5 Critical Mistakes Some Property Managers Have Made
Property managers must devote several hours a day to managing their asset. With screening prospects, responding to tenant requests, hiring a maintenance team, collecting rent, accounting, paying bills, etc., committing mistakes are inevitable. Here are a few mishaps property managers have made:
Not Screening Potential Residents
The stories I have heard from managers that have chosen to not screen their potential new residents are dumbfounding to me, if you don’t know the history of an individual(s) you can put yourself in jeopardy by having them move into your community. To be safe you should at least run a background check and always be sure to check references (Work and last residences).
Hiring Unskilled Maintenance Members
I understand the desire to save money but hiring unskilled workers will eventually cost you more than doing it right the first time. Jobs completed by unskilled laborers will more than likely need to be replaced sooner, if not having to be completely redone by a skilled maintenance crew. Have it done right the first time.
Hiring New Contractors on a Regular Basis
When big projects arise on property and you reach out to get 3 bids every time in an effort to save money you are setting yourself up for bigger problems. While you are getting multiple bids, which will take days your issue on your property is sitting with nothing being done with it and residents/tenants are put out so the longer it takes the more likely you will also have resident/tenant complaints. The paper work you are created by going out for these bids every time will also take a lot of additional time. We always recommend building a team around you, find a great plumber, contractor, roofer and have them be your go to people.
Letting Tenants Fix Their Own Maintenance Problems
Unless your resident/tenant is a contractor we would never recommend letting them do the work on your investment property. If you don’t have a maintenance person on staff hire someone that you know can do the project correctly. Also, if you allow your tenant to do the repairs, I would bet they will find additional repairs that need their attention.
Not Doing a Routine Property Inspection
Walking each unit/office regularly needs to be a part of your program regular routine, create an inspection list so you can track repairs that need attention. Also, you should know your residents/tenants and coming onto their home or office is a great way to get to know them.
While not all managers make mistakes by managing their properties themselves, others unfortunately run into problems. Avoid making these mistakes by spending valuable time making sure you manage your asset maintains its shape or by hiring a reputable property management company whose full-time job it is to monitor investor’s properties, hire employees / contractors and screen potential tenants. A property management firm has the time, knowledge and experience to make the best decisions for your investment.