Individual investors own about 14.3 million (71.6%) of the rental properties in the US. Are you now among them? Congratulations!
As a real estate investor, you also need to learn how to become a property manager. Otherwise, you won't generate a return on investment from your rental property.
Not sure where to start? Read on to discover your new responsibilities as a landlord!
Research Local Laws
Before finding renters, research the local real estate market and housing laws. Landlord-tenant laws in Georgia cover:
- Required landlord disclosures
- Security deposit limits and returns
- Bounced check fees
- Small claims lawsuits
- Termination and eviction rules
- A landlord's right to access a property
- Tenant protections against retaliation
Review federal laws and regulations, including discrimination laws. Track new laws and regulations to avoid compliance issues.
If you need help, consult a property management company. Their legal expertise can help you avoid fines and lawsuits.
To build your property portfolio, track real estate trends in Suwanee. For example, you may recognize renters prefer properties with smart home technology. This information will help you remain competitive in today's real estate market.
Establish Property Management
Decide if you want to manage the rental property alone or hire a property management company. You may want to outsource if:
- You don't have enough time
- The property is far from your home
- You lack relevant expertise
- The property is sitting vacant
- You have working capital
If you decide to manage the property alone, establish systems for efficiency. Use property management software to collect rent or respond to tenants.
When choosing a property management company, look for experienced teams. Check their references and review their services. Choose a full-service management company to save time.
Set Up Finances
Establish a separate business bank account. This will help you differentiate between your personal funds and rental income.
Look into landlord insurance coverage to protect your best interests. Require tenants to have renters insurance before they move in.
Familiarize yourself with reporting requirements and tax deductions. You can work with a property manager if you need help.
Implement Tenant Screening
Don't rush when selecting renters. You may end up with tenants who have a history of evictions or damaging rentals. Instead, develop a tenant screening process.
Establish your rental rules and create application procedures. Make sure your tenant selection process is fair and consistent. Otherwise, you may encounter legal consequences.
Maintain Your Rental Property
Keep up with inspections and maintenance to protect your rental property. If the property falls apart, it can hurt your return on investment. You may struggle to attract renters in today's competitive climate.
Develop an emergency fund to cover projects. Plan for taxes, insurance, and utilities as part of your budget. Keep track of all repairs and improvements you make to the property.
Become a Successful Real Estate Investor
Your responsibilities as a real estate investor and landlord are very different. Don't neglect one for the other. Otherwise, you may fail to maximize your rental income.
Remember, hiring a property management company can make all the difference to your success. Our team at PMI Atlanta City has 20 years of local experience.
Rely on our expertise, proven strategies, and state-of-the-art technology. Contact us today to meet your property manager.
