5 Mortal Sins of Property Management

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WELCOME
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A lot of landmines are now being littered in the
property management business. These landmines can
involve the housing authorities, owners, service
people, neighbors, or a combination of any of
these personalities. Sometimes you may need to
face an expensive lawsuit or to handle bad online
feedbacks or reviews. Here are the top 5 mortal
sins that a property manager should not commit.
1. Being not Firm Enough with Tenants Being
too friendly, generous, and not firm enough with
tenants will most likely make you suffer the
consequences. As a property manager or a
landlord, you need to create a narrow border line
between being too lenient and being too friendly
and generous. This does not mean, though, that
you have to be too tough to them. You have to
strictly impose the rules and regulations
including the proper care and maintenance of the
property, partying, noise, living with pets, and
on-time rental payments.
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2. Absence of Written Rental Agreement Most of
the time, this type of business is conducted and
sealed only with a simple handshake. It might
have worked a few years back when people still
consider the value of honoring their words. But
today, you can no longer trust an agreement that
is confirmed through handshakes. One of the
biggest mistakes that can possibly cause future
problems is the absence of written rental
agreement. A written and signed agreement does
not only protect you and your property, it will
likewise serve as a proof of evidence if ever you
need to defend or present yourself before the
court or to another third party.
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3. Poor Communication Poor communication can
lead to misunderstandings. As a property manager,
you should always keep your communication line
open. If you think tracking your conversations is
a bit challenging on your part, you can use a
property management software. It is important
that the owners and tenants can contact you
anytime whenever they have something to ask or
suggest and not only when something goes
wrong. 4. Underestimating the Value of Security
Deposit Never underestimate the value of a
security deposit. Security deposits are
comparable to an insurance policy. It gives you
the assurance that you can get something in case
the tenants failed to pay their monthly rental
fees. Do not waive your right to ask for a
security deposit. Remember, it is always better
to have it even if you don't need it than to need
it but you don't have it.
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5. Neglecting the Red Flags Before handing over
your property's keys to a prospect tenant, be
sure to investigate a bit further first. You
should consider doing background and credit
checks. You should also verify his source of
income. If he was renting on another property
before, ask a feedback from the previous
landlord. If the prospect tenant does not meet
your minimum requirements, it is better to move
on to the next prospect. Never neglect the red
flags like bad credit records, an unstable source
of income, and prior eviction.
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Property management is indeed not as easy as
counting 123. As a property manager or a
landlord, you need to be extra careful when
making decisions because most of them will have a
lasting effect. The decision or the series of
decisions you made yesterday can either make your
business soar high or make you suffer from
unfavorable financial consequences in the future.