The rental property market in Nashville is booming, with nearly 50% of homes occupied by tenants. Many people turn to real estate as their primary investment option as it generates long-term growth with minimal risk.
If you have decided to enter Nashville’s rental property market, you have an excellent chance of earning steady profits. However, bear in mind that rental property ownership can be a demanding task unless you choose to delegate it to someone else. Here is what you need to know about property management in Nashville:
Hiring a property manager
Landlords who live out-of-state or far from their rental properties and those that do not like the idea of being on call for tenants 24/7 often look for the property management in Nashville, Jackson, Fort Collins, Denver and Birmingham companies offer to have the work done on their behalf. Some prefer services of large rental management property companies like the Lincoln Property Company or Alliance Residential. Others opt for local companies, such as Browning-Gordon Property Management or RENU Property Management.
Many landlords prefer working with local companies like Evernest, which has an established, outstanding reputation in greater Nashville. The company offers quality service at reasonable rates and is fast becoming a well-known rental property management company in Nashville. Many people prefer working with smaller rental property managers like Evernest as they manage similar properties in Nashville and have offices and agents located within the city limits.
Whether you work with a property management company or opt to go it alone, advertising is a vital property rental function. After all, how will your rental home attract prospective tenants if they do not know it is available? Property managers are well-versed in crafting listings that attract tenants, including professional photographs and detailed descriptions of the home’s features.
Ask potential property management companies to explain their marketing processes to you during the interview process to ensure that they use multiple advertising methods to reach as many would-be Nashville tenants as possible.
Websites like Zillow and Zumper are popular among people looking for rental homes, although you should also consider other listing sites like Hotpads. Additionally, put a For Rent sign outside your home as many would-be tenants drive around neighborhoods where they are thinking about renting property. Another option would be to advertise in local Nashville newspapers.
Before taking on a tenant applicant, do some research and background checking. Not doing so could see you with sitting tenants who do not pay rent. Then you will have to undergo the complicated, messy process of having them evicted, which could see the matter entering Nashville’s court system.
Property management companies should have thorough tenant vetting procedures that relieve landlords of this tedious process. Agents verify an applicant’s employment status and monthly income to determine if they can afford the rent. They might also request a credit report as past financial behavior is a sound predictor of current and future financial responsibility. The final step in this process would be to contact previous landlords offered as references on an application to establish a potential tenant’s past conduct as a renter.
Many landlords fail to ensure that the lease agreements they sign with tenants are watertight and contain no loopholes. Before you present one to a would-be tenant, ask a local Nashville attorney to review it and ensure that it complies with federal, state, and local rental regulations.
Rental property companies have standard lease agreements. However, it would be advisable to run them past a lawyer who can determine if they protect your rights as the rental property owner. Contracts should be fair and contain clauses to cover every aspect of renting, including monthly rental rates, deposits and fees, occupancy limits, and repair and maintenance expectations.
Paying for property management
Companies structure their fees differently, and you should ensure you understand what the monthly fee covers. A typical fee charged is a flat percentage of the monthly rental amount. It covers several company expenses, including advertising, tenant vetting, and rent collection.
Repairs and maintenance are essential components of property management. Companies tend to have established relationships with a network of reputable Nashville contractors who take care of emergencies and routine repairs and maintenance. Find out how the rental management company charges landlords for this and get advice on securing sufficient insurance to cover any substantial expenses.