For a lot of multifamily investors, their first year could be overwhelming. Fighting the challenges, from finding good tenants to maintaining their investment property. That’s why every investor should make time to organize and put a plan together, otherwise, they can find themselves stuck with the feeling that they’re simply moving from crisis to crisis. And the solution to this is threefold, first, scheduling preventive maintenance, second, they will need to create an emergency fund, and the main part is they will have to become a responsive owner. Here are some important ways to ensure that their investment property remains in top shape and generates stable financial returns over the long term.
1.Picking a Quality Tenant
The rule is simple, not all tenants are created equally and the investor’s goal should always be to find these quality tenants who will be respectful of their property and pay their rent in full and on time. That’s why a thorough screening process should be in place to make sure that they are mitigating the risk of hiring the wrong tenant.
2.Setting Aside Money For Maintenance
Every real estate property requires regular upkeep and maintenance. Investors should start creating an investment property maintenance checklist and paying attention to everything that is needed throughout the year and also making sure that their property remains secure, safe, and livable, like cutting the dangling tree branches that can pose a threat to the tenants or roof structure. Sometimes property owners will have months in which they will not be able to fully meet the maintenance needs of the property, in that case, at least they should take care of the essential items.
3.Making Regular Inspections
One of the key pieces for keeping a property in shape is not missing on regular personal inspections of a property, which is critical to ensure that the terms of the contract are not violated and that the property is maintained in optimum condition. And if their tenant screening process is thorough, investors will have to make fewer of inspections throughout the year. And if the landlord feels lucky to have this great tenant that they want to have for years to come, investors should remember that in order to maintain the trust of that tenant, they will need to act quickly when carrying out emergency repairs which will eventually happen.
4.Encouraging Tenants to Participate
The better the property, the more likely it is that the tenant will try to keep it that way. That’s why investors should also help tenants keep their properties in top condition by providing equipment such as hoses, gardening tools, and green waste bins to encourage them to take care of the property on the regular basis.
5.Acting Quickly When Things Get Tough
The majority of the investors don’t live in these properties themselves and that’s why they rely on their tenants to let them know when things go wrong. In that case, they will need to establish a clear line of communication with the tenant so he can report small warning signs of impending problems. Investors give their tenant mobile number as it makes it more convenient to send them a quick text message so they know what’s going on.
Hiring a Property Management
When an investor has to deal with servicing, tenants, setting the market rents, conducting checklists, collecting rents, handling inquiries, there will be always a lot to learn. But by following these five tips above, they will start laying down a solid foundation for the future of their property for years to come. Sometimes all of these key pieces look like a lot to handle for investors who already have many things on the checklist including finding deals, raising capital, taking time to build relationships, etc.