10 biggest blunders of property management
Failure to Communicate with Owners or Tenants
For a business based on relationship management, communication is vital. Any issue in communication can lead to collateral misunderstandings, bad raptor or even make you lose your clients. If you want longer term tenancy, you need to keep the communication challenge open.
Communication is key to success for any business. You need to be transparent with every party including the current financial status of property, and activity summary.
Form Direct Relationships with Tenants
You need to invest the effort to communicate with tenants and form a direct relationship with them. It can be rewarding, but you need to limit it because it makes rent increases hard. Business is business and relationships better be kept courteous and professional.
Delaying Maintenance and Inspection
This is another common mistake most property managers make is they delay maintenance and inspection of the property. This allows the tenant to leave excessive damage behind when they go. It will cost you time, money and even your repute.
It’s important you inspect the property on a regular basis. Doing so lets you identify and fix minor issues even before they can develop or get worse It will save your time and money in the long turn. Moreover, it keeps tenants on their toes and lets them know you are responsible and attentive to details.
When maintenance issues surprise, don’t let the tenant handle them as they might make it worse, or hurt themselves.
Hiring Wrong Contractors
You won’t work still for the wrong tenant, so why would you settle for a wrong contractor? Hiring the wrong contractor will have severe repercussions in the long run. So, you better not hire only on price. Instead, you should shop around for reliable and experienced people.
The experienced contractor might cost more, but his quality work will save your money in the long run. The wrong contractor can complete the job, but you will find the same issue needs to be dealt with again in the future. Therefore, it’s better if you invest time and money to get the right handyman.
Not Screening Your Tenants
Property Management in Auckland has its unique way of screening tenants for a house. But the important question that persists are you thorough enough?
If you don’t have an effective screening procedure, then you will run into some major issues This can include anything from not paying rent to pet, damage issues and hidden operations. To keep yourself safe, you have to assure you invest the time and money for a thorough background check. This will help you filter out bad tenants.
Not Writing Important Details in Writing
You will have formal agreements with the tenant. One mistake that almost everyone makes is not writing the important clauses. This includes snaps and timestamps of damage, logs of conversations with a date with details of maintenance requests.
Legacy Software
The last thing you want is sticking to legacy software. Technology is improving continuously, and this is why legacy software has become obsolete. Unfortunately, this is the reality with most managers today. They are sticking with this outdated software which leads to integration issues and makes them lose their market share. Legacy software doesn’t only leaves vulnerable to physical threats, but you cripple your efficiency with bad data management. This leads to the next issue, bad record keeping.
Bad Record Keeping
Incomplete or Back Recording Keeping is a critical issue. There are various ways for you to drop the ball with paperwork. But there is no proper information from tenants; there is nothing you can add in an entry.
Worse, lost or incomplete documents are another common reason. So, you need to take extra care of lease agreements, eviction notice, and other such documents. Combining different documents creates confusion. The combination makes this decision quite challenging. It will be hard for the attorney or judge to recognize who owns the property or lease it. You need to have separate documents for each agreement.
Not Being Clear with Rules
It’s imperative you are consistent and clear with tenant rules. Apart from verbal communication, you need to keep your rules in writing and share with them. You need clarity when it comes to guidelines of your relationship. It’s not enough to call or show up from time to time.
Trusting the Bad Party
Property management is a tough job and responsibility. If you are getting overwhelmed, then its time to outsource. You have to focus on investment portion on the business while something else can help you operate smoothing by taking care of trivial issues.
Source: azbigmedia.com
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