| Copyright 2005 All Rights Reserved Charles E. Marunde & FreeRealEstateLaw.com |
| Managing Right |
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I view managing properties as consisting of two components.
The first is educating yourself as to how to manage rental units well, and that
process will start with a lot of work and reading, but it will also continue as long
as you are a Landlord.
The second component is Experience. There's nothing like Experience to make
you a more effective manager. You get Experience by making mistakes, the
school of hard knocks. Every good Landlord has attended this school. It's a
course that lasts several years to maybe a decade of managing. You can
shorten the process by actually implementing what you learn. As simple as that
sounds, it is perhaps profound, because many Landlords end up in litigation and
losses because they did not implement what they already knew.
To be practical and get to the point(s), I would break down Managing Right into
these simple steps:
The first is educating yourself as to how to manage rental units well, and that
process will start with a lot of work and reading, but it will also continue as long
as you are a Landlord.
The second component is Experience. There's nothing like Experience to make
you a more effective manager. You get Experience by making mistakes, the
school of hard knocks. Every good Landlord has attended this school. It's a
course that lasts several years to maybe a decade of managing. You can
shorten the process by actually implementing what you learn. As simple as that
sounds, it is perhaps profound, because many Landlords end up in litigation and
losses because they did not implement what they already knew.
To be practical and get to the point(s), I would break down Managing Right into
these simple steps:
- Managing Right Begins with Screening Right;
- Having a Good Rental Contract;
- Communicating the Terms Clearly With Your Tenant (Dialogue);
- Enforcing the Contract Terms (Do Not Compromise the Terms);
- Treating Your Tenant Like They Are Special (Because They Are);
- Keeping Up On Maintenance (Never Fall Behind);
- Keeping A Great Records System; and
- Keeping A Great Bookkeeping System on Computer.
| All of this is hard work, and it takes a great deal of patience and diligence. If you cut corners here, you are asking for serious trouble, and it will come eventually. Trouble of this kind always translates into lost dollars and a lower rate of return. |