Avoiding Common Landlord Mistakes with Property Management
Rental property ownership is one of the greatest ways to create wealth. It provides the owner not only with passive income but also lowered taxes and potential appreciation in value. Unfortunately, the mere possession of the keys does not assure success, as landlords quickly discover the reality of tenants and buildings.
Without a proper strategy for managing the property, what could be a good investment will soon become a source of stress. Not only could it be a source of stress for you, it could be the same for your tenants. Fortunately, most of these pitfalls can be avoided. The key is to spot the mistakes while you still have the chance.
Error #1: Inadequate Tenant Screening
What a landlord should avoid is rushing to select a tenant. It is easy to do this when a landlord is faced with the possibility of losing revenue if the space is kept vacant. For this reason, a landlord may end up with a tenant who will cause them a lot of trouble down the road.
Rigorous screening is the first defense, and it’s easily achieved with a Shawnee property management company. This encompasses far more than a simple credit check. Professionals will check their employment, call for references from their former landlords, and run a background check. It is well worth a few extra days for a good tenant who cares for the property and pays on time to take the necessary precautions.
Error #2: Failure to Maintain Properties
It may appear that putting off maintenance can be an economical decision in the short term; however, it proves to be quite expensive in the long run. Leaks can eventually lead to major damage, and it may also pose potential risks for minor electricity damage to buildings that are not maintained properly.
Renters also expect a safe and functional living space. When landlords do not attend to maintenance issues, the satisfaction levels among renters are likely to dwindle, resulting in increased turnover. Inspecting the space regularly and attending to maintenance issues show that you are concerned about the space as well as the renters in it.
Error #3: Lack of Knowledge about Land
The rental housing market is a highly regulated industry. Various issues such as security deposits, rental agreements, eviction processes, and fair housing practices are all governed by the law. Lack of knowledge regarding the aforementioned is not a defense that would be applicable in a lawsuit. It is illegal for landlords to fail to adhere to the relevant state and federal statutes.
It’s necessary for you to become acquainted with the law applicable to your region. To protect yourself, it may require you to consult an attorney for property or work with a property manager. It will ensure your leases are valid, and you safeguard yourself from any potential legal tussles.
Error #4: Ineffective Communication
The landlord-tenant relationship is a business relationship. Just like any business relationship, communication is important. Where there is poor communication, there could be misunderstandings, frustrations, and conflict. Where the tenants feel they are not heard or where they are unable to reach landlords in case of an emergency, there could be conflict.
Open lines of communication from the very start of the tenancy are essential. Be clear about what you expect in terms of communication from the tenant if they need something repaired or have some other problem. Tenant satisfaction is easier to achieve if they feel that their concerns are being addressed. In return, they will be more likely to maintain the property and sign a new lease.
Ensuring Your Investment Success
Rental property management entails vigilance, savvy, and proactive efforts. By steering clear of these common mistakes: inadequate screening, procrastination in terms of repairs, lack of understanding about the law, and poor communication, you are positioning yourself for rental real estate success.
Rental property management is more than simply collecting rents, since the best rental property managers are good stewards of their investments, in addition to establishing professional relationships.
However, when these duties become too much to handle, you can always benefit from a professional property management company. They can help bear the burden, and you can reap the reward of owning a rental property without any headaches. The points in this guide will help you ensure a successful rental business, whether you do it yourself or hire someone else to assist you!
