Common Mistakes That Can Cost an Investment Property Owner Thousands of Dollars
When you own an investment property there are many decisions that need to be made including if you will manage your own property or if hiring a property management company would be a better choice. One of the main benefits of working with a property management company is they have experience dealing with all aspects of what goes into successfully managing an investment property.
There are common mistakes that many investment property owners make when trying to manage their own investment property including:
Locating and approving quality tenants – Finding good quality tenants is not as easy as posting a “for rent” sign in your yard. There is much more that goes into this task. It is important to make sure any new tenant is able to pay the rent, has a good tenant history and will take good care of your property.
Tenant turnover – If the step above isn’t done properly, it could result in high tenant turnover. High tenant turnover is a huge expense as you would have to repeat cleaning, repairs, the application process and there would also be lost income.
Not maintaining the property – This is common with property owners who live out of state or in a different area than the investment property’s location.
A vacant property – The property is vacant because you are having difficulty finding a high quality tenant.
What Comes Next After Finding a High Quality Tenant?
After locating and approving a high quality tenant, your job has just begun! You must ensure that tenant stays happy so there is a better chance they will renew when the lease time runs out. It is best to try and keep quality tenants who pay on time and take care of your property. Some tips to retain quality tenants include:
Always be professional – Don’t cross any boundaries or get attached if you personally like the tenants as you may have to make hard decisions later. Keep in mind this is a business transaction.
Transparency – The lease should be clear and concise regarding expectations that must be taken seriously. Be to the point and not vague or overly delicate as this can lead to misunderstandings.
Maintenance – When regular maintenance tasks are needed to be done, try to schedule them at convenient times for your tenants.
Repairs – When your tenant lets you know that a repair is needed, get it done in a timely manner.
Your investment property should be treated like a business by providing good customer service and making sure everything that needs to be done gets completed in a timely manner. If you own more than one investment property dealing with the whole rental environment can be even more challenging.
There is much more that goes into running a successful investment property and often new investment property owners do not realize what it takes until they are in the throws of managing their own property.
Reed Property Management has the experience and skills needed to professionally manage your investment property. If your investment property is located in Naples, Bonita Springs, Estero or Fort Myers, Florida give us a call (239) 351-2880. Let us do all of the work for you!