In this blog, we are sharing our list of the top 10 mistakes that landlords and investors make when they’re managing their own properties. This is based on our experience, and we encourage you to avoid these costly errors.
- Underestimating the time it takes to effectively manage tenants and rentals.
- Underestimating the details that are involved in property management - and there are a lot of details.
- Not considering the opportunity costs, especially for those who consider themselves investors or who want to go down the investor path. You need to make sure you focus on your strengths, growing portfolios and then letting others manage the details for you.
- Failing to understand the time value of money. This is an especially huge mistake in relation to repairs and vacancy loss. Generally, repairs will only get more expensive over time and a dollar today or rent today is worth more than tomorrow.
- Trusting information without verifying it.
- Failing to do a thorough tenant screening or not doing any kind of screening at all.
- Not having established systems, processes and protocols in place. This is not only inefficient; it can also set you up for liability. For example, if you don’t treat everyone the same all the time, you could face a fair housing claim.
- Not staying current with the local rental market. You need to know where rents are, what kinds of specials are needed to attract tenants, which amenities are highly desirable and what the most effective advertising mediums are. These things change over time.
- Failing to stay educated and updated on the industry and its best practices. Not staying current with changing laws in the industry. Even in the last several years, we have seen a lot of laws change. These laws affect the rental industry and you can count on them evolving at least once a year.
Hopefully this list will help you avoid the blind spots or seek professional property management help. If you have any questions, please contact us at Centurion Real Estate Management, and we’d be happy to tell you more.