Owning and operating rental property is a great way to earn passive income. Even though it’s “passive” and doesn’t usually require intensive, day-to-day management does not mean that property owners should have any less of a business mindset. Solid planning, preparation, and control of finances are just as important for property manager as they are for entrepreneurs in other industries.
Now that it’s the busy summer season, with budget season around the corner, and people will be spending more time outside—so there’s no better time to invest in a few low-cost improvements to boost your multifamily property’s curb appeal. The time and money spend on projects like these can translate into even more significant gains when you consider the impact it will have on finding (and retaining!) high-quality residents over time.
Prevention is always the best strategy, but sometimes even the most cautious of landlords can’t stop unwelcome visitors from camping out. If you find a squatter on your property, call an attorney and be sure to follow all local procedures for eviction as laws inconspicuously vary from mild to wild in various states.
Actively communicate with residents throughout their tenancy, and set expectations from the outset. Who’s responsible for what maintenance and repairs? Who pays which bills? Managers should keep lines of communication open – especially if there’s any sign of property damage or if they start to have concerns about a resident’s activity.
Taxes are complicated. One of the reasons so many people enjoy investing in real estate is because of its tax advantages. When in doubt, it’s always best to consult with your CPA to understand how to take advantage of these tax “loopholes” – that, as we’ve seen here today, aren’t really “loopholes” after all!
So, why does all of this matter for landlords, property managers, and real estate investors? We aren’t just throwing data at you for the sake of wading through data! Instead, we hope you’ll use this data to capitalize on shifting demographic needs and changes. If you’re located in a market that’s expected to experience an uptick in renters aged 55+, consider making property improvements tailored to these residents.
An experienced property manager will be well-versed in these regulations and can help keep you protected. Laws regarding marijuana use and discrimination can be a lot for new landlords or homeowners’ associations to wrap their heads around, particularly as the regulatory environment continues to change.
As you can see, there are many ways for landlords and property managers to integrate amenities into smaller apartments communities. Best yet, these don’t require spending a fortune. The majority of these amenities are low-cost additions that will add value to a property and help lure (and keep) residents who may have otherwise moved to a larger apartment community for the amenities they tend to offer.
An appraisal is an act or process of developing an opinion of value. The valuation process is a systematic procedure that an independent appraiser follows to answer a client’s question about real property value (usually, market value). A real estate appraisal is also commonly referred to as a “property valuation.”