{"id":3547,"date":"2021-09-03T10:32:00","date_gmt":"2021-09-03T14:32:00","guid":{"rendered":"https:\/\/propertyonion.com\/education\/?p=3547"},"modified":"2021-09-20T10:49:04","modified_gmt":"2021-09-20T14:49:04","slug":"managing-your-own-multifamily-properties-as-an-investor","status":"publish","type":"post","link":"https:\/\/propertyonion.com\/education\/managing-your-own-multifamily-properties-as-an-investor\/","title":{"rendered":"Managing Your Own Multifamily Properties as an Investor"},"content":{"rendered":"\n<p>Acquiring multifamily properties for investment requires diligence and hard work. But that is just the beginning \u2014 how you handle managing multifamily rental complexes makes the difference between success and failure.<\/p>\n\n\n\n<p>Whether you have invested in a 100-door apartment complex or a 4-plex, there are some key management requirements to follow if you want to remain profitable.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 ez-toc-wrap-left counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">In this Article:<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/propertyonion.com\/education\/managing-your-own-multifamily-properties-as-an-investor\/#1_Maintenance_Should_Be_a_Priority\" >1. Maintenance Should Be a Priority<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/propertyonion.com\/education\/managing-your-own-multifamily-properties-as-an-investor\/#2_Keep_Tenants_Happy\" >2. Keep Tenants Happy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/propertyonion.com\/education\/managing-your-own-multifamily-properties-as-an-investor\/#3_Follow_Landlord-Tenant_Laws\" >3. Follow Landlord-Tenant Laws<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/propertyonion.com\/education\/managing-your-own-multifamily-properties-as-an-investor\/#4_Hire_a_Property_Manager_for_a_Large_Apartment_Complex\" >4. Hire a Property Manager for a Large Apartment Complex<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/propertyonion.com\/education\/managing-your-own-multifamily-properties-as-an-investor\/#5_Hire_an_Accountant_to_Run_the_Books\" >5. Hire an Accountant to Run the Books<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/propertyonion.com\/education\/managing-your-own-multifamily-properties-as-an-investor\/#6_Know_What_the_Tenants_Want\" >6. Know What the Tenants Want<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/propertyonion.com\/education\/managing-your-own-multifamily-properties-as-an-investor\/#7_Be_Cordial\" >7. Be Cordial<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/propertyonion.com\/education\/managing-your-own-multifamily-properties-as-an-investor\/#8_Lease_Renewal\" >8. Lease Renewal<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/propertyonion.com\/education\/managing-your-own-multifamily-properties-as-an-investor\/#9_Keep_Tenants_Aware\" >9. Keep Tenants Aware<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/propertyonion.com\/education\/managing-your-own-multifamily-properties-as-an-investor\/#10_Be_Proactive\" >10. Be Proactive<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/propertyonion.com\/education\/managing-your-own-multifamily-properties-as-an-investor\/#11_Have_a_Reserve_Fund\" >11. Have a Reserve Fund<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/propertyonion.com\/education\/managing-your-own-multifamily-properties-as-an-investor\/#12_Go_High_Tech\" >12. Go High Tech<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/propertyonion.com\/education\/managing-your-own-multifamily-properties-as-an-investor\/#Manage_Multifamily_Properties_the_Right_Way_from_the_Start\" >Manage Multifamily Properties the Right Way from the Start<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_Maintenance_Should_Be_a_Priority\"><\/span>1. Maintenance Should Be a Priority<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>One of the most common reasons why tenants do not renew their lease is that management does not look after the property. These tenants will also spread the word around, making it difficult for you to lease the property.<\/p>\n\n\n\n<p>Besides the <a href=\"https:\/\/www.fdacs.gov\/Consumer-Resources\/Landlord-Tenant-Law-in-Florida\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">landlord-tenant law<\/a> that requires you to keep the property safe and livable, <strong>it is highly recommended that you be proactive with maintenance<\/strong>. For an apartment building or a small multifamily residence, ensure that the hired worker(s) regularly clean up the trash and litter around the dumpsters, keep the surrounding landscape meticulous and the grass well-manicured, and re-staple all loose carpets in the hallways.<\/p>\n\n\n\n<p>In addition, the owner has to make sure that all the plumbing issues are taken care of and there is fresh paint (both inside and outdoors) every five to seven years. In general, tenants do not like to reside in a property that is roach-infested or has poor aesthetics.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_Keep_Tenants_Happy\"><\/span>2. Keep Tenants Happy<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Next to maintenance, you must go out of your way to keep the tenants happy. If the tenants are not happy, you will have a constant turnover of renters, which will undermine your profits because of ongoing vacancies. Create a solid legal contract, establish rules for all tenants, and enforce those rules.<\/p>\n\n\n\n<p>If <a href=\"https:\/\/propertyonion.com\/education\/how-not-to-attract-horrible-tenants-to-your-rentals\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">one tenant<\/a> does not pick up his pet\u2019s poop, warn the tenant that there will not be a second chance. If there is a repair to be done, do not delay it. If there is a delay in the repair, communicate with the tenant. If the tenant is aware that you are doing your best to get the repairs done ASAP, they will remain satisfied and be less likely to complain.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_Follow_Landlord-Tenant_Laws\"><\/span>3. Follow Landlord-Tenant Laws<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Many issues among tenants start when the multifamily property owner fails to follow the landlord-tenant laws. <strong>In almost every state, the laws clearly favor tenants, so the onus is on you to know what the legal facts are regarding tenants. <\/strong><\/p>\n\n\n\n<p>By knowing the law, you will not only have a good foundation for how to run your investment but you will make fewer mistakes that lead to conflicts. For example, you should know how much of a security deposit you can collect and when you are supposed to return it, when you can evict a tenant, and the <a href=\"https:\/\/propertyonion.com\/education\/how-to-evict-a-tenant-in-5-simple-steps-yourself\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">process of eviction<\/a>.<\/p>\n\n\n\n<p>Besides knowing the local county laws, you also need to be familiar with statewide laws that govern landlord-tenant relationships.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4_Hire_a_Property_Manager_for_a_Large_Apartment_Complex\"><\/span>4. Hire a Property Manager for a Large Apartment Complex<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If this is your <a href=\"https:\/\/propertyonion.com\/education\/realistic-goals-when-getting-into-real-estate-investing\/\" target=\"_blank\">first large investme<\/a><a href=\"https:\/\/propertyonion.com\/education\/realistic-goals-when-getting-into-real-estate-investing\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"n (opens in a new tab)\">n<\/a><a href=\"https:\/\/propertyonion.com\/education\/realistic-goals-when-getting-into-real-estate-investing\/\" target=\"_blank\">t property<\/a> and you have another job or are busy, the best solution is to get a reputable property manager. Managing an apartment rental property requires long hours and is exhaustive and demanding work.<\/p>\n\n\n\n<p>Hiring a property manager will relieve you of the stress and the workload. You can even consider hiring a property manager for select work like collecting the monthly rent, restoring the property after a tenant leaves, and\/or handling the maintenance and repairs.<\/p>\n\n\n\n<p><strong>The downside is that good property managers do not come cheap<\/strong>, and the salary can eat into your profits. Keep in mind that some terrible property managers can completely destroy your property and its reputation.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"5_Hire_an_Accountant_to_Run_the_Books\"><\/span>5. Hire an Accountant to Run the Books<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>One area where investors run into problems year after year is with the taxes on the property. The IRS waits for no one, and it is vital that you pay the taxes on time or you will face huge monetary penalties.<\/p>\n\n\n\n<p>Because multifamily investment properties usually have many expenses, a significant number of them can be deducted from annual taxes. It is best to hire an accountant who is familiar with <a href=\"https:\/\/propertyonion.com\/education\/how-to-buy-a-house-by-paying-off-the-back-taxes\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">real estate taxes<\/a> and knows what can be deducted and what cannot. The last thing you want to face is the wrath of the IRS.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"6_Know_What_the_Tenants_Want\"><\/span>6. Know What the Tenants Want<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Different tenants want different things in a rental property. The place should be safe for limited mobility and elderly tenants (have grip bars in bathrooms, high profile toilets, and adequate lighting). College students may want a place with ample storage space for their bicycles and sporting equipment, free WiFi, and some basic furniture. Families may want a place with a playground, a countertop in the kitchen, and an open area for a barbecue.<\/p>\n\n\n\n<p><strong>The key is to outfit your property with the needs of the demographics seeking a rental.<\/strong> If you offer the right amenities, you will attract long-term renters.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"7_Be_Cordial\"><\/span>7. Be Cordial<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Even though this may seem like a no-brainer, property owners and managers often come across as aloof and unfriendly. <strong>In today\u2019s world of business, this is one way to lose long-term tenants. <\/strong><\/p>\n\n\n\n<p>Even though you need to keep the tenant-landlord relationship professional, keep it cordial and amiable too. Just greeting them and asking them how things are is all you have to do. Being friendly also helps develop a bond of trust.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"8_Lease_Renewal\"><\/span>8. Lease Renewal<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>When it comes to lease renewal, you need to be proactive and start at least two to three months ahead of time. Bring up the topic of lease renewal and let the tenant know you would prefer they stay and that their business is valued. If they decide to vacate, the few extra months give you ample time to <a href=\"https:\/\/propertyonion.com\/education\/how-to-find-the-perfect-tenant-even-now\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">look for new tenants<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"9_Keep_Tenants_Aware\"><\/span>9. Keep Tenants Aware<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Tenants do not like major inconveniences about where they are living. If you are going to have any repairs made, roads paved, buildings painted, or the pool cleaned, <a href=\"https:\/\/propertyonion.com\/education\/avoid-these-5-big-mistakes-new-landlords-make\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">let the tenants know<\/a> ahead of time. <strong>In fact, keep tenants informed of all news on a weekly or monthly basis. <\/strong><\/p>\n\n\n\n<p>Send out an email and let them know what is happening in and around the property \u2014 they will appreciate it. If you know of these repairs months before, why only give them the minimum legally required 24-hour notice?<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"10_Be_Proactive\"><\/span>10. Be Proactive<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Whether you rent a duplex or <a href=\"https:\/\/propertyonion.com\/education\/how-to-force-appreciation-in-multifamily-investments\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">operate a multifamily complex<\/a>, be proactive when it comes to maintenance and care of the place. Regularly inspect the units for potential issues and speak to the tenants if there are any potential problems.<\/p>\n\n\n\n<p>You should be making repairs before they become a major issue. Someone living in the unit will quickly be able to answer serious red flag questions like \u201cDo you ever hear what you think are squirrels in the attic?\u201d<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"11_Have_a_Reserve_Fund\"><\/span>11. Have a Reserve Fund<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Untimely emergencies often crop up in any real estate investment, especially large apartments. The roof may develop a leak, the appliances may break, or some tenants may suddenly decide to break the lease and leave.<\/p>\n\n\n\n<p>In such scenarios, <strong>it is important to have a reserve fund for the repairs and to keep you going until you find new tenants<\/strong>. Save at least 5-10% of the rent for creating a reserve fund and you will be able to sleep well every night.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"12_Go_High_Tech\"><\/span>12. Go High Tech<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Today there are many software programs available that enable landlords to not only communicate with tenants but automatically collect rent every month, keep track of all maintenance requests, schedule recurring inspections ahead of time, and send out memos, notices, and reminders.<\/p>\n\n\n\n<p>The software can be accessed from any location by you and your team, and it will help you run the property efficiently. Some great software includes platforms like <a href=\"https:\/\/www.yardi.com\/products\/yardi-voyager\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">Yardi Voyager<\/a>, <a href=\"https:\/\/www.entrata.com\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">Entrata<\/a>, <a href=\"https:\/\/www.rentmanager.com\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">Rent Manager<\/a>, <a href=\"https:\/\/www.buildium.com\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">Buildium<\/a>, and many more.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Manage_Multifamily_Properties_the_Right_Way_from_the_Start\"><\/span>Manage Multifamily Properties the Right Way from the Start<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Managing a small residential investment property is not that difficult, but multifamily units or large apartment complexes do require work and effort. Treat your tenants just the way you like to be treated \u2014 be approachable, friendly, and responsive. Make sure you have a very clear set of plans and goals for the property (short and long term) and stick to them.<\/p>\n\n\n\n<p>Sticking to a plan is the only way to succeed with multifamily properties. Don\u2019t find out the hard way that is advice you can bank on!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Acquiring multifamily properties for investment requires diligence and hard work. But that is just the beginning \u2014 how you handle managing multifamily rental complexes makes the difference between success and failure. Whether you have invested&hellip;<\/p>\n","protected":false},"author":32,"featured_media":3548,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[313,134,82,239,55,76,295,240,54,256,41],"class_list":["post-3547","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-investing-articles","tag-education","tag-eviction","tag-how-to","tag-landlord","tag-law","tag-legal","tag-multifamily","tag-rentals","tag-taxes","tag-tenants","tag-yard"],"_links":{"self":[{"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/posts\/3547","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/users\/32"}],"replies":[{"embeddable":true,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/comments?post=3547"}],"version-history":[{"count":3,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/posts\/3547\/revisions"}],"predecessor-version":[{"id":3551,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/posts\/3547\/revisions\/3551"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/media\/3548"}],"wp:attachment":[{"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/media?parent=3547"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/categories?post=3547"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/tags?post=3547"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}