The Top 5 Missteps of Property Management Companies
Opting for an inexperienced property management (PM) company can prove to be a costly mistake. Annually, thousands join the ranks of property managers. However, regrettably, many lack the necessary knowledge and experience. Consequently, they fall prey to certain pitfalls that can burden their clients with wasted time, energy, and financial resources.
An array of issues may arise, ranging from financial losses and strained relationships to missed opportunities. These issues are compounded by the typical problems encountered with tenants, including property damage, rent defaults, and misuse of utilities.
Moreover, if your PM fails to recognize or address these mistakes and blunders, they will persist year after year.
This post delves into the top 5 blunders commonly made by PM companies.
1. Inadequate Marketing Strategies
Irrespective of the property's appeal, proper marketing is essential to garner attention. With numerous listings vying for notice, it is crucial to educate oneself on the principles of effective property listing. Creating a captivating title that highlights the property's strengths, crafting a compelling property description, providing accurate details, and incorporating high-quality images are all strongly recommended.
2. Neglecting Credit Reports and Background Checks
First impressions can be deceiving, and even seemingly pleasant applicants may not make ideal tenants. A competent PM will devote time and effort to thorough tenant screenings, ensuring the prospective tenant is financially responsible, punctual with rent payments, and maintains the property well. In contrast, an inept PM may accept tenants based on gut feelings, overlooking their poor credit history.
3. Disregarding Maintenance Issues
As a landlord, PMs bear a legal and ethical duty to provide tenants with safe and comfortable living conditions. Failure to fulfill this responsibility swiftly deteriorates their relationships with clients and tenants alike.
4. Delaying the Eviction Process
A property manager possesses the right to initiate eviction proceedings if tenants breach the terms of their rental agreement. While it may be imprudent to evict tenants over minor issues, documenting every violation and providing written or electronic copies to the tenant is advisable. When a tenant consistently fails to pay rent on time, creates excessive noise, damages the property, or violates other lease rules, commencing the eviction process is justified.
5. Violating Tenants' Privacy Rights
Once rented, the property no longer solely belongs to the landlord. As such, tenants have a right to privacy that must be respected. Landlords should be aware that, in most cases, prior notice is required before entering the property. The specifics of these regulations may vary by state, but on average, a 24-48 hour notice is mandated for scheduled visits. Moreover, some states only permit visits during regular business hours. However, emergency situations such as fires or floods are exceptions to these rules.
We can assist you in making an informed decision
At RPS Inc., our experienced team handles every aspect of your rental business for a nominal monthly fee. Furthermore, our professional marketing strategies ensure that we can rent your home in under 30 days on average.
With a meticulous applicant screening process, we proudly boast an eviction rate of less than 1%. If you seek a dependable local PM group, give us a call today to learn more.