Across the US, more than 10% of rental units are vacant at any one time.
A vacant property is the bane of any real estate owner. And, it all begins with how you're managing your properties.
The biggest property management mistake is the one you don't know you're making. If you think that doesn't apply to you, think again! Read on to discover the top property management mistakes to avoid.
Doing Everything Related to Property Management Yourself
You may be put off by the cost of hiring a property manager. In which case, you'll probably be left doing everything under the sun.
The naked truth is that property management involves a lot more than owning a property and charging tenants money to live there. Acquiring a property is only the first step in a long chain of events.
Properties need to be maintained, tenants found and screened, contracts signed, and local bylaws adhered to.
That doesn't mean you can't go it alone, but you'll be better off with an experienced team backing you up.
Getting Your Rent Rates Wrong
Asking the wrong amount is one of the most common property management mistakes made by new real estate owners.
Charge too much, and you'll scare off a lot of prospective tenants. Too little, and that's money out of your pocket that could go towards the running costs of a unit, insurance, sundries, or other expenses.
You need to find the price that's just right for your property's size, location, amenities - and one that attracts the right kind of tenant.
Poor Tenant Screening
It's easy to jump at the chance to move a new tenant in and start turning a profit on a vacant property.
Doubly so if the unit in question has been vacant for some time. But, a key piece of property management advice that will follow your real estate career is this: You can never be too careful with your tenants.
While bad tenants can be evicted under the right circumstances, that's a thing that is often easier said than done.
At the end of the day, you have no idea what's happening behind the closed doors of the property you've invested in once it's been leased. Screening tenants and running background checks will save you a lot of headaches in the long run.
As an experienced real estate owner knows, insurance is calculated as a part of your rental income.
And with good reason.
Bad things happen to the best of us - and you never know when disaster will strike. A solid insurance plan protects your property from fires, natural disasters, extreme weather events, and unruly tenants.
The last thing you want is to see your fortune go up in flames.
DIY Repairs and Maintenance
It's cheaper (on paper) to handle maintenance and repairs yourself. And, for the little things at least, that's the way to go if you know your way around a particular broken appliance.
But, leave the complicated stuff for the professionals - especially it involves complex equipment that you might break by accident or anything to do with electrical wiring.
Up Your Property Management Game
Property management involves a wide array of skills that any real estate investor needs to master in order to squeeze the maximum profit out of their units.
At Wilkinson Property Management, we specialize in property management in the metropolitan market in Charlotte, NC. Contact us today for more information.