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Are you aware of the five pillars to successful rental property management? Do you want to know get information about it?
If you want to talk with most property landlords about rental property management, then there’re five things that will always be brought up.
These are better named as the pillars of managing a rental property.
If you know each pillar separately and how it’ll benefit you, then you can easily become a successful landlord.
In this article, you’ll explore these pillars of successful rental property management in further details:
It's really impossible to overlook this pillar.
Unless you’re a multi-millionaire and pay with cash, you’ll have a mortgage on your rental property.
As a result, the amount of money you pay back to the bank will depend on the interest rate.
Before investing in any property you need to make sure that you’ll be able to deal with a variety of interest rate levels.
You can never predict the unforeseen circumstances. So, you should be always ready to do anything to minimise the risk.
You never know whether you would have a good tenant or bad tenant. Either ways, tenants generally don't treat a rental property as if it were their own house.
There’s always a level of neglect that takes place. You should always be prepared to cover any costs for the negligence.
You need to be certain that tenants will indicate things that need some fixing.
It's your duty to keep the property well maintained. Otherwise an unsatisfied tenant will leave and this can be detrimental to your cash flow.
You never know what can happen to your rental property.
Depending on where you live, you may be in an area that is prone to extreme weather conditions like bad monsoons or hurricanes and or events like earthquakes.
Not only this, your tenant may suffer a serious accident or even die and you never know about it.
The only thing you can do is to get a comprehensive insurance for your property. This is important for a successful rental property management.
4. Property Taxes:
Don't forget to pay property taxes every year otherwise you’ll have to deal with government bodies.
Instead of dealing with unpaid taxes it’s become more convenient to search for more rental properties.
In this context, a professional advisor will help you achieve more from your property investment.
They’ll help you minimise your tax liabilities. This way, you can maximise the return for your investment, thereby creating greater cash flow.
5. Rate of occupancy:
The occupancy rate is very important for a profitable rental property.
If your property is vacant more often than not, then you will almost certainly suffer a cash flow problem which could make you default.
In order to attract more tenants, you may want to do a couple of things:
All you can do is to deal with both situations patiently.
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