With more people preparing to rent instead of owning homes, there has never been a better time to invest in rental property. However, just because there is a high demand for rentals does not mean that becoming a landlord is easy.
In fact, if you are not careful, it can be quite difficult. Here are four property management mistakes that far too many landlords make as they prepare to enter the marketplace.
What Is Property Management?
Before we dig into the management mistakes, let's first define what property management is. Property management is the process of operating and maintaining a real estate investment. This includes tasks like collecting rent, paying bills, handling maintenance and repairs, and responding to tenant concerns.
As you can imagine, this can be a lot for one person to handle - especially if you have multiple properties. That's why many landlords choose to hire a professional property management company.
Now that we've got a handle on what property management is, let's take a look at four mistakes that commonly trip up landlords.
1. Not Screening Tenants
If you want to avoid problem tenants, you need to screen them thoroughly. This means running a credit check, contacting their previous landlords, and verifying their employment.
Be careful not to discriminate against potential tenants, however. The Fair Housing Act protects people from being turned away based on their race, religion, gender, or other factors.
2. Not Being Proactive about Maintenance and Repairs
As a landlord, you are responsible for maintaining the property and making any necessary repairs. If you wait until something breaks to fix it, you will end up spending a lot more money than if you had been proactive.
Schedule regular maintenance check-ups and create a fund to cover emergency repairs.
3. Not Keeping Good Records
Good record-keeping is essential for any business, and rental property management is no different.
You need to keep track of your income and expenses, as well as your tenants’ contact information and rental history. This will help you stay organized and be able to resolve any problems that may arise.
4. Not Being Prepared for the Unexpected
No matter how well you manage your property, you will always face the chance of something going wrong. That’s why it’s important to have a plan in place for dealing with problems as they arise.
Have a list of reliable contractors to call for repairs, and set aside some money each month to cover unexpected expenses.
How to Avoid These Property Management Mistakes
By following these property management tips, you can avoid the common mistakes that many landlords make. If you're new to the property management space, hiring a management company is an excellent way to avoid common property management mistakes.
Five Star Property Management is a professional property management company serving San Mateo, California. We take care of all your rental property needs, from screening tenants to handling repairs. Contact us today to learn more about our services.
Let us keep your property filled and your new investment in compliance with the law.