Property managers can make as much as $79,000 a year. If they own their own properties, they can make double, triple, and even quadruple that amount.
Being a property manager can be lucrative, especially if you know what you’re doing. If you’re looking to make hundreds of thousands of dollars as a property manager, we’ve got your back.
We’ve collected seven tips that only the pros know. Keep reading if you want to make millions investing in rental properties.
1. Stay Consistent
An effective property manager sets rules and policies before working with clients, renters, professionals, and anyone else. Having set protocols prevents confusion later when one may be broken.
If you’re too yielding or don’t follow the rules and protocols that you’ve set forth, you may be taken advantage of. This leads to destruction, property damage, and other problems that you don’t want to have to deal with down the line.
Staying consistent with your rules is key. In fact, we recommend that you draft out specifically what your rules are. Includes these in any agreements that you draft with workers, renters, or other people that you come into contact with as a property manager.
Laying these out early will prevent any confusion later on.
2. Set and Keep Office Hours
Having office hours isn’t just for college professors. Setting and keeping office hours is beneficial for both property managers and their tenants.
Announce your office hours to your tenants so that they know when they can and should contact you with any problems, questions, or concerns.
We also recommend that you keep these hours in the documentation that you sign with your tenants. This sets a clear expectation of the hours.
With this, we recommend sending clear emails when you plan on being out of the office (for a holiday or otherwise).
3. Keep Your Books up to Date
Every successful property manager has organized financial records that keep tabs on the following:
- Tenant rent
- Property expenses like maintenance
- Employee payroll
- Trash removal
- Utilities if included in rent
Honestly, the more detail you have, the better.
Overall, you should make sure that you understand what money is coming in and what money is going out. This is beneficial to evaluate business spending. In turn, this will help you handle taxes for the business when that time comes around.
If bookkeeping becomes too much for you to handle, you could consider investing in an online bookkeeping service or hiring a bookkeeper for your business.
4. Maintain Your Property/Properties
Every experienced property manager knows that it’s better to solve problems before they become a problem. It sounds weird, but it’s true.
You need to take the time to fix anything that could potentially become a problem. If you see that there is a water leak or a broken appliance, you should address these before they become larger issues.
If you have short-term tenants, this is easy. All you have to do is check the space in between tenants.
You may already do this to ensure that the tenants didn’t damage anything. Although, we find that a maintenance check is more thorough than the check that many landlords do for deposits.
If you have long-term tenants, you should explicitly place maintenance times in the contract. By doing this, you’re placing the expectation that someone may come to their place during a certain time. It is also helpful to send reminds via email for these maintenance appointments.
Whether you have short-term or long-term tenants, you should make sure to schedule routine maintenance with professionals. Do your research about proper maintenance times for your property.
5. Settle Disputes If You Can
We know that settling disputes isn’t the easiest part of the job, but one of our greatest tips for landlords is to suck it up and get it done. If there’s a dispute between you and a tenant or between two tenants, you need to try to dissolve the problem without legal help.
If the dispute is between you and a tenant, you should do your best to make the interaction as friendly as possible. You want to be kind to your tenants while making sure that both parties are following the expectations that you set forth in the contract.
When you’re discussing the dispute, bring the contract to discuss and review with the tenant.
6. Outsourcing Is Okay
As you’re continuing with your property management career, you should know that outsourcing is 100% okay. If you’re ever feeling overwhelmed, you need to hire help.
A property manager shouldn’t have to be a plumber, electrician, accountant, manager, maid, window washer, and lawyer all in one. Make sure to call in help whenever you need it.
7. Build Relationships as You Go
As you progress in your property management career, you should build relationships. Whether it’s with your tenants or the home professionals that you hire, you want to be known as professional yet kind in your town.
The better you treat people now, the better your reputation will be later.
When it comes to tenants, we recommend leaving them a small welcome gift for the home, apartment, or other property that they’re renting from you. Whether it’s a plate of cookies or a gift from Pots Planters & More, it’ll leave a great impression with your tenants.
When it comes to the professionals that you’re hiring, you should make sure to utilize loyalty. Companies that work in home maintenance appreciate loyalty and may even offer you discounts if you’re consistently using their services for your property/properties.
Property Management Expert
There you have it! You have all of the insider tips on rental property management and how it can make you more money than you could’ve ever imagined.
Be sure to use all of these tips when you’re working on your next rental property. You’ll be amazed at the difference that it makes.
Excited to learn more? If so, you should check out the rest of our blog where have professional tips just like this that will change your work ethic and outlook on your profession.