• Investments in rental properties are increasing as investors recognize the significant potential of the rental property market. There is a substantial demand for rental apartments, PG accommodations, and even independent houses in metropolitan areas. Individuals relocate to metro cities for job opportunities, education, or due to a job transfer, resulting in a continually growing demand. Some individuals choose to rent a property instead of purchasing one because it is more economical and makes relocation easier. With the rise of the work-from-home culture, the demand for rental properties is also growing in Tier 2 and Tier 3 cities.

• Rental property management necessitates the owner’s participation and time. If you are unable to manage it by yourself, you can always engage a professional property management service that will assist in maintaining your property to generate income. Before you lease your property, obtain a home insurance plan for your property to mitigate any risks associated with renting.

Rental Property Management Responsibilities

• When you lease your property, you need to oversee various aspects of your rental property to achieve good and consistent returns. Let us examine what these key responsibilities of an owner in managing a rental property are,

1. Finding and Managing Tenants
   
   Finding and managing a tenant is the initial and immediate responsibility of an owner. Tenant management entails numerous processes:
   
   ● Screening of Tenants – Advertise your property to attract tenants. Specify your expectations for tenants whether you are seeking families, single individuals, students, etc. Arrange appointments with interested candidates. Create a list of questions to ask, check credit scores, background, income stability, duration of stay, and cleanliness of shortlisted tenants.
   ● Preparing a Lease Agreement – Once you identify a suitable candidate, prepare a lease agreement outlining the terms and conditions agreed upon by both parties. It should include the rent amount, security deposit, duration, rules, terms for rent revisions, and other details. Since it is a legal contract, you may consider hiring a professional for drafting the agreement. 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 and late fees. In the event that rent is unpaid for two consecutive months, clearly state the actions that will be taken.
   ● Repair Requests – Clearly define which repairs are your responsibility and which repairs fall under your tenant’s responsibility. Addressing every repair request may impact your peace of mind. The owner is responsible for maintaining the structure and installations provided; however, any repair due to usage is the tenant’s responsibility. To prevent any disputes, inspect all fittings, installations, and the overall structure and document all details before transferring the property. If possible, conduct regular inspections. Furthermore, do not delay legitimate repair requests.
   ● Moving Out – When your tenant chooses to vacate, ensure that he has settled all outstanding payments such as utility bills; otherwise, you will have to address it once he has left. Furthermore, inspect for any damages prior to returning the deposit. It is the tenant’s duty to return the property in its original condition; otherwise, any repair or cleaning costs will be taken from the security deposit.
   
2. Property Maintenance
   The upkeep of the rental property is the duty of both the landlord and the tenant. Nevertheless, both parties should come to an agreement regarding their responsibilities to prevent any conflicts. If the property is not well-maintained, you may encounter issues when attempting to file a claim under your homeowner’s insurance policy. To guarantee that your property is properly maintained, carry out regular inspections.
   
3. Managing Finances
   Overseeing finances is also a vital aspect of managing rental properties. It not only entails collecting rent but also encompasses numerous other responsibilities such as paying taxes, insurance premiums, and society maintenance fees. Failing to manage any of these can lead to issues when you attempt to lease your property.
   
   Benefits of Hiring Property Management Company
   
   Self-managing a property gives you complete control and keeps you informed of any issues immediately. However, it can be a time-consuming endeavor since you are accountable for all aspects. In some areas, you might lack the necessary knowledge or skills; in such cases, it is advisable to hire a professional. For example, you might seek assistance from a lawyer when creating a lease agreement.
   
   But how do you manage a property if you live in a different city or country?
   
   In that scenario, you can recruit a third-party property management company. Employing a property management company brings numerous advantages, such as,
   ● These companies handle everything related to your rental property from property evaluation, tenant finding, lease agreement creation, rent collection, and maintenance.
   ● They serve as a communication bridge between the landlord and the tenant.
   ● They allow you to enjoy your rental income without the burden of managing your property.
   ● They enhance your investment value through professional administration and effective marketing.
   ● They provide legal services.
   ● They also offer key management and interior services.
   
   Conclusion
   
   Managing a rental property is not as straightforward as it appears, but by utilizing the aforementioned suggestions, you can effectively handle it either independently or with professional assistance. Hiring a specialist will incur a cost, so if you reside near your rental property, manage it on your own with some expert help for areas beyond your knowledge. However, for owners who do not live nearby, hiring a property manager is the optimal solution for managing a rental property. In any circumstance, ensure your property is protected with a reliable home insurance policy.
   
   Disclaimer:
   The above information is for illustrative purposes only. For more details, please refer to policy wording and prospectus before making a sales conclusion.