Dawna was wonderful! She is very patient, and takes her time to explain the process and concepts that are foreign to those not familiar with the real estate realm. One of the things that I really appreciate about her is that Dawna is very proactive. Prior to the listing, she recommended various actions that helped to promote the property which also made the sale process to go smoothly. Besides her professional knowledge, she is a good person. That made the whole experience even better. We cannot thank her enough!
1. Determine if you (owner) want to manage property: Landlords get calls at night, on holidays, and at other inconvenient times. Decide if you like working directly with tenants. If this is an experience you seek, get educated ASAP about property management in the state where you plan to own property. This is an expensive career if you intend to learn-as-you-go. Meet with real estate attorneys, look up real estate education websites, ask your local association of REALTORS® etc.
2. Determine if you want to hire a property manager: If you intend to hire a property manager, evaluate property management options in the neighborhood of the property. Be sure to check unconventional sources for referrals like landlord-tenant law attorneys, local CraigsList postings, Yelp reviews, and even opinions from moving companies.
3. Plan your rent increases in advance and stick to your plan (i.e. yearly). One of the easiest ways for a multifamily property to perform as expected is to consistently keep rents at market prices. This is also one of the easiest ways to increase and maintain your property value. Keep in mind that there may be state or local rent controls in place that may impact the amount/timing of your increases.
4. Don't be tempted to keep rents low: Maintaining less-than-market rents to keep tenants from complaining rarely works. In our experience, quality tenants will pay fair market rents for a clean well-maintained property and respectful treatment by a property manager/owner. In fact, expect 35-40% of your rental income to go towards property expenses and if you do not have enough income, the property may not have enough income to be properly maintained.
5. Keep all documents up to date: Update your applications, leases, and communication forms for current laws. Civil code sections have changed many times over the past century, but some forms currently in use by some landlords appear to be from the 1950s. Remember: just because it is on the internet, does not mean that the document is current. Take the time to look up your state’s Civil Code sections that pertain to landlord-tenant law, and consult periodically with legal advisors to review your documentation.