Property Management: Setting and Collecting Rent

Rental income is the lifeblood of the landlord’s business. It is essential to put the mechanisms in place to bring the right amount at the right time every month. Else, the business will eventually fade and die. A proper performance allows top real estate investors to attain a higher than average Return on Investment.

Read on to learn about the issues to review and questions to ask the Winchester Property Management firms you interview:

Setting the Rental Rate

How to Determine the Rental Rate?
A property manager must know a local market to know about the science behind increasing rents. Apart from affecting rental income, your rental rate can impact the property’s value. The goal is to get the unit rented within a month.

How Often Do They Raise Rents?
The rental rate should be performed annually and often for lease renewals or vacancies.

What About Contractual Escalators in the Lease?
Contractual rent escalators permit the rents to be raised without the need to negotiate or provide an explanation. Tenants know they agree to it, so it doesn’t feel unplanned, while they are grateful if the firm decides not to implement the full rate hike.

Collecting Rent

How is the Rent Collected?
It’s great if the management company provides direct debit for tenants. Refining fewer checks improve cash flow and save time and money. This process lets you know if funds are there or not,

How do they Manage Bounced Checks?
It is a warning sign of trouble ahead after the first bounced check tenants should be prohibited from writing personal checks until at least six months of good payment history has been developed. In addition, a provision must be in the rental agreements where tenants agree to pay the maximum, according to the law permits for all returned checks.

How to Deal with Delinquent Payments?
Look for a firm like Lake Elsinore Property Management with a reasonable procedure. Tenants start paying later, and if the management company allows them, they must enforce all aspects of the lease. Once recognized a tenant with delinquencies trends, they should keep a close eye to ensure they either get back on track or manage with consequences.