Top Property Management Mistakes (and how to avoid them)

Whether you are responsible for a single property or multiple properties, managing properties as landlord is a difficult task. Every landlord hopes to turn their properties into thriving investments, but sometimes even your hardest efforts reap low results.

When property owners fail to make a profit, the reason is more often than not ineffective property management skills (regardless of effort). While mistakes are unavoidable, you can take this small list of big mistakes in property management and use them as a starting point to simplify your propety management. 

• (1)DO NOT set your own rental rates - Even landlords are human! When money is involved, we tend to let emotions get in the way. For example, if you are too emotionally invested in your property you might make subjective decisions on rent and market the property for too high a price. Don’t ballpark! It’s recommended to get your rates from market research so that you can make objective decisions about rental rates.

• (2)DO NOT chase rent - Again, emotions and money simply don’t mix. As a landlord, you will get to know your tenants. Unfortunately, sometimes, your soft hearts might get the best of you when it comes time for rent payment and your tenant has financial woes. You need a foolproof method for collecting rent that does not allow emotions to get in the way! Today’s technology makes this easier for ever before. My personal favorite application, Rentigo, allows tenants to set up an automatic payment system through their phone, so that you never have to worry about asking for that rent check again. (P.S Rentigo is honestly my latest favorite app! They literally transformed rent week for me! Do yourself a favor and download it ASAP!)

• (3)DO NOT rent to the wrong people - Screen, screen, screen! The safest way to ensure a good tenant experience is to screen absolutely every applicant, whether you know them or not! Make sure there are no evictions, double check for a criminal record, and strive for tenants with income three times greater than the rent. Most importantly, call references and ask specific questions about timeliness, cleanliness and respect as qualities in the applicant. While things happen and nothing is for sure, a rock solid screening process is the right way to go.

• (4)DO NOT try to upkeep repair and maintenance with DIYs - A lot of landlords try to save money by completing repairs yourself. While we certainly don’t doubt your ability, we must stress that it is always better to leave the work to the professionals. Remember, this is your business and you must care for it as such. DIY repairs are short term, which means more money and more stress in the long run. The minute you hear of a problem, respond with a professional solution.

Is this a comprehensive list of property management mistakes? Not at all! Will you make mistakes? Sure you will! But the bet thing to do is rely on experiences from those of us who have made bigger mistakes (ehem!)

What is your biggest property management mistake?