Did you know that 45% of landlords don't have a management company managing their properties? More than half of landlords rely on a property management company based on this number.
If you haven't decided whether or not to hire a management company, it's important you learn about these real estate investing mistakes to avoid.
Read on to learn about things you should avoid regarding property management.
1. You Stay Involved In Tenant Communications
If you have decided to hire a property manager to handle the communications with tenants, a big mistake is to communicate with tenants yourself. The purpose of hiring a property manager is to handle any communications with the clients.
When you start to get involved in client communications, not only will you be taking on more responsibilities than you might want, but you could confuse the tenants.
Tenants should know who they should contact at all times without any confusion.
2. You Participate in Tenant Selection
Although it is your property and you want only reliable tenants to live there, you should trust the property management company.
Most property management companies have a set of guidelines and requirements for each tenant. They will screen tenants before approving them to rent your property.
If they become problem tenants, they will not renew them for another year. Trusting the management company you hire means you won't have to involve yourself in the tenant selection process.
3. Downgrading Appliances
When tenants move into a unit, they expect everything to work properly. However, if an appliance breaks, you are responsible for replacing it with an appliance of equal or better quality.
If you downgrade an appliance, they might feel like they can't trust you can keep up with the maintenance of the unit, and you could lose them as a tenant.
4. Not Making Rent Adjustments
Your rent prices need to remain competitive. If you don't get any activity in the first few weeks after you post a property for rent, don't be afraid to drop the price a bit.
One of the reasons why your unit might not be getting any activity is search filters. For example, if you list your property for $2,100 a month, you might miss out on tenants that have set their price limit at $2000.
If you're willing to drop the price down even by $100, you might be able to get more inquiries. Even if it seems like you're losing money on monthly rent, remember you also lose money the longer the property is on the market.
5. Not Hiring a Professional Cleaning Service
Another mistake landlords make is not hiring a professional cleaning service. When tenants see a potential property for the first time, they expect it to be spotless.
No tenant wants to picture living in a dirty property. After a tenant moves out, it's recommended you hire a professional cleaning service to get the unit ready.
Are You Ready to Hire a Property Management Company?
Now that you know about these real estate investing tips, you're ready to choose the right company for you.
Remember, you should avoid communicating directly with tenants, hire a professional cleaner, and adjusts prices as necessary.
Are you ready to hire a property management company? Contact us today to learn about our services if you're in the Denver area.