When it comes to property ownership and being responsible for your own buildings, there are some common mistakes that are made quit frequently. Usually long-term property management owners know their ways around this industry, but to the newbies, here are some helpful tips when it comes to property management.
First rule of thumb: If you are a property owner and want to leave the work up to a property management team, make sure that they are qualified. Ask for references, check out the company online, meet them in person- make sure everything feels right. If you are going to do all the leasing and management work by yourself, make sure you have a trustworthy team or a good process in place.
Don’t be desperate to fill in the properties. This is another huge mistake for first time property owners. When you are desperate to fill a rental house, you’ll make poor decisions on the type of tenants you’re looking for. It is way better to wait longer to find good renters then to just fill in the spaces.
Sometimes it isn’t the best idea to rent out to friends or family due to them playing the “I’m your friend,” or “But we are family card.” This could only turn out ugly quickly.
Another mistake first-time property owners make is not utilizing a well written, owner protecting rental/lease agreement. Make sure that you go through all the legalities when it comes to renting- you don’t want an issue where you go to court and you could be on the losing side.
A follow up to having a good lease agreement is to properly enforce late payments and notices, such as the ten-day notice to comply or vacate. Without serving the paperwork, you are letting go of your ability to take action against those tenants. Be timely, and be consistent.
Maintenance…. This is your responsibility and you might have to hire a team. If a tenant calls you reporting mold or an broken AC issue, respond to it quickly and professionally. If you don’t take care of your tenants you could end up in court, and with a bad reputation in the industry. Take care of your properties, after all they are yours.
These are just a few tips for beginning property owners. If you don’t want to hassle with all of this you can always call C.A.B. Group! We take the hassles out of being a landlord while working to protect and enhance your investment. C.A.B. Group can do it all from tenant procurement, rent collections and maintenance!