Starting a property management company can be really rewarding. If you are thinking of becoming a property manager, single family home property management is a good option. However, managing single family rentals, as opposed to multifamily homes, has its unique challenges. For one, with single family home property management, you will have nearly as many rental property owners as tenants to deal with. With apartment buildings, however, a single property owner may have tens or even hundreds of tenants.
Multifamily houses are often owned by savvy real estate investors with well-planned finances. On the other hand, you’ll find that some single family rental owners are accidental landlords. For instance, they may have moved away for a period of time and don’t want to sell their house. Some may be struggling to pay off their mortgage and decide to rent out their homes. In such a scenario, they often rely on rent payments to pay their mortgage. Therefore, late rent payment may leave them struggling to make that month’s mortgage payment. As the rental property manager, you need to ensure they get their money quickly and always keep them informed.
So, how can you deal with the challenges that come with managing single family homes? While there is no single best solution for managing rental property, there are certain strategies to ensure that the best efforts are taken to improve the success rates. Here are six single family home property management tips for new managers:
6 Single Family Property Management Tips
1. Know Your Rental Properties Well
Single family home property management requires a deep understanding of individual properties. This is because you are likely to be managing properties with unique differences. In a multi-unit apartment, most of the spaces will have very similar layouts. However, with single family homes, you could find yourself with completely different investment properties, all with varying features. It is likely the leasing contract for each single family home will differ. Single family home property management fees may also vary depending on the amount of work required. By understanding the properties at an individual level, you will be able to tailor your services to individual clients.
Being knowledgeable about each specific rental property under your management will also put you in a better position to answer any questions that potential tenants may ask. This will save you a lot of time since you won’t have to look it up every time. As you do your research, look into the history of each home, the neighborhood, the type of tenant it would attract, whether it is pet-friendly, etc.
2. Use Single Family Property Management Software
Unlike an apartment building, single family homes may be located in different areas or zip codes. Handling the tasks that come along with managing properties covering a large geographical area can be challenging. Property managers of this asset class often find themselves juggling an intense set of responsibilities for clients with diverse needs and desires. Each landlord expects personal service and quick response times.
As a single family property manager, you have to address the needs of all rental property owners. For instance, you need to keep them informed about any unforeseen costs and get their monthly earnings to them as quickly as possible. All this work can be overwhelming. For this reason, you need to use software designed for single family home property management to simplify your work. Generic property management tools may not be as efficient. A good property management software will allow you to efficiently screen tenants, collect rents online and disburse funds to clients electronically, and more.
3. Choose Your Tenants Wisely
Good property management requires that you have a system for screening and finding quality tenants for your clients. This includes background checks and related paperwork. Tenants renting single family homes usually want to stay there for a long period. Therefore, it is crucial that you weed out bad tenants and only select the good ones. These are the ones that will always pay on time, keep the house well-maintained, won’t damage it, and will stick around for longer. Finding the right tenants will help you avoid a lot of residential property management headaches.
4. Practice Good Marketing Techniques
In single family home property management, preventing vacancies is very crucial. Even though being a property manager is not about being a salesperson, you need to ensure that the rental properties you are managing are always occupied by spiking the interest of potential tenants in the properties. Marketing is a large part of a property manager’s job. There are many real estate marketing options you can explore, both online and offline. When marketing the properties, make sure you use quality pictures and give all the important information in your descriptions.
Finding tenants for rental properties is not the only goal of your property management marketing- you need to also be able to find clients and grow your business. Be sure to set up a professional website and use keywords like “property manager in CITY” to boost search rankings.
A little-known marketing tip to grow your business involves finding new investment properties and marketing them to your current clients. Single family investors are often looking for more properties for their portfolio as they need more units to make more money. The best approach to this tactic is to use a tool like Mashboard. With this property management software, you can enter in info about your client and it will match them with the perfect properties for them. Get a branded property analysis report that you can market to them through email. Learn more about this tool by scheduling a demo now.
5. Do Regular Rental Property Inspections
Property maintenance is a key responsibility for single family home property management companies. One common problem with single family homes for rent is that renters tend to stay longer. This is good for your occupancy rate, but it can lead to some wear and tear in the rental property. With an apartment, the tenant turnover is typically higher, giving the property manager a chance to get in and assess the property more often.
To ensure no major damages are done, you should do regular inspections to make sure that the renters are taking good care of the property.
6. Stay on Top of Yard Upkeep
Keeping the yard in good condition comes along with single family home property management. You should keep the grass, bushes, and trees around the house trimmed and healthy. Apart from providing a nice aesthetic for renters, a well-cared-for yard poses fewer risks to the investment property and tenants. For instance, tree branches close to a house can fall during a storm and cause damage to the roof or block entrances. Try to drive by each of the rental properties you manage regularly to see if the yard is in good condition.
The Bottom Line
Becoming a property manager is generally lucrative. Nevertheless, property management for single family homes is indeed no simple task. To have a successful property management company, you need to not only understand the properties at the individual level but also be organized and efficient. The above tips for property managers will be of great help for anyone aspiring to get into the business.
Don’t forget to sign up for Mashvisor if you want to find rental properties for your clients and grow your rental property management business.