01 Nov Common Property Owner Mistakes
Common Property Owner Mistakes
Many owners choose to be hands-on, and manage their properties without the help of a professional San Diego Property Management Company like Realty Management Group.
Some of the most common owner mistakes are:
Hiring a Real Estate Sales Agent
Even though any California agent is licensed to be a San Diego property manager, property management is a specialized segment of the industry that requires a specific skillset. Many agents are unfamiliar with the intricacies of the business. Failure to be current on laws, regulations, forms, etc. can expose an owner to increased liability.
Inadequately Screening Tenants
Owners will often search google for a tenant screening service. Most companies charge $15-$50 to provide a credit report and “screen” a tenant. These reports will provide you with about 20% of the information that is truly needed to adequately screen a tenant. The above-mentioned reports rarely take into consideration things such as: terrorism and Megan’s Law databases, past rental history, work history, etc.
Hiring a Leasing Service
Owners often think that once a tenant is found, the hard work is over. However, that is hardly the case. A Leasing Service has one main objective, lease as many properties as possible in the shortest amount of time. In an effort to move quicker, these companies often lack the adequate skills to properly screen and investigate a potential tenant. The first person to apply is often selected. If a terrible tenant is selected, you have to deal with it.
It is “good business” to be friendly and cordial to your tenants. However, many landlords become friends with their tenants, which will lead to preferential treatment at some point. Investment properties need to be treated as a business.
Failure to Update HOA Contact Info
If your investment property belongs in a community governed by a home owners association, it is imperative that you notify them of any address changes. Notices, late fees, etc., that go unanswered can lead to thousands in fines.
Not Hiring a Professional to Fix Repairs
Regardless of how handy an owner is, it is NEVER a good idea for an owner to make repairs to a property while it is occupied, without hiring a licensed tradesman. We could go on for hours on the many reasons owners should not complete repairs themselves.
Not Treating it Like a Business
It is extremely important that you treat your rental property like a business. You should have set rules, guidelines, and safeguards in place to protect your interests.
If you are in the market for a San Diego Property Management company, please consider Realty Management Group. We’ve been in business for over 10 years, manage over 300 properties, and truly treat your property as if it were our own.