property management companies hire people with at least an undergraduate degree. Preferably, that degree should be in real estate or a related field such as business or finance.

Certification and Licensing

Some states require property managers to have a real estate license. Other states don’t require a real estate license but you’ll be required to pass a certification test.

Some certifications you might consider are the Accredited Residential Manager (ARM) or Certified Property Manager (CPM) certifications. You may also pursue certification through the Institute of Real Estate Management (IREM).

Skills

Considering the diversity of tasks and responsibilities in property management, you’ll require a number of wide-ranging skills.

In terms of accounting skills, you’ll need to have a good handle on tax law. You’ll also need to know how to create and balance a budget and how to prove returns on investments.

Property management also has a lot of administration skills involved. That means you need to be organized and efficient, staying on top of paperwork and bills. Of course, the property will also need to be maintained, staffed, and insured, which is usually the responsibility of the property manager.

Personal skills are important in property management because you’re hiring and firing employees and building teams. You’ll also have to deal with tenants and often act as the liaison between owners and residents.

Hire a Property Manager

Pursuing a career in property management isn’t something one does as a hobby. This intensive career requires training and skills that are demanding. It takes real commitment to become a property manager – and to be a good one at that.

If you require a professional property manager, let us help you. Contact us to find out more about the property management services we provide.

tenants

The 7 Most Common Issues That Tenants Complain About (And How to Resolve Them!)

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As any experienced landlord will know, the management of their relationship with their tenants is often the hardest part of the job. According to a recent survey of landlords, one of the most common issues they face in the job is dealing with problematic tenants, with a full 37% of landlords describing difficult tenants as their biggest worry.

However, as a property manager, there are steps that you can take to mitigate this. Simply listening to your tenants and being able to quickly respond to the most common rental issues will help ensure a smooth relationship from the outset. With that in mind, here are the seven most common issues that tenants complain about, and what you can do to resolve them.

1. Maintenance Issues

Problems with appliances and utilities are by far the most common source of complaints from tenants. As a landlord, you should take these complaints seriously and immediately take action to resolve any maintenance issues in a house or apartment.

Always have an updated contact sheet of trusted repair people that you can call when your tenant reports a maintenance issue. 

2. Poor Communication

Another very common complaint from people who rent their homes is poor communication from their landlord. No matter how many tenants you have, it is your job to respond quickly and effectively to queries from tenants.

You should also be proactive and keep your tenants updated on things like inspections, maintenance work, and noise disturbances. 

3. Noisy Neighbors 

Noisy neighbors are another common issue that anyone who rents out the property should be prepared to deal with. Most noise complaints tend to be because of one single bad tenant who is ruining it for everyone else.

You should be prepared to do everything in your power to identify the noisy tenant and deal with the problem effectively. 

4. Boundaries

While poor landlord communication is one issue, a lack of boundaries is another. If you’re the type of landlord that thinks it is OK to turn up to a tenant’s home unannounced or try to keep tabs on their habits or schedule, then you need a reality check.

Your tenants are individuals with a right to private life. Respect their boundaries and accept that this is their home for as long as they are paying the rent. 

5. Security Deposit Issues 

The security deposit exists for a very important reason. However, far too many landlords will try to bend the rules and treat tenants unfairly to keep the deposit for themselves. Don’t be that person.

Unfairly withholding a security deposit can cause significant legal troubles for you and the properties that you manage, so don’t do it. 

6. Damage to Common Tenants Areas 

Damage to the stairwell, common room, roof terrace, pool, and grounds of the building are a common cause for complaint. Not only is it your job to be reactive and repair the damage quickly, but it is also important to be proactive and make sure that people are deterred from causing damage.

If you know of a particular tenant who is damaging common areas, then take action to ensure they won’t do it again. 

7. Parking 

Finally, there is the age-old issue of parking. These are problems that can often be resolved with good communication and signposting. One tenant might not realize that they are taking up someone else’s parking space.

Another might think that they can park both of their vehicles outside the building, even though they only have one designated space. Making the rules clear at the outset will prevent a lot of trouble further down the line. 

Get Expert Support Today 

If you want to have a smooth and mutually beneficial relationship with your tenants, having the right resources can help. At Outland Real Estate, we provide expert support and guidance to landlords looking to rent and lease out a building. If you’re looking for expert advice, don’t hesitate to get in touch with us today. 

property management challenges

The 5 Biggest Property Management Challenges Property Managers Encounter

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Franklin D. Roosevelt said that real estate “is about the safest investment in the world” as long as you purchase it with “common sense.” It’s no surprise that a majority of the world’s billionaires make their money this way.

While investing in rental properties may seem like an easy, low-risk way of creating residual income, the reality of managing property can create a shock for new investors.

Managing property is both hard work and time-consuming, so it’s important to go into the new venture prepared.

In this article, you’ll learn about the biggest property management challenges. Whether you are an investor considering rental properties or thinking about going into property management as a career, this article is for you.

Top 5 Property Management Challenges

Some of the challenges of property management jobs are similar to those of any career. Others are unique to this position.

Finding Good Tenants

Those who manage residential properties use Zillow, among other methods, to find renters. Since many of the people who reach out may not be serious about renting, sifting through the responses is time-consuming.

Once you find people who are serious about renting, you need to make sure they’ll pay their rent on time and not be a liability. This is why credit and background checks are so important.

Tenant Management

After finding the right tenants, be prepared for issues to come up at all hours, like leaky roofs. Property managers can even get calls and emails in the middle of the night.

In addition to routine maintenance, you may discover property damage by the tenants when they move out. Although rare, you may even have to handle serious problems such as theft or domestic violence.

Quick, appropriate responses to tenant issues will prevent bad reviews and high tenant turnover.

Unexpected Expenses

If you’ve ever been a homeowner, you know to expect unexpected maintenance and repairs. Now imagine having many homes to manage.

Routine inspections for things like leaks will mitigate the damage and prevent you from paying even more down the road.

Staffing

If you own more than a few units, you might need to hire staff to help with the day-to-day administration. This can include answering phones, responding to emails, processing applications, and collecting fees.

Even though a high unemployment rate means a larger pool of applicants, finding the right staff can still be time-consuming.

Retention is another factor. According to a Gallup article, US businesses lose one trillion dollars per year due to employee turnover. 

Time Management

The amount of time needed to manage even a small property can be a shock to new property managers. An urgent call from a tenant with flooding issues, for example, can take up a good part of your day.

Handling applications, collecting rent, and responding to tenant complaints and demands can be time-consuming, especially if you own multiple units or have another job. 

Eyes Wide Open

Now that you understand the property management challenges you’ll face, be honest with yourself. Do you want to be both an investor and a property manager? Do you have the time to handle it all?

If you have a full-time job, own a large complex, or simply don’t have the time for the numerous issues that regularly come up, it might be wise to consider hiring a property management company.

Read this article to learn about how to find a property management company you can trust.

landlord move out checklist

The Ultimate Move-Out Checklist for Landlords and Property Managers

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Over 43 million rental properties are occupied by tenants in the United States.

Renting is a popular option for many reasons. Some tenants don’t want to be responsible for repairs or yardwork while others have a lower credit score.

As a landlord, it’s your job to make sure your tenant is holding up their end of the rental agreement. A common source of frustration and confusion happens during the move-out process. 

To avoid this confusion, we’ve provided a move-out guide for landlords. Keep reading to learn more and to see our landlord move-out checklist!

Schedule the Inspection

When you have a tenant moving out of a home or apartment you’re renting to them, expectations may get lost in translation.

As a landlord, you’ll want to make sure the property looks the same way it did when the tenant moved in. Any flaws or damage that are present after the tenant’s lease is up should be up to the tenant to pay for. This is where the security deposit and inspection come in.

Don’t forget to schedule an inspection before sending your tenant on their way as you may be left with expensive repairs or hours of cleaning. The inspection should include an extensive walkthrough of the property as well as a checklist for you and the tenant to refer to.

Landlord Move-Out Checklist

What’s expected of your tenant should be clear before the inspection.

To help guide your tenant before the inspection, here’s a checklist for what should be done:

  • Sweep, mop, and vacuum the floors
  • Clean any food/debris in the fridge, freezer, sink, cabinets, drawers, and dishwasher in the kitchen
  • Clean and disinfect bathrooms
  • Clean windows
  • Remove ALL personal property from the property
  • Do not leave garbage on the curb or in your dumpster
  • Mow, weed, or use any other means necessary to make the lawn presentable (if applicable)
  • Clean and paint walls to the original color they were upon move-in
  • Leave any and all appliances that were provided with the property
  • Leave utilities on until the inspection has been completed
  • Leave keys after passing inspection
  • Light fixtures should work properly 
  • Appliances must work properly
  • Plumbing must be free of blockages and other complications
  • Smoke alarms and carbon monoxide alarms must work correctly
  • If there are any damages, the landlord must be notified of these prior to inspection
  • Heat and AC must work properly 

All of these boxes should be checked before the inspection is conducted. Failure to have these tasks done should result in the tenant not receiving a security deposit back. 

Other Factors to Consider

Along with the checklist being completed fully, the tenant should be up to date on fees.

These include rent, early contract termination fees, and water bills. If the tenant is not paying the fees expected of them, you may need to get a lawyer involved. 

Also, the tenant should take care of forwarding all mail with the post office. It is not your job or the job of the new tenant to forward mail from the old tenant.

An Efficient and Successful Move-Out

Having an agreement between the tenant and the landlord is the key to an efficient and successful move-out.

Setting up an inspection and providing a landlord move-out checklist to your tenant is essential. 

If you’re thinking about investing in another property, reach out to us today to get started!

good real estate

How Good Real Estate Can Become the Investment You Need

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Real estate investment can be a lucrative business if you do your research and make the right moves.  In fact, 90 percent of the world’s millionaires from the last two centuries grew their wealth from real estate investment.  

Are you ready to start using your money for sound investments? Read on to learn how good real estate can become the investment you need.  

1. Key Reasons to Invest in Good Real Estate

Predictable Cash Flow

“Cash flow” or “net income” the amount of money you’ll receive after all necessary expenses like maintenance and mortgage.  Depending on the type of real estate investment you choose, you could receive a steady extra income year-round.  For instance, a good residential property can give you an extra $1000 a month after necessary expenses for as long as you rent the property.

Tax Breaks

There are various tax breaks you can receive by owning a property or multiple properties.  You may qualify for deductions on the property’s overall management or operating costs.  Similar to cars, properties can depreciate.  This means that costs are deducted based on how much useful life the property has. 

Scalable Return on Investment

Once you become more familiar with the responsibilities of owning and managing a property, you can learn how to scale or increase that income.  Because real estate is a tangible asset, you can improve its physical features to increase the value.  This explains why house renovations increase the overall value of a property.  If you make quality structural or cosmetic changes, you improve the property overall features.

Naturally Increasing Value (Appreciation)

Even without making renovations, real estate value generally appreciates over time.  Appreciation is the rise in value due to increased useful life.  Since there is a limited supply of land, property naturally becomes more of a demand which increases its value.   

Get Started Without Large Down Payments

You don’t have to spend thousands of dollars to invest in real estate.  Methods like REITs and crowdfunding platforms give you a lot of creativity and flexibility with investing.  You can invest in stocks with smaller down payments and receive returns when stocks increase. 

Before you understand the reasons why you should invest in real estate, it helps to know exactly what your options are.

2. Want to Purchase Your Own Land? Become a Landlord  

You can either invest in commercial and residential properties as an individual or join a collective that manages properties for profit.  These are called real estate investment groups or REIGs, which allow you to own property without the hassle of managing it.

Residential Investment: Become a landlord and collect rent by individually purchasing condos, houses, and other housing units.

Banks typically require a 20 percent down payment for the investment, but one advantage to residential investments is the ability to live in the unit while you rent it.  

Commercial Investment: Become a landlord and collect rent by individually buying office space, hotels, strip malls.

3. You Can Invest Without Buying Whole Property

Yes, investing without buying real estate is entirely possible.  With these methods, you’ll own shares or stocks of property instead of owning the entire property. Here are a couple of ways to do it.

Crowdfunding: Investing in real estate through a collective group of investors for a specific project. 

With crowdfunding, you’ll invest your money in a pool along with other investors and the return is then divided among the group.

Platforms like Fundrise, RealtyMogul, and Crowdstreet enable individuals to invest without lower upfront costs.

REITs (Real Estate Investment Trusts): Investing in companies that own commercial real estate stock.

REITs are trusts that allow you to invest in real estate such as office buildings, hotels, and malls.  You can make decent earnings from these platforms since they’re required to return 90% of their taxable income to investors (shareholders). 

Purchasing Stocks vs. Finding Good Real Estate 

Stocks can be riskier than physical investments since their values sway and change due to a variety of economic factors outside of your control as an investor.  However, they offer more flexibility and affordability than physical real estate.

Buying physical property can be a more tangible investment than stocks.  The process of purchasing and maintaining a property is relatively straightforward and offers you more control as the investor. 

Want to start investing yourself?  Contact us and we’ll help you manage your real estate needs so you can get started. 

property manager for private estate

What Is the Role of a Property Manager for Private Estate Grounds? Your Complete Guide

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With over 8 million independent landlords across the country and more than 24 million rental units available to renters, property management is one of the biggest independent industries in the US.

However, there’s another type of property manager besides apartment landlords. A professional property manager for private estate grounds has many responsibilities as well.

Here, we’re going to take a look into who these professionals are and what they do. Read on if you’re considering expanding your portfolio as a landlord to those who live in private estates!

The Role of a Property Manager for Private Estate

Think of a butler from a BBC period piece. A private estate property manager is basically the modern equivalent of that, but with a few additional responsibilities to boot.

An estate manager is hired to take care of and maintain the many acres of land that constitute a private estate. They aren’t the owners of this land, but they’re paid a high rate to manage and maintain the household of the wealthy individuals who do own the land.

The ideal private estate property manager is personable, organized, and has a knack for understanding finance. If this sounds like you, becoming one of these professionals might be a good career path that can make you a great deal of cash! This especially the case if you live in California, the haven for those with the funds to own private estates.

What Are Their Responsibilities?

Okay, so a private estate property manager manages and maintains the land.

But what exactly does this mean? Here are a couple of possibilities.

Household Obligations

First of all, since many large estates have a lot of people working for them, a property manager must organize all of these professionals and ensure that they get the job done. This includes housekeepers, maids, private chefs, and nannies.

Many estates you may be working for own farmland and livestock. In this case, you’ll also likely be responsible for ensuring that any livestock is well cared for and that farmers who manage the crops have the resources they need to do their jobs.

Financial Obligations

As an estate manager, you will also need to manage the finances of those who live there. This includes setting budgets, deciding where money should be funneled, and setting aside the appropriate funds to pay other household workers. They might manage payroll and keep track of estate cashflow.

Many wealthy people who run estates also are business owners and operators. While they will, of course, focus on many responsibilities, you may be put in charge of some financial obligations. Check the job description of the individual place that you will be working for more details.

More on Real Estate

Now that you know the role of a property manager for private estate and what the responsibilities of these professionals are, it’s time to get more information on real estate management. 

Contact us for more information on managing properties effectively and being the best possible landlord. We look forward to hearing from you!

property management companies

The Top 3 Responsibilities Of Property Management Companies

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Real estate is the best investment you can make. A plot of land can lead to big dollars, but it can also create a massive headache. 

The good news is you don’t need to go into your real estate venture alone.

Property managers aid owners. They eliminate the burdens of owning land.

What is a property landlord, and what are their responsibilities? Let’s learn about property management companies.

What Is a Property Manager?

Landlords may hire a management company to assist in property maintenance. The manager or company works directly with prospective and current tenants. 

A property manager handles daily operations, so a landlord doesn’t have to. Residential, commercial, and industrial real estate may use property management companies. 

Responsibilities of Property Management Companies

Property management companies have various duties. They are responsible for tenant and property management.

Property managers must oversee rent and take action for those who don’t comply. Let’s review these responsibilities in detail.

1. Tenant Management

Real estate and property management companies communicate with tenants instead of the landlord. Property managers keep the building full and attract new tenants. Property managers meet with potential tenants, provide tours, and run background checks.

Property managers should be up-to-date on all landlord-tenant laws. In the event of a dispute or eviction, property companies represent the landlord. Managers must know state laws on security deposits, leases, and building safety.

The property manager may need to handle emergencies, complaints, and conflicts between tenants. They must coordinate tenant turnover. This involves checking for damage and repairing the property before new tenants arrive.

2. Property Maintenance and Security

Property landlords are responsible for maintenance and security. Owners report maintenance as the most important thing for a property manager to take care of. Sixty-two percent of property owners claim maintenance causes them frequent stress. 

Property managers hire third-party companies to keep the building habitable. Examples include landscaping, cleaning common areas, and pool maintenance.

When tenants experience problems, they call the property manager. The management repairs issues or relies on professionals to make fixes. The property management company keeps the building up to code. They coordinate with contractors to make necessary renovations. 

The property management company also oversees security. The property landlord may hire security guards or install security cameras. The manager should administer safety guidelines to all tenants and ensure they are followed.

3. Rent Collection and Control

Finally, property management is responsible for the rent. Managers set the right rent level to attract tenants.

Property managers oversee rent payment. They create a reliable system for rent collection. The managers establish guidelines for late fees. Property managers may also determine if, when, and how much the rent will increase. 

When tenants breach their lease, property management companies step in. They know how to file and enforce evictions. Evictions can be unpleasant, but it’s an essential aspect of property management. In 2016, there were 2.3 million evictions across America.

Learn More About Local Real Estate

Property management companies have many important responsibilities. Property managers play a key role in successful property maintenance. Excellent property management leads to a building with happy tenants.

If you’re looking for real estate services, we’re the team to call. We provide assistant to home buyers, sellers, and real estate agents. Contact us to learn more about our services. 

nightmare tenant

5 Incredibly Helpful Tips For Handling a Nightmare Tenant

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There’s no easy way to handle it.

You’ve dealt long enough with the missed payments, damaged property, loud house parties, and unanswered phone calls. You knew to become a landlord wasn’t going to be easy, but no one warned you it would be this hard.

After grabbing all the self-help books you could, you still haven’t found the answer to your problems. The nightmare tenant is still there. 

There’s no need to worry anymore. Keep reading below for 5 effective tips on how to handle the nightmare tenant.

1. Always Remain Rational

It’s easy to become emotional. There may have already been moments where you’ve stood in the doorway and yelled at the tenant who broke another window.

While it is completely natural, and sometimes warranted, to become angry with someone, it’s best to remain rational in all interactions with your nightmare tenant. Problem tenants sometimes feed off emotional responses and can react by causing more trouble.

When speaking with your trouble tenant, remain firm, assertive, but remain calm when speaking. Don’t throw papers or bang your fist on the wall. You’ll get a better response if you’re calm and collected.

2. Always Back up Your Point With Facts

When confronting your nightmare tenants, have facts to back up your point. If they broke a rule stated in the original lease agreement, bring a copy of the lease when meeting with them and highlight the rule they broke.

Did they only pay a fraction of their rent for the third month in a row? Bring receipts highlighting the amount they did pay. 

If you come in with obvious facts and receipts, they’ll have a harder time trying to fight your side of the argument. 

3. Always Show Them Respect

Even if you’re angry and confronting someone, you can confront them and still show respect. 

For example, if you believe they are destroying some of the property, give them the promised 24-hour notice before coming into their space. Don’t go into their space without warning, and don’t bang on their door at midnight when you’re upset.

4. Always Have Empathy

Some people are just not good people. That’s that.

However, some bad tenants are bad tenants because no one has cared enough to teach them how to be a good tenant. Learning how to be empathetic with a difficult person is a hard process, but it could pay off for both parties in the end. 

Be a little extra patient when dealing with their paperwork, take the time to show them how to fill out a maintenance request, and answer their emails in a timely manner. Your kind responses could soften their heart.

5. Always Be a Step Ahead

Don’t scramble for receipts and paper trails when things go poorly with nightmare tenants. Have a folder for all of your tenants and keep copies of important notices or items in their folder.

That way, if they spontaneously confront you first, you can pull out their folder. It shows you’re prepared, organized, and serious about what you do.

Top Tips on Handling a Nightmare Tenant

The nightmare tenant may have missed rent again or they might have broken a chair, but above are top tips on how to handle the situation in a professional manner.

Make sure you confront your trouble tenants with respect, possibly an extra dose of empathy, and facts to back you up in any situation. No matter what happens, you want to handle things like a professional.

For more on real estate tips, make sure to check out the rest of our page and contact us. 

standard lease agreement

5 of the Most Important Terms to Include in a Standard Lease Agreement

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Nearly 40% of households are renting their home. It is a statistic that speaks of how popular and affordable renting has become in recent years. 

Landlords are seizing this opportunity to rent out their property. 

But there’s a lot more to it than having a for rent sign on your front lawn. As a landlord, you need to have a formal lease agreement set up with your tenants. 

More importantly, you should know what’s included in a standard lease agreement to avoid any confusion with tenants such as who pays for repairs, etc. 

To cover the essentials of a lease agreement, here are the 5 most important terms you must include in a lease agreement. 

1. Occupancy Limits

You want a standard lease agreement that limits the number of people who are renting your residence. You don’t want way more people occupying your residence than what was agreed upon in the lease. 

You can apply the standard two renters per bedroom rule. This rule varies depending on the size of the bedroom and if the occupants have children. 

You should also see what your local occupancy and rental laws are before applying these rules. 

2. Length of Tenancy

Leases can be as short as six months and as long as thirty years. It depends on what the landlord and tenant agree on. 

In addition, the tenant will typically move in and pay on the first of the month. 

3. House Rules

A landlord must have house rules in order to establish what tenant can and cannot do in the home that may be illegal or damaging to the landlord. 

As a landlord, you can have quiet hours in the lease and specify no smoking on the premises. 

You may also want to include rules about pets or playing instruments loudly.

4. Deposits and Fees

A security deposit is required for almost any lease agreement. A security deposit is an assurance for the landlord in case any damage is done to the property. The landlord can use the security deposit to make repairs if needed.

The cost of a deposit is usually equivalent to a month’s rent. It should also be paid before the tenant moves in. 

5. Repairs and Maintenance Requirements

A maintenance checklist can help tenants understand what they need to clean or inspect on a regular basis. 

You may require tenants to replace filters, light bulbs, and batteries. But these are minor requirements for a tenant. 

You should include in the lease who is responsible for repairs. Fixing appliances can be especially expensive and should be noted in the lease. 

You can also find more information on DIY landlord property management by reading about it on our blog. 

A Standard Lease Issues Creates Fewer Issues With Tenants

A landlord should find a standard lease agreement with these terms to avoid potential conflict with a tenant. 

You want a lease agreement that spells everything out in order to avoid confusion or costly expenses that the landlord will have to pay for. 

You can find more information on lease agreements by contacting us. 

residential real estate investments

5 Facts Every New Landlord Should Know About Residential Real Estate Investments

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Purchasing residential real estate investments is an excellent financial move. At the same time, it’s a very involved process if you plan to manage the property and be the landlord. 

There are a few things that everyone should keep in mind before they make the investment and become a landlord. We’re going to discuss 5 of the most crucial tips to make your experience as smooth as possible.

Let’s get started:

5 Tips for Residential Real Estate Investments

There are a number of ways to make a residential real estate investment, and not all of them include being a landlord. 

We’re going to stick to the ideas that apply to landlords, all except our first suggestion.

1. You Can Hire a Property Manager

Many people take pride in being a landlord. At the same time, hiring a property management company may take a little return out of your investment, but it could significantly reduce the amount of work and communication you have to have with tenants. 

2. Run Background Checks

The return on your investment is directly tied to the people who rent from you. If they don’t pay, sure, there are ways that you could get your money eventually, but those methods often require expensive lawyers and a lot of time. 

It’s best to take on someone with a great rental history, regular income, and a positive relationship with their former landlords. A clean criminal record is a good thing, too, but sometimes the person with the cleanest record can cause the most problems.

Mostly, use a background check and use your judgment. 

3. Plan Your Flip

A lot of people get a little too invested in the easy, thirty-minute segments on HGTV. 

There’s nothing wrong with HGTV, but keep in mind that flipping a house and making a profit requires a lot of time, effort, and planning. If you’re planning to flip a house, make sure you do your due diligence. 

It may be wise to talk with someone who has experience flipping houses and learning how they do things. 

4. Research Your Neighborhood

Your investment will be yield more returns if you select a neighborhood that you can expect to have an increased property value over the time that you own it. 

You can make these decisions by assessing property value trends in different areas. While doing your own research could work, it may be wise to consult with a professional when making inferences about changes in the housing market. 

5. Understand the 70 Percent Rule

When you’re looking for homes to remodel or fix up and sell, make sure that you understand the 70 percent rule. 

How much will your home be worth after you make all of the desired changes? Take that hypothetical number and chop 30 percent off of it, and that’s the most you should pay for the home.

So, if the home will be worth $100,000, you shouldn’t aim to pay more than $70,000.

Want to Learn More About Property Management?

Hopefully, this article has helped you think about your potential residential real estate investments. If you’re in need of more information, though, we’re here to help. 

Explore our site for more information on property management and how to do it right. 

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