Property Management Process
The management of a rental property can be an intimidating and overwhelming experience. There is, however, a list of steps you must understand before jumping into it. If you choose to work with a Real Estate Agency, they will be able to do the following on your behalf:
THE INITIAL INSPECTION OF YOUR PROPERTY
Knowing what your property is worth is essential in order to fully access the rental price expected from a prospective tenant. The condition (including deficiencies), included appliances, location, and proximity to public transit will affect its value. Having a proper inspection of your property can also help you determine the work needed to be done before occupancy of a tenant. Painting, a professional cleaning, and making little adjustments/fixes can greatly improve its value.
MARKETING AND ADVERTISING
Exposing your property to the right markets will allow you to find a good tenant. Before doing so, you must determine the type of tenant you are looking for. Long term or short term? Young working professional or family? Pets or no pets? When you have determined the type of person you want to rent your property in order to minimize any possible damage done, then you can advertise accordingly. External websites such as Kijiji and Craigslist can help generate lots of client leads. Leaving this step to a realtor can also lessen the burden and make the process easier for you. Realtors have access to MLS and other methods of advertising that are not available to anyone else. They will also go through the filtration process on your behalf, which includes reference checks.
DETERMINING THE RULES OF OCCUPANCY
Before having a tenant move in, you need to determine the clauses you want to include in the rental agreement. Realtors have knowledge of the rules and regulations of tenancy according to the landlord and tenant board. They also know how to prepare the appropriate documentation to be signed by the tenant in order to protect your rights as a landlord.
THE INSPECTION BEFORE MOVE IN
Before allowing your tenant to move in, it is important to do a walk-through inspection with them to properly access the condition of the property before occupancy. This will be important when accessing any claims of damage made by your tenant before they vacate. Deposits are often taken before occupancy in case of damage. When you rent your property, it is important to ensure that it is kept in the same condition between tenants.
According to the initial inspection and assessment of your property’s value, you will know how much you want to charge for rent monthly. Before occupancy, you must also determine how much rent you expect to collect before occupancy, and if you want to ask for a security deposit. Arranging how you want to collect the rent is also something you will want to keep in mind. Are you more comfortable receiving post-dated cheques, cash or money transfers? Sometimes this step can be a hassle. Getting a realtor can help, especially when it comes to collecting the deposit and first month’s rent.
THE INSPECTION BEFORE VACANCY
Inspecting your property before vacancy is essential in order to determine how much of the security deposit you plan on returning to the tenant. It is also important in order to access how much work needs to be done to return your property to its original condition, before allowing another tenant to move in.