At least 6.7% of tax filers own rental property. They receive over $353.7 billion in rental income a year.
72.5% of the single-unit buildings are owned by individuals. Only 50% of them receive net income, with the rest losing money.
Writing off the money can help, but smart management is better prevention. Read on to learn how to avoid six common mistakes with property management.
1. Not Screening Tenants
Skipping tenant background checks may seem like a way to save time and money, but it can lead to greater headaches down the road. They may become delinquent on rent or damage property. A thorough screening procedure helps prevent this.
70 million American adults, or 1 in 3, have a criminal record. It shouldn't disqualify them from renting your property, but it does help determine if they're safe to have around. You should also check their tenant, financial, and employment history and confirm their identity.
2. Not Communicating With Tenants
Communicating with your tenants helps create a healthy relationship with them. You can use texts, email, or any other channel you prefer.
This prevents miscommunications about issues such as rent or evictions. It also keeps tenants happy.
3. Neglecting Maintenance
At least 44% of renters had their landlords make necessary rental property repairs without any difficulty. The rest said it was at least somewhat difficult, and 8% said it was substantially difficult. 6% didn't contact their landlord about the issues at all.
Rental property maintenance is one of the most important duties of any property owner. Failing to respond to requests from your tenants can turn a small problem into a major, expensive issue. The same is true of relying on non-professionals to carry out rental property repairs or trying to handle them yourself.
4. Poor Record Keeping
One of the easiest mistakes with property management to make involves documentation. They include financial documents such as taxes and earnings as well as:
- Lease agreements
- Evictions notices
- Move-in/move-out documents
- Maintenance requests
These papers are important for resolving any disagreements and are necessary if you have to go to court. Keep them current and accessible.
5. Poor Inspections
A rental property inspection is one of the first and most important parts of property management. You'll need to do them when tenants move in and when they move out. Check for any damage or illegal changes and provide official documentation of them.
Periodic inspections while they live in the property are also important. Let them know about them in advance. Choose a time to enter that matches the one on the lease agreement.
Perform an inspection at least once or twice a year. Make sure the building is up to code and look for hazards such as mold, insects, exposed wires, and broken smoke detectors or heating units.
6. Not Hiring a Property Management Service
Professionals can take many property manager responsibilities off your shoulders. They can help you find and screen tenants, maintain the property, and more.
This helps prevent you from making mistakes due to burnout or overwhelm. You can also save money and time.
Mistakes with Property Management In Idaho Falls, Idaho
Mistakes with property management are common but expensive and difficult to fix, especially for individual owners. Preventing them helps protect your investment.
Screen every tenant before they enter. Do inspections when they move in, when they move out, and periodically in between. Communicate with them and hire professionals to tend to their maintenance requests. Keep careful, clear records.
Home River Group has the experience to help you avoid these mistakes. Get our property management services today.