Being a landlord can be a terrific way to create passive income and build your wealth. As with all lucrative work, however, it's important to be prepared for the responsibilities that come with owning rental properties. You may want to consider hiring a property manager or a CPA - or both - if you don't have the time or expertise to be a hands-on landlord and manage the properties yourself. You’ll need to decide what works for you before making a decision about which landlord style is best: hands-on or hiring a property manager.
The Benefits of Hiring a Property Manager
A property manager can take care of the daily tasks of managing your rental properties, from start to finish, including:
- Screening prospective tenants
- Signing leases
- Collecting rent
- Handling maintenance and repairs
- Dealing with tenant disputes
- Evicting tenants
Hiring a property manager can free up your time so you can focus on other things, such as finding new investment properties or growing your business.
In addition, a property manager can provide you with valuable insights into the rental market. With their expertise, they can help you set appropriate rent prices, choose the most suitable tenants, and make informed decisions about repairs and maintenance.
The Benefits of Hiring a CPA
A CPA can help you with all your accounting needs involving your rental property income, such as:
- Preparing tax returns
- Tracking income and expenses
- Managing your budget
- Filing insurance claims
- Dealing with audits
This can help you save time and money and ensure your finances are always in order.
In addition, a CPA can provide you with valuable tax advice. They can help you minimize your tax liability and take advantage of all the deductions and credits available to landlords.
How to Choose the Right Property Manager or CPA
When choosing a property manager or CPA, it's important to interview several candidates and choose someone you feel comfortable with and who has the experience and expertise you require for your particular situation. Of course, you should also ask for references and check their credentials. Make sure they are licensed and insured and that they have a good reputation.
By finding the right property manager or CPA, you can ensure that your rental properties are well-managed and that your finances are in good hands.
Additional Tips for Being a Successful Landlord
Whether you hire a property manager or CPA, or both, there are several other things you can do to ensure your success as a landlord, depending on how hands-on you would like to be.
- Be a good communicator. Keep your tenants informed about important matters, such as rent increases or
upcoming repairs. - Be responsive to tenant inquiries. Make sure to promptly respond to your tenants’ requests.
- Be fair and consistent. Apply the same rules and policies to all tenants.
- Be proactive. Don't wait for problems to arise before taking action.
Following these tips, you can build a good reputation as a landlord and attract and retain quality tenants. This will help you achieve your financial goals and build a successful real estate business. Remember, one of the most important tools for wealth-building is keeping current and complete records.
If you need help with the financial management of your investment properties, contact Myrick CPA today. At Myrick CPA, we can provide you with tax, auditing, accounting, and advisory services.
