Have you ever hired a property manager who never returns your calls, never actions your requests and has no knowledge of current legislation?
Many investors decide to manage their own property because they have had poor experiences with property managers. Some of the reasons my investors have complained to me about their prior Real Estate Agents:
1. Horrible customer service
2. No common sense when selecting tenants
3. No rent reviews are conducted for years, resulting in low returns
4. No property inspections means that the property is not being maintained
And these are just to name a few!
I like to warn property investors of some mistakes that can be made when managing their own property so these mistakes can be avoided. Listed below some examples.
1. Comprehensive screening of quality tenants
It is vital that the RIGHT tenant is selected to occupy one of your most valuable assets. This means that all prospective tenants need to be property screened. Some investors get carried away with placing the first tenant who applies for a property and they end up losing money because the right tenant was not selected and was not capable of meeting the rental requirements.
2. Not acting quickly when repairs are required
We understand that everyone’s priorities are different, some landlords prefer to save their money instead of maintaining their valuable asset. In turn, the property becomes run down, difficult to re-let and results in a very expensive renovation for the landlord. On the other hand, if a property is maintained on a regular basis, this minimises expenses for the landlord and maximises returns and also assists with tenant retention.
3. Forming a direct relationship with the tenant
For those investors who wish to manage their own property, it’s easy to form a good bond with your tenant as you are usually dealing directly with them. The issue with this is that it is difficult to form a strong relationship and keep it professional at the same time. In the case where your tenant is in arrears, or spills red wine on your brand new carpet, it suddenly becomes difficult to confront them about it. It is the investors best interest to insure that their asset is well protected. Therefore choosing an experienced property manager to liaise with the tenant and look after your investment is the smart option.
4. Regular rent reviews
There are two types of property investors:
1. Those who review and increase rent on a regular basis and in small increments
2. Those who do not increase the rent in years then serves the tenant with a huge increase which results in a vacant property. I personally recommend that regular increases be served (within reason) so that you keep up with market trends and keep the tenant happy at the same time.
3. Not taking property management seriously
If you want your asset to perform for you, then you will need to trust a professional to manage it. Property investors underestimate the complexities of managing an investment. It’s actually not as simple as you think, so many things can go wrong and unless you know the legislation, it can be very challenging to resolve.
4. No regular inspections
Some property investors don’t have the time to conduct regular property inspections and others avoid them as they feel this is providing the tenant with the opportunity to raise maintenance issues which they don’t wish to address. Routine inspections are essential, in order to ensure the tenant is maintaining the property to an acceptable standard.
I welcome the opportunity to discuss your future property requirements and look forward to adding you to our list of happy landlords! Give me a call at 04 1365 8566.