If you are one of the many people that own single family home rentals or if you are contemplating buying rental homes you will be well advised to learn all you can about the business of property management. Owning rentals is not just about buying the property and finding a tenant. There are many things to learn. In this article I will discuss just five of the elements that I feel are very important to master.
First, you must be able to estimate the rent of a particular property with some certainty. It is not enough to guess the rent just based on what nearby rentals are going for. Of course, you need to use that as your guide. You must also be able to compare the subject property (your contemplated purchase or the one you currently own) to the market after taking into account the interior floor plan and condition. The floor plan of a home is very important and should not be underestimated. Does the house have an appealing setup? Is there a logical way to get to the backyard? Is the patio set up to make the yard a pleasant place that will get used? What is the condition of the carpet, walls, and bathroom? Is the kitchen appealing? All of these items impact how much rent you will be able to garner. Using online rent surveys and online listings and combining that information with the subject property will help you in evaluating a property for purchase, setting rents when vacant, and determining rent increase amounts.
