Although it’s clear that rental property is a clever financial investment, mostly investors don’t appreciate the complexities of managing that investment. It doesn’t matter how good you are in the property management business, there’s always something you can get sued for.
As a property manager, you must to make certain employees, contractors, tenants and your properties all work in harmony. Circumvent these five property management blunders and you’ll put your business on the road to success.
#1. Proof of employment/income.
This procedure should be carried out constantly for each new soon-to-be tenant. If you don’t have a set of screening questions, formal process for checking tenants’ references, credit history, it would be very difficult to ensure that your rental property management business achieves success. Put these structures in place and you are ensure of greater successes registered.
#2. Not keeping proper records/notes.
Taking the initiative in your maintenance and tenant management, is the method to make certain you have a steady cash flow and avoid crises. As soon as you create an annual and monthly repairs schedule, you’ll be able to avert glitches, hence, discern them at an early stage. This aids you save money and breeds an amicable relationship with your tenant.
Property managers have a duty to preserve files for payment records, which can substantiate principally significant, if a tenant constantly misses payments or makes late payments. Receipts and warranty information for acquisitions and repairs record properly. Emails and phone calls made, written communication, are always best, for provide the best backup in case of any legal action.
#3. Not maintaining open communication with tenants.
As a landlord, you rely on your property manager to be the principal point of contact for your tenants. Being receptive to questions and concerns will help make sure minimal problems do not aggravate to huge issues. Find out from your new tenants what procedure of communication they prefer, chiefly in cases where a pressing issue needs to be addressed. Make sure you always return phone calls and emails punctually. This is a massive problem in the industry, hence, the biggest complaints tenants have about property managers.
#4. You Don’t Understand the Diversity of Your Tenants and Neighborhoods.
The minute you’re tangled in rental property management, you need to recognize how impending tenants fit with the different neighborhoods where you manage property. Try to understand the profiles of your typical or desired tenants, compiling information about their housing, location, amenity and price preferences. As you market your properties, use this data to define your marketing targets and methods.
J C Loum