5 tips for running a profitable property management company in Adelaide
Running a profitable property management company is rewarding money-wise and career-wise. But it can also be hectic considering the seemingly endless needs of each tenant and property. However, you can effectively manage these needs and make running your business much easier by following these 5 practical tips.
1. Find and maintain quality tenants
Managing property can be enjoyable and less costly if you find the right tenants. Before any tenant(s) moves in, make sure you perform credit and background checks and verify their identity and rental history.
Once the property is occupied, record any tenant complaints and concerns on your property management software or whatever you use to store tenants’ data. This information can help you address tenants’ issues later on and maintain a good reputation with the tenants and your clients.
2. Watch your cash flow
Records, such as tenant payments ought to be properly maintained. Remember you have to send out invoices to the property owner and payments to their bank accounts regularly. Also, account for revenues and expenses of your property management company.
In addition, when a tenant is moving out, their security deposit should be refunded after taking account of the level of damage they caused to the property. So, make sure to check who is paid for what. This makes it easy to resolve any concerns and questions on the spot.
3. Improve communication
Effective communication between you and your clients and/or tenants is essential for your property management business. Update your clients, probably real estate investors or property owners, about the property market and how you’re managing their investments.
Tenants, on the other hand, have repair and maintenance requests, complaints and other concerns they may want to address to you. Improving communication with your tenants allows them to communicate with you easily whenever they need to and pay their rents easily.
4. Organise your documents
Vital information, including rent receipts for tenants and monthly statements for each property, should be kept in order. Here your organisation skills will be put to test. Alternatively, you can use online document management systems or rental property management software to input data (property and tenant data) and generate reports.
Other documents, especially those with tenant details and those covering repairs and maintenance on a property must be properly documented, as well.
5. Reduce legal concerns
Screening your tenants, storing data and improving communication are vital in reducing legal actions. Properly screening tenants will help you avoid court-ordered evictions in the case of default of rent and makes property management less stressful.
Storing property data will alert you of needed repairs and maintenance. This way, you’ll be able to reduce the likelihood of injuries to tenants and damages to property. Lastly, with good communication, tenants will be able to communicate their concerns and get the answers they need. Therefore, they’ll less likely take you to court.
With these tips in mind, you’ll be able to manage all the challenges that come with running a successful property management business, making your company even more profitable. A good example of an Adelaide based company killing it in the property management industry is 4rooms Property. Goodreads – 4rooms Property, and Issuu 4rooms Property Management are great additional resources for property management business growth insights.