Sapphire Capital Investment LLC July 18th 2021
Property Management Is Key to a Successful Investment
It is said that everything rises and falls with management. For your rental investment in Tucson to perform as expected, this statement cannot be truer. Property management is both an art and a science that involves dealing with the tenants of your property, the development therein and as well as other stakeholders, mostly in the form of the County and State governments.
Considering all the different aspects of property management, the subject topic can be divided into two: tenant placement and rental management. Sapphire Capital Investment, a top-tier company operating in Tucson breaks it down below.
For your investment to kick off, you need to have tenants on your property. And not just any type of tenant available in Tucson, a high-quality tenant. A high-quality tenant is one who pays their rent on time, maintains the space reasonably and plays well with other neighbors. For you to achieve this, there are certain steps that need to be taken.
Make your property rent ready
Quality attracts quality. Before your new tenant moves in, you will be required to make some repairs and renovations to your property. It is also recommended that you call in a professional cleaning company to spruce up the place.
Tenants are very picky customers. They only consider spaces that meet their tastes and preferences.
Marketing and advertising
You will be required to take high-resolution photos and videos to advertise your property. Different type of tenants will require different marketing strategies and solutions. Depending on your target demographic, print media, listing services or social media might be your ideal advertising tool.
When it comes to tenant placement, this might be considered one of the most important services. Remember about our small discussion of a high-quality tenant? This is where such a tenant is found.
Property owners are encouraged to make use of a comprehensive and thorough tenant screening process. From potential tenants, request for credit history information, employment records and previous landlord references. This will allow you to understand the type of person you are dealing with.
The team at Sapphire Capital Investment recommends that you go a step further. Perform criminal backgrounds and sex offender checks. Due to the complexity and delicate nature of the task, engage a professional property company who can guide you properly on this.
Lease preparation and administration
The lease document is a legal and binding contract that binds the landlord and tenant. Within it, the document contains the obligations and responsibilities of each party. Due to the social and economic role of housing in any community, the lease agreement must adhere to State and federal rules. There should be no clauses within the document that contravene said laws. That would be tantamount to an illegality.
Before the tenant moves in, he or she should agree to all the terms of the lease and sign the document. There will also be the payment of the security deposit, an inspection of the property and handing over of all keys.
Once the tenant has moved into the space, there is still much work to be done. During the tenure of the lease, both the tenants and the property must be managed to ensure constant flow of income. Below are some of the highlighted services:
This is collected as stipulated in the lease document. It could be on a monthly or quarterly basis. There is also the issue of service charge and other utility bills that must be paid for.
For every payment made by the tenant, notifications of receipt of payments should be made.
Property inspection and maintenance
The development on your lot is a depreciating asset that experiences normal wear and tear. Continuous inspection of your property is a proactive move that ensures your property is in a tip-top condition. Perform vetting of local contractors in the area and narrow down on a team of plumbers, electricians and handymen who you can trust.
Handling tenant issues
This one can be quite draining for those landlords practicing self-management. Tenant issues can arise at any time of the day, in the wee hours of the morning or late at night. Complaints need to be handled and tenants managed. A property management company may come in handy here.
Record keeping and administration
Accurate and detailed records is key to determine the viability of your investment. By checking this against your budget and cash inflow, you will determine whether your Tucson rental investment is doing well or not. Reliable recording is important come tax season when you will need to file your taxes.