Have you just bought your first rental property? Below are several rental property management mistakes that you should avoid.
Mistake 1: Getting the Wrong Tenants
Every rental property owner wants a tenant who will pay on time and will not wreck the property. However, some landlords may end up with tenants that default on their rent for numerous months. How can you avoid such troublesome tenants? Spare no expense during the process of screening prospective tenants. For example, design an interview form that all intending tenants should fill out before you conduct a face-to-face interview. That form should include the clause that the individual gives you permission to get their credit history or talk to all their past landlords. Checking their credit history and contacting their past or current landlords can enable you to ensure that their finances and rent history indicates that they will not cause you any problems.
Mistake 2: Not Giving Ample Attention to Advertising
You are likely to attain your objectives if you handle matters of advertising your rental property seriously. For example, do not wait until a tenant has given you notice that they will leave so that you begin the advertising process. The time will be too little for you to conduct an effective advertising campaign. Instead, start reviewing the client at least two months before their rental period is up. In case of any red flags, such as delayed payments, you should start advertising as you give that tenant notice that you will not be extending or renewing their rental agreement. Such a proactive approach will ensure that you will have enough time to screen new tenants as you get the property ready for the new occupant.
Mistake 3: Not Automating Rent Collection
You should never collect your rent payments in person. Such a method will expose you to the possibility of spending a lot of time and money chasing down tenants to receive the rent cheque. You also expose yourself to having to listen to endless excuses about their delay to remit the rent payment. Such delays can affect your ability to pay the mortgage on that property. It is better to acquire an automated system so that all rent is collected when it is due. Penalties can also be deducted automatically in case of delays.
In case of any problems, seek advice from real estate experts so that they can help you to manage the property professionally. This will increase your chances of benefitting from the property. For more information on finding rental properties, contact a local real estate agent.