CrestCore Realty had the special privilege of speaking to the Memphis Investors Group (MIG). This is the real estate investment association (REIA) in Memphis, and we were able to present on property management. We wanted to provide a summary of what we discussed. If you’d like a full copy of the presentation, just let us know.
At the meeting, we focused on the four fundamentals of property management. Whether you’re managing one property, 100 properties or 1,000 properties, these are the four things you need to do when managing effectively. Remember that investing in rental property is not a hobby. This is a business and you need to run it like a business.
Lease the Property
Marketing and leasing the property is required to find a tenant and earn income. You can market it online and use all the popular sites like Craigslist and Zillow.com or Trulia.com. You can put a For Rent sign in the yard. You also need to figure out whose contact information will be on those listings – do you want prospective tenants calling you or a property manager? There’s a lot that goes into leasing. You need to screen applicants and run background and credit checks. There are different things to think about when it comes to leasing your property.
Occupancy is not a problem; you can always find someone to live in the house. Collections can be the hardest part. Getting the money that is due to you is the most important part of your top line. You cannot invest successfully without collecting rent. You need systems, tools and people in place to help you get your rental income paid consistently.
There is preventative maintenance, where you’re able to nip things in the bud before they become large problems, and there’s also reactive maintenance when the air conditioning goes out in the summer or there’s a roof leak or the heat breaks down in the winter. Whether it’s vacant or occupied, you need to pay attention to the maintenance at your property.
Account for Property
The accounting and administrative part of property management can sometimes seem tedious, but it’s very important. This includes bookkeeping, tracking the rent and balancing the expenses. You need a system for your receipts and invoices. You need to pay your taxes and keep up with insurance and vendors. There is paperwork to file with the city, county and state.
If you want to do property management, these four things are key. We were excited to give that talk to MIG, so please contact us at CrestCore if you’d like to hear more about it.