Owning a rental property can be a great way to generate income and build wealth, but it’s important to remember that Christchurch Property Management is a business. If you’re not careful, you can make some costly mistakes that can jeopardise your profits and even your property. Here are the five biggest mistakes people make when it comes to property management.
- Not screening tenants adequately.
One of the most common mistakes that property managers make is not screening tenants thoroughly. This can lead to damages, missed rent payments, and even eviction proceedings. Make sure that you are asking the right questions and checking references before renting to someone. It’s also important to have a clear agreement in place that outlines the tenant’s responsibilities and your expectations.
- Not charging enough rent.
One of the biggest mistakes you can make as a property manager is to charge too little rent. Remember, you’re providing a valuable service, and you need to be compensated accordingly. Charging too little rent can lead to a host of problems, including:
- Tenants who don’t take care of the property
- Tenants who are late on rent or violate their lease agreements
- Lowball offers from potential buyers or tenants
- Difficulty finding good tenants or buyers
- A decrease in the value of your property
- Not collecting rent on time.
One of the biggest mistakes a property manager can make is not collecting rent on time. Not only will this delay your cash flow, but you can also start to build up a bad reputation with your tenants. Make sure you have a clear system in place for rent collection and remind your tenants about upcoming payments well in advance. If you do have to evict a tenant, make sure you do so in a timely manner and always follow your state’s laws and regulations.
- Not maintaining the property.
One of the most common Christchurch Property Management mistakes is failing to keep up with maintenance. This can include everything from keeping the grounds clean and tidy to fixing broken appliances and fixtures. Not only will this make your property look bad, but it can also be dangerous and lead to costly repairs down the road. Make sure you have a plan in place for regular maintenance and make sure your team is on top of things!
- Taking on too many properties.
One of the biggest mistakes you can make as a property manager is taking on too many properties. When you have too many tenants to manage, you can quickly become overwhelmed. This can lead to poor communication, missed rent payments and other problems. It’s important to be realistic about your abilities and only take on as many properties as you can handle. Otherwise, you’ll only be doing a disservice to yourself and your tenants.
These are just five of the biggest mistakes that property managers can make – and they’re all easily avoidable. If you’re looking for help with Christchurch Property Management, get in touch with the team at our Christchurch office – we’re more than happy to help you out.