Managing property often means wearing many hats. You need to know about repairs, marketing, tenant screening, market analysis, taxes, accounting, and so much more.
There are a few mistakes with managing property that you have to avoid! If you have just bought a property or are trying to improve how you handle a current property, here are six mistakes to avoid.
1. Not Screening Your Potential Tenants
Screening and interviewing your potential tenants can help you to avoid many problems. For example, you can ensure that your tenant has stable employment, makes enough to cover their rent, and has character references in the community.
An interview is also crucial in the tenant screening process to get to know the tenant and see if they will be respectful of the home they are renting and will treat it with care.
2. Not Inspecting and Repairing Your Properties Regularly
Performing property inspections is a vital part of managing property. These assessments can help you ensure that tenants follow the policies laid out in the rental agreements. They also allow you to fix any problems present at the property.
Conducting inspections allows you to provide better maintenance for the property. Regular maintenance improves your tenants’ quality of life and preserves the value of your property.
3. Hiring Unqualified People
When managing rentals, it is easy to look for every opportunity you can to save money. But the people you hire to help maintain your property are not one of those opportunities.
Hiring unqualified people to conduct repairs for cheaper costs has a lot of risks. It can lead to electrical issues or fire hazards, flooding from faulty plumbing, and more. It might save you money now, but it could cost you so much more in the future.
4. Not Sticking to Your Payment Policy
Many landlords create payment policies that allow for late payments. This can be a great thing to do! It can provide a certain level of comfort to tenants struggling financially.
However, whatever your rental policy is, you must stick with it. Consistency in your policies is key to running a property effectively.
5. Not Understanding Fair Housing Laws
Before you become a landlord, please read up on fair housing laws. This can help you avoid a situation where you (consciously or unconsciously) discriminate against a potential tenant based on age, race, gender, or other factors.
Educating yourself on all things rental will help you learn what criteria you can use when screening potential tenants. The areas you need to become an expert in will include credit score or rental history—not religion or sexual orientation.
6. Not Making Space for a Large Enough Margin
Your property is an investment. And most investors hope that they will be able to make some income from their investments! However, you will only be able to make money from your property if you allow for a large enough margin.
When deciding on rent, you should consider all of the costs associated with the property. Considering costs will allow you to create a plan that factors the costs and provides enough income to cover everything.
How to Avoid These Mistakes with Managing Property
It can take a lot of work to avoid these mistakes with managing property. However, avoiding these mistakes and growing your strengths can help to make you a responsible, ethical property manager.
Are you interested in learning more about real estate and property management? Then head over to our Real Estate page for more articles like this.