24 Things You Need to Know to Be Successful When Managing Your Real Estate Investment

By Ann Smith

So you’ve decided to invest in real estate – and you’re planning on managing the property yourself. There are several things you can do to ensure the building maintains its value and you lease to reliable tenants. This is a business…and it’s up to you to operate it like one.

Protect the building – your investment:

1. Install coin-operated laundry machines, which are cost-comparable to local laundromats.
2. Install energy saving lights in all areas where you pay for hydro.
3. Make sure all bathroom fans area at least 75 CFM.
4. Direct wire smoke detectors wherever possible.
5. Install motion detector/timing on exterior lighting.
6. Replace plastic flex vent with metal flex vent for dryer.
7. Keep fire extinguishers handy in the laundry room and the kitchen.
8. Keep accurate records on smoke detector inspection and changes.
9. Inspect your investment regularly (add it into the lease). Do a weekly drive by to check for garbage, windows, doors locked. Go inside every 6 months to ensure all is in order. It is your investment – use the premise to check smoke detectors, etc.
10. Make all necessary repairs quickly.
11. Be aware of illegal drug use if any by the tenants. Report it.

Know what to say, do, and look for when leasing your investment:

12. When showing your property, take note…did the prospective tenant remove his or her shoes?
13. Never discuss the personal lives of other tenants.
14. Check spellings…if the name is misspelled, the agreement is void.
15. Do not make the lease inclusive (lights will be left on).
16. You cannot legally discriminate against smokers, but you can say non smokers preferred.
17. Do credit checks. Ask if they are working, for how long, and the last place of residence. Get the name and phone number for past landlords.
18. Never give rent discounts for paying on time.
19. Avoid hassles…don’t use a guarantor when renting to students. Instead, get parents to sign the lease.
20. Have tenants initial each section of the lease to ensure they understand the entire agreement.
21. Don’t let tenants paint the home/apartment. Keep a common colour throughout.
22. Make sure tenants have content insurance – ask tenants to initial this clause and request a confirmation letter from the insurance company each year.
23. Keep accurate records of everything tenants have done and all complaints.
24. Consider joining a local property management association (in London, the London Property Management Association)

As a full time real estate professional, Ann Smith has dedicated her life to helping people achieve their real estate goals. Since 1994, Ann has worked her way from sales representative to achieving her Brokers License. Ann’s solid work ethic has been rewarded with several consecutive sales achievement awards, including Sutton Group’s prestigious Platinum Award. Ann can be reached toll free at 1-866-851-1534 or by email: ansmith@sympatico.ca.