How is a new real estate investor supposed to know what to do first after they’ve bought the property?
If you’ve never rented out a home before, you might be wondering how to get started. You might worry that you’re going to miss something important between taking possession and placing a tenant.
That’s why you work with us. At ManCo Property Services, we can take the lead and help you navigate the rental market and everything it entails. Time, of course, is of the essence. You bought this property to make some money. Let’s not give up valuable earnings with extended vacancies or bad tenants.
Our Summary:
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Is the Property You Just Bought Safe and Habitable?
Securing your new investment property is one of the first and most important things you’ll do once you’ve bought a rental property. Change the locks. We like the keyless entry systems that are convenient for tenants and also for you, when you need to grant access to vendors, maintenance personnel, and others who might need to get inside the home.
Other things to check will include:
- Smoke detectors and carbon monoxide detectors. State habitability laws and the Ohio Fire Code require specific placement of smoke detectors. Rental homes with fuel-burning appliances such as gas furnaces, water heaters or stoves or attached garages must also have functional carbon monoxide detectors.
- Windows and doors. Make sure all of the windows and doors in the property open, close, and lock properly.
- Handrails and walkways. Are there loose handrails on stairs? Are trip and fall hazards found approaching the property? Look for potential safety issues inside and outside of the property you’ve just bought.
Once you know everything is safe, take care of any maintenance issues as well. Once those repairs are complete, it’s time to think about upgrades and improvements that might catch the eye of qualified tenants. Today, residents want energy-efficient homes with at least a little bit of smart home technology (those keyless entry systems are a good start). Make sure the landscaping is attractive and the paint is fresh.
Property Management and Rental Systems
Working with a professional property manager before you start looking for a tenant is a good idea. We will have systems and processes already in place for essential functions such as showings, marketing, lease agreements, and maintenance responses. If you’re going to manage the property on your own, you’ll need to establish a consistent process for collecting rent, communicating with residents, and tracking expenses.
Who are your maintenance vendors? You’ll need a reliable list of professionals who are both affordable and willing to respond to your needs, whether it’s an emergency plumbing problem or preventative pest control.
This is also a good time to:
- Make sure all the utilities are turned on and in your name.
- Check your insurance policy to ensure rental activities are covered. Liability is especially important.
- Ensure compliance with all local and state rental laws, including fair housing, security deposit requirements, and potential caps on late fees.
Working with us is a great way to enjoy the peace of mind that everything is already in place, the systems have been proven, and the technology is available to support seamless operations.
Is the Property Ready for the Rental Market?
Before you create a listing or begin showing the property you’ve bought, make sure it’s move-in ready.
What does that mean? It means tenants will see your home and imagine themselves living there thanks to:
- The attractive and simple landscaping and welcoming entry.
- The functioning lights, appliances, doors, windows, closets, and drawers.
- The cleanliness of the home.
- The updates and upgrades that show off its modern, tenant-friendly appeal.
This is a good time to decide if you want to allow pets. If you’ll include landscaping in the rent. Whether you want to show the property in person, allow self-showings, or leave the tours to your property management partner.
Price Your Rental Accurately
Next, you’ll need to establish a rental rate that’s both competitive and profitable.
How do you know what the market demands for a rental home like yours?
You could check online platforms for similar listings, but it’s hard to trust the data. A local property manager can provide more accurate rental estimates. Our insights and analytics are detailed and specific, giving you an idea of what your property offers compared to others.
Find Your Tenants
If the property is ready to rent, and all of your own logistics have been sorted out, it’s time to find a tenant. This requires an attention-grabbing listing and a responsive approach to talking with prospective renters who get in touch for more information.
- Take good photos. This is what renters are looking at first when they scroll through listings.
- Make showings easy. The sooner you get people walking through your property, the quicker you’ll have rent coming in.
- Provide online applications. Tenants should be able to apply online and upload any supporting documentation, allowing for a quick and efficient screening process.
We can help establish criteria for approving residents that ensure you’ll have a successful rental experience.
Frequently Asked Questions
When should I hire my property manager?
Ideally, you’ll have a property manager helping you buy the property. We can provide insights on how much rent you’ll be able to collect and whether your property will be attractive to tenants. If you don’t partner with a management company before you buy, start working with an expert like us right after you close.
Does a homeowners insurance policy cover my rental?
No. Since you won’t be occupying the property yourself, you’ll need landlord insurance which covers the building or the home, your own liability, and ideally, lost rent as well. We also recommend that you require tenants to purchase renters insurance.
Should I completely renovate before renting?
Unless the property is in terrible condition, that’s likely unnecessary. A few cosmetic updates will be fine assuming all maintenance issues have been taken care of.
Interested in learning more about how we can help you successfully rent out your investment property? Please contact us at ManCo Property Services for more information.
We always like to remind owners: If it’s a property managed by ManCo, life just got better!