Did you know that 56% of property managers also own the building they are managing? Being a building owner or property manager is a lot of work, and being both is even more work. By having this role, you may find that you struggle to keep up with everything without the proper team backing you up. Don’t let that continue to happen. If you want to be a successful property management owner, avoid these five mistakes like the plague.
1. Lack of Inspections
Property management involves scheduling regular inspections to ensure each unit is livable. It is common for a rental property manager to realize a unit has damage only after a tenant has moved out.
2. Doing Repairs on Your Own
Managing property comes with a lot of responsibilities, but completing repairs on your own is not one of them. Instead, you should outsource maintenance to someone eligible.
You may think you are saving money by handling repairs, but the tasks are time-consuming. You’ll save more money by getting the repairs done faster to avoid problems getting worse.
Professional property management teams can take care of maintenance while saving you time and money. You can have peace of mind knowing that repairs will be done correctly.
3. Allowing Tenants to Handle Repairs
Rental properties are not owned by tenants. As the property owner or manager, you may be willing to give tenants a lower rent if they complete their own repairs.
However, this is never recommended because it can end up causing major risks. If an accident happens because a tenant was completing their own repair, you could be held liable.
4. Avoiding Maintenance Completely
As a real estate property owner, you should never avoid maintenance in any situation. Even if you believe the situation is minor, not completing repairs can lead to major expenses down the line.
Any deferred maintenance is a huge mistake. Along with costing you money, it can lower the value of your property.
5. Ignoring Legal Terms
Whether on accident or purpose, property managers may ignore legal aspects. The main legalities to address include tenancy agreements and property condition reports.
Tenancy Agreement
For every tenant, you should have a tenancy agreement. This is a contract that will state the property terms.
This will help property owners hold tenants accountable when needed. It will also protect the property in the case of a dispute.
Property Condition Report
A property owner should fill out a property condition report that lists items on the property and their repairs.
Among having these two reports, you should understand property management laws. These laws may change as they are constantly under review. Having a professional team can ensure you comply with legislation.
Property Management Mistakes You Don’t Want to Make
Leasing a property is not as simple as it seems. Chances are, you’ve taken on something bigger than you can handle on your own.
Don’t worry, property owners and managers are just one part of a larger team. If you avoid the mistakes listed in this guide, you’ll be in good shape.
For additional help with maintenance, leasing your property, and more, contact us today.