To be a successful landlord, it’s important that you treat your New Jersey rental property like a business. Here we are Seven Key Points that will help you with your rental investment.
- Have a broad marketing strategy for your vacancies. Use a professional Realtor or broker and publish your listing in a variety of places on the Internet. And/or; use the internet.
- Screen and choose the right tenants. Have a plan and stick to that plan when you’re screening and making your selections to lower your risk of getting a bad tenant.
- It’s important to be aggressive with rent collection. Communicate with your tenants early and often when they are late paying. Keep them to their promises and enforce late fees.
- Know when to evict a tenant. It’s always better to evict a problem tenant sooner rather than later. Don’t hesitate, use a “Pay or Quit” letter then file if they have not paid.
- Respond to tenant maintenance requests immediately, even if you’re not going to address the issue. Handle repairs appropriately and completely because doing so will save you a lot of money in the long run and the tenants will appreciate the clarification.
- Recordkeeping is important. Keep proper income/expense reports and have a solid bookkeeping system to track your finances and important dates
- Build a financial reserve for unexpected expenses. Force yourself to save money every month so when something does come up, you already have the money to cover it.
Here’s an eighth bonus tip: Hire a professional to do all of these things for you. Managing a property comes with a number of administrative tasks, including handling property maintenance, supervising building repairs and ensuring outgoing expenses are paid on time. Management companies provide valuable services like marketing rental properties, securing tenants and negotiating lease agreements. They are also responsible for collecting rent, addressing tenant complaints and handing evictions. A New Jersey property manager will take these responsibilities off your plate so you can focus on building your portfolio.
If you have any questions about how to run a successful rental property, please contact us at Realty Solutions, and we’d be happy to tell you more.