Owning rental property should be stress-free, frustration-free and sleepless. Property management comes with many responsibilities and if done incorrectly can lead to many legal and financial problems. Four actions could improve the return on your investment.
- Analyze the market regularly. Research rental rate trends and be prepared to make any necessary changes. Owners are often too busy with life and other activities to properly focus on the market. Some landlords may notice a trend, but they are too personally involved with the tenant to make rational decisions. Professional managers can be more focused on what is happening in the market, thus making better economic decisions for investing.
- Market well to attract the best tenant. When there is a vacancy, it is very important to be effective with marketing. Real estate marketing must be as publicized as possible and attract the most qualified tenants. Some websites have proven to be a more effective marketing tool than street signs and printed newspapers. Yard signs can attract professional tenants looking for owner-managed properties. This can spell disaster for the self-directed landlord, who may not have the tools to qualify the potential tenant.
- Filter potential tenants. It is very important to do a background check, regardless of the origin of the tenant. Do not skip this process. Check income, check employment, check ID, check with previous owners, and look for red flags. You can gauge a person’s ability to pay based on their track record. Selecting tenants takes time and it is best to hire a professional if you have little time.
- Work within the limits of the Arizona Landlord and Tenant Act. Many landlords don’t understand how the law works. Landlords who manage themselves should always hire a lawyer who specializes in landlord representation. There are many lawyers who provide free legal advice to “professional tenants”; you cannot afford to be disadvantaged. The lack of proper legal representation could be very costly.
The cost of professional property management services is low compared to the losses owners can incur when managing themselves. Contact Crest Premier’s property management team, and we’ll be happy to discuss the next step.
Sherman and Euphemia are Maricopa residents and owners of Crest Premier Properties with over 30 years of property management experience. They are licensed real estate agents and active members of the National Association of Residential Property Management (NARPM) with a Certified Residential Property Management (CRPM) designation. They can be reached at [email protected] and 520-432-0089.
This sponsored content was first published in the July edition of InMaricopa magazine.