4 property management mistakes to avoid

Property management can have its ups and downs because fundamentally it’s about managing humans, who we all know can be unpredictable!

Professional property managers, though, have best practice policies and procedures to ensure the process runs as smoothly as possible. 677889667

Private landlords, and bad property managers, on the other hand often make mistakes that can cost them dearly in business as well as reputation.

Here are four of them.

1. Not communicating

One of my biggest bugbears is a lack of communication with landlords and tenants.  

Metropole Property Management

At the start of every tenancy, it’s best practice to develop an understanding about the level – and the medium – that suits the tenant.

Likewise, with landlords when they appoint a property manager.

Some landlords prefer a more hands-off approach, while others would prefer to be kept in the loop every step of the way.

Whatever the frequency, it’s vital that important information is communicated as soon as possible, such as if a tenant has broken the lease or repairs need to be organised.

Failing to communicate clearly will only end up with unhappy tenants and landlords and no property manager wants that.

2. Not hiring the best contractors

The old adage of you get what you pay for is entirely relevant for property management.  176436 S 2015

Some property managers or private landlords want to scrimp and save as much as possible, so they choose contractors such as plumbers and electricians based solely on price.

This is never a sound strategy as repairs at investment properties should be completed by the best person for the job to ensure that the property is well maintained as well as safe for the tenant.

Second-class workmanship will likely just lead to greater and more expensive problems down the line.

3. Not screening tenants properly

Professional property managers have a robust tenant screening process, which ensures they can secure the very best applicants for their landlord clients. 040 S 2015

They use this system regardless of the market conditions.

However, the same can’t be said for bad property managers, whose desire to find a tenant is greater than the time spent on checking their credentials.

Their sloppiness usually becomes even more pronounced in a soft rental market because potential tenants are thin on the ground, so they usually tick and flick applicants to supposedly keep everyone happy.

Of course, this rarely has a happy ending.

4. Not updating software

There’s no doubt that technology and software changes rapidly but that is no excuse to not have the most up-to-date software for property management.

Property managers that are blindly loyal to legacy software think they are saving money when the opposite is in fact true. 176436040889 S 2015

Not only are they probably inefficient, their system is so antiquated that it’s a gateway for virus and hackers to wreak havoc on confidential information and data.

Professional property managers keep abreast of the latest software available, including landlord portals, and ensure that their systems are top of the range.

At the end of the day, property management is a profession that requires skill, experience and dedication.

If your property manager does any of the above, then it might time to consider moving to one who takes their responsibility seriously.

Your investment property and portfolio are far too important to your financial future to do otherwise.

Property managment 570x292



icon-podcast-large

SUBSCRIBE & DON'T MISS A SINGLE EPISODE OF MICHAEL YARDNEY'S PODCAST

Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.

 

NEED HELP LISTENING TO MICHAEL YARDNEY'S PODCAST FROM YOUR PHONE OR TABLET?

We have created easy to follow instructions for you whether you're on iPhone / iPad or an Android device.

icon-email-large

PREFER TO SUBSCRIBE VIA EMAIL?

Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.


Avatar for Property Update

About

Leanne is National Director of Property Management at Metropole and a Property Professional in every sense of the word. With 20 years' experience in real estate, Leanne brings a wealth of knowledge and experience to maximise returns and minimise stress for their clients. Visit: www.metropolepropertymanagement.com.au


facebook
twitter
google
0
linkedin
0
email

Michael's Daily Insights

Join Michael Yardney's inner circle of daily subscribers.

NOTE: this daily service is a different subscription to our weekly newsletter so...

REGISTER NOW

Subscribe!