When growing your investment property portfolio, you not only add more properties—you add more tenants.
However, managing multiple properties and more tenants might not be your favorite part of having a growing rental property business. You want to benefit from the long-term income without having to find, screen, place, or replace tenants for all of your properties.
An empty property means you're losing money until you find a new tenant. Multiple vacancies mean you're losing a lot of money. So, how do you manage multiple properties and tenants? You need expert property management.
Bad Tenants Can Make You Want to Quit—but There's Hope
Tenants are the income-generators for your rental property business. Without tenants, you have an empty and expensive asset.
When you find the perfect tenants, being a landlord can be an excellent way to earn additional money for retirement. However, just one bad tenant can make you want to quit the rental property business—if you're handling your properties on your own. Imagine having to field multiple properties worth of tenants as you continue to grow!
What Makes a "Bad" Tenant?
Bad tenants aren't hard to find, and it's easy to place one in your rental properties if you aren't careful. There are several red flags to look out for when it comes to tenant behavior:
- They're consistently late paying the rent (if they pay at all)
- They don't follow the rules in the lease agreement (smoking in a non-smoking rental, not picking up after pets, or participating in illegal activity)
- They cause damage to your property
- They have more people living in the property than are on the lease agreement
Any of these tenant issues can quickly drain the enjoyment out of investing in rental property. Plus, fixing these problems is often expensive for landlords. Before you give up on finding good tenants for your growing investment portfolio, take a look at how expert property management takes on the task of managing multiple tenants and properties.
Regain Your Investment Power Through Property Management
If terrible tenants make you feel like you quitting the rental property game, it's time for a property manager. Don't give up on your potential wealth because of the human element! Partnering with expert property management means you don't have to face tenant hardships alone—or even at all.
Expert property management helps you find quality tenants for each of your investment properties:
Compelling Listings and Marketing
A professional property listing is the first step toward placing an excellent tenant in your properties. Don't overlook the importance of the listing! From highlighting your property's best features and describing what tenants will appreciate about it to taking professional photos, the listing attracts the tenants that are the best fit for your property.
Thorough and Ethical Screening
A property manager will work with you on a documented set of screening criteria for your tenants. Using their resources for background and credit screening, they'll deny applicants who don't meet your criteria while accepting tenants who are a good match.
Owning rental properties means staying current with laws and regulations, including the Fair Housing Act. To comply with that law, landlords can't discriminate against potential tenants based on race, gender, religion, age, or disability. Landlords must also be careful with how you use criminal background information when choosing a new tenant. When you work with an expert property manager, you'll have the added relief of knowing that a property manager's screening techniques will align with the Fair Housing Act.
If you're already dealing with bad tenants, the property manager you choose should be able to resolve that situation for you. One of the simplest ways to avoid the headache associated with troublesome tenants is to develop your portfolio through turnkey investing. When you choose a turnkey property, it's already managed for you—from start to finish. All you have to do is sit back and enjoy truly passive income!
Good Tenants Grow Your Investment Portfolio
Finding the right tenants for your rental properties takes some effort, but it's worth it. When it comes to multiple properties, you need good tenants to make your investments run smoothly and operate at maximum profitability.
With the right tenants:
- You don't have to worry about late rent.
- They follow the lease agreement to protect your investment properties.
- They report maintenance issues right away so you can repair them before they become a more severe (and expensive) problem.
- They renew their lease (and you're glad to have them stay for another year)!
Every landlord deals with a bad tenant at some point. With expert property management overseeing your growing portfolio, you'll reduce the potential for bad tenants—and the expensive problems that come along with them.
We Manage the Properties—and the People
The investment property business is a people business; managing both isn't for everyone. Finding quality tenants to build your long-term wealth is what we do! With turnkey investing, your properties are under expert property management from the get-go.
The Peak Group knows how to integrate your tenant criteria to screen and place the right renters into your property. We want to help you love property investing again. Whether you're managing your own portfolio or with another company, contact us to see the Peak Property Management difference.
Posted by The Peak Group on September 26, 2019