Even though owning a rental property and renting it brings you the so-called passive income; it doesn’t mean that your obligations end when purchasing such a property. To be able to collect your passive income, you should manage your vacation rental property well. There are a few steps you should follow. Keep reading to learn more about managing your vacation rental property successfully.
First, you should consider using an adequate property management software platform, as it will make property management much easier and more optimal. Then, you should do market research and set a reasonable rent price. When it comes to tenants, you should find quality tenants and screen them. This way, you will protect yourself and your property by ensuring normal people are renting it. Creating an online rental lease would make things even easier and safer, where you can highlight both the tenants’ and landlords’ obligations and responsibilities. Moreover, you shouldn’t forget about the regular property maintenance.
1. Consider using a property management platform
An adequate property management software platform can make managing your rental much more optimal and easier, especially if you don’t have a property manager. The tasks related to managing a rental property can be tedious and time-consuming. The aforementioned software can automate some of these tasks and make the management job easier for you. These platforms can even advertise your rental, find you, tenants, screen them and even collect rent. You can use a platform such as this one for free on certain real estate websites, but if you upgrade to a paid version, you can create a website for your rental or personalised leases.
2. Set a reasonable rent price
The next essential aspect of successfully managing a vacation rental involves setting a reasonable price. To be able to set the correct rent price, you should conduct proper market research. The rent price is crucial as it will dictate whether a tenant wants to rent your property or not. A critical factor affecting the price is the rental prices in the particular area of your rental. In this way, you can ensure that you have tenants rather than lengthy periods without any tenants. You can learn more about the rent prices in local real estate agencies. For example, if you own a property in the suburban area of Maroochydore – Mooloolaba, you can find out what rental prices local real estate agents from Mooloolaba offer and base your decision on comparing what they offer vs what you offer.
3. Find and screen tenants
Finding quality tenants can be challenging. So, advertising your rental is a crucial step in finding reliable tenants. Usually, landlords advertise their rentals on various websites. Most tenants search for rentals online, so using software to advertise your property across different real estate websites is critical. When advertising, it’s essential to be accurate in the property description as well as provide authentic images of the property and state the price. An essential aspect of finding tenants is screening them. You can have potential tenants complete an online application form. You should include background information, credit, and potential past evictions to get the necessary information on who they are. However, there are some limitations on what kind of information you can ask for, so check the local landlord-tenant laws.
4. Create an online rental lease
Creating a rental lease agreement that complies with local laws and is reviewed by a lawyer is essential in protecting both the landlord and tenants. Such leases most usually contain information on the security deposit, monthly rent, other terms of the lease, and statements that protect both the landlord and tenant. Many of the things included are dictated by the laws connected to the city where the property is located.
5. Don’t forget about the property maintenance
Your rental property will require regular maintenance. You should consider a maintenance company you can hire to do these jobs for you, or if you have time and skills, you can also do them yourself. You need to be quick and efficient in handling the repairs. Spend time looking around for a good contractor, as you can establish a long-term relationship if satisfied.
Becoming a landlord and managing a rental property can initially seem a bit overwhelming. Still, over time people master it, and it really becomes just a regular source of passive income without too much trouble.
It’s good that you emphasized the importance of property maintenance when managing a rental property, which is why we should establish long-term relationships with services that are efficient in helping us maintain the property in good condition. I recently opened the holiday house I own in Big Bear Lake for renting since I barely use it for most of the year, so I need service providers to help me take care of and manage the rental property moving forward. I’ll take note of this while I look for a cleaning service in Big Bear Lake that I can hire from now on to help me manage the place.