Property management can be a very daunting and fickle task to undertake—it can either be a sound investment or a trying task not worth the profits. Whether you are managing the property for someone who owns the property or you own the property yourself, the task of property management can be a rewarding one despite the associated difficulties. As property management often involves a diverse clientele and detailed agreements, there can be a large margin for error. Below are five property management mistakes you must avoid in order to reduce your headaches and capitalize on your investment.
Not screening tenants
Even though the consequences and risks may be high, it is not unheard of for landlords to bypass screening new tenants. This can be such a large issue, for a potential tenant could exploit your trust and make you suffer large financial losses. Ensure you always screen your tenant with a rental application, criminal background check, confirm their employment, and collect the fee for a credit report. Following these steps will help you work towards ensuring you will have a trustworthy potential tenant.
No move-in and move-out form
You should always do a move-in and move-out inspection with your tenant. You need to be able to have documentation of the condition of the property at move-in and move-out times. This way you will have proof and proper documentation of any damages that a tenant causes during the duration they are on the property.
You combine lease purchase and lease agreements
Always ensure that a lease purchase agreement and a simple lease agreement are very distinct when dealing with clients. You need to properly document which one a tenant has, and ensure both types of documents were drawn up with the aid of an attorney so that they are correct. If the documents are too confusing, then it can be difficult to discern whether a tenant is renting the property or owning the property.
Failing to do a routine inspection
One of the most important aspects of property management is the maintenance of any properties. A lot can happen to a property, and you want to ensure that there are no safety concerns to your tenant or the structure of the property itself. Conducting a routine inspection will allow you to identify any problems before they become a more serious issue.
Discriminating against tenants
Every tenant, or potential tenant, you come into contact with will be different from the previous one. Whatever each individual case may be, it is never acceptable, or legal, to discriminate against a potential tenant. It doesn’t matter what their personal characteristics or lifestyle choices are—you cannot let it affect your judgement.
There are many mistakes that can be avoided if you properly apply yourself to the task of property management. As long as you take the time to do all processes correctly, and not cut corners, then you should face no opposition from tenants and their attorneys. To learn more about property management, visit the website for Benefit National today!