Property owners looking to sell or rent out their property tend to think that finding a buyer or a tenant is uncomplicated. However, not only does it require the right knowledge of the market, they also find that having an expert property manager makes it much easier.
These real estate experts know the ins and outs of buying and renting, and this is what they have trained for and what they do on a daily basis. In short, they are there to help owners like you manage your property with the least hassle on your part. Before you think you can do it yourself, read about the 5 common mistakes owners like you make when they decide to make do without a property manager.
1. Failing To Document Everything
This goes far beyond just having a written lease. The rental agreement, of course, has to be as detailed as possible so that all possible scenarios are covered. Moreover, you should also record the home’s condition after inspecting it with the tenant, taking photos if possible. By doing so, it is very clear who is responsible for what (in terms of repairs and charges, for example) and what damages are pre-existing or not. Verbal agreements or contracts will simply leave you unprotected by the law.
2. Ruling Out Prospective Tenants
Those who have no experience in real estate may not realize that the way they are advertising their property might actually be putting off any prospective tenants. By being too specific and picky, you might be sending the wrong impression to people who can afford and would have immediately rented out your place.
3. Failing To Get Adequate Insurance
Rental properties are much more likely to be damaged compared to your own home. The truth is, tenants might not treasure it as much as you do, but it’s a good thing there are different kinds of insurance policies available that can protect your property. In fact, you can get it insured against loss of rental income and malicious damage by your tenant, making it easier for you to avoid financial loss in the case you have a bad tenant.
4. Failing To Disclose Valuable Information
If your property is only a few years old, then you are most likely to have nothing but the best and most updated building materials. However, if it is decades old, the house might have some materials that are hazardous, like asbestos or lead. Even issues with mold should be disclosed because it can cause some health problems. In order to avoid any issues with tenants and to avoid being possibly sued in the future, just be honest about the property to your tenant.
5. Failing To Screen Tenants
When it comes to looking for tenants, you might find out that first impressions can really be unreliable. Remember that con men are experts at fooling people like you, and once you trust them, you will find out the truth and get stuck trying to kick your tenant out. Property managers are not just better at reading people, but they also know what documents to ask for to get a more reliable idea of what the tenants really are.
These mistakes can be easily avoided if you have the help of a seasoned property manager. Instead of trying it out on your own and making mistakes and getting involved in accidents along the way, do it right from the very beginning by hiring an expert sitter in the first place.