If you consider real estate the best long-term investment, you're not alone; 36% of Americans share the same sentiment.
So, if you're now a first-time landlord in South Jersey, NJ, congratulations! With the right strategies, including a thorough rental analysis, you can maximize your return on investment (ROI) and make a hefty income.
The experts at SoJay Property Management put together this first-time landlord guide sharing property management tips to help you start right, so read on.
1. Determine Fair Rents With a Rental Analysis
Setting the right rental price is one of the most crucial beginner landlord tips. You want your rental price to be fair, as this increases the likelihood of attracting the right renters.
Conversely, overcharging can put off prospective tenants, resulting in high vacancy rates. On the other hand, undercharging lowers your profits, and you may not make enough to cover necessary property maintenance and repairs, much less pay yourself.
Luckily, reputable property management companies like PMI SoJay Property Management offer free rental analyses. Use them to determine how much to rent your property for.
2. Set Aside Funds for Property Upkeep
Investopedia recommends setting aside 1% of your property's value for yearly upkeep and repairs. So, if your property's value is $350,000, put aside at least $3,500 annually. Use the funds to keep your property well-maintained and get age-related wear, tear, or damages fixed promptly.
3. Conduct Thorough Tenant Screening
Another crucial piece of landlord advice is to screen all prospective tenants thoroughly. Doing so can help you select qualified renters who'll pay on time and won't put your property, other tenants, and the community at risk.
Your tenant screening process should include the following tools:
- Income or employment checks
- Credit reports
- Criminal background reports
- Rental and eviction history checks
4. Abide by Tenant Screening Laws
When conducting tenant screening, you must comply with all federal, state, and local laws. Some of the most notable laws are the Fair Housing Act and the NJ Law Against Discrimination. Understand these regulations better to avoid legal trouble or, better yet, outsource the tenant screening process to the pros.
5. Partner With a Property Management Company
Contrary to what some people believe, landlords don't always make passive income. Being a landlord can even be a 24/7 job; for example, they must address tenant concerns that pop up in the middle of the night, like frozen pipes that burst. Such problems are common in NJ, considering winter temperatures here can drop below freezing, per NJ 101.5.
Fortunately, you don't have to do everything. You can partner with a property manager who can take over most of your landlord duties, such as marketing, placing tenants, collecting rent, and filing evictions.
Be a Successful First-Time South Jersey Landlord
From conducting a rental analysis to screening tenants and setting aside funds for property upkeep, these are some of the most crucial tips for first-time South Jersey landlords. With these strategies, you can make the most of your rental properties.
If you don't have the time to do all that, PMI SoJay Property Management certainly does. We're locals, so we understand the nuances and laws surrounding South Jersey, NJ rentals. Plus, we're a proud member of PMI, a leading property management company with over 20 years of service history.
Get in touch with us today to request your free rental analysis!
