What Skills Should I Have Before Managing Rental Properties?
At this point as a real estate investor, you know that renting out properties can be a good way to generate income. While the money can be good, it’s not without its fair share of work. Until you get to the point that you’re making enough for it to make sense to outsource your property management, you’ll need to do it yourself. There are some skills that can make that a much easier job to do.
Communication Skills
As a real estate investor and landlord, communication skills are vital. You need to be able to communicate clearly with your tenants. It’s not just enough to get your points across though. You need to be receptive to what they have to say as well. This is part of what will help you build positive relationships with your tenants. The better your relationships with them, the less trouble you’re likely to have, and the more likely they will be to take good care of your property.
Property Management Skills
Landlords have a lot of responsibilities. Chief among them is the responsibility to make sure that the properties you rent out are safe and habitable. Part of achieving that is choosing properties to invest in that are already in good condition, or can easily be made to be. Past that, having property management skills can come in handy. Handling maintenance and work orders, handling tenant concerns and complaints, and making sure you’re abiding by all relevant laws are just some of the skills and knowledge you’ll need to have. Getting your real estate license can help you gain new skills in property management.
Basic Budgeting Skills
Collecting rent and making sure the expenses for repairs and maintenance are taken care of are some of the things you’ll need to take care of as you manage your properties. Having basic budgeting skills will come in handy here. As you account for all of your expenses, you can get a better understanding of what you need to be charging for rent to make ends meet, let alone make a profit. You may find you need to increase what you charge for rent. Telling tenants you’re increasing their rent can be tough, but you going out of business because you can’t cover your expenses doesn’t help anyone either. Just try to make sure you can justify the increase based on the expenses you’re incurring.
If you have the right sets of skills, managing your properties until you’re established enough for it to make sense to hire a property manager can be quite doable. You’ll need solid communication skills, general property management skills, and the ability to balance costs and revenue. If you can do that, you’ll be on your way to successfully manage your rental properties on your own.
Why manage properties yourself when we can do it for you? Contact us to learn more about what we offer.
