Rental properties are often at the top of the best ways to receive passive income. However, it does have its ups and downs. Managing real estate requires more dedication compared to purchasing stocks or bonds but significantly less than owning your own business.
That said, rental real estate tenanted is a full-time job in itself.
Maintenance is key to the job.
Keeping your property well-maintained offsets later problems. Minor repairs that are not immediately addressed can turn into major issues. When that happens, it can be a great inconvenience for your tenant and become cause for them cancel their contract. As a security measure, allocate a part of your rental income specifically for maintenance costs.
Who pays for damages?
If it’s not your tenant’s fault, then it’s something you have to pay for. This includes drainage sewer repairs or a leak in the roof. If the damage is caused by something the tenant did, then you’d have to bill them for it. Specify these conditions in your lease contract. That way, it is understood from the beginning who is responsible for which type of damage. You can also specify who the tenant should call in case they need emergency repairs and you are unavailable.
Consider property management.
If your property is in Salt Lake City and you live more than an hour away, it is best to hire a property manager. It will be beneficial for both parties. You won’t have to travel far for a simple repair and your tenant does not have to wait long for the repair to be done. Create a clear contract with your property manager outlining their fees and responsibilities. A good property manager will have contacts for any necessary maintenance works and will likely be able to get a better price for it, too.
As in your own home, you want to be mindful of the upkeep of your rental property. It fosters a good relationship with your tenant and may help assure that your property is always occupied.