Congratulations, someone signed a lease agreement...

One of the most exciting moments of managing a property is when a Resident has signed a lease and paid their deposit!

This is a moment to be relished as it means you have successfully completed multiple stages of the initial assets life, however, this is when the true work begins. The way in which you form a relationship with the Resident as well as the property will determine if your property turns out to be a profitable investment or not.

Managing a property and managing a Resident is not a set-it and forget it task. This is a gentle balance of being firm as a business operator but doing so in an empathic and human way.

What does this mean exactly?

Relationships with your Residents: As a property manager you much first and foremost always remember that the Resident is a person and like all people have their own personalities, life struggles, goals and responsibilities. While your interactions should always be with a respectful mindset there will invariable be moments of conflict and stress. The best property managers are prepared for any and every scenario and plan for how it would be handled up front. This is accomplished through your lease agreement, systems for management, and proper communication upfront and transparency. Through preparations you are able to remove the emotional and stressful components out of handling any scenario.

This is to say regardless of whether you have the most ideal resident or have inherited a deplorable nightmare of a resident, you can engage with both with equal respect, firm decisions, and mutually beneficial results.

Relationships with your Property: The second component to the equation of an executed lease is the property in which the Resident will move into. It is best to remember this property represents an asset and an investment to you but represents a home and a place of sanctuary for your Resident. In both of these cases it is within your interest to ensure the property receives proper and regular attention.

From routine maintenance of the property's major mechanical systems, to proper insurance and ownership structure, how you take care of the business side of the property as well as the physical side of the property will determine your ultimate success level. Successful property management presents itself in a variety of fashion none of the least being healthy cash-flow, reduced maintenance services, lower management stress, and proper asset appreciation.

A lease agreement, in it's own right, represents a significant success within your real estate ownership path but it also brings about the next level of development and challenges to accomplish.