No matter how many properties you own and how much income you make, if you own property and rent it out, essentially it is a business.
A business needs to be run as a well oiled machine and is something that requires care and attention. I am aware that all too often Landlords buy property, hand it over to someone else and just try their hardest to ignore it, but at the same time reap the most amount of money they can to supplement their incomes. This behaviour leads to poor property stock and the reason why many see Landlords in a really bad light. You may think that as a Landlord you can hire a property manager and they should handle everything, but if you aren’t around to answer phones / emails, say yes to requests or provide funds so that your property managers can adequately look after your property, nothing will get done and your relationships and property will deteriorate.
At NC Real Estate we are absolutely passionate about homeowners having a great relationship with their properties. If you are looking to invest in property and to make money from it, you must have a strong interest in nurturing it as a business.
Successful businesses are founded on the enthusiasm of the business owner. By taking on rental properties you must be prepared to put in the work necessary to make sure they are a success. You must take on the manager role of all those who work for you, your team. Contact is mandatory – no matter where you are, or what you do, you should make a pact with yourself and a plan with your team that you will be contactable, and that each query will be read or listened to with care and answered as pragmatically as possible. Remember this is a business; not personal so every decision made should be in the best interest of your business.
Maintaining your property is essential and routine inspection by either yourself, your property manager or other professional will flag up any defects, which should then be resolved ASAP. Also if your tenants highlight problems, look to solve them quickly as it will be more costly in the long run if you let your property deteriorate.
As a business owner you should also keep on top of your accounting, budgeting and forecasting. Only you can do this as you know your financial situation. Make sure you know and document what is coming in and going out and itemise this – this will be necessary for your tax returns. You should also ensure you have a reserve fund in place for any time there may be unexpected expenditure, that way should your tenant or managing agent come to you and say X has happened, you can easily accommodate a swift resolution.
By keeping hands on, even if that is just being on your emails and coordinating your team and finances, you will be able to run your rental property well. Remember, not only are you looking for an income, you are looking to provide a good home for your tenants and make sure you are maintaining your property.
So if you are considering buying a property to rent it out then be aware of why you are doing it. If you want to make money than this is a business and you need to manage it well, look after it, nourish it and give it your time, you will soon see the rewards.
If you need any help, advice or support than do not hesitate to get in contact with NC Real Estate. Or just keep following our blogs and on Facebook and we will provide all the support you need.
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