• Investments in rental properties are increasing as investors are recognizing the significant potential of the rental property market. There is considerable demand for rental apartments, PG accommodations, and even independent houses in metropolitan areas. Individuals move to metro areas for job prospects, education, or as a result of job transfers, which leads to an ongoing demand. Some individuals opt to rent rather than buy a property because it is more economical and relocation is simpler. With the rise of remote work culture, the demand for rental properties is also growing in Tier 2 and Tier 3 cities.
• Managing a rental property necessitates the owner’s involvement and time. If you are unable to manage it on your own, you can always engage a professional property management service that will assist in maintaining your property to generate income. Prior to renting out your property, obtain a home insurance policy for your property to safeguard against any rental-related risks.

Rental Property Management Responsibilities

• When you lease your property, you must handle numerous elements of your rental property to achieve good and consistent returns. Let us delve into what these elements of the essential responsibilities of an owner in managing a rental property are,

1. Finding and Managing Tenants
   Finding and managing a tenant is the initial and urgent responsibility of an owner. Tenant management includes several procedures:
   ● Screening of Tenants – Market your property to attract tenants. Specify your expectations for tenants, whether you are seeking families, single individuals, students, etc. Schedule appointments with interested applicants. Develop a list of questions to ask, check credit scores, background, income stability, duration of stay, and cleanliness of shortlisted tenants.
   ● Preparing a Lease Agreement – After locating a suitable candidate, create a lease agreement that outlines the terms and conditions agreed upon by both parties. It should detail the rent amount, security deposit amount, duration, regulations, rent adjustment terms, and additional information. Since it is a legal agreement, consider hiring a professional to draft the document. Sign the agreement in the presence of a witness.
   ● Rent Collection – Establish a due date for rent collection. Set a grace period for late payments along with late fees. If rent remains unpaid for two consecutive months, clearly state the actions that will be taken.
   ● Repair Requests – Clearly outline which repairs are your responsibility and which are to be handled by your tenant. Addressing every repair request may jeopardize your peace of mind. The owner is responsible for maintaining the structure and installations provided, while any wear-and-tear repairs are the tenant’s responsibility. To avoid disputes, inspect all fittings, installations, and structures and record all details before handing over the property. If feasible, conduct inspections regularly. Also, never delay genuine repair requests.
   ● Moving Out – When your tenant chooses to leave, ensure that he has settled all debts such as utility expenses; otherwise, you will have to handle it after he departs. Additionally, inspect for any damages before returning the deposit. It is the tenant’s duty to return the property in its original status; otherwise, any cleaning or repair costs will be taken from the security deposit.
   
2. Property Maintenance
   The upkeep of the rental property is a shared responsibility between the owner and the tenant. However, the owner and the tenant should come to an agreement on their respective responsibilities to prevent any conflicts. If the property is not properly maintained, you may encounter difficulties if you need to file a claim under your home insurance policy. To ensure effective property maintenance, carry out routine inspections.
   
3. Managing Finances
   Handling finances is also an essential aspect of rental property management. It encompasses not only collecting rent but also various other responsibilities, such as paying taxes, insurance premiums, and maintenance fees for the community. Neglecting any of these can lead to complications when renting out your property.
   
   Benefits of Hiring Property Management Company
   
   Managing a property independently offers you complete control and immediate awareness of any issues. However, it requires significant time investment as you are tasked with overseeing everything. Yet, there may be areas where you lack knowledge or expertise; in such cases, it is advisable to hire a professional. For example, you might seek assistance from a lawyer when drafting a lease agreement.
   But how can you manage a property if you live in a different city or country? In that scenario, you can engage a third-party property management firm. Hiring a property management company presents several advantages, including:
   ● These companies take care of all aspects of your rental property, from property evaluation, tenant placement, lease agreement preparation, rent collection, to maintenance.
   ● They serve as a liaison between the owner and the tenant.
   ● They allow you to enjoy your rental income without the burden of property management.
   ● Enhance your investment value through professional oversight and effective marketing.
   ● Provide legal assistance.
   ● Offer key management and interior services as well.
   
   Conclusion
   
   Overseeing a rental property is not as straightforward as it appears, but with the tips outlined above, you can manage it with or without professional assistance. Hiring a professional incurs expenses; therefore, if you live near your rental property, consider managing it yourself with some expert support for areas beyond your expertise. On the other hand, for owners who do not reside locally, employing a property manager is the most effective method for managing a rental property. In any event, ensure your property is covered with a reliable home insurance plan.
   
   Disclaimer:
   The above information is for illustrative purposes only. For additional details, please refer to policy documents and prospectus before completing the purchase.