If you are a real estate investor, property management is important. However, you don’t want to make these seven mistakes listed below. This can threaten your return on investment and can cost you time and money.
You don’t have to deal with the stress of poor property management. If you want to find out what property management companies can do for you, contact Teifke Real Estate. Visit their website for more information at https://www.teifkerealestate.com/austin-property-management/.
Let’s take a look now at the following list of property management mistakes you need to stop making right now.
Doing everything yourself
Truth be told, you can’t be everywhere all at once. If you own one property, you don’t have to do it all. Because it might cost you more time and money than you realize. That’s why it is important to find a property manager that will handle most of these tasks for you.
You have other priorities to focus on. It’s always a good idea to consider a property management company that will handle all kinds of tasks. That’s because they have the right people that will perform certain tasks such as groundskeeping, repairs, and more.
Why rely on yourself to do everything? It can stress you out and you might not get much rest. Things can happen on your property and you might be stretched too thin.
Don’t risk your health and sanity to do everything. Have other people do it for you.
Hiring real estate agents to manage properties
Real estate agents buy and sell homes. Nothing more, nothing less. They don’t know everything about property management.
Nor do they have the tasks and abilities to do so. That’s because they don’t have a strong system in place. Not only that, they are not well-versed in landlord-tenant laws.
So it would be a smart idea to leave the real estate agents to do what they do best. One more reason why a property management company should do the job better. And once again, yourself is not the best option.
Lack of or no property insurance
Your property must be insured no matter what. Because accidents can happen and you can be liable. You want to protect yourself from any legal issues that may arise.
A tenant can get injured or killed due to safety hazards. Property and liability insurance is a must for every property you own. Things can happen, even if it’s beyond anyone’s control.
Be sure to look around for any insurers that can cover not only one property, but multiple ones once you start expanding your real estate portfolio. You can be able to save a ton of money on a package deal that will cover every piece of real estate that you own.
For example, you can get a policy that covers only apartment buildings. If you end up acquiring a single-family home, you will need to purchase a separate insurance policy for that. Also, if the insurance policy doesn’t give you the right amount of coverage, skip it and find a different policy that will.
Not updating contact information with HOA
As a property owner, you will need to update your contact information with the Home Owners Association. That’s because failing to do so can lead to fines and large fees. It’s important that you check to see how often you need to update your information.
In the event of a number or address change, you’ll want to notify them. You may also face foreclosure if you fail to do this. This can cause your finances to take a massive hit.
It may be nice to set things and forget. But this task is not one of them. Your property management company may notify you of updating your information, should the opportunity arise.
Befriending your tenants
It’s fine to be courteous to your tenants. However, you want to keep the relationship strictly professional. The reason for this is that you can let things slide with your friends (even if it’s a slight mistake).
If you are friends with your tenants, it will get the latter thinking that it may be OK to skip the rent. Other tenants may resent you and accuse you of favoring one tenant over the other. All tenants should be treated equally no matter what.
Failure to do this can lead to lawsuits. Keep the relationship professional at all times. Nothing more, nothing less.
Hiring subpar contractors or DIY repairs
You want to maintain your properties to the point where they are safe for the tenants. When repairs and renovations are needed, a contractor must do a good job. Poor service and professionalism should not cut it.
It’s also incumbent upon you to hire contractors that are highly reputable. This way, they can do a good job and you can rely on them whenever you need repairs done. One last thing, don’t do these repairs yourself.
Your repair skills may not be the best and things can go from bad to worse. Don’t take chances – hire a professional to get the repair jobs done. And make sure they do a satisfactory job.
Refusing to settle tenant disputes
If a tenant has a dispute with you, it needs to be settled accordingly. It should never drag out as long as it has to. If you refuse to settle, it can turn into a legal battle that can get ugly.
You can get dragged into a lawsuit. If a property manager refuses to do this, you might also be tied up in court as well. Even if you have no involvement over it.
It’s important to treat every tenant dispute fairly and make a decision to settle as soon as possible. The sooner, the better. The last thing you need to deal with is the stress and legal headaches that might follow.
Take each dispute seriously. And make sure you give a chance for the tenant to have their say.
