If you’re a new landlord looking for property, it’s likely you, like many others, will be interested in investing in multifamily property. The concept is relatively simple – a single property offers multiple nits built for multiple families, meaning you generate more income and benefit from a lot more stability than owning just one single-family property. Multifamily properties present their own challenges and you need to be aware and prepared for these challenges before you consider investing.
In the following article we look at some important tips for successful multifamily property management.
Start Small Scale
It’s easy in the beginning to think as big as you can, considering the possible income and profits you could make from a large-scale operation. It’s much more sensible, though, to start small-scale, getting your feet wet with just one multifamily building that houses just two or three families. Any mistakes you make as a beginner will not have as big an impact and you’ll have a better opportunity to learn from them in a more controlled and manageable way.
Always Over-estimate your Costs
When it comes to planning for the expenses involved in investing in a multifamily property, you need to estimate conservatively as possible. When you have multifamily properties, there’s additional variables that you need to consider compared to when you have just one single tenant property. Those variables include the prospect of more repairs and a greater number of variables having an influence on the total costs of your investment. By over-estimating the expenses, you expect, you will be better able to stay within your available budget and will have less to worry about if repairs and maintenance costs more than you projected.
Set Ground Rules for the Community in your Property
As you’ll have more than one or two families living within the same property, you may have issues with how those different families interact and engage with one another, similarly to a community. In order to ensure there’s peace and its easier to manage your property, it’s a good idea to make fair and reasonable rules for your community to live by. You need to write them out and to follow them to try and avoid dilemmas before they occur.
Build Good Relationships with the Tenant Families
Along with establishing ground rules for all tenant families within your multifamily property, you need to work hard to also establish good relationships with them. If there’s a mutual respect between you and your individual families of tenants, you’ll not have to deal with as high a tenant turnover or vacancy rates as you would if you didn’t foster good relationships. In order to encourage your tenants to feel as if you will deal with their problems when they come to you with them, you need to take proactive and fast action to avoid small issues becoming large ones.
Respond in a Timely Manner to Maintenance and Repair Requests
Following on nicely from the above, whenever your tenants issue maintenance or repair requests, you need to deal with these in a thorough and fast manner. That is even the case if it means your actions could be an inconvenience to your tenants. Always, in those situations, be clear that you’re acting to keep the property in good condition.
As well as the above, you could also hire a professional multifamily property management team.