Have you invested in a new piece of real estate? If you are a new investor you are probably realizing that even though the landlord-tenant relationship seems rather simple, it's much more involved than you may have realized.
Did you know Philadelphia gained over 70,000 new residents from 2010 to 2020? This bump in population has led to a necessity for housing. For investors, this means one thing: money to make.
Old pros in the real estate market know that investing entails much more than buying and renting. There are so many different variables that one must keep on top of to be successful.
Here are 5 expert tips for property management in Philadelphia to keep in mind:
1. Follow the Law
You must follow local laws and ordinances as a landlord. This requires studying the local requirements to be sure that you are in compliance with the law.
It is an essential but tedious process to fulfill these requirements. Failure to comply with local law comes at a hefty price that may even cost you your property.
This alone is enough for many investors, new or old, to seek out the help of a rental property management company. The best property management companies in Philadelphia already have a firm knowledge of landlord rules and regulations.
2. Finding a Tenant
There are plenty of effective ways to find a renter, but there's more to it than finding someone who needs a place to live. As a landlord, you need to find the right tenant. Here are a few things to keep in mind when screening a potential tenant:
- As a general rule of thumb, do not rent to people you have a personal relationship with
- Run background checks
- Confirm employment and identity
- Ask for and check references
3. Drafting a Proper Lease
Drafting a proper lease is of the utmost importance for an investor. This document protects both the tenant and the landlord.
A lease needs to be properly written and must outline all laws and expectations. It must also be thoroughly explained to the tenant before the signing of the lease.
You should consult an attorney if you do not have a property manager to aid you in producing a lease.
4. Communication is Key
As an investor, you need to have excellent communication skills. landlords must be accessible to tenants in case of an emergency. It is not acceptable to not return a call or text message from a tenant days after the fact. A tenant should feel secure in their home and should know that if something breaks it will be fixed.
If you are not the most attentive and would rather take a hands-off approach then you should seek out property management in the Philadelphia area who can ensure your tenants and properties are well cared for.
5. Understanding the Eviction Process
It is important to be prepared for a potential reality: eviction. Occasionally, you will find yourself in a sticky situation with a tenant. They violated the lease, whether by failure to pay rent or by failure to comply with another agreed-upon term.
No matter the reason, evictions can and will happen. Here are some tips to help you navigate your way through the eviction process:
- Understand what constitutes eviction in Philadelphia
- Keep all paperwork for each tenant organized
- As often as possible communicate with your tenant in writing (texts, emails, etc.) and keep copies
Property Management in Philadelphia Can Make or Break Your Investment
Property management in Philadelphia is absolutely necessary and entails a multitude of different variables. From finding a renter to tenant-landlord correspondence, and the worst-case scenario: evicting a tenant. This can make managing a property a full-time job.
As an investor, don't bite off more than you can chew. Let HomeRiver Group Philadelphia make your life easier. As one of the best property management companies in Philadelphia, you can rest assured your properties and tenants are in good hands.
Start your free rental analysis today!