If you work in property management, there are a lot of factors that you have to juggle. From filling vacancies to handling maintenance and dealing with contractors, your plate is likely full. However, repeated mistakes can cost you money, time, and future tenants. Learn more about some common errors property owners make to avoid them in your own business.
Property Management Mistakes to Avoid
1. Failing to Screen Tenants
To avoid missed payments, conduct thorough background and credit checks of all potential tenants before they move in. Also, contact any listed references and previous landlords for a more comprehensive idea of their history. Verify they have enough stable income to cover living expenses each month, and make sure they won't be spending more than 30% of their income on rent.
2. Communicating Ineffectively
Active communication is essential to your success. Tenants are happiest when they feel like there's transparent communication with their landlords. Proper documentation of your discussions can also one day protect you legally. Put essential details in writing, and take pictures of the property before a tenant moves in.
3. Deferring Maintenance
Putting off property maintenance services could endanger and frustrate your tenants, increasing turnover and making problems worse in the long-run. It can also compromise your insurance coverage, reduce property value and rent amounts, and it may even be illegal. Timely repairs show you take pride in your property and care about your tenants.
4. Inspecting Units Irregularly
Routine inspections are crucial for identifying and repairing minor issues before they become more significant. This will save you time and money in the long run, and it'll also keep insurance rates low. Finally, it'll give your tenants the impression that you're responsible, attentive, and invested in the property.
5. Hiring the Wrong Contractors
Trying to save money by handling repairs yourself, or hiring unskilled contractors, often results in poor quality work that must be redone. This costs more money and resources over time and frustrates tenants with multiple repairs. Some contractors will also overbid for jobs, so be sure to get multiple quotes before making a decision.
Hiring a third-party property management company can help you avoid the stress and complexities of self-management. MetroHudsonMgmt LLC in East Elmhurst, NY, has been helping people throughout the Bronx, Queens, Manhattan, and Westchester and Putnam Counties manage their properties for over 20 years. They offer a wide range of comprehensive services for both condos and apartments, and they also offer commercial property and business services, oversee engineers, and manage a full staff. To schedule a consultation, visit their website or call them at (914) 941-7111.