Owning an apartment building can be a profitable business. If you consider this investment, there are many things to know before making the purchase. This article will provide information on what you must do to succeed as an owner and manager of a residential rental building. That will help you decide if this is a business you want to pursue.
Best Practices in Managing an Apartment Building
1. Choose a location near public transportation.
By having your apartment building within walking distance of public transportation, you will attract more tenants. You will also be encouraging them to be environmentally friendly by saving on gas.
2. Use green building materials.
As the owner, you are accountable for the carbon footprint of the building. Whether you are building a new apartment complex or are renovating one, use recycled materials, sustainable wood, and low-emitting paints and finishes. You will save money while helping save the environment.
3. Educate yourself on the latest green building technologies.
That will help you make your property more sustainable and reduce your operating costs.
4. Purchase energy-efficient appliances.
Energy-efficient appliances will save money on utility bills and help reduce your carbon footprint.
5. Implement water conservation measures.
That includes installing low-flow toilets and shower heads, fixing leaks, and educating tenants on ways to conserve water.
6. Install solar panels or wind turbines.
That will generate renewable energy and help you save money on your utility bills.
7. Encourage tenants to recycle.
Provide recycling bins in common areas and educate tenants on the benefits of recycling.
8. Plant trees and shrubs around the property.
That will provide shade and helps improve air quality.
9. Comply with all applicable laws and regulations.
There are many federal, state, and local laws that apply to landlords. Make sure you are familiar with these before you start renting out units in your apartment building.
10. Keep your units up to code.
This includes meeting all fire safety requirements and all other regulatory requirements.
11. Purchase adequate insurance coverage.
This will protect you from liability in the event that someone is injured on your property or if there is damage to the property itself.
12. Keep the property well-maintained.
This includes the exterior, common areas, and individual units. Common areas include the lobby, hallways, laundry room, and any other shared spaces in the building.
Repair any damage as soon as possible to prevent further deterioration. Hire professionals to do maintenance and repairs. For instance, you must have the roof regularly inspected and maintained by a roofing company.
13. Be available to tenants 24/7.
Tenants should be able to reach you whenever they need to. This may require you to hire someone to staff the office during off-hours.
14. Have a system in place for handling maintenance requests.
Tenants should know who to contact when they have a problem with their unit. Maintenance staff should be prompt in addressing these issues.
15. Respond to tenant requests and concerns in a timely manner.
If you do not, they will go elsewhere for their housing needs.
16. Screen all prospective tenants carefully.
Check references and run a credit check before approving anyone for tenancy.
17. Have a written lease agreement that is clear and concise.
This will protect you and your tenants.
18. Be fair and consistent when enforcing rules and policies.
All tenants should be treated equally. If you make exceptions for some, it will create resentment among those who do not receive special treatment.
19. Collect rent on time and enforce late fees if necessary.
Be consistent with this so that tenants know what to expect.
20. Have a system in place for dealing with delinquent tenants.
If tenants do not pay their rent on time, you must take action. This may include sending a late notice or beginning the eviction process.
21. Be proactive in marketing your vacant units.
The longer they sit empty, the more money you lose in potential rental income.
22. Keep detailed records of all transactions.
This includes rent payments, maintenance requests, and other communications with tenants.
23. Be prepared for emergencies.
Have a plan in place for dealing with fires, floods, power outages, and other potential disasters. Make sure all tenants are aware of this plan.
24. Hire a security company to patrol the property.
This will deter crime and make tenants feel safe.
25. Hire a professional property management company.
If you do not have the time or experience to manage the property yourself, consider hiring a company that specializes in this. They can handle all the day-to-day tasks of running an apartment building.
Are You Ready to Be a Landlord?
If you’re thinking of becoming a landlord and want to make sure you are familiar with all the responsibilities that come along with it, read through these 28 tips. By following these tips, you can help ensure that your tenants are happy and your property is running smoothly. You will be enjoying your rental income while your building continues to appreciate in value.