Managing your rental property is not as hard as you think it is. In fact, this move has many advantages for you because you will be in charge and make more money in the process.
Here are five ways you can save good money when you manage your own rental.
1. Do Your Own Repairs
Many of the repairs that are needed in your home are minor ones so you can do them yourself and save the cash. Now, we are not talking about major repairs here. Major projects should be contracted to experts who have the skill and the experience to do the job.
You can definitely handle minor projects like a leaky faucet, a clogged drain or a blocked kitchen sink. However, installing or upgrading your plumbing is not something you can handle. You should leave projects of this nature to an experienced professional. In addition, you should not embark on projects that require the use of a ladder or scaffolding. Again, you should not get involved with lead paint removal or electrical wiring. Leave these projects to be trained and qualified experts who have the skills to handle them in a safe and competent manner.
Necessary repairs like loosening a stuck window and fixing a leaky faucet are things you can easily handle. If you do the job successfully, you will save money and enjoy the sense of satisfaction that comes from doing the job yourself. You can get useful information from websites like YouTube and HomeRepairTutor.com.
To put things in perspective, when you call in a contractor, you will spend a minimum of $75 on just the service call. This does not include labor and the cash you might pay to replace fittings.
2. Compare Professionals
Many property managers have their favorite contractors. Most of these contractors do not bother to get multiple bids before awarding contracts. In some cases, the agreement stipulates that you must use the contractor’s handyman service. Clearly, this is not likely to save you money.
On the other hand, if you get the quotes yourself from different candidates, you will choose the one that makes economic sense. You can get valuable information from websites like HomeAdvisor.com because this site offers useful reviews.
3. Show a Property While It’s Occupied
In most cases, your property manager will not show the rental property to prospective tenants unless it is vacant. This costs you money because there will be a bit of time-lapse between when the present tenant moves out and when a new one moves into the property.
You can reach an agreement with your tenant to show the property to prospective tenants even while the present tenant has not vacated the building. However, this should be done with tact and a bit of diplomacy.
The best way to do this is to give enough notice (at least 24 hours) to your tenant before each showing. For obvious reasons, you should offer the prospective tenant limited showings. This way, you do not intrude on the privacy of the present tenant.
If the present tenant has left the building in a terrible state, it might be better to wait until that tenant vacates the building before showing it to prospective tenants. The same thing applies if the present tenant has pets because the new tenant might not be a pet lover.
4. Find and Screen Applicants Yourself
Many property managers charge you a finder’s fee for getting you tenants. This fee is not fixed, but it can be as high as one month’s rent or even more. You can save this money if you find your own tenants.
One smart way to find your own tenant is to list your property through Cozy. Just upload some great pictures along with a brief description of the property. Cozy will advertise your property on its partner websites and provide links to your property. You can share the link in your emails, social media, or even on your website. This will create awareness and get you new tenants in no time.
Prospective tenants can apply via a website. You can request background checks and credit reports from the applicants through your website. The best part is that the applicants pay for the screening reports and this saves you money.
5. Be Your Own Property Manager
Most property management Mesa AZ companies will charge you a princely 10% percent monthly fee for their services. Their services include rent collection, documentation (signing leases), and coordinating repairs on your behalf. Now, you do not have to pay this money to any property manager. Rental management is not rocket science. Manage your own property and pay yourself the money.
Apart from using for both marketing and screening of tenants, you can use Cozy for rent collection as well. The best part of the deal is that this service is free for smart landlords like you.