Property Management 101 – Document, Enforce, Love

Posted on: September 12, 2010

Categories: Property Management

Author: buyfixandprofit

Successful Property Management – It’s in the Planning

The key to successful operation of any property is planning. All property owners need a written plan guiding the day-to-day operation of their buildings. In fact, the actual planning should start prior to purchasing a property. Pre-purchase planning should include deciding in what neighborhood or area you want to buy, what size house or building you want to buy, and what mix of bedroom-size apartments you want. You will also have to decide whether you want to buy a fix-it-upper, a brand new building, or something in between. Additional planning should include how and where to finance your purchase, how much equity you have available and want to invest, and what improvements you want to make upon closing the purchase.

Document and Enforce Landlord Policies

When it comes to rental policies, every owner must recognize that the rental policies you develop must be documented and enforced. Whether they are based on objective rules or subjective preferences, rental policies must be put in writing and applied in a fair and equal manner to everyone who inquires about, makes application for, or rents in your building

Negligence in the operation of a building can and often will result in legal liability for any violations.  Ignorance of the laws is no defense. If you plan on owning or managing an apartment building, you must be aware of the rules and regulations that affect the way in which you operate that building. Once you know those rules and regulations, you must manage yourself and your staff in a manner that will not jeopardize your business or the building.

Golden Rule of Property Management: Treat Tenants as You Would Like To Be Treated

Many novice property owners or managers start out with the belief that it’s their investment property, and they’ll run it the way they see fit. They often mistakenly start with attitudes such as

“The tenants, after all, are just renters who can be easily replaced.”

“Why should I cooperate with renters? They’re the enemy in the Tenant Landlord Wars. It’s my building. I’ll call the shots.”

When properly approached, the tenants of your rental properties can be among your most valued allies. They typically are more familiar with the physical property than you are, and they are certainly more aware of potential problem tenants in your multi-units. Tenants help you pay your mortgage and operating expenses. If things go as planned, they will put profit dollars in your pocket. Many tenants take great pride in the place they have chosen to call home and will enthusiastically assist you in keeping the building up and finding new tenants when you have a vacancy. Why would you want to start out the relationship with your tenants on an antagonistic note when what you really need and should want is a long-term harmonious relationship?

As a landlord and property manager, your number one priority should be to make sure you receive the rent every month, with no headaches, and minimal turnover.  That can only be accomplished by treating your tenants in the same manner you would like to be treated.  Make them feel proud and comfortable to live in your rental home or apartment. This includes making repairs and responding to concerns in a timely manner as outlined in your tenant – landlord policy.  In return, you will be rewarded with free and clear properties providing you a handsome monthly income while you enjoy time with your family and friends instead of slaving away at work until your 80 years old.

 Property Management 101 – Document, Enforce, Love
pixel Property Management 101 – Document, Enforce, Love

LEAVE A COMMENT:  2 Comments

2 Responses to “Property Management 101 – Document, Enforce, Love”

  1. chiselle says:

    A mutual and good communication between a tenant and a landlord allows a peaceful and harmonious relation and understanding between them, this also help a lot when in comes to the management of the building or home units that are being rented, thus allowing both parties to know what are those problems that are currently occurring in the units.

  2. Scott says:

    Landlords should treat their properties as investments and partnerships with tenants. Neighbors enjoy quality tenants as well and a peaceful home lends to overall quality in the neighborhood. It’s unfortunate to see so called slumlords let their properties fall to the way side while the neighbors who homeowner occupy put time, money and energy into making their home and community a better place to live.

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