A Property Manager's Landlord Guide - 6 Tips to Protect Your Investment

Posted by JMZ Property Management on Friday, June 1st, 2012 at 4:45pm.

Buying your first investment property can be exciting, but the process is completely different from buying real estate property_manager_in_michigan_300for personal use.  Personal real estate is often bought with emotion and personal feelings but real estate investment requires clear thinking with a singular goal in mind:  To turn a profit.

As complicated as real estate investment can be, it can be made far simpler through intelligent decisions and making plans – such as using a property manager in Michigan to reduce a lot of the day-to-day headaches.  Here’s a simple guide to follow to ease into real estate investment and be a more successful landlord.

Protecting your Investment with Tenant References

There are some amazing properties I southeast Michigan, and we absolutely love the people in the Metro-Detroit area.  Unfortunately, there are always less-desirable people mingled in with the community and you need to protect your investment.

References can be a burdensome step and that’s why many landlords skip it – some think they have a great gut instinct when it comes to judging people.  Skip the references however and it could lead to countless problems later.  Even better, if you work with a property manager in Oakland county or Wayne county, you don’t have to do the leg work and you uncover a wealth of information about potential problems before you have a lease agreement with the problem tenant.

Get Everything in Writing with Tenants

Your tenants have a lot of rights when it comes to housing, but as a landlord and property owner you also have rights.  In order to protect the rights of everyone involved, get everything in writing.  This includes the code of conduct you expect tenants to adhere to, the rental application, reporting of problems, animals, community rules, etc. 

If the idea of trying to remember everything you need for a quality lease agreement, work with a property manager in Michigan.  An experience property manager can help you develop a custom lease agreement that is more in depth than cookie-cutter agreements pulled for free from the web.

Make your Property Appealing

If you want to attract higher quality tenants and keep those great tenants happy, then you need to provide stellar grounds and property maintenance.  That includes keeping the property clean, landscaping trimmed, handling security, current market appliances, etc.  Not only will things be more visually appealing but you reduce your property liability – and added security measures could make tenants feel safer (even willing to pay more) while reducing your insurance premiums.

Coverage with Adequate Insurance

Not only should you be covered by property insurance to protect your investment in Michigan, but you should protect yourself with liability insurance.  A single incident with a bad tenant (or even a good one) could wipe out your investment and leave you with pockets turned-out.

Invest in a Property Manager in Michigan

No matter the age of the home you invest in, it’s a sound idea to work with a property manager.  Not only can they help with a lot of the above points, but property managers can be extremely helpful in giving you a hands-free solution to managing your investment.  That includes making repairs as needed to avoid your property suffering.  The longer you wait for something to be fixed, the more costly the repair.

Lastly, make sure you follow all of the local municipal regulations as well as state and federal regulations for renting out your property.  The FHA provides precise guidelines/regulations to help landlords avoid issues of discrimination.  Violate those regulations and you face hefty lawsuits.  This is where you can benefit most by working with an experienced, qualified property manager in Michigan.

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