Self-managing your investment property is a wonderful opportunity to maximize your profits and save money on expenses such as hiring a property manager. However, without proper knowledge and preparation, you could face bigger problems and skyrocketing costs! Use these ten steps to ensure success and avoid potential disasters in self-managing your investment property.

1. Get a Rental Estimate 

Before you even begin to invest in a property, it’s important to know how much rental income you can expect. This will help you make sure that your investment is profitable. You can get an estimate from a local real estate agent or research rental rates for similar properties in the area.

2. Make Property Improvements 

Once you’ve obtained an estimate of your potential rental income, you can start to make improvements to the property that will increase its value. This could include anything from updating appliances or fixtures to painting and repair work. You should also consider any upgrades that may attract renters, such as adding a deck or landscaping.

3. Prepare Ingoing and Outgoing Reports 

After you’ve made any necessary improvements to the property, it’s time to prepare ingoing and outgoing reports. These should include details of all equipment and fixtures in the property, as well as any repairs or renovations that were done. You may also want to include copies of all relevant contracts, such as a lease agreement and insurance.

4. Market the Property 

As soon as all of the paperwork is in order, it’s time to start advertising your property. You can do this by posting signs around the area or listing your rental on websites such as Craigslist, Zillow, Trulia, and other rental sites. Additionally, you should consider using social media sites like Facebook and Instagram to reach potential tenants.

5. Screen Potential Tenants 

Screening potential tenants is critical in ensuring that you will receive payments on time and your investment is well taken care of. This includes performing credit checks, verifying employment and rental history, and conducting background checks.

6. Have a Clear Tenancy Agreement 

Once you’ve found a tenant, it’s important to have a clear and legally binding tenancy agreement. This should include details such as the term of the agreement, rental rate and payment schedule, any rules or regulations associated with the property, and any applicable security deposit. Make sure that both you and the tenant understand all of the terms and conditions before signing.

7. Conduct Routine Inspections and Maintenance

In order to ensure that your rental property is in good condition, it’s important to conduct routine inspections and maintenance. This includes checking for any signs of damage or disrepair, addressing any tenant complaints, and attending to urgent repair issues. You should also consider setting up a regular pest control schedule in order to make sure that your property is free of insects and rodents.

8. Stay in Communication 

Make sure that you stay in communication with your tenants over the course of their tenancy. This will help you ensure that your property is well taken care of and allow for an easier transition when the lease period ends. You should also check in periodically to make sure that all necessary repairs or maintenance are done in a timely manner.

9. Notify Tenants of Vacating Date 

When tenants are ready to move out, it’s important that you notify them in advance. This will give them ample time to clean and make any necessary repairs, as well as return all equipment or fixtures they may have borrowed. You should also provide them with a final report detailing all of the items that need to be returned or replaced.

10. Determine Your Income and Cash Flow 

When your tenants have vacated the property, take time to determine your income and cash flow. This will help you ensure that you are making a profit on your investment and can better prepare for any repairs or upgrades that may be necessary for the future.

By following these steps, you can ensure that your investment property is profitable and well-maintained. With the right preparation, you can keep honest tenants, avoid disputes, and make sure that your rental property is an asset for years to come.

For more tips on real estate investing, contact Bud Evans Consulting. Our comprehensive coaching program can help you conquer your fear of investing and allow you to achieve generational wealth through rental properties.