Making the decision to rent out your home or purchase an investment property is not an overnight decision. Investors generally mull the idea over for weeks or months, searching for the perfect property and running all of the numbers. But this is just the start of getting into the game of Orlando real estate management. Once you own the investment property, it is now time to get your home rent ready and become a property manager. Many steps go into getting the home rent ready, and if investors are inexperienced, it can take an extended amount of time and result in costly mistakes. Below, you will find answers to all of your questions when it comes to learning how to be a property investor and getting the best return on your investment.
Understand Your Responsibility
Becoming a property investor is a big responsibility. Reflect on your daily activities and responsibilities prior to becoming a property investor. Do you have the time to be a property manager? Do you want this responsibility? Property management involves making yourself available to your tenants at all times of the day and night, and, yes, even on holidays. It requires quick response times for maintenance emergencies, coordination of maintenance and repairs, lease signings, lease renewals, education on the laws, property showings, market research, and rent collections.
Have you accurately accounted for operation costs and vacancy days? Sometimes, Orlando real estate management runs very smoothly. But when it takes a turn for the worse, landlords can become overwhelmed and end up making costly mistakes. Rental troubles can sometimes be predicted and other times will catch a landlord by surprise.
In addition to making time for the daily tasks of property management, make time for routine property inspections to see that the amount of wear and tear on the property is appropriate for what you would expect. Property inspections that take place twice a year can cut down significantly on maintenance costs. At Specialized Property Management, we are able to save clients thousands of dollars on repairs every year by performing our routine property inspections.
Preparing the Home for Renters
Getting a rental property market-ready can have a wide range of preparation. If you purchased a fixer-upper, you may be gutting the place and stripping it down to the studs. If you bought a turn-key property, you are likely ready to go once you close escrow. If your property is somewhere in between, needing a few updates or minor rehabs, you may only have a couple of weeks worth of work before your property is rent ready. Orlando real estate managers should make sure that by the time they are ready to show the property to prospective tenants, that the home is inviting, clean, neat, and a place where renters can picture themselves settling down.
Test all appliances to see that they are in working order. Make a checklist as you conduct a walkthrough of the property of items that need maintenance or replacing. Check for signs of water leaks or water damage. See that there is not a pest infestation. Clean carpets and all other flooring. Do a touch up paint or full paint to the interior walls. Last but not least, don’t forget about curb appeal. Trim and prune overgrown bushes and plants, mow the lawn, see that the sprinklers are effective, and plant a few fresh flowers. Check the exterior of the property for any light bulbs that need replacing, cracks in the stucco, or paint touch-ups that need to be completed. Repair fence slats or do a touch up paint on the deck. Curb appeal can go a long way when it comes to finding renters.
How Orlando Real Estate Management Teams Market the Home
Think about all of the attributes of the property that make it desirable to tenants. List the best and most important features of the property towards the top of the text. For example, include the number of bedrooms and bathrooms, size of the yard, location, description of the kitchen, storage offered, amenities, and any recent updates that you have recently done to the property. Use descriptive words to engage the viewers such as energy-efficient, green, oversized, generous, granite, state-of-the-art, stainless steel, private, convenient, and “overlooks a view.”
Put yourself in the shoes of a prospective renter. Where would you search for a rental property? The most likely answer would be online. There are multiple websites that allow property owners to list rentals for free. Some of the most popular sites include Craigslist, Oodle, Zillow, Hotpads, Apartment List, Trulia, and Rent.com. Remember that advertising to your friends and family on social media can also provide promising leads.
When listing your property online, make sure that your photos are attractive and that you use the best photo as the featured image. Orlando real estate management firms turn on all of the lights when taking pictures of the property. It creates a warm and inviting look to viewers. When browsing online listings from private landlords, dark rooms with no lights turned on or no natural light is a fast turnoff to renters. Consider editing your photos to give them a touch more light and make them appear inviting. However, once you start editing, be very careful to not “over edit” the images. You still want the image to be accurate to how the property really looks.
Conduct market research to determine a fair, but aggressive rental price. Call on other listings that you find online within a five-mile radius that have similar features. Ask the property management team what amenities are included in the rental price, the number of bedrooms and bathrooms, any updates that are new, yard size, storage features, and lease terms offered. Call about five different listings, then carefully determine a fair, but competitive price for your property. Start high. If no one calls with interest in your property, drop the price by $25 or $50 and see if inquiries pick up.
Finding and Screening Tenants
This is the most important step in the whole process of Orlando real estate management. Tenant screening can make or break you in this industry. One wrong tenant and your whole dream of making a profit on a rental property is down the drain.
When screening prospective tenants, it is legal to prescreen them. Prior to scheduling a showing, ask if they read the financial qualifications, rules about pets, and any other information that would assist you and them in determining if scheduling a viewing of the property is the next appropriate step. If so, schedule an in-person meeting or provide them with the lockbox information. In an effort to protect yourself and the prospective tenants, ask to verify their photo ID to make sure that they are who they claim to be. We also advise landlords to stand at the front door or on the exterior doorstep to avoid any possible dangerous outcomes. Tenants enjoy viewing the property without the pressure of the landlord guiding them on a tour. Allow them to explore the rental space on their own.
If a prospective tenant is interested in an application, inform them on how to apply. Online applications make it easier for tenants and Orlando real estate managers, rather than hand written hard copies of applications to rent. Inform them of the income proof that you need, security deposit amount, and application fees.
Once an application to rent has been returned, confirm employment by contacting the employer. It is also wise to reach out to previous landlords and property managers to find out what type of tenant they are or used to be. Run a credit and criminal background check. Credit checks will inform you if they pay their bills on time and in full. If you find that there is a recent eviction on their records, it is not advisable to accept them as tenants. Check to see if there are any outstanding balances on the credit report. If there are, do not accept the applicant if the balances are owed to another property management company or utility company.
Hire Professionals to Handle Your Investment Property for You
There is a lot that goes into Orlando real estate management. Take it from us at Specialized Property Management. With more than 30 years of experience, we know a thing or two about property management. It is time-consuming, requires experience and education, and constant availability to your tenants. So whether your strategy is to buy and hold, purchase multiple properties at once, or transform an owner-occupied property into a rental, Specialized Property Management in Orlando stands ready to serve you. We help avoid costly mistakes, improve cash flow, and create long term stability for our clients. Too many landlords learn the hard way. It is often the small mistakes that have the biggest consequences. At Specialized Property Management, we are dedicated to taking care of you and your investment. Put our trusted team to the test. Contact us today.
