Once you buy investment real estate, you virtually become the CEO and managing partner of your own small real estate investment business.

Of course, you feel good about becoming the owner and owner of a real estate investment company. But unless it’s virgin land, your job has just begun. Now you need to manage the property. You are a real estate investor who has chosen space rental as a business, so your goal now is to keep your units full and at the highest rent per square foot possible. In other words, now is the time for you to focus on property management and day-to-day property management activities.

In this article, we want to look at the big picture of property management and look at some rental management basics that anyone involved with real estate investing should understand and strive to achieve.

1) State of ownership – Getting the best tenants and demanding the highest rent is the main goal of property management. Start with a sharp looking building that has good curb appeal; You must maintain the structure, landscaping, common areas, and parking lot in a clean condition. Homeowners must present a clean and sanitary product to potential new tenants, so be prepared to purchase mops and brooms regularly because savvy real estate investors go to great lengths to maintain and improve property.

2) Applications and selection of tenants – Require each potential tenant to fill out an application and then follow up to verify their employment, rental history, and credit and criminal history. Remember, it’s always easier to get tenants into your building than it is to get them out. It is recommended that you avoid department store rental applications and obtain the forms from the local apartment owners association. If you haven’t already, search online for the nearest apartment homeowners association and contact them. They are one of the best organizations real estate investors can join.

3) Emergency repairs – Always have certified maintenance personnel available to perform emergency repairs. This can be your job or someone you hire, but your tenants should have access to a repair “help line” that they can call 24 hours a day when something needs to be fixed right away. Remember, your tenants are your best customers and you are in a unique business that requires your customer to pay you money to use your product. And if you want to generate cash flow to maintain the property and put money in your pocket, you need your tenants. Keep your tenants happy by listening and responding.

4) Aggressive Job Marketing – Spread the word about an upcoming job opening instantly. Use signs, advertise in the newspaper, post fliers, offer a modest referral fee to existing tenants, or post it on the web. Pretty signs and banners out front are an easy way to find potential tenants to rent your vacant units. Just avoid signs that look cheap and poorly written. Take a few extra minutes to show that you take pride in your building and care about how it appeals to others.

5) Coordination of entry/exit – Always plan to have a unit “ready to rent” within a day or two after you move out because when you have tenants ready to move in, they usually want to move in as soon as possible. Even when you don’t have a new tenant on the wings, it’s much easier to rent a unit that’s clean and move-in ready. Things such as dirty carpets, scratched walls, cracked screens, broken switch plates or towel rails, etc., need to be addressed, corrected, and repaired. You may not want to show the drive until it is ready. In the meantime, you may want to show a potential tenant the manager’s unit.

6) Keys and locks – It is always a good idea to change the locks every time you have a turnover of tenants. This added security is good for you and your new tenant. Once the existing tenant vacates the unit, simply call a local locksmith and have the locks changed. The cost is minimal and the benefit optimal.

7) Learn the laws about eviction – Know what to do to evict a defaulting tenant even when you don’t think it’s necessary, because if you find yourself in court with your tenant, you need to be prepared. Unfortunately, many states have passed laws that are not in the owner’s favor. Low-income tenants, for example, have generated tremendous sympathy that requires landlords to be more meticulous in their defense against complaints that end up in court.

8) Keep accurate books and records – Maintaining a good track record of income and expenses is vital to your rental property business and the cornerstone of a profitable real estate investment.

Well, here is an alternative to self-managing your real estate investment.

Many real estate investors simply turn their properties over to professional management companies. The advantage is that it frees the real estate investor from the time and stress of having to deal with tenants and repairs, and puts issues like rent arrears in the hands of experts. A professional management company is not free, and in cases where the property is small enough to be managed by the owner, the cost of outside fees for professional property management may not be justifiable. But hiring a professional property management company is a reasonable option for investors who are hesitant or unable to manage the property themselves.

Should you consider property management during your property analysis?

Yes. If you are buying a property with rental income, during your cash flow analysis (either in a spreadsheet or with real estate investing software) be sure to include 5 to 10 percent of operating income gross to cover potential property management fees, even if you plan to self-manage the property. Here is your success.