‘’Do’s’’ and ‘’Don’ts’’ of property management
Property management is a very wise and efficient choice for landlords who want to see the fruits of their investment property. However, there are a few do’s and don’ts one needs to be aware of when working with a property manager and when managing a property themselves.
In this article, let us share with you our top tips.
Do: Communicate with tenants
Having a good relationship with the tenants has nothing but great benefits to it. It will help in times of trouble and will ensure that the management of the property runs smoothly. Respond to tenants’ inquiries and requests in a timely manner, and keep them in the loop about any changes being made to the property or about any general maintenance that needs to be done, so they feel like a good relationship is being built. Also, ensure that rental agreements are properly enforced. This means that any rules set forth in the agreement should be followed and enforced by the property manager, especially if they regard noise levels, occupancy limits, and pet restrictions.
Don’t: Forget to conduct tenant background checks
Another important aspect of property management is finding tenants that are likely to pay rent on time and in full. Screening potential tenants is a key part of preventative maintenance and can help avoid potential problems in the future. Never forget to run credit and background checks on potential renters to determine if they fit the criteria.
Do: Be proactive in handling issues
Another worth mentioning is to be proactive in assessing damage and repairs. Regular maintenance and inspections of the property should be done in order to ensure that any issues are quickly identified and taken care of before they become larger problems. Also, refrain from entering a tenant’s property without advance notice. This is not only respectful, but it can also prevent any potential legal issues in the future if done without permission.
Don’t: Overlook legal
Be careful not to overstep or ignore any legal or regulatory requirements relating to the property or the tenants. This includes understanding and adhering to local laws regarding rent control, health and safety, discrimination, and so on. As the property manager, it is important to make sure that the property complies with all relevant laws and regulations to protect the interests of the tenants, owners, and the property manager.
Do: Keep accurate financial records
These records help inform decision-making regarding potential investments and management of the existing portfolio and can provide valuable insights not only for internal planning and forecasting but also for external stakeholders such as banks, lenders, and tax agencies. Accurate financial records also ensure tenants are billed correctly, deposits and rent payments are recorded and tracked, and that tenants’ and the company’s money is handled responsibly.
Don’t: Forget to be professional
Never forget that property management is a business, and you need to act like it. You should always be professional, maintain a positive attitude even in difficult situations, and never take advantage of a tenant for financial gain. Property management is a service-based industry, so maintain good customer service to keep your tenants satisfied and serve as a positive example for other property managers.
Do: Familiarize yourself with the local market
Property managers and landlords need to be familiar with the local market to ensure that they are able to provide their clients and tenants with the highest quality of service. Knowing the area allows them to accurately assess the value of a property, make informed decisions about pricing, and make educated guesses about what type of tenant will be a good fit for the space. Also, it allows managers to stay up-to-date on local laws and regulations that may affect their business. Having a good working knowledge of the local market also gives managers the edge when it comes to an understanding their competition and providing competitive advantages that are attractive to potential tenants. Worthy of mentioning that it also gives landlords a better understanding of the potential tenant pool, enabling them to better market their vacancies to the right people.
This is important because it is essential to maintain a good reputation with tenants and to ensure that all tasks related to property management are completed in a timely manner. Tenants expect their rental properties to be kept in good condition, and by not procrastinating, landlords can ensure that they can keep up with the demands of their tenants and ensure that their properties are regularly maintained and kept up to date. Procrastination only causes frustration and delays, which can lead to unhappy customers, a decrease in rental revenues, and difficulty in finding new tenants.
Property management is a complex yet very rewarding job for both managers and landlords. These are our main tips on what to do and what not to do when you’re in charge of managing a rental property.