Renting your property out isn’t as hard as you may think and take up all your time.
If you don’t know where to start, how to prepare your home, and manage the property then you’re not alone. If you’re thinking about renting your property and new to property management, then knowing your first steps is what’s going to set you up for success.
This month’s October blog provides steps to getting started, how to prepare your home for occupants, and the process it takes to do so for property management.
One of the main things that property owners ask is “what do I need to do first?” Let’s dive into what you need to do first and the steps to take afterward to get your home on the market and into the world of property management. You may realize it’s not that difficult.
The first step is determining the property value
How much will your property rent for and how long will it take to rent? A rental properties value is based on location, condition, amenities, and demand and supply. You can determine a price to list your rental and project how long it will take to acquire a tenant by having a rental market analysis (RMA) performed. An RMA, aka CMA (competitive market analysis), is a report of other comparable homes. It shows either how many homes have rented or are currently for rent, listing price, and how long it’s on the market or was. Having this data will allow you to have a strategic approach towards marketing the home for rent.
The second step is to analyze the report and create an action plan with a property management expert
Having an action plan will drive you to set the home up as a rental investment. Once you determine a listing price and project how many days the home may be on the market, you can start to prepare the property for marketing with realistic expectations.
The third step is to meet with a property management rep at the home
The rep should walk the property with you and make suggestions such as any repairs needed and how to position the home to attract prospects and increase traffic. The more traffic you have for your property the quicker you’ll get it occupied. If you’re not able to meet in person, you can have the rep go on their own but this step is very important in preparing the home before listing it.
The 4th step is signing up for property management services
A property management firm will be able to place your home on the market to reach millions of renters, screen and acquire tenancy, collect security deposits and rent, and manage the overall activities of the property such as maintenance and customer service for your residents. Sure anyone can manage a property on their own but how many know how to do it? Plus, there’s state laws, codes, and regulations every landlord must comply with and if you don’t have a handle on these legalities it could come back to bite you in the end and be very costly. Yep! Consider yourself a property investor.
The 5th step is marketing the property for rent
The home will be listed on multiple real estate platforms such as the MLS, Realtor.com, Zillow, and a handful of rental sites. A sign will be placed in the yard or window of the home (depending on HOA regulations), and a lockbox so prospects and realtors can have access to view the property. During this time, any makeready or repairs will be managed and completed prior to tenancy.
The 6th step is acquiring tenants
Once the home has been listed, your property manager will screen all applicants, collect funds, administer the lease documents, and move in the tenants. The sign and lockbox will be removed and property taken off the market.
The 7th step is managing the property
Monthly rent will be collected, coordinating repairs will be in place, and providing a positive tenant experience for your residents resumes.