The property manager helps in managing your property which leaves you more time and energy to do things you enjoy. However, there are a few things you should keep in mind and 7 Things Investors Should Avoid before hiring a property manager since you are putting your largest asset in the hands of someone else.
The goal of the property manager is to make the entire management process easier for the property owner. After understanding the goals of the owners of the property, things tend to run smoothly.
Homeowners should hire property managers who can work on their demands while also helping them achieve their long-term goals for the property. Make sure to 7 Things Investors Should Avoid as a property owner when working with a property manager to get the best results.
Here are the 7 Things Investors Should Avoid when using a property management
1. Communicating with the tenants
The property manager handles communication with the tenants. Communicating directly to the property manager is easier for tenants so they don’t get confused about who they should be talking to. It becomes complicated when the tenant contacts you for some things and the property manager for others.
You can also have peace of mind because you shouldn’t have to worry about communicating with your tenant. Whereas, communicating with tenants while having a property manager will add stress to your life. Therefore, a property manager can handle all the tasks related to managing your property and you don’t need to keep an eye on the tenant’s needs.
2. Getting yourself involved in marketing and tenant selection
Most often, you would not know who your tenant is. There comes the property manager in handling tenant selection, making sure the tenant is qualified.
Many owners like to choose their tenants themselves because they want to know who is going to live in their home and make sure they feel comfortable with them.
However, the homeowner picking their tenant can quickly lead to fair housing violations. Whereas, property managers have the expertise in fair housing and know what is allowed and what isn’t. Management companies come with strict, written rental criteria that they follow. This ensures nonbiased decisions are taken in selecting tenants and preventing favoritism.
3. Replacing appliances with lesser quality versions
Tenants rent homes at the time of moving in. They would expect to live in a home that provides everything well maintained and of the best quality. If they find something broken, they expect it replaced with similar quality. However, replacing appliances with lesser-quality versions can leave tenants unsatisfied and appliances are more likely to need additional maintenance. Less quality of the appliances also reduces the lifespan which costs you more money in the long run.
4. Not adjusting the rent when there’s no activity
Every property owner wants their home to be rented at the price they wanted. However, the value of the home and what it should rent for often conflict. Based on the different seasons, the cost of the rental property varies. Therefore, 7 Things Investors Should Avoid not adjusting the rent when it’s needed.
Summer usually has the most property activity because of the moving of college students, young professionals, and families. If your home has no activity for about 1-2 weeks, then the price might be too high according to the market or season and needs to be adjusted. If the home is rented for $3000 in July, then the rent should be dropped to $2700 in the winter.
You might think you are losing money initially but pricing the home correctly saves you on vacancy costs. Long vacancies will cost you much more in the long run.
5. Cleaning the home yourself
Before you rent out your home, you need to make sure it is thoroughly cleaned. However, cleaning the home yourself is big mistake owners make. It should be left to professionals. They are equipped with the right set of tools to make your home sparkling clean for potential tenants on time.
Cleaning yourself could take much longer and even then, would not be able to meet the standards of professional cleaning. With a spotless home, you can make your home highly appealing to tenants and shows that you care about their standard of living. If your home will appear clean, tenants would ensure keeping it the same. But if you will present your home as less desirable, tenants would think that you keep it that way in a little messy condition.
6. Renting out home to friends or family while under management
Renting out a home to friends or family members while under management can lead to uncertain problems. If any disagreements between the manager and your friend occur, you will need to come in between to handle the situation for which the manager is hired to handle.
Your friend immediately calls you and drags you into any situation If an appliance breaks, they will likely tell you what new appliance they want. This will turn out to make it difficult for the property manager to do their job effectively and make it hard for you to remove yourself from the situation.
7. Ordering required materials and appliances
If you have a property manager, then ordering appliances and required materials yourself can make it complex for the management. If it comes out defective or doesn’t fit the tenant’s needs, you’ll end up dealing with a bigger problem that the property manager could have easily handled.
Property managers usually have experience in ordering parts and appliances through their preferred outlets. They understand the needs of tenants and what a reasonable price is. They know how to make the best deal for the best quality item.
Get your Property Managed by an Experienced Manager
If you are looking for a property manager, Sunset Property Management can help you. We have a team of experienced rental property managers who can help in renting out your property to the tenants and manage every general maintenance so you can enjoy doing what you love and can live stress-free. So, what are you looking for? Hire a property manager at Sunset right now.
What is a property manager’s first responsibility to the owner?
The major responsibility of the property managers is to inspect the ongoing condition of the owner’s property and ensure tenant satisfaction. They are also responsible for seeking tenants and managing tenant evictions based on the contract with the owner.
What are the main types of property management?
The four main types of property management include residential, commercial, industrial, and special purpose.
What does a property manager do in real estate?
There are various tasks performed by the property manager including maintaining the property, ensuring regular building maintenance, addressing tenant complaints, ensuring timely repairs, handling building inspections for prospective tenants or buyers, and Managing tenant screenings and evictions.