Investment property management can get very difficult from time to time, especially if you are not a professional manager. You are prone to errors if you are not an expert, and although some errors at times may not be a big deal, sometimes they can cost you your entire investment. Here are three investment property management mistakes that you should definitely avoid when you’re running your own investment property.
Not all tenants are nice, and some tenants can get particularly troublesome. An investment property management pro-tip: Before you accept a tenant into your property, always make sure to conduct a background check. Bad or troublesome tenants may miss paying rents on time, and, in some cases, some of them may even harbor criminal activities in their units. This could seriously damage the reputation and the credibility of your property, thus reducing your rent value and causing tenants to avoid your property altogether.
One of the key features in a successful investment property venture is communication between the landlord and the tenants. If the tenants encounter any issue, they will communicate the issues directly to the landlord. A lack of communication between the two parties will result in the problems not being solved at all, and the tenants will continue to be bothered by them. Start making small talks with your tenants from time to time to gain a better understanding of their issues and to be more effective in helping them.
Increasing the rents is a natural thing, as inflation increases the costs of living every year. If you don’t increase your rents to catch up with inflation, your investment property won’t make as much profit, leaving you struggling for years to come. What you should do is to take some time to look into the market and see if there is a trend to increase the rent. Research into the trend, and determine for yourself whether it is justified or not. If you think it’s time to follow the market and increase the rents, you may have to find a way to break it to your tenants, as they certainly won’t like this. The key is to be frank and polite. Most of them will understand and comply with this increase in the rents.
There are a lot of things that can go wrong when you manage your investment property, and that’s why you shouldn’t do this alone. As one of the best investment property management companies, MYND is committed to giving you the best services at the most reasonable rate. Our team of qualified experts has had numerous hands-on projects in different sectors of investment property, and they can’t wait to give you their advice and services. Interested in getting our experts to help you with managing your property? Call us now for more information!