We all make mistakes from time to time, but when you’re in charge of or running a property, these mistakes can lead to long term failure. And some of these mistakes can sometimes just be chalked up to a lack of self-awareness. So today, we go over the top five sins that property managers and rental owners can make without them even realizing from working overtime, poor marketing strategies, to pulling off appropriate tenant screening methods. We’ll cover it all!
5. Working Overtime to Collect Rent
Things that appear like common sense may actually be costing you in the long run; especially if there are more efficient ways. One of these scenarios falls under working overtime to collect rent. Sometimes a tenant is on vacation, in the hospital, works nights, the list goes on. That list of things can make it hard sometimes to get that rent check in person or for them to drop it off. This leads you, the owner or manager, to fall into overtime to collect that monthly payment. To avoid this, there’s a simple fix: establish online rent payment systems. These systems can make payment far easier for the tenant. It also eliminates a number of possible excuses on the resident’s side of things.
4. Stale Marketing
When it comes to marketing, what works is often changing at a rapid pace. One moment ads on Craigslist is bringing you in clients and services and the next moment Craiglist is outdated. When it comes to marketing often times when your strategy goes stale, so do your results. The key here is to constantly adapt and change your strategies. You never want to still be using the old method when that method has gone cold. You want to always be on the lookout for where your clients are headed and then market there until that strategy has gone cold. Marketing is all about adaptability and growth.
3. Guessing Rental Rates
One of the top reasons freelancers, new businesses, and contractors lose money today is because they simply undervalue or overvalue their business. Undervaluing costs money over time through higher margins, while overvaluing turns customers and clients away from the start. The problem here derives from guessing rates and this applies to renting as well. If you’re overpricing your rental property, then the property down the block will surely do better, while other pricing errors will lead to other issues down the line. The key to avoiding falling into the habit of guessing rental rates is to simply use research, compare tents in your market and then establish how much your own should be. Random prices will lead to random sales. With research you know what the market calls for leading you to be on point with potential renters.
2. Avoiding Tenant Screening
When you first started out in the property business you took the time to see what it takes to be a rental owner or property manager. You put in the work to learn the business as end the same should be done when it comes to verifying the backgrounds of potential renters. A mistake owners make is avoiding resident screening. Owners and property managers should always put the time in to do background checks on their renters. This way, you ensure your current tenants and yourself that all your renters are credible, trustworthy, and safe.
1.Disregarding Housing Laws
Lastly, there will always be situations that occur that aren’t in your handbook, much like dealing with some noisy tenants. See CIC’s 5 Best Solutions To Successfully Handle Noise Complaints for that one. When problems arise or random situations occur, it’s always important to abide by the housing laws of your city and state. So many rental owners and property managers screw up big when then accidentally break the law and lose out to their tenants. Know the law to protect your business but more importantly yourself.
Common mistakes aren’t always common sense, but now you should be a little bit better equipped with the above signs to avoid while running your property. It’s an ever-changing landscape and much like marketing, if you adapt and keep learning, you’ll be running things smoothly year to year.