May 2, 2023 | Sexton Real Estate Group
As a landlord, one of the biggest decisions you will make is hiring a property management company to handle the day-to-day operations of your rental property. While a property management company can make your life easier and help you maximize your rental income, there are common mistakes that landlords make when working with a property management company. In this article, we will discuss these mistakes and provide tips on how to avoid them.
Neglecting Adequate Screening of Prospective Tenants
One of the most important roles of a property management company is to screen potential tenants to ensure they are reliable, responsible and can afford the rent. However, some property management companies may neglect this responsibility and fail to adequately screen tenants. This can result in a high turnover rate, late rent payments, and even property damage.
To avoid this mistake, make sure that your property management company has a thorough tenant screening process in place. This should include background and credit checks, employment verification, and rental history verification. It is also a good idea to ask your property management company about their eviction policies and procedures, and make sure they have a system in place to handle delinquent tenants.
Absence of Property Inventory Management
Another common mistake that landlords make is failing to keep track of the inventory of their rental properties. This includes keeping track of any appliances, furniture, or other items in the property, as well as any repairs that may need to be made.
To avoid this mistake, make sure that your property management company has a system in place to track inventory and repairs. This should include regular inspections and maintenance, as well as a plan for replacing any damaged or missing items. You should also make sure that your property management company provides regular reports on the status of your property, including any repairs or maintenance that may be needed.
Not Prioritizing Tenant Satisfaction
One of the most important factors in maintaining a successful rental property is tenant satisfaction. Happy tenants are more likely to renew their leases, pay rent on time, and take better care of your property.
To avoid neglecting tenant satisfaction, make sure that your property management company has a system in place to address tenant concerns and complaints. This should include regular communication with tenants, a process for handling maintenance and repair requests, and a plan for resolving disputes. It is also important to make sure that your property management company is responsive to tenant needs and is willing to go above and beyond to ensure their satisfaction.
Selecting Properties in Inappropriate Locations
Another mistake that landlords make when working with a property management company is selecting properties in inappropriate locations. This can lead to low occupancy rates, high turnover rates, and ultimately, a lower rental income.
To avoid this mistake, make sure that your property management company has a thorough understanding of the local rental market and can provide insights on the best locations for your rental property. This should include research on local demographics, economic trends, and rental rates. You should also make sure that your property management company has experience working in the local rental market and can provide references from other landlords in the area.
Failure to Preserve Funds
Another common mistake that landlords make when working with a property management company is failing to preserve funds for unexpected repairs or emergencies. This can result in unexpected expenses and can ultimately impact your profitability.
To avoid this mistake, make sure that your property management company has a system in place for preserving funds for unexpected expenses. This should include setting aside a percentage of rental income each month for repairs and emergencies, as well as having a plan for handling unexpected expenses. You should also make sure that your property management company is transparent about any expenses and is willing to provide detailed reports on the financial status of your property.
Neglecting Regular Inspections
The final common mistake that landlords make when working with a property management company is neglecting regular inspections and maintenance. Regular inspections are essential to ensure that your property is being properly maintained, and any issues are addressed before they become bigger problems. Neglecting regular inspections can lead to major repairs, tenant complaints, and potential legal liabilities.
To avoid this mistake, make sure that your property management company has a system in place for regular inspections and maintenance. This should include regular inspections of the property and its systems, such as plumbing, HVAC, and electrical. Additionally, any repairs or maintenance should be addressed promptly to avoid further damage or potential legal liabilities.
Regular inspections can also help to identify any potential safety hazards on your property. For example, if there is a loose handrail on a staircase, regular inspections can help identify the issue and have it fixed before a tenant is injured. Regular inspections can also help identify any potential code violations and ensure that your property is up to code.
In addition to regular inspections, it is also important to have a plan in place for emergency repairs. This should include a list of trusted contractors who can be called upon for emergency repairs, as well as a plan for handling any tenant complaints or concerns during emergency situations.
Our Final Thoughts
Working with a property management company can help make your life as a landlord easier, but it is important to avoid common mistakes to ensure that your property is well-maintained, profitable, and attractive to potential tenants. To avoid common mistakes, make sure that your property management company has a thorough tenant screening process, a system in place for inventory management, prioritizes tenant satisfaction, has experience working in the local rental market, preserves funds for unexpected expenses, and conducts regular inspections and maintenance.
By working with a reliable and experienced property management company, you can ensure that your rental property is in good hands and that you can maximize your rental income without sacrificing your time and energy. It is important to do your research and find a property management company that is trustworthy, responsive, and has a track record of success in the rental market. By taking these steps, you can avoid common mistakes and achieve success as a landlord with a property management company.
Are You Looking for an Amazing Property Management Resource in Northern California?
Welcome to the Sexton Group Real Estate | Property Management, Northern California’s premier property management company! Our boutique real estate company specializes in residential sales for San Francisco Bay Area properties. With three local offices strategically located in Berkeley, Oakland, and Lafayette, we are perfectly positioned to serve our clients in these vibrant communities.
What sets us apart from other property management companies is our deep understanding of the unique charm and character of each area we serve. In Berkeley, we embody the essence of the city’s eclectic and artistic culture. In Oakland, we honor the city’s rich history and diverse community. And in Lafayette, we embrace the family-oriented vibe and community-centric atmosphere.
At the Sexton Group, we pride ourselves on our team of amazing real estate agents. With over 25 years of combined experience in the industry, we have the expertise to help you buy or sell your dream home in Contra Costa or Alameda County. And with a relaxed, down-to-earth approach, we make the process enjoyable and stress-free.
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