An investment property can be a fantastic vehicle for generating passive income each month. However, if you’re new to real estate investing, reality TV may have colored your view of these endeavors and made investment properties seem like a much simpler business than they actually are. . While you can make a good profit from a good investment property, that doesn’t mean you’ll be able to kick up your heels and wait for the money to roll in. As you will see, there are a number of responsibilities. you will need to effectively manage your first investment property.

Thoroughly screen rental candidates

Without reliable tenants who can afford the rent, you may struggle to keep your first investment property afloat. And as any seasoned landlord can attest, it’s not always easy to tell an unreliable rental applicant from a reliable one. After all, some people are able to show up perfectly well even if they can’t or won’t keep up with rental payments. Unfortunately, there is no surefire way to determine which tenants will end up disappointing you, but a thorough selection process can significantly reduce your chances of ending up with problematic tenants.

With each applicant’s permission, you will need to review their credit rating, financial status, and criminal history. First, if it’s unrealistic to expect applicants to have perfect credit, it’s generally not a good idea to take on debt-ridden tenants, at least without a reliable co-signer. Second, it is important to confirm that the applicant has enough income to comfortably pay the monthly rent. Although many landlords require applicants to make three times the cost of rent each month, this is not a hard and fast rule, and depending on the cost of rent, this may be an unrealistic expectation. Third, while a criminal history may not necessarily preclude someone from being able to rent from you, it is important to consider the type(s) or crime for which an applicant has been convicted. If the offense or offenses in question could endanger other tenants or the property itself, it may be best to avoid taking the risk.

Consult experienced investors

If you have never owned or managed a rental property, it is strongly advised to seek the advice of experienced investors. These individuals have a wealth of knowledge to share in regards to maintaining property profitability, meeting tenant needs and mastering repairs/renovations. So if there are friends, family members, co-workers or neighbors in your life who have experience with investment properties, you should humbly ask for their help. Also, if you’re thinking of buy a second home as an apartment buildingdo not hesitate to contact a competent real estate investment company.

Never ignore maintenance requests

As anyone who has ever lived in a tenancy problem can attest, ignored maintenance requests are some of the most common tenant grievances. After all, it is the landlord’s job to keep a property livable and, depending on the severity of the problem, maintenance issues can render a property unsuitable for occupancy. Not only will taking a nonchalant approach to property maintenance rightly draw the ire of tenants, it also risks putting you in a precarious legal position.

With that in mind, be sure to consider every maintenance request that comes your way as a priority, no matter how heavy those issues are. The longer you wait to resolve certain problems, the more money it will cost you to resolve them and the more frustration you will cause for your tenants.

To ensure that all maintenance requests are handled in a timely manner, be sure to hire competent and reliable maintenance staff who can manage their time and interact politely with tenants. In fact, depending on the size of the property, it may simply not be possible to hire full-time staff.

Although investment properties are often profitable purchases, even the most desirable properties are unable to generate solid returns without a little effort on the part of their respective owners. Even if you get your hands on an attractive property in a high-demand area, letting go of managing that property risks jeopardizing its long-term profitability. In the interest of becoming an effective and efficient property manager, consider the helpful tips outlined above.