5 Deadly Sins of Property Management
It is important to be enthusiastic about managing your properties but there are a few things that you need to know from All Property Management before diving in head first.
- Avoid setting your own rental rates.
It is tempting to set your own rates because you are sure a ballpark number will do. It should be simple, take your mortgage payment plus a few dollars for expenses and you are set! Then you start to think about all of the work that you have put in, and how the carpet was just replaced and how the kitchen was just redone, and up up up the price goes.
It is best if you consult people who have been in the business for a while, keep a tight budget, and remember that just because you made property upgrades does not mean that your rent needs to increase. Consider hiring a property management company through All Property Management. They are able to conduct a detailed market study in order to help you set an affordable and competitive rental price. They can also act as a financial advisor by looking at your property investments and expenses and helping you set up a rent plan that will make a profit.
- Never chase your rent checks!
Just because you are a landlord doesn’t mean that you’re not a nice person. Sometimes your tenants might make you feel like a mean person when it comes time to pay rent. One of the most important things to do is come up with an emotionless, simple system to collecting rent. Everyone’s life situations are different and if you were to make an exception every time someone could not pay rent on time, well, you would be broke. Do not be afraid to charge late fees, or create rules when it comes to rent deadlines. In today’s day and age there are so many different ways to set-up a simple system for managing your business and your tenants.
Eviction. It’s a tough thing to do for certain people, but is necessary in some circumstances. As the landlord, you have several different hats that you must wear at certain times. When it comes down to eviction, though, you have to wear the business hat. You are running a business. Without payment for the product and services, your business will fail and take you down with it. You have to make the hard choice and stand by your decision.
- Compete for your buyers attention
Competition with other landlords is inevitable, so staying on top of marketing your properties should be at the top of your to-do list. As the owner, you need to make your properties known whether online or in a local newspaper. By keeping your available units or properties up-to date and well marketed, you can stay one step ahead of your competitors.
However, having good online reviews will help people want to come see your properties so you can pull them in for the sale. With technology it is impossible to hide how your past or current tenants feel about your product and it is their home, so they will be emotionally invested. You can be sure that potential renters will read your tenants reviews online before deciding whether to come visit. Keeping a property easy on the eyes and up to date is important for more than just quality of living. It can also can help boost the reputation of your properties online.
- Avoid renting to the wrong kind of people
There will always be tenants that feel like they deserve rent free, rule free living. Be wary of those tenants. Do not be afraid to pull credit reports, call references, pull back ground checks if you have any uncertainty at all about a potential renter. By screening every applicant, you can get an idea of what they would be like as a tenant.
- Do NOT overlook housing laws
It is hard to stay up to date with ever changing housing laws. Be aware of all local, state and federal regulations. There are certain kinds of people that will say, “I will catch up on this stuff later.” Do not be that business owner. All it takes is one lost lawsuit to either ruin your reputation or tank your entire business. Staying up-to-date. Don’t miss our next property management post for more information on the 10 most important fair housing laws that every landlord should know.