"Good Management Doesn't Cost, It Pays!"
The Six Biggest Mistakes by Rental Property Owners
1. JUST LOOKING IN THE LOCAL NEWSPAPER CLASSIFIED ADS FOR A RENTAL RATE. Prospective tenants have many ways to check comparable rental rates besides the newspaper: local property managers, Realtors, the Internet listings. Property owners renting their own property need to check these sources in addition to the newspaper.
For apartment rental rates, owners should check the Internet listings on Yahoo, RentNet and Springstreet as well as any local apartment association website. Owners of single family homes should also check Yahoo, as well as the RentConnection and HomeRentals.net sites as these are excellent resources for marketing single family homes, townhouses and condominiums.
2. USING OTHER RENTAL COMPARISONS WITHOUT INSPECTING THE COMPARISONS TO SEE IF THESE RENTALS ARE TRULY COMPARABLE PROPERTIES AND HOW THE AMENITIES DIFFER.
3. VACANCIES ARE BAD, BUT ... planned vacancies are good. Vacancies allow for major renovations and repair projects replacing a bathroom in a property with only 1 bath, rebuilding a dock/porch/patio, replacing carpet/refinishing hardwood floors. Sometimes these can be done with a tenant in place; however, with a little pre-planning, a lot of hassles and inconvenience can be avoided. Another reason is to put the property in the "proper rental cycle" for your area.
4. USING A POORLY WRITTEN OR PREPARED LEASE. There are numerous sources for good lease documents including a low-cost computer program that can be purchased from Nolo Press (Lease Writer). In a pinch, forms can be purchased from the local Realtor association. From whatever source, the forms should be no more than 3 years old and clearly state the duties of the resident and property owner.
5. NOT CHECKING ALL PROSPECTIVE ADULT APPLICANTS' RENTAL/CREDIT HISTORY. This is the easiest part of the process and is most often the portion of the process that rental property owners are least likely to perform. State laws allow for the collection of a credit check fee to allow rental property owners to check a would-be rental resident's credit.
6. NOT DECIDING WHAT BUSINESS YOU ARE IN. What business are you in? Do you make a living managing property? Are you a member of the apartment association? Do you keep up with current laws (such as having an on-site manager sign a contract which limits their work hours to equal $6.75 per hour divided by their compensation - if not, you owe the manager $6.75 x 24 x 30 or $4,860.00 per month!)?
If you are a good manager, enjoy the management business and are licensed by the State to manage property, you are a professional. If you have another profession and manage on the side, in your spare time, you should call Kelly at Real Estate Management Services. He will explain why you no longer need to make their 6 mistakes.
"We prove good management doesn't cost, it Pays!" - Call Kelly at (310) 793-9500