As a landlord, you’ve likely made mistakes with your rentals. There are some common mistakes landlords make that can certainly be avoided. Let’s look at five property mistakes you can avoid making by hiring a property management company.
Failing to Properly Screen Tenants
One of the key things a property management company does is screen tenants. Good property managers will complete a full screening to include a background, credit, income, and reference checks.
Landlords trying to do this on their own may become desperate and skip the screening steps. This is common with first-time property owners, as well. Desperation leads to poor decisions and may lead to a bad tenant.
A property management company will ensure you don’t fall victim to this mistake.
Charging the Wrong Rent Amount
When you decide you want to buy properties and rent them for a profit, you have to set the right price. Too high of rent and you may struggle to find a tenant. Too low of an amount and you’ll likely be leaving money on the table.
For property owners, neither situation is desirable. Setting the right rental price matters and a property management company knows exactly what the market will support. Whether you’re new to being a landlord or a seasoned veteran, the “just right” rental amount can be hard to figure out.
Handling Property Repairs and Maintenance the Wrong Way
Too many landlords want to cut corners, DIY repairs and handle maintenance improperly. This is a huge mistake as you could be held liable for a repair that failed and injured a tenant. In addition, handling repairs yourself could lead to many other issues, especially if you’re not skilled at home repairs.
Another mistake landlords make with maintenance and property repairs is hiring the wrong contractor. A bad contractor can be just as bad as trying to handle the repair yourself.
When you choose to hire a full-service property management company, you won’t need to worry. Good property managers have vetted contractors to ensure they only use the best. They have working relationships with local maintenance and repair experts to ensure the right person is handling the job each time.
Becoming Friends With Tenants
A huge mistake landlords make is becoming friends with their tenants. The landlord-tenant relationship is vital to your rental business and must remain as a business relationship.
If you become friends with tenants, they may expect special favors, such as paying rent late without a late fee. It’s a bad idea to form an unhealthy relationship with your tenant.
When you choose to let a property management company handle your rentals, you won’t even need to speak with the tenants. You gain a buffer between you and the tenant.
Becoming Too Busy for Tenants
Often, when a landlord goes from one rental property to multiple, it becomes a problem. They may become too busy to handle the needs of their tenants, which can have horrible ramifications.
When you hire a property management company, you gain the ability to expand your rental portfolio as you see fit. Your property management team will handle the needs of your tenants without you becoming too busy to do so.
There are several mistakes you could make with your rental properties. When you hire a property management company, you gain the ability to avoid these five property mistakes and many others.