Negligence = Risk
When It Comes to Investment Rental Properties, Negligence Equals Risk
NEGLIGENCE. Noun: "Failure to take proper care in doing something."
Having a successful real estate investment property doesn't have to be difficult. It won't necessarily be easy, but it doesn't need to be an extremely challenging journey. The key to avoiding the bad experiences and horror stories that scare people away from real estate investing is to understand a few simple rules. The most important of which is this.
Negligence EQUALS risk.
All other rules fall under this umbrella because negligence can happen on any level. A lapse in judgment, a mistake, or an outright failure to do the basics can lead to catastrophic results. However, you don't need to go down this path and learn the hard way. You can take precautions and understand how to do your due diligence when it comes to your rental property.
What Are the Risks of Negligence?
Negligence means "failure to take proper care in doing something." When it comes to renting out your property, many areas need to be “properly taken care” of so that your property has a chance to be a success.
Not only that, negligence can lead to worse outcomes than lost income. Your reputation can be tarnished, the safety of your tenants can be put at risk, and your investment can be lost if you don't take proper care and are negligent of the needs of your property and tenants.
7 Negative Outcomes Due to Negligence
Attentive property management mitigates potential negative outcomes, like financial loss or legal issues. This blog delves into seven risks of negligence and how Centurion Property Management's professional approach prevents such issues.
Reduced Safety and Security
By neglecting to properly maintain your property, you are inviting a host of trouble into your life. What could at one point, be a simple and fairly inexpensive maintenance service could eventually become a safety hazard for tenants and visitors. This can include walks not being maintained, flooring repairs that fix tripping hazards, water leaks, and more. The safety of your tenants in your property is partially your responsibility, and you cannot neglect that.
If you don't maintain the locks, doors, and windows, there are potential safety concerns for your tenants. If you refuse to fix a fence or a fence lock, that may compromise your tenant's safety. All of these potential situations have negative outcomes for you as a landlord.
Increased Liability
If you neglect to do the proper repairs or follow proper procedures in your rental property, you may be considered legally liable if there are injuries or financial losses. Even if you are not found to be liable, the cost of court, lawyers, and the lost time and stress are not worth it. Take proper care of your property and your tenants.
Higher Operating Costs
It is well known that high turnover increases operating costs dramatically. The best way to avoid this is to be on top of all the issues that need attention. This helps if you have a professional property management company to do those tasks for you.
Neglecting the areas like tenant screening and inspections can cost you… big time. Avoid these high operating costs by being diligent with your screening and upkeep.
Less Curb Appeal
Negligence to the exterior of your property leads to a dramatically decreased curb appeal. If your home is not appealing, the type of tenants that you want to rent to, long-term tenants, may not want to rent because of the look of the home.
Regular maintenance and upkeep will keep this from happening. A total makeover due to a lack of regular maintenance ends up costing far more in the end.
Reduced Income and Value
A home that is neglected and has potentially had bad tenants will always have a lower value than a home that has been properly cared for. Neglected properties can't ask for top-tier rent due to the state of the place.
Dissatisfied Tenants
Dissatisfied tenants have a multitude of negative consequences for you and your property.
Bad word of mouth can irreparably hurt your reputation.
More damage and disrepair to your property. It turns out dissatisfied tenants care less about the rental unit than happy tenants.
Dissatisfied tenants are more likely to break a lease, have pets when they are not supposed to, or have other people living with them when they are not supposed to. Satisfied tenants follow the rules, and dissatisfied ones do not.
Higher Insurance Premiums
If there are instances that involve insurance companies at your property, particularly if there are multiple instances in one location, you will pay for it in higher insurance premiums. Neglecting to deal with tenant or maintenance issues will cost you more than the cost to fix or replace something. Insurance premiums rise, and your overhead can stay elevated for years after only a few instances that involve insurance companies.
Want to Avoid the Risk that Comes with Negligence?
Using a professional property management company like Centurion Property Management will allow you to avoid the risks of negligence by having a team of professionals take care of your property. Centurion Property Management is proud to maintain our client's properties as if they are our own and we strive to exceed the expectations of our clients and their tenants every day. Reach out today to see how we can mitigate these risks for you.
