Landlords handle an average of 6 repair calls a year for each of their investment properties. That’s almost two per month, adding to the time and cost of managing a rental property.
Are you looking for ways to improve how you manage your rental properties? Here are some common property management mistakes to avoid.
1. Not Planning For Vacancies
Treat your rental properties as a business by taking the time to complete a budget every year. Build in a vacancy allowance by assuming the rental won’t be occupied every month of the year. When you keep track of your revenues and expenses, you will have the information you need to make decisions.
2. Failing to Screen Tenants
Finding a new tenant takes time, and it might be tempting to take shortcuts when performing tenant screening. This is one step you want to be sure to complete. Once you rent to a bad tenant, it’s challenging to get rid of them when they become a problem.
3. DIY Property Management
When you manage your own rental property, you will wear many different hats. It takes a lot of time, and you have to be willing to work with various people. If you hire a professional to take care of your property, they can take over.
A property management service will know how to find the right tenants, and they will take care of rent collections and deposits. A manager will take calls from tenants and hire the right contractor to take care of repairs. This frees up your time and allows you to research other investment opportunities.
4. Neglecting Regular Maintenance
If you take care of your rental property, especially equipment and fixtures, they will last longer. Set up a schedule for regular property inspections inside and outside of your rental property.
Rental property maintenance is key to preserving the value of your asset. Be sure to check under sinks and around toilets and tubs. Water leaks can lead to a hefty repair if you don’t catch them early.
5. Incorrect Record Keeping
Open a bank account for each rental property you own. Never mix your business and personal expenses in one bank account. It’s confusing, and you’ll have to spend a lot of time sorting information at the end of the year.
Invest in property management software if you want to simplify your bookkeeping. It will make it easier to prepare your bank reports or prepare your taxes.
6. Letting Tenants Perform Repairs
Always tell tenants that you will take care of any repairs or maintenance required in the rental. Encourage them to call you if there’s something that needs fixing. That way, you are more aware of the condition of your units.
Hire a professional for major repairs and get it done right. Never let tenants do the work themselves. You may end up with damage to your unit or a repair that isn’t up to code.
Avoid Property Management Mistakes
If you want to avoid these common property management mistakes, we can help. We have the experience and expertise to assist you with your property.
Contact Outland Real Estate today. We offer a full range of services for rental property investors on the central coast of California.