5 common property management errors and how to avoid them
Did you know 54% of landlords use a property manager to handle new tenants? As someone that is paying the property manager, you expect them to handle everything smoothly and professionally. Property manager errors can happen, but they should be avoided at all costs. However, you can choose to do it by yourself by spending a little time on your current tasks using free property management software.
Learn more about common property management errors and how to avoid them.
1. Screening Process
When someone applies to be a tenant at the property, they must go through a screening process. This includes a background check which will show any red flags. This includes criminal history and failure to pay rent at other places of residency.
Log all conversations, maintenance requests, late payments, and damages. As a property manager, you should document interactions to show you are being responsible and doing your part.
2. Creating a Lease
It may be surprising, but a property management error is to forget to create or have the tenant sign a lease. Many leases explain the dos and don’ts of the property, pet policies, and what happens if the tenant fails to pay rent.
This document holds agreements in every section, and the tenant needs to be aware of what they are signing. This protects the property manager and the tenant.
Some property management companies are experts on how to care for the tenants and landlord. Reedy and Company provide that security for all parties involved.
3. Security Deposit
Another common error is not to forget to collect the security deposit. This deposit is collected before the tenant receives the keys to their new home. This can show good faith that they want the apartment, they can afford it, and they will respect the property.
If there are damages to the rental, the property management company can retain this security deposit to pay for damages. If the home is in great condition after the tenant leaves, they are should get their deposit back.
4. Maintenance Issues
It is up to the property manager to address any issues before the tenant moves into the rental. The property manager should walk through the rental and inspect it for anything that may break in the future or may cause concern.
This process is a part of regular property management, ensuring the tenant they are getting everything in working order. They shouldn’t walk in there and immediately have a number of requests to make.
They should also respond in a timely manner if a tenant says something needs repairing. This can range in urgency but should be taken care of as soon as they can. This will keep the landlord that is paying the property manager happy, and the tenant will be happy, too.
5. Difficult Rental Payments
Many people are using technology in more ways than before. If a tenant can make their payment online from their cell phone or computer, they will be a lot more satisfied.
If the tenant is required to drive or go to another location to make their rental payment, this will cause a headache for all parties. When signing the lease, the property manager should explain how the rent is collected every month.
Property Management Errors
Property management errors can happen all the time, but with processes, this can minimize them. Property managers should be the contact for both the tenant and the landlord. They should make moving into the new home easy.
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