GETTING STARTED WITH RENTAL PROPERTY MANAGEMENT

Getting Started with Rental Property Management

This is a question we get quite often. “I own a single-family home and would like to rent it out to supplement my monthly income. How do I get started? What process do I follow? Should I seek outside help, and who do I hire?” Here are some considerations for you, assuming you have decided to go ahead.

• Do you want to self-manage? Or use a professional full-service property management company? Do you have the time, knowledge and ability to manage rentals? Or maybe you want to start off using a third-party management company and transition to self-management in future (we often recommend this to those new to rental property management)

• Know your market:

1. 1. 1. Average rents in the area for your market for comparable properties
      2. Identify comparable properties
         1. (Apartments vs. single-family homes vs. townhomes)
         2. A number of bedrooms, bathrooms, layout, features, layout and design, kitchen design, square footage, lot size, garage, parking, amenities, age of home, upgrades, air-conditioning and heating etc.
         3. Compute a $/sq.ft number and compare with other properties
      3. Do people mostly own homes or rent?
      4. Collect Neighborhood data – population and population growth, jobs and job growth, average income, safety, demographics, schools, key employers, city governance, rental market trends, quality of life rankings, amenities, retail etc.)
      5. Supply vs. demand: housing inventory stock

• Marketing and leasing your property:

1. 1. 1. Outsource: Use a leasing agent or property management company
      2. DIY:
         1. Use Zillow Rental Manager (or equivalent), Facebook Marketing etc. for advertising your property with photos and videos and necessary information (Monthly Rent, Security Deposit, Lease Duration, Pet Policy etc.)
         2. Set up showings and clarify the process with prospective applicants for approval.
         3. Get a lease template and make sure the terms and conditions are satisfactory in the final Lease Document that you send for signing.
         4. Sign the lease

• Move-in: in case of DIY rental property management

1. 1. Apply for your rental license
   2. Now that you have signed the lease, provide a copy to your tenants.
   3. Establish communication protocols and rent payment procedures (when to pay and how). You could consider using property management software like Tenant Cloud or Rent Ready etc.
   4. Provide move-in Instructions and Utility Set-up instructions
   5. Walk through the unit with the tenant and take pictures of the condition at hand-over. Explain how the appliances (washer/dryer/furnace/AC/ thermostat/ garage door/ etc.) work and general instructions for troubleshooting when issues arise.

Congratulations, you are now all set to manage your first investment property.