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First-time landlords are often under the misconception that after investing in a rental property, the rest is easy money. It’s not their fault; rental properties are often deemed “passive income” strategies.
However, when it comes to managing a rental property successfully, there are some key responsibilities you must consider.
When you learn how to manage a rental property in Chandler, AZ, you soon realize that you must actively work to maintain the property, manage tenants, and review your finances. Unfortunately, it isn’t a set-and-forget-it type of investment.
Whether you have just purchased your first rental property in Chandler, Arizona, or you are considering investing, be aware of how to manage a rental property and what exactly is expected of you as a landlord.
Responsibilities When Managing a Rental Property
Buying a rental property in Chandler can be one of the best financial decisions you make. However, before making that down payment, it’s essential to be aware of what it takes to make that investment profitable and successful.
Tenant Acquisition
A vacant property means you’re losing money. One of the key responsibilities when managing a rental property is acquiring new tenants when your property is empty.
This includes promoting your vacancy with a well-written property listing and high-quality photos to grab the attention of potential tenants.
When you do have interested parties, it’s crucial to conduct a thorough tenant screening process. This will help you avoid problematic tenants and get to know exactly who you are allowing to live in your rental.
Once a tenant wants to commit to renting your property, you must originate a lease with your terms, get it signed, and collect the necessary deposits.
Maintenance and Repairs
Repairs and maintenance are simply part of the job when you own a rental property. Whether you are handy and make repairs yourself or have a contractor on call, you can expect to fix things in the property a couple of times a year.
Along with making necessary repairs, landlords should also make a habit of doing quarterly property inspections. These inspections can help identify issues before they become serious and costly.
Don’t be surprised if one day you receive a late-night phone call from a tenant with a maintenance emergency. While it won’t happen often, it could happen once or twice during your management.
Rent Collection
Payday comes once a month for landlords when their tenants pay rent on time. When you have high-quality, responsible tenants, rent collection usually won’t be an issue.
However, if you have late-paying tenants, collecting the rent you’re owed can feel like a part-time job.
As a landlord in Chandler, it’s important to establish a convenient payment method for your tenants. Many landlords choose online rent payments that make it easier for tenants to pay.
Financial Accounting and Taxes
When you own a rental property, you aren’t just responsible for managing the property, but also your finances.
Keeping track of expenses, rental income, and the status of your investment is crucial if you want to maximize your ROI. Analyzing the numbers every quarter can help you make data-driven decisions concerning your rental, including where and how to cut costs if necessary.
Additionally, you will have to file your taxes and ensure you’ve claimed all of the deductions applicable to your situation.
Tenant Relationship Management
Managing a rental property also means managing relationships with tenants. You want to have a friendly yet professional relationship with your tenants.
Treat them with kindness. Answer emails, calls, and texts promptly. Attend to maintenance requests in a timely fashion.
Cultivating a good relationship with your tenants can increase tenant retention, maximize your ROI, and create an overall pleasant experience.
Legal Compliance
The world of real estate is lined with red tape, strict regulations, and legal statutes that landlords must be aware of.
On a federal level, every rental property owner should be aware of the Fair Housing Act, which prohibits discrimination. Then there are specific state, city, and township landlord-tenant laws to follow.
From applying for the correct rental permits to obtaining certifications and following local regulations, this is an area of property management where you don’t want to make a mistake.
Maximizing Your Investment
While it’s satisfying to collect rent each month from your tenants, the ultimate goal of owning a rental property is to maximize your investment.
This means optimizing expenses, increasing the property value, and making data-driven decisions to earn as much money as possible.
Keeping an analytical eye on your rental property’s situation is a good habit to form if you want to be successful.
Handle Evictions
No landlord dreams of conducting an eviction of a tenant who breaches the lease. Unfortunately, it is a fierce reality that you must face.
When evicting a tenant, it’s of the utmost importance that you follow local and state regulations and eviction laws.
For example, Arizona eviction law requires landlords to provide written notice of eviction to tenants and allow at least ten days for the tenant to remedy the issue.
Property Management Company: The Secret to Successful Landlords
After reading through the key responsibilities of how to manage a rental property, it may seem like you’re taking on a full-time job. While it can be time-consuming and difficult to navigate, there is a solution that many Arizona landlords choose.
They hire a property management company!
A professional property management company, like Stratton Vantage, will handle all of these responsibilities on your behalf – and more!
The real estate experts at Stratton Vantage have decades of combined experience in managing rental properties in Arizona, communicating with tenants, and helping real estate investors reach their financial goals.
The number one decision you can make to get on track to maximizing your investment is to work with a reliable and successful property management company like Stratton Vantage.
Interested to see how much your rental property can earn each month? Request a free rental analysis to start planning your financial future today!
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