As a property investor, you may prefer having absolute control over your real estate investment. Granted, if you own a single rental property in Central Florida, it is manageable to oversee it on your own. Being a landlord and carrying several stresses, however, is not for the faint of heart. This task requires tenacity and a great ability for follow-through.
As a landlord, you want to avoid the following management pitfalls to succeed in the rental property business.
Here are things to watch out for:
Mistake No. 1: Bad Communication
You should prioritize communication since you’ll be dealing with your tenants all the time. Naturally, you want to avoid conflicts that will lead to potential lawsuits. It’s also imperative that this underrated skill is not taken lightly. Landlords, even the experienced ones, can sometimes commit this mistake by not communicating enough or responding too late.
Communication channels should be open in a manner that’s both acceptable to tenants and landlords. This could be in the form of a scheduled meeting/follow-up. It could also be done online with the various communication platforms available.
Benefits of Good Communication:
Builds long-term relationship
A tenant will prefer to stay in a rental property where the landlord is available for communication. Ideally, the relationship should be cordial but professional. As a landlord, being too friendly might put you in an awkward position when it comes to raising rental prices or even collecting rent. It pays to remember that managing a rental property is, first and foremost, a business.
Provides clarity on specific policies
It’s important to put details into writing. This can be communicated via the lease agreement. When verbal communication is necessary always document and make note of conversations with tenants. You can also make use of pictures with timestamps for further proof of agreement. This is vital especially when proving your case in a legal environment.
Results in superior customer service
If you communicate well with your tenants, you will be able to find out what brings them value. You can obtain a variety of ideas on how to serve their needs better. This could spell the difference between long-term tenants and quick turnovers that are costly in the long run.
Mistake No. 2: Negligent/Inconsistent Maintenance and Inspections
Property upkeep is a priority since your property is a valuable asset. As a landlord, you must keep its maintenance updated regularly to make sure your property remains competitive in the market.
Benefits of Thorough Maintenance:
Prevents hiring the wrong contractor
It’s vital that the right professional should be hired for the job. Don’t skimp on the cost of hiring the right contractor. You can conduct a bidding process but make sure that the reason for selection is the quality of work more than the price. Always pay attention to value when deciding.
Discourages tenants from conducting repairs/maintenance by themselves
It’s basic that tenants should not conduct the repairs on their own. Even if they’re licensed or skilled at maintenance, it’s safer for you to bill out the repair. This way, you can avoid hospital bills and having to pay for the time the tenant’s unable to work.
Keeps you from personally conducting repairs/maintenance
As a landlord, you might be tempted to conduct repairs or maintenance on your own. The best practice is to hire a licensed professional. That way you’ll be sure the repairs are done within the law and you have invoices to back up the repairs that were made.
Mistake No. 3: Poor Planning/ Lack of Strategic Thinking
Some landlords can also make this mistake by failing to upgrade their skills, knowledge, and software technology. If you’re updated with market trends, it will be easy for you to market and attract quality tenants. Pricing your rental right will also result in optimum profit for you as an investor.
If possible, invest in newer technology that will be more convenient for you to run your business. This saves you time, effort, and increases the security of your rental business.
Benefits of Strategic Planning:
Proper screening of Tenants
Properly screening your tenants is crucial to the success of your rental property. By placing reliable tenants it will make your life as a landlord much easier. It will also save you money in the long run.
Organized systems and record-keeping
This promotes efficiency in your rental property business. Not only is it important to know the financial status of your asset, record-keeping is also necessary for tax purposes.
Whether you’re preparing to become a landlord or already own multiple properties, keep these issues in mind. By properly communicating with your tenants, promptly addressing repairs and maintenance issues, and keeping proper records you’ll have a successful rental property business!
If you’d prefer to have all the work for your rental home taken care of don’t hesitate to reach out to us at State Property Management. You can give us a call at 407-634-2800!