3 Tips for successful Apartment Management and Operations
Becoming an investor in apartment complexes is a big step in real estate investing. Depending on how much time and ambition you have, you are going to either manage yourself or you are going to pay a management company to do that for you. Typically, investors will hire a company to do the work for them when the complex is 20 units or bigger. When this is the case you are passing a lot of the stress and work of to someone else. When you are looking at a complex that is under 20 many investors will take on the management responsibility themselves. Being an owner of rentals as well as having managed a 72-unit complex in the past I’m going to give you my 3 tips to being a successful apartment investor when managing them yourself.
- Hire a live in property assistant manager
Obviously this is not what you need for a fourplex but when you are looking at 8 units or more this can be a big help. You are still the owner and manager of the property but you’re handing off some of the responsibilities. For example, have them do showings, collect the monthly rent, take maintenance calls, and even take care of some basic lawn care needs. All of this can be done for just giving a discount towards their rent. If you have a bigger unit where you have an office at the complex, they can staff that as well and receive free rent.
- Set a standard and keep to it
The biggest mistake you can do in an apartment complex is start giving special privileges. Once you let one tenant have a pet or accept late rent they are all going to take advantage of you. Decide from the beginning what your line is going to be and don’t change it.
- Have a solid contract with a solid damage repair cost contract
It may be overwhelming at the beginning for a new tenant but it’s there to protect them as much as it is there to protect you. This way you can start off showing “I have rules and I expect you to keep them”. It will also protect you from having someone damage your property and not get all the funds you need from them to repair it.
These are just a few tips on what I believe helps being an investor in apartments to be a good experience rather than a bad one. Just make sure to do you your research and talk to those with experience before you take the big step.