We all know that mistakes happen, but some mistakes are far more damaging than others. A mistake made as a landlord or property manager could mean wasting time and money tracking down renters.
Property management needs dedication and patience, from talking to and negotiating with renters to staying on top of renovations. It can be a prudent and lucrative investment if done correctly. However, mistakes can happen anywhere, sometimes costing you a lot of money.
However, having knowledge of the common mistakes in the property management business can help you stay on top of things and avoid mistakes that have cost many landlords and property managers dearly. The following are 6 mistakes you need to avoid in the property management business.
- Lack of Communication with Tenants
Communication is critical in an industry that relies on building and keeping relationships with landlords and tenants.
While a communication breakdown may lead to confusion, a lack of rapport and even the loss of clients, being proactive and maintaining open lines of communication can guarantee long-term tenancies, reduced vacancy rates, and higher client satisfaction.
- Choosing the First Potential Tenant You Find
You need to choose the right individual for tenancy, rather than the first one you come across. Finding this tenant requires making an effort to attract them. It means that you should not delay any repairs or upgrades that your vacant property is crying out for.
Get them done as quickly as possible so that you can show your property with pride to potential tenants and ultimately find a tenant who ticks all the right boxes.
- Letting a Real Estate Agent Manage Your Property
Real estate agents do not specialize in property management even if they are experts at finding a tenant for your home. Most real estate agencies do not have the tools or personnel to effectively manage your property.
Additionally, the majority of agents are unaware of the different landlord-tenant laws that apply. As such, it is a mistake to choose them over professional property managers who are well-equipped to deal with all the complexities in managing a property.
- Delaying Routine Inspection and Maintenance
Delaying routine inspections and maintenance is another classic property management gaffe. This might result in tenants leaving serious damage behind when they move out, costing you time, money, and possibly your reputation.
It is critical to inspect the property frequently so that small issues may be identified and addressed before they grow or worsen. This will not only save you time and money over the long term but also keep your tenants alert and give them the perception that you are observant and responsible.
- Choosing the Wrong Contractors
Many of us make the mistake of picking a contractor who appears to be a good fit on paper. Always contact at least two references. A general contractor who is unable to handle the job professionally and efficiently will waste time and money and cause dissatisfaction for everyone involved.
A more experienced contractor may charge more, but remember that the excellent outcomes will save you money in the long term.
- Being Friends with Your Tenants
It is an unwritten rule that you must treat your renters with respect. However, it is also true that you must not become friends with them. Landlords who become friends with their tenants are more likely to treat them favorably, much more than what’s necessary.
Late rent payments or unfiled evictions are examples of things that might be overlooked as a result of this. Also, if other tenants discover that you are not treating all renters the same, you could face legal action.
These are only a few recommendations for first-time landlords renting their property. Make no mistake: whether you own one or a hundred properties, you are running a business. If you do not plan for it, you are inadvertently preparing to fail. As such, you would do well to hire somebody who can help you manage your property investment and avoid the mistakes detailed above.
At Provsion RPM, we have experienced property managers who can help you find the right tenants quickly and cost-effectively. Click here (insert hyperlink) to connect with a property manager today.