Yes, buying houses for sale in Woodstock and renting them out can be a great way to earn passive income. But, remember, you cannot reap profits from your rental property with a “set it, forget it” type of attitude. To get money rolling from your rental property investment, you have to take a hands-on, active approach.

For those new to the investment journey and clueless about how to manage your rental property or properties, this blog is for you. Here, you will find tried-and-tested rental property management strategies that can help you thrive in your investment journey.

Three Aspects You Will Have to Manage in Your Rental Property

Managing your homes for sale in Woodstock as an investor will include a wide range of responsibilities. But all these responsibilities can be sorted into three basic categories -

• Tenants
• Property
• Finances

As a rental property owner, you’ll have to oversee and manage each category yourself or hire a professional for it.

Tips on How to Manage Your Rental Property Investment

Tenants

1. Find Tenants

After you have made the home for sale in Woodstock yours and are ready to kickstart your investment journey, market your property to find tenants. You can advertise your rental property on popular listing platforms in the area. Once you find a few potential tenants for your rental property, start the screening process to find the right person.

To screen the applicants, ask the potential tenants to fill out a rental application comprising some relevant questions. Here are some questions you can ask in the rental application to potential tenants -

• Ask where they currently live and if they can provide the contact information for their current landlord (for reference checks).
• Ask why the tenant is looking for a new place to live.
• Ask if they are willing to sign a lease agreement.
• Ask where they currently work and how long have they been employed there.
• Ask how many people will be living in your rental property and if they have any pets.

Once you find the right tenant for your house for sale in Woodstock investment property, ask the applicant to sign a lease agreement. A lease is a legal document that explains what the tenants and landlord can and cannot do. It also states what will happen if either you or the tenant violates the lease agreement.

2. Address Tenant Concerns

As a landlord, you must be there or have someone available at all times to listen to and respond to your tenants’ needs and concerns. When a tenant raises an issue or requests a repair, respond to them promptly and take the required action. For instance, if a tenant reports a pest infestation issue in the rental property right after moving in, you should arrange for pest control services without any delay.

3. Deal with Late or Non-Payment of Rent

A common issue you may have to face in your home for sale in Woodstock investment is delayed or non-payment of rent. There are some tenants who deliberately cause issues while paying the rent and there are some tenants who fail to pay the rent due to a genuine financial issue.

If you happen to face this issue, send reminders or notices to tenants regarding overdue rent. Tenants who consistently fail to pay rent despite reminders can also be evicted by the landlord through the Landlord and Tenant Board.

4. KeepTenant Turnover Low

To ensure you reap steady profits from your rental property now and down the line, try to keep tenant turnover low. You can do this by trying to maintain positive relationships with clients and offering lease renewal incentives. Addressing tenant concerns promptly and maintaining the property’s condition can also help you in this regard.

5. Stay Updated on Tenant-Landlord Laws

Another key strategy to keep your home for sale in Woodstock investment profitable is to stay informed about the laws and regulations governing landlord-tenant relationships. Make sure as a landlord, you’re complying with these laws to avoid any legal issues.

Property

Taking care of your tenants is just one part of being a successful landlord. Another part is to oversee the maintenance of the rental property. As a landlord, you’re legally responsible for providing your tenants with a safe and habitable property.

Property management entails a comprehensive set of responsibilities aimed at maintaining the physical condition, functionality, and overall appeal of the property. Here’s a detailed overview of what you need to maintain in your house for sale in Woodstock investment -

1. Regular Inspections

Landlords should conduct regular inspections of their rental properties to identify any maintenance issues or potential problems. During regular inspections, you must aim to cover the HVAC systems, plumbing, and electrical outlets.

2. Routine Maintenance Tasks

Regular maintenance tasks such as cleaning gutters, replacing air filters, lubricating door hinges, and testing smoke detectors should be performed on a scheduled basis.

3. Exterior Maintenance

This includes tasks such as painting, pressure washing, repairing siding, or roofing, and maintaining landscaping. Landlords should also inspect and repair any cracks or gaps in the exterior of their building to prevent water infiltration or pest infestations.

4. Safety and Security Measures

You need to make sure your house for sale in Woodstock investment is safe and sound for tenants to live in. So, install and maintain security features on your property such as locks, deadbolts, and outdoor lighting. Landlords should also make sure that stairways, walkways, and common areas are well-lit and free of hazards.

5. Emergency Preparedness

Landlords should have plans in place to address emergencies such as fires, floods, or other situations. For that, maintain emergency contact information for tenants, contractors, and local authorities, as well as provide your tenants with instructions on what to do in case of an emergency.

Finances

As with any investment venture, you need to keep a good record and hold of the finances of your home for sale in Woodstock investment. Use accounting software that can help you keep track of everything if you don’t have much experience managing finances. You can also hire an accountant who can assist you in managing the finances of your rental property investment.

Make sure to keep track of all the money that goes in and out of your rental property business such as -

• Recording rent payments
• Collecting security deposits
• Tracking how much you’re spending on maintenance repairs, mortgage, insurance, tax, liabilities, and other expenses.

You also need to have a backup plan to keep your rental property business afloat when the property isn’t generating income. When a tenant leaves and is taking some time to find a new one, you must have funds to keep paying your mortgage and maintaining the property until you get rental income again.

Earning Profit from a Rental Property Requires a More Hands-On Approach

The money earned from a house for sale in Woodstock investment is called “passive income.” However, the work and responsibilities of a landlord require a more hands-on approach than a passive one.

If you do not have time to shoulder the landlord duties on your own, hire a property management company to take care of your tenants and property. But, remember, hiring a management company will eat into your profits from the investment property. It’s basically a trade-off between convenience and profit, so weigh the benefits and costs of both carefully before making a decision.