When you own an investment property, you have one simple goal; you want to make a profit. After installing new carpets, updating the appliances, cutting the grass, fixing toilets, and vetting tenants, you want your efforts to be worth it. But, being your own property manager puts your profit at risk.
If you live nearby and have basic home improvement skills, it can make sense to handle property management responsibilities on your own. But there’s more to the job than most landlords think. Here are three common mistakes rental property owners make that cost them their profits:
- They Choose Their Own Rent Price: To make a profit, you need your rent to be at least $1 more than your mortgage payment. And, when you add extra expenses into the mix, that $1 dollar can turn into much more. It seems like a solid strategy, but it isn’t that easy. If your estimate isn’t accurate, you could be charging too much or even too little; but, a professional property manager will perform a thorough analysis to give you a number that’s fair and profitable.
- They Let Their Emotions Get Involved: When a tenant comes to you with a story about why their rent is late, you have a decision to make. You don’t want to be the heartless landlord that evicts tenants after one mistake, but you also can’t let your emotions get in the way. Your rental property is a business, and if your tenants continually come to you with one heartbreaking story after another, you’ll lose money.
- They Don’t Know Housing Law: Housing law is something every new landlord needs to know. There are countless laws and regulations pointed toward property managers that are meant to protect the safety and rights of the tenant as well as the property owner. It doesn’t matter if you ignore them on purpose or are simply unaware, failing to meet those requirements will put your profit at stake.
It’s impossible for DIY property managers to know it all, but professional property management companies are there to fill in the gaps. Arc Property Management Group in NYC is dedicated to helping landlords make a profit. Call them at (800) 769-8084 or visit them on Facebook for more rental property management tips.