Handling a rental property requires a serious commitment, this business is littered with landmines ticking time bombs waiting to explode so you need to be very careful with your decisions and overall management. Property managers face an incredibly long list of potential hazards from tenants, owners, housing authorities, or service people. Avoiding these Mistakes of Property Management should help you to keep your troubles to a minimum.
1. Lack of Communication
Good communication is an important factor in property management, you must keep communication lines open to avoid misunderstandings that can lead to serious issues.
2. Not Knowing Lead Worth
You must know how much to spend on a new lead if you don't know how much a lead is worth. The answer is you can't. Though the good news is that you will have a huge advantage in being able to choose profitable marketing channels with the confidence of knowing in advance where profitability begins once you figure this out.
So you must define your average profit per client and your average close rate so you can easily back out your highest profitable cost-per-lead.
3. Deferring the Property Maintenance
Rental properties require regular maintenance. Therefore, the landlord's mentality of “if it isn’t broke, don’t fix it” doesn’t work in today’s rental market. Deferring your property maintenance could cause property values to fall, especially in rentals that are in obvious need of maintenance. Property managers will wind up spending more in the future and face loss who defer maintenance now to save money.
4. Showing Leniency with Tenant Liabilities
To handle your rental property you need to walk a thin line between being friendly and being too lenient. Tenants must know that they should be held accountable if needed and what their rights and responsibilities are.
5. Ignoring the law
Some rental property owners disregard the law which is a serious mistake that managers make. You must ensure your property complies with all rules and regulations in place. This means giving your tenants proper moving-in notice as well as including legal advice when it comes to eviction processes and screening incoming tenants.
Thus, if you don’t want to end up in a court trial you must ensure all processes and documents are in line with the law.
6. Disregarding the Tenant Screening Process
The worst thing a landlord can do is fail to screen the tenants before signing a lease agreement. Rushing ahead without checking your tenant's credentials might lead to an array of problems despite being as anxious as you may be to get a tenant into the property and get rent. The most easy-going and friendly applicants will not necessarily make the best tenants because things are not always as they seem.
7. Ignoring the Marketing Importance
Last but not the least, ignoring marketing is one of the most common mistakes in Property Management. Long gone are the days of listing your rental vacancy in the paper, it has become more important than ever with advances in online rental advertising to make sure you are utilizing the most current websites and marketing tools available to advertise your rental property.
The key to a successful rental business is utilizing technology as it is the smartest approach to make the process quick and convenient. So if landlords are not taking advantage of the latest and greatest marketing techniques available then they surely are vomiting a huge sin.
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Whether you have been in the rental housing business for a short time or decades, avoiding these deadly sins will go a very long way to damage you. So avoid these 7 mistakes and watch your business thrive in the rental market.