Landlording and Rental Properties

Category: Landlording and Rental Properties

rental property on a sunny day

May 21, 2022

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How Much Profit Should You Make On a Rental Property

A rental property's prospective revenue differs from one house to another. Investors that have unreasonable earnings expectations might be in for a rude awakening. Investors who evaluate cash flow and precisely determine the possible return from an investment home, on the other hand, are more likely to be effective in the long term.We'll show you how to assess the possible revenue from leasing and address questions about what a decent return on a rental home may be for you in this post.Contact us and check out Holdfolio's exclusive deals to get started on your rental property investments. What is the profit from a rental property? The revenue from a rental home is the amount of money left over at the end of every month.It's crucial to understand that investment property revenue differs from taxable net earnings. This is because property investors employ non-cash deductions like depreciation to lower their pre-tax earnings.Property tax exemptions are also one of the reasons why certain rental landlords might pay relatively little in taxation while yet having a large amount of cash on hand. How to Calculate a Rental Property's Profits The cash flow that an investment property creates is what most property investors benefit from. Among the elements that influence cash flow are:The cost of buying a home Payment on a house (principal and interest) Rental revenue, gross Number of vacancies Managing real estate Costs of operation (such as repairs, maintenance, CapEx, and landscaping) Taxes on your homeMake a statement of cash flows for your business. A very basic statement of cash flow for calculating prospective cash return from an investment home looks like this:The purchasing price of the property is $100,000.$25,000 as a down payment.Gross rental income is expected to be $900. Vacancy loss of 5% is $45 Gross income effective = $855 Repairs at a rate of 5% = $45 At 8%, property management equals $72. Other costs (property tax, insurance, HOA dues, and so on) = $180 Mortgage payment = $320 (principal and interest alone) Monthly cash profit (pre-tax) projection = $238How to Calculate the Profits from a Rental Property There are four primary methods for calculating rental property profitability. Regularly monitoring every one of these measures will assist keep your rental property's financial performance on track and guarantee that your lengthy economic targets are accomplished: Cash Flow Upon covering all of your operational expenditures, including the mortgage, cash flow is the amount of cash you have left over as income on a monthly basis.It's crucial to remember that cash flow isn't always consistent from month to month. Repair costs may be more or lower in some months over others, or the building may be empty for longer than intended as you hunt for a suitable renter. Capitalization Rate The capitalization rate (cap rate) is a rate that equates the annual net operating income (NOI) of a property to the purchase price. Because various investors utilize varying degrees of leverage, NOI does not include the monthly mortgage payment (resulting in higher or lower mortgage payments).Generally speaking, the greater the cap rate, the more beneficial an investment may be since more revenue is created relative to the purchase price of the property. Because cap rates vary by market, the cap rate estimate is only used to compare properties within the same market or submarket.The cap rate is determined using the information from the financial statement above:NOI = $238 monthly cash return + $320 mortgage payment (included again in to estimate NOI) = $558 each month x twelve months = $6,696 yearly NOI NOI = $238 regular income profit + $320 loan payment (added later in to determine NOI) = $558 per month x twelve months = $6,696 yearly NOI Property price = 0.067, implying a cap rate of 6.7 percentReturn on Investment in Cash The yearly cash return from an investment is comparison to the number of cash invested in a cash on cash returns ratio. The mortgage payment debt service is included in the cash on cash return calculation, unlike the cap rate.The cash on cash return is 11.4 percent if an investor puts in $25,000 and makes a cash profit of $2,856 annually:2.856% yearly cash return / $25,000 down payment = 0.114 percent annual cash return. Return on Investment (ROI) Return on investment (ROI) is a metric that compares the total amount of money gained to the entire amount of money invested.Let's have a peek at how to figure out your return on investment. In the real world, gross rental revenue and running expenditures might fluctuate from year to year, but for the sake of our example, we'll suppose they stay constant.The home is sold for $150,000 five years after it was purchased for $100,000 with a $25,000 down payment. The cash returned throughout the 5-year holding period was $14,280, which included the net cash gains from leasing ($238 each month x 12 months x 5 years) plus the $50,000 gain realized when the residence was sold.The return on investment is as follows:(20.79 percent annualized ROI) = ($14,280 lease net cash income + $50,000 gain on selling) / $25,000 down payment. The 1% Rule This is a simple and quick tool for investors to assess a property's potential. According to the one percent guideline, monthly rent should equal at least one percent of the total property purchase price.A $300,000 house, for example, should lease for at least $3,000 per month. If this doesn't seem realistic or doesn't match market values, the investment is probably not worth it. Again, issues such as property location and size must be considered.What is a Profitable Rental Property? Because a good return for one property investor may be awful for another, there is no single right answer to this question. Nevertheless, there's a few factors to consider in determining what a decent residential property income could be for you.How much profit should you make on a rental property? Well the answer to that is profoundly personal and you are the only person competent enough to answer it. Consider the following questions to help yourself figure out how much profit you should make on a rental property.What kind of return can I anticipate from a different type of investment? Historically, the stock market has returned 7-8 percent every year. Alternative investments: How safe are they? What level of authority do you have above them?So, if you can somehow make 8% in the stock market, which many consider volatile and difficult to control or manipulate, and 3% in the government bond market, which is frequently hailed as one of the best investments available, what kind of return should you anticipate or require from a property investment?Real property is not quite as passive as stock or bond trading in the beginning. As a result, you may want a bigger return than they can provide.However, because there are so many various investing techniques that are out, there are assets that may suit everyone's needs.If you're willing to accept lower cash-on-cash returns than the share market because you trust in the market's long-term gains, go ahead and invest in those assets. Final Thoughts The amount of money you earn from property investment is only as significant as how much money you make. If you're dead set on maximizing your cash-on-cash returns, go out and buy properties that fit your requirements.If you prefer appreciation, concentrate your efforts on industries that are receiving, or are expected to experience, maximum appreciation soon. It's crucial to remember that a year in property investment is like a single glance — it goes by quickly and has no impact on you as an investor or your property.Real estate investment is a journey, not a sprint, so set a strategy, adhere to it, and don't get frustrated if your target cap rate is 8% but your properties only achieve a 7% cap rate.Things don't always go as planned in real estate investing so investing alongside a knowledgeable and experienced investment company, like Holdfolio, can help you.Here at Holdfolio our tactics focus on generating high profits without relying on guesswork. This suggests that we don't need a fast-appreciating real estate market to get above-average profits. The income-producing homes we buy create cash flow month by month and perform well throughout the real estate cycle. We place a premium on long-term wealth while enabling our business to succeed in any market environment.Contact us today and start making a profit with our exclusive real estate investment deals!
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Mar 30, 2021

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5 Reasons a Property Management Company is Key to Your Rental’s Success

The Benefits of a Property Management Company A property management company could be a beneficial component to your rental's success. A property management company, otherwise known as a PMC, deals directly with prospects and tenants, saving you time and worry over marketing your rentals, collecting rent, handling maintenance and repair issues, responding to tenant complaints, and even pursuing evictions. This allows you to outsource some of the tasks you don't want to deal with for a small fee. Below are five reasons that will encourage you to look into hiring a property management company for your rentals. 1. Property management companies are full of industry experience.  Hiring a property management company provides many benefits to both new real estate and veteran investors. PMCs give you a support team full of individuals who have many years of experience in the industry and can assist you in making the best decisions for your rental. A majority of property managers are licensed real estate agents, meaning that they have a good understanding of the industry. This allows you to have a group of professionals that know how to price your rentals accordingly. Property managers also have in-depth knowledge of the fair housing laws and local laws that affect both landlords and tenants. These laws are very specific, and without a deep understanding of their complexities, one could easily break them.  2. A PMC is an established point of contact for tenants.  One benefit to having a property management company at hand is the fact that it relieves you of having to constantly keep in contact with your tenants. A PMC can also prevent you from losing money because he or she will work diligently to place new tenants in your property so it doesn't sit idle. An experienced PMS can make life easier for your tenants with someone available at all times, especially if you happen to be busy or out of town. This is very convenient for addressing problems like noise complaints, parking issues, etc. It also is beneficial when tenants need to make maintenance requests for things such as replacing fire alarms or lights. Allowing someone else to handle many day-to-day responsibilities saves you valuable time.  3. Property management companies will handle tenant issues.  One of the biggest benefits of property management is that the property manager will handle tenant screening. Having experience with hundreds of applications, property managers tend to be able to spot the red flags that a potential tenant may possess. This could include not being able to pay rent, or having a history of causing damage to the property over time. Property managers can also save you the trouble of having to evict people who can't pay rent on time, and ensure that the process of paying rent is simple. Additionally, a PMC can handle any lawyer fees that may be associated with evictions, and damages made to the property.  4. A PMC can market your rental for you. Another upside to hiring a property management company is that they can take over all of the marketing responsibilities. A PMC will typically develop a marketing strategy for each property that is dedicated to targeting your market segment to get the best results possible, from messaging to the platforms your audience is active on. These professionals have a deep understanding of needing to fill your property with great tenants so that you can turn over the property quickly. A valuable tenant could mean the difference between having to replace carpets or simply having them cleaned.   5. Working with a property management company saves you money on maintenance & repairs. A property management team saves you time. You won’t have to go to the property to fix every problem that may come up such as clogged toilets, broken appliances, and dealing with locked out tenants. The team will handle problems as soon as possible, which will keep tenants happy. It is also a great way to save money because an experienced management team is better equipped to find a cost-effective solution to a common problem.Hiring a PMC is a simple way to save time managing your property. With a PMC, experienced professionals deal with time-consuming tasks, at a relatively low cost, allowing you to scale your rental properties and increase your cash flow.

Nov 13, 2017

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Are You Adding Too Many Finishing Touches To Your Rental Property?

One of the biggest questions real estate investors have (or at least should have), is how many finishing touches and add ons they should give a remodel. There are many factors which play into this. Some standard finishes will differ based on your particular market. Others should be different based on what the tradition and market history is locally, and the price point of your property and surrounding properties. All of these factors can be make or break when you are trying to turn a profit on your properties. The Danger of Over-Improving PropertyOne of the biggest dangers of investing in real estate is over-improving your investment properties. It is the number one pitfall for first time investors. First timers often sink way too much money to over improve a rental property, and often times, they never get any return on the investment. Unfortunately, many investors just don’t know what really adds tangible value to their properties. Being smart and sensible with your value adds can be major when it comes to turning a profit.  When it comes to buy and hold rental properties, it should be attractive to your level of prospective renters. Keep in mind the type of perspective tenant you are looking to attract, and what kind of amenities they need and do not need. Listen to what the market is telling you. But many times landlords must remember that tenants are going to put some wear and tear on the property, and chances are a lot of updates are going to have to be done every time you turn tenants. It could be in 6 months, or 24 months. You just don’t know. So, instead of going all out, especially on items which are easily dirtied or worn, go for slightly more affordable options, and more durable finishes. For example; carpet which can be cleaned, instead of tile which may need to be completely replaced if it is cracked. Or stainless steel sinks, versus custom materials which can stain.This approach applies to flips as well. You’ve got to know what really adds value, and not do any more than that. You’ve also got to know your buyers. Will they be renting the place out? Then stick to the above principles. In most cases, end buyers are going to have different tastes to you. That means no matter how nice you make it, they are likely to redo a lot of your work. Why put in unique, over the top finishes, if they are going to be pulled out and thrown on the curb a week after closing? They also aren’t going to pay you more, just because you think the design is nicer. Many tenants have a set range for the rent they are wiling to pay, and special add ons do not always help move that needle. Just because you spent a few dollars more per square foot on counter tops and flooring, doesn’t mean you’ll get an extra dollar on the sales price.What’s Your MVP?What investors need to know is what their MVP is. That is the Minimum Viable Product. That doesn’t mean be cheap. Do it right, make it look nice, but don’t throw away money. Otherwise you may have to sell at a loss, may not be able to sell at all, or are going to be making a lot less than you thought. You need floors, a roof, countertops, cabinets, bathroom fixtures, and freshly painted walls, but you don’t have to try and win any design awards. Basic countertops will work in most rentals. If you are doing a luxury renovation, you might get away with poured concrete or granite, instead of quartz. You can let the next buyer or renter get their own fridge, or stage it with a basic model, versus spending thousands on a smart fridge which may not be the right model your buyer wants.Know what the minimum standard expected by local buyers and renters is. You can go a little bit above that if you want to move it faster, if you can get a good deal on the materials. But don’t overdo it.There is a lot of confusion around what standard rentals and house flips should be finished too. It is also an area which can make or break investors fast. Know your values, and consult an actual appraiser, not just a Realtor to find out. Then set your own standard minimums based on your area, while looking out for deals on slightly higher quality, but neutral materials.

Oct 18, 2017

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Rental Property Investing: What’s The Best Option For You?

Rental Property Investing: Vacation Rentals vs. Long-Term Rentals Short term, Airbnb-style rentals have been gaining a lot of attention lately, especially in major metropolitan cities.  The question is, how do they stack up as an investment strategy for long-term income property investors? Are they more profitable? Or are long-term annual rentals still the best way to go? Vacation Rental Property Investing Many real estate investors and entrepreneurs have discovered that there are very juicy rental rates to be found by leasing their units to short-term renters for a day, week, or month. A whole new crowd has jumped into this industry to capitalize on this. It is a trend we are seeing more and more each day. When rented as a hotel, property owners can often get far higher average rates than as annual rentals. What may rent for $1,000 a month to a regular long-term tenant, may rent for the equivalent $3,000 per month on Airbnb. There is clearly a lot of value in this short-term rental strategy, but there can be some drawbacks. These rough figures can be very misleading. They don’t account for higher vacancy rates, taxes, wear and tear, and property management costs. All of which can take a big bite out of those anticipated rents.More importantly; experienced investors know that short-term and vacation rentals can be highly volatile. Short-term rental rates can fall just as fast as they rise, due to demand. There are many causes including the economy, new lists of top vacation spots, storms, gas prices, and other factors. All of which can catch short-term rental property owners by surprise. Those who have paid high prices for these assets, assuming they’ll be able to rent at these high rates, can be caught short, and find themselves in tough financial situations if they are not careful.If the numbers won’t work on a deal as an annual rental, be very, very wary. Research around popular message boards and forums frequented by users of Airbnb, VRBO, and more.   Long-Term Rental Property Investing In contrast, long-term rentals offer real estate investors more consistency, stability, and reliability for their investment portfolios. Good long-term tenants can also save a lot on property management, maintenance, and marketing. That can even out the spreads a lot. Even more so when investors are purchasing homes at far lower prices. It doesn’t take a genius to figure out that the yields on an $80,000 home that rents for $1,000 a month in the Midwest, may produce better yields than a condo on the coast that rents for $3,000 a month, but costs $500,000 or more. It is important to run these numbers before deciding on a short term or long term strategy Both vacation rentals and long-term annual rentals can produce income and attractive returns for investors. It’s all about the numbers. Unfortunately, many are not doing the full math, or are looking far enough forward when trying to jump on the Airbnb bandwagon. Do your math well. Get a second opinion from an expert. Make sure your choice matches your personal financial goals and timeline.

Sep 20, 2017

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Renting to Own: The Pros & Cons For Landlords

Rent to own deals appear to be becoming more popular again. What are the real pros and cons for investment property owners?As home prices keep growing, and rent remain high, but mortgage lenders keep underwriting tight, renting to own, lease options, and seller held mortgages all appear to be getting more common again. They are highly desired by tenant-buyers, and can be highly profitable for real estate investors. What should you consider before making the leap?The Pros of Offering Rent to Own DealsThere are a variety of benefits of this strategy, including the following.Easy Exit in Tough MarketsOffering a rent to own option can provide landlords an easy exit, even in tough or declining housing markets. Just make sure it is priced in a way that is appealing and the right prospects can afford.Higher Sales PricesRent to own tenants are mostly concerned about move-in costs and monthly payments. They care little about the actual sales price. This can help you get far more for your property.Passive IncomeCreating a seller financed mortgage note can deliver passive income with a lot less headaches. You no longer need to worry about tenants, maintenance, and all the time and risk involved. You just get monthly payments. The note created is also a new asset which can be sold and cashed in on whenever you like.Providing a Valuable ServiceThere is a huge need for this service. Millennials and families are having a tough time in the rental market. They will find many benefits in homeownership. They may have good credit and incomes, but just fail to qualify for a conventional bank loan due to paperwork quirks. Give them a chance.The Cons of Offering Rent to Own DealsThere are some potential downsides to these arrangements to. Make sure you know them.DefaultsIt may be a little more expensive and time consuming to fix a default situation under these deals than with just a straight tenant.Locked InYou’ll be bound by your agreement for a while. This could be 6 to 24 months or more. You will have to stick it out, even if the market changes.Less Cash NowYou’ll be getting less cash now than in a traditional sale. However, you’ll probably get a lot more over time.LegalitySeller financing is still a bit of a cloudy space due to Dodd-Frank and other regulations. It is legal. Just consult an attorney so that you structure it right, with the right paperwork, and stay protected.There are both pros and cons to providing rent to own deals as a property owner. Do the math. Remember your big goals. Is it worth it to you?

Sep 13, 2017

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How To Prepare For The Slow Holiday Rental Season

 Experienced landlords know that the housing market goes through different phases and cycles each year. Spring and summer can be hot months for leasing units fast and for top dollar. This can change quite a bit once kids are back in school in fall. Most people have locked down in a new lease for the year. People get busy focusing on the holidays, and the weather may put a damper on showings. How can rental property owners ace it, and still keep their units full at this time of year?Move-In SpecialsConsider offering move-in specials. Take a look at your competition and see what you need to do to stay competitive. Can you offer a free month of rent, lower security deposits, or a discount on monthly rent? Test some out. Track the performance of these deals and tenants over time and reevaluate if they are worth doing again.Make Open Houses More AttractiveReal estate in general slows down in fall and winter due to the weather. It is just generally less appealing to go out and view properties. Change that dynamic. Give potential tenants more motivation to come out, and come in to your open houses. How about hosting Santa, or giving away hot chocolate and other freebies?Themed MarketingBuild up your inbound marketing and keep in front of potential movers with themed content. Use hashtags, relevant keyword phrases, and seasonal titles to get noticed and build SEO. This includes blogs, social media posts, and email newsletters. There are tons to choose from starting with Halloween through New Year’s Eve.Pump Up Your TeamYou can’t have your leasing team getting down or considering a new career. Keep them pumped and loyal with holiday dinners, seasonal gifts, bonus plans, and a little extra time to spend with family or holiday shopping.Get Financially PreparedThousands of new real estate investors and landlords get crushed during this season each year. They just don’t see it coming. Maybe they got into the game in the buzz of summer, and made plans based on that market. Those who aren’t prepared can go broke, get discouraged, and quit fast. Anticipate the need for reserves. Be financially prepared with cash flow to get through the months tenants are most likely to be late on their rent. Late August through December can be a little more challenging for landlords. Especially for those who aren’t prepared. Get ahead of the game and make this the season you stand out and excel.

Sep 7, 2017

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How Virtual Reality and Future Tech is Helping Real Estate Investors

Virtual reality continues to be one of the most exciting frontiers in tech, commerce, and real estate. If current trends continue, more real estate buyers, sellers, and investors could find it a necessity in navigating the market, and getting what they want.The Rise of VRVirtual reality (VR) technology has been in development for years. It really began gaining traction with the media coverage of Google’s glasses. Then QR codes morphed into augmented reality apps which enable people to interact with virtual items in the real world, via their phones.Then came virtual reality headsets which are now available in numerous stores, and pretty inexpensively. More recently, leaders like charity: water, and top NYC commercial real estate firms have begun using VR to create new experiences and ways to engage with far off, or future places.One VR company alone has created over half a million real estate related virtual tours in the last few years.Uses of VR in Real EstateVR tours can be used to view homes and rentals online and from a distance. VR goggles are one of the most immersive ways to engage with this material. Though consumers can also often view this material in regular video format through real estate websites and YouTube on their phones as well.Exploring New DestinationsWe may be more mobile, have more location freedom, and need to move or invest in new areas today, but most don’t want to take the time out and spend the money on flights unless they are really sold on the location and product already. VR is the best way to experience somewhere new from a distance so far. It can be used to explore new neighborhoods, views from a property, and local attractions. The ChallengesLike with any new tech, one of the major challenges today is the limited number of users. Not everyone has compatible devices for the best experience. You can spend a lot to produce and deliver this content. Yet, may not be able to connect with enough of the right leads, yet. The solutions are to make sure there is alignment between your product and those already actively using VR. For a few hundred dollars you can get to Best Buy and get your own 360 degree filming equipment and record your own video to save on costs at the beginning.What are your thoughts on VR for real estate? 

Jul 11, 2017

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Property Management: Preparing for the Back to School Rush

How can landlords and property managers prepare for the end of summer rush before school starts?Late spring and summer are considered peak season for home buying and selling. This can result in a back to school rush for tenants to relocate and get into new places before school starts.When you’ve got this much action all at once, it can get really crazy. If you aren’t prepared it may become very stressful and expensive. Stay ahead of the game, and you’ll keep earning the loyalty of the best tenants, and keep your returns up.Preparing for Exiting TenantsThe first step is to get ahead of the game on existing tenants. If you have leases renewing you want to touch base early and get new leases signed. You want to keep your good tenants and have a shot at talking them into staying. You also want to know if they are leaving as soon as possible. Then you can capture other movers in the market and get fresh rental property ads up before everyone is locked down for the next year.Prepare for TurnoversOne of the worst blunders real estate investors make is waiting to put property management in place after a new lease is all closed, and it’s time to collect rents. Savvy investors get property management in the game before the change in tenants happens. A good property manager can help with the needs in getting the property ready, the rental process, and ensuring a smooth turnover.Bring in Extra HelpWith more phone calls, move-ins, and repair requests expected at this time of year, it is smart to bring in extra help. This could just be a part-time outsourced assistant. Factor in what it takes to line up additional vendors and backup vendors for landscaping, turning over units, and handling bookkeeping and tenant screening.Home WarrantiesHome warranty plans can be a huge help at this time of year. Between new rental units, new tenants in units with older appliances, and perhaps new appliances being setup, there can be a lot of glitches. These can be a big time and money drain. Home warranty plans can help eliminate or minimize these expenses and disruptions.Inspections and Preventative MaintenanceThis is a smart time of year to set up routine property inspections and tackle any maintenance issues in advance before they get more expensive or disrupt the ability to keep units occupied. Preventive inspections of the heating units and winterizing the A/C unit is good to schedule for early fall.Better Property Management SoftwareBetter software may help streamline bookkeeping, reporting to any investor partners you have, and with accurately tracking property condition. These programs are constantly being updated, with new companies offering better and better solutions. Make sure you know your options and pick the one that suits your business. Preparing ahead of time and getting the proper players in place can get you ahead of the game and help you to deal with the back to school rush. Don’t let the big yellow bus, with the flashing red lights, get in front of you and hold you up in leasing your properties!

Jul 7, 2017

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10 Simple Ways To Save Time Managing Your Properties

 Property management can be a major time drain if you do not find ways to manage your time. Doing so is a crucial part of the bigger picture, of building a highly profitable real estate portfolio. The more efficient you can be in this part of your investing, the better overall returns you can achieve while preserving time to actually enjoy the rewards of real estate investment.Check out these ten simple ways to streamline your managing your properties.....Accept Online Rental PaymentsOne of the ways to most dramatically streamline property management is to start accepting online rental payments. It will help cut down on time spent taking payments in-house or following up with bank statements and deposit slips.  This can also make it easier for tenants to stay on track with their own rent payments.Get a BookkeeperUnless accounting was your major, and you love it, leave it to someone else. Having at least a part-time bookkeeper can really pay off in maximizing annual tax breaks, and countless hours in pulling together receipts and documents at tax filing time.Proactive Inspections & MaintenanceSlash the time involved in fielding complaints and repair requests, dealing with juggling vendors and additional bookkeeping by staying on top of regular property inspections, and tackling maintenance in advance. Small fixes done early can save many weeks and thousands of dollars.Freedom to make RepairsWhether you are a rental property owner with a property management company, or you are doing the DIY thing and are directly dealing with tenants, consider giving them more leeway to make repairs. Do you really need to personally handle every time a tenant locks themselves out, a toilet gets clogged, or a fuse blows? If it is going to cost less than $150 or $250, why not just give them the discretion to fix it?Renew Leases EarlyIdeally, you’ll know whether tenants are staying or leaving at least 60 days before their lease expires. This way you can work with tenants who are on the fence, which can save an enormous amount of time in turnover work. Or at least you know, and can minimize any vacancy periods.Release Deposits on TimeNot handling potentially explosive legal issues fast can quickly create a lot of work and expense. That inevitably snowballs and impacts your finances in many ways over time. Deposits are a great example. If you delay mailing deposits back to exiting renters, that can lead to all types of problems, versus just handing them a check on the day of your move out inspection.Deliver Default Notices on TimeThe same as above applies to late notices. Train your tenants that if they are late you will start the eviction process. If they can come up with the money, that’s great. It’s also less likely they’ll let it go that far, and create a new turnover situation.Pay Vendors FastWhen you drag your feet paying vendors, they drag their feet. It’s going to cost a whole lot more dealing with late penalties, digging up old invoices, and in time on the phone. You may even wind up being limited to only being able to work with the worst local vendors who can’t get employed by anyone else.Streamline Tenant Selection ProcessIn your tenant screening process, go beyond the credit score or background check and choose who you think will maintain your property the best. The tenant selection criteria and screening process have to be process oriented and very cut and dry with no gray areas. By treating all applicants the same and completing the same process for each person it will help avoid fair housing and/or discriminatory issues.Passive Income InvestmentsOne alternative to cut out the need for virtually all the above is simply choosing passive income options, like turnkey rental properties, or investment models like Holdfolio which come with full-service property management.When looking at the time expenditure for managing properties, it is wise to take into consideration all of the factors that eat up the most time for you.  Where can you cut, who can you outsource, and how can you ensure that you aren’t a slave to your properties?