5 Property Management Mistakes You Don’t Know You Are Making

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How long has it been since you bought your house and have been taking care of it?

The longer you have done this, the more you would know about the diverse problems that are likely to pop up.

But sometimes even extensive experience with taking care of your house cannot prevent you from making the same mistake(s) over and over again simply because of doing a certain thing habitually.

Regardless, of how normal these mistakes may seem to you, it is always good to learn from others’ experience.

It will help you with the sorts of decisions that will not only help solve problems in a cost effective way, but also prevent problems from taking place in the first place. Following are five common property management mistakes that many owners make.

Handling Repairs

It is very difficult to strike a balance between quality and cost effectiveness.

Some property owners often hire the person who charges them the least when it comes to getting repair and other work done.

This leads them to compromise the quality in the pursuit of saving money. Low quality work leads to faster depreciation and the earlier than normal need of another repair – thus, loss of money.

At the same time, there are those property owners who choose contractors that overcharge them.

This too, makes them lose money.

The best way to get a repair or any other sort of work done is to get quotes from two to three different contractors while seeing samples of their work.

Choose the contractor that offers a package with a balanced mix of price and quality.

Ignored Inspection

A lot of owners trust their tenants so much that they stop paying regular visits to their property to check on areas of the house that might need attention.

‘Prevention is better than cure’ is a well know idiom but is often ignored in the practical sense.

There are many parts of a house such as the ceiling and sewerage system, problems with which if not detected at the initial stage, can lead to huge losses. Hence, if you haven’t been checking on your property and are banking on your tenant to update you, we suggest you to do the opposite.

 

Measly Maintenance

Most people have the ‘if it ain’t broke, don’t fix it’ mentality. And such mentality usually keeps property owners happy but only for a while.

Because when the ‘broke’ object does come to their notice, it has been so broken that it requires almost a fortune to get fixed.

A more sensible way of handling property is to take a proactive approach at maintenance.

Allot a fixed amount of money to spend on your property regardless of problems that may or may not occur. This will help you nip many problems in the bud and save money too.

 

Reverse Revenue

Right after a tenant leaves, some landlords think of doing the repair and maintenance work themselves to save money.

What they don’t realize is that the time taken by them to do the work can get extended to a very long period.

Had a professional worker been hired for this task, the work might have been done for a higher cost but would have left the landlord with more money because of the work getting completed quickly and the tenants moving in earlier.

 

Risky Repairs

A lot of times, tenants ask their landlords to allow them to make the repairs that their house requires. Landlords look at this opportunity as a way to save money.

However, what they don’t know is that if the tenant gets hurt in some way while making the repair, he/she can sue the landlord for ‘workers compensation’.  Now that is one big property management mistake.

Is there a mistake that you as a landlord made but later learn from?

I would love it if you could share it with us in the comment boxes below.

Photo Credit: mrbill

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About Rana

Rana is an experienced property manager and the editor of Contract Properties blog. Google+