3 Biggest Mistakes Rental Property Owners Make
If you’re a rental property owner, there are certain common mistakes that you should avoid if you want to ensure your investment is successful. These mistakes can lead to major losses and costly headaches that you can easily avoid.
Luckily, a property manager can help you steer clear of these pitfalls and ensure your rental property is profitable. Discover some of the most common mistakes to avoid and how a property manager can help.
Failure to Set the Right Price
Oftentimes, many rental property owners—even experienced ones—fail to set a competitive rent price. They sometimes charge too little or too much for rent and don’t realize the mistake until it’s too late. This pitfall can lead to either low rates that make you miss out on potential profits or very high rates that scare away potential tenants.
You want to find an equilibrium where your rent is market-competitive but also allows you to generate enough income to maintain and improve your property.
A good way to determine an appropriate amount for rent is to research what similar properties in your area charge and use that as a starting point when you want to set your own rental price. But this process isn’t always easy and can be pretty time-consuming. You’ll need to continuously keep up with ever-changing market conditions.
Thankfully, a property manager can help you make informed pricing decisions and ensure that your rental rates stay competitive. Their vast experience in the industry allows them to know what kind of market demand for rent exists and how to set appropriate prices.
Failure to Screen Tenants Properly
Tenant screening is a huge piece of the puzzle for a successful rental property, but many owners overlook or shortcut this important process. You could unknowingly rent out to a tenant who’s had issues in the past, or fails to pay rent on time. This mistake can lead to major losses for your rental business.
A property manager can help you effectively screen tenants before they move into your rental. They’ll use their network and resources to thoroughly evaluate any potential tenants before the tenants sign a lease agreement. These experts perform intensive credit checks, verify employment, and even check references from previous landlords or employers.
This step helps the property manager select tenants who are more likely to stay in the long term and pay their rent on time each month. This helps you reduce turnover costs associated with vacancies and evictions later on.
Failure to Set Proper Maintenance Procedures
Proper maintenance procedures are essential for any rental owner who wants to keep their properties up-to-date, safe, and attractive for potential tenants. These procedures also help you avoid costly repairs due to neglect or wear-and-tear damage over time.
The procedures could include tasks like regular inspections, preventive maintenance, and emergency repairs. But they can be difficult to monitor or consistently follow, especially if you’re a busy owner. In fact, many property owners often overlook or neglect these important procedures altogether.
A qualified property manager can help you develop a maintenance schedule tailored specifically to your needs and coordinate any necessary repairs with contractors or other vendors as needed. They have a wide network of experienced professionals who they can call on to help when there’s a need.
In addition, many property managers also offer tenants an easy way to report maintenance requests, so small issues don’t turn into bigger, more expensive problems.
At New Leaf Properties LLC, we understand the importance of proper management and strive to provide exceptional service to all our clients. We offer a wide range of services, from tenant screening to maintenance, so you can rest assured that your rental property is in good hands. Contact us today to learn more about how we can help you maximize your investment.