Thousands of people become property managers every year.
Unfortunately, some waste time and resources committing avoidable mistakes.
Failure is easy to avoid if you know these mistakes and how to prevent them. You could be making mistakes and not even realize it.
Here we provide the top 10 property management mistakes you need to avoid in 2021.
Whether you’re a novice property manager or an experienced one who wants to make sure they’re keeping up with the times and business practices.
It’s important that you are aware of these mistakes and how to fix them. You’ll be ensuring your success in 2021 and beyond.
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1. Inaccurate Accounting Practices
Running accurate financial reports for your property management business is your fundamental responsibility as a property manager.
With the different accounting software available, it is essential to use the right one for better accounting and good bookkeeping of your business.
2. Neglecting Property Inspection and Maintenance
As a property manager, you need to inspect your properties regularly to make sure nothing is wrong with the property.
It is your responsibility to make sure your properties are ready for all sorts of eventualities, helping you reduce cost.
3. Not Using Property Management Software
Property management demands great convenience for overall efficiency. It can be a challenging and stressful job.
Not only are you handling tenant’s requests, paperwork, and payments, you are also managing the property itself.
This is why it is important to have software that is easy to use and caters to your specific needs.
4. Not Updating Software
Once you develop the habit of updating your property management software regularly, you’ll discover things are just better.
You’ll avoid some issues because they will have been resolved if your software is updated.
The updates are likely to improve performance and add some new features that help you do your job better.
5. Communication Gap With Tenants
One of the best ways to ensure that you are on top of things as a landlord is to communicate with your tenants regularly.
If you do not communicate well, you will end up with issues that take away your time and cost you money.
6. Not Following the Law
Another major mistake property managers make is disobeying the law. Property managers are not immune to the laws and regulations that govern their property.
Take the time to make sure your business follows the law regarding reporting, communicating with your residents, and other essential matters.
If you don’t, you could risk getting sued or even losing your business.
7. Not Being Active on Social Media
If you’re not active on social media, chances are you’re missing out on hundreds of dollars, if not more.
Social media is a great way to engage with your tenants and prospects, helping you build your property management company’s online presence.
Social media platforms such as Facebook, Instagram, Twitter, and LinkedIn are great places to post information about the property you are looking after and the residents you’re seeking to find.
8. Not Screening Tenants Properly
One of the most important aspects of being a quality property manager is the screening process you put each applicant through.
To build a strong property portfolio, you need to make sure that every tenant is sustainable and won’t negatively impact your asset in any way.
9. Poor Documentation
Smart landlords proactively protect their investment and mitigate their risk by drafting detailed lease agreements.
Before you rent your home, you need to decide the terms of your relationship.
The lease will determine how much rent will be paid when it is due and what happens if one party fails to meet their obligations.
10. Charging Too Much Rent
Don’t get greedy. If you charge too much rent, it could scare off potential tenants or discourage your tenants from renewing their lease with you.
While charging too little rent is a poor choice, demanding too much rent can result in losing out on the best tenants.
Knowing how much to charge for rent is essential to arrive at a fair amount.
Property Management Mistakes Bottom Line
Property management can be an exciting yet challenging career.
The most important key to success is avoiding property management mistakes.
As a professional property manager, you’re in the business of keeping properties and tenants happy.
After all, it’s hard to be profitable if your tenants aren’t happy and your property isn’t being cared for.
Avoiding these ten property management mistakes will help you meet your goals and keep more of your profits in your pocket.