Property management can be challenging, but it is one of the most important and beneficial tools to have as a real estate investor. As the rental property owner and the landlord, you have to wear a lot of hats on a daily basis. It can be a demanding job as you have to juggle three main responsibilities – property management, tenant management, and financial management. In order to become a Certified Property Manager (CPM), one must hold a real estate broker’s license or a property management license in order to effectively fulfill the three main responsibilities we have mentioned above.
At first glance, it may seem easy to maintain a rental property, but not all people are born with management skills and the means to learn how to effectively manage rental properties. If you have decided to turn your old house into a rental home to earn a passive income, here are some of the common mistakes we often see most DIY landlords consult us with and a few tips to help you avoid them.
6 Common Mistakes to Avoid When Self-Managing Your Investment Property
1. Lack of market awareness and landlord and tenant laws may result in legal troubles. To put yourself at a competitive advantage, you need to check similar local active listings in your area so you can set the right price and raise your rental fee at the right time. Refusing to make a necessary repair, entering the rental home unannounced, or raising your rent and evicting a tenant just because you don’t like them all spell legal trouble.
2. Not creating a solid rental agreement that fits your property and local state laws can result in serious legal trouble. The rental or lease agreement is the most important document a landlord and a tenant can share, which outlines both of their responsibilities. It’s a good idea to hire a lawyer to write the agreement or have a lawyer check the contract before it is presented to the tenant for signing.
3. Failure to properly screen tenants means finding the wrong tenants. Tenant screening is an important process, your second line of defense after a solid lease agreement in order to ensure that the tenant is the right fit for your rental property and will be a consistent, long-term paying tenant. Creating a solid resident selection criteria allows you to avoid property damage, late rental payments, and the long process of eviction in Texas.
4. Not automating rent payment, tenant communications, bookkeeping, accounting, and maintenance requests. Automation, especially turning rental payments online, can free up your time and allow you to avoid lost receipts and documents, as well as important communications. As a landlord, you need to keep track of everything like repair requests, property damage, and receipts, so you need to have them all in one place that you and your tenant can access to also avoid legal disputes in the future.
5. Not working with licensed and insured professional vendors and contractors can rack up a pretty hefty bill and may not meet your state’s health and safety requirements. Landlords need to comply with their local health and safety laws to ensure that their tenants are safe from accidents and disease.
6. Lack of a consistent schedule to perform regular inspections and address emergencies and repairs. Putting off routine checks can be a costly problem. So, have a schedule and be consistent in checking your property. Addressing maintenance requests as quickly as possible will help you preserve the property and your reputation with your tenants.
Managing a property is no easy job, indeed. But it is profitable only when done correctly. With the right knowledge and guidance, you can avoid costly and frustrating pitfalls of self-managing and become a better self-managed landlord.
Apogee Properties has years of experience that will help you simplify property management to eliminate these mistakes and guide you toward quality property investment strategies that are effective, efficient, and affordable. Contact us to learn more about our property management services and what we can do for you and your rental property!
Work with Apogee Properties
Apogee Properties is Houston’s Premier Property Management Company. We work and live in Houston, and our property managers are local. We’ve been in business for more than a decade, providing comprehensive property management services in the Houston region, ranging from a studio condo to a multi-family million-dollar estate. Contact us to learn more about our property management services, and what we can do for you and your rental property.
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