You have some experience with owning rental homes, and you’re ready to upgrade your investment. Now you want to invest in a multi-family Hendersonville property. While you can use your previous knowledge as a starting point, there are new factors and responsibilities that come with your new property.
This guide will help you manage your new real estate investment with ease.
Have Your Legal Documents In Order
Have a lawyer prepare all of your documents. They should review your application to ensure you aren’t unintentionally discriminatory. Have a standardized lease template that holds all tenants to the same standard. Leave blanks for adjustments, such as dates, length, pets, and extra amenities.
Having your legal documents readily prepared makes it easy to immediately place tenants as soon as you’re ready. It also ensures consistency, making it simpler to manage your multiple leases.
Having an established relationship with a real estate attorney helps you to move quickly when you need to evict a tenant. For a legal and enforceable eviction, you will need to follow the steps as outlined by the law.
Use Management Software
You will need property management software for your multi-family property. Software is the only way you will effectively manage the multitude of documents, varying timelines, and a variety of tasks. Look for software with a user-friendly interface and scalable services. It should help you manage everything from advertising available properties to rent collection and property maintenance.
Make Applicant Screening a Priority
You are placing multiple tenants in close proximity. Your tenants will know that you are responsible for placing the other tenants in the building. One bad apple in the bunch can create havoc for the entire community. Not only will you have to address the problem tenant, but you will also have to handle the other tenant’s complaints.
Additionally, a multi-family building is much larger than a single home. Placing multiple bad tenants puts you at risk of significant repair bills. This can quickly put you in the negative financially and negate your entire efforts.
Create a Community
Long-term tenants reduce your costs and increase your ROI. One way you can encourage your tenants to stay is by creating a community for them. People are more likely to renew their lease when they know their neighbors and feel as though they are a part of a larger community.
Set the standard for your micro-community by creating community ground rules. These help tenants engage with each other and help prevent conflicts that arise when people live in close proximity. These could be rules about noise levels that are acceptable at certain times. If a conflict does come up, make an effort to amicably settle the issue to prevent ongoing and growing issues.
Be Vigilant About Maintenance
A multi-family building is much larger than a standard single-family home. Therefore, you should expect the maintenance costs to be more extensive and expensive. As the landlord, you have a duty to keep the community grounds safe. This is slightly different from a single-family home. You need to maintain the walkways, stairs, and landscaping.
A well-maintained building attracts better quality tenants and commands higher monthly rents. You also set a standard and expectation for how your tenants care for the property. This encourages your tenants to respect the property and take better care of their rented space.
Work With a Property Manager
Managing a multi-family Hendersonville property is a big step from managing a single-family rental home or even several single-family homes. A property manager has the experience and knowledge to handle the day-to-day management of your property and tenants. This gives you peace of mind.
Contact our office today, and our skilled property managers can help you manage your multi-family property.