Property management is a significant aspect of the real estate industry. To secure a successful spot, you need to enhance key strategies constantly and maintain professional relationships with clients and tenants.
Keep in mind that even a few mistakes can break your professional streak. To continue propelling the business to success, here are five property management mistakes that you should avoid:
1. Neglecting a written agreement that ensures your protection
As industry authority American Heritage Properties explains, the worst possible mistake of a property manager is to fail in drafting a written property management agreement. With an expressly stated agreement, you can clarify your responsibilities as the property manager, and the client’s duties as the property owner. In disputes, this can serve as your protection against legal cases.
2. Failing to place a security deposit in the proper trust account
Fund mismanagement is one of the most common issues that ruin tenant-property manager relationships. Make sure to place the right security deposit in the proper trust account. If not, you would need to shell out your own money to pay for the damages.
3. Creating a makeshift lease agreement
A property agreement serves as your protection. Creating a makeshift lease agreement may cause you lots of trouble and headaches. Draw up a lease with an attorney, and check if the indicated items comply with the laws while meeting your needs.
4. Incorporating lease-purchase agreement into the lease agreement
Keep separate documents for leasing and purchasing agreements. This can help you to easily determine the legal grounds, especially when in court. With clear agreements, you can fight for your rights wisely.
5. Not documenting properly
Proper documentation of move-in and move-out details are important in property management. Conduct personal inspections, and complete a move-in or move-out checklist. Establish an open communication line with your tenants. This can help you in easily raising concerns with your tenants.
Expand your real estate business by enhancing property management. At the end of the day, success boils down to two things: good relationships and proper management. By implementing the right strategies, you can nurture a growing relationship with your tenants while taking care of your properties.